Bangalore University 2007 B.Com Income Tax - II - Question Paper

ii) Dividends from a foreign co. Rs. 8,000/-
iii) Winning from Horse Race (Net) Rs. 13,880/-
iv) Interest on debentures of a local authority Rs. 3,600/-
v) Interest on post office Savings Bank A/c. Rs. 750/-

7. Briefly explain any 5 powers of commissioner of Income Tax.

8. elaborate the kinds of assessments ? Briefly explain self assessment.

9. Mention the provisions to set-off and carry forward the subsequent losses.
i) Loss from house property and ii) Long Term Capital Loss.

part - C

ans any 3 ques.. (3x15=45)

10. Mr. Naremdra a practicing Chartered Accountant provide you the Receipts and Payments of his profession for the year ended 31-3-2006.

Receipts Rs.

Consultation 120000
Audit fees 150000
Appellate Tribunal Appearance 80000
Payment from clients 260000
Miscellaneous (Professional) 40000

Payments

Office expenses 75000
Office rent 36000
Salaries 60000
Printing and stationery 6000
Purchase of books (Annual publication) 5000
Subscription to C.A. Institute 12000
Travelling expenses 10000
Interest on Bank loan 8000
Donation to National Defence Fund 20000

Bank loan was taken for construction of his residential house. He is running his profession in his own building. 20% of traveling expenses are not allowed.

calculate his income from profession for the A.Y. 2006-07.

11. Dr. Gurudev, a medical practitioner, furnishes his Receipts and Payments Accountant for the previous year ended 2005-06. You are needed to calculate his income from profession for the A.Y. 2006-07.

Receipts and Payments Account
Rs. Rs.

Balance b/f 40000 Purchase of Professional books 30000
Visiting fee 120000 Membership fee of Medical Council 6000
Consultation fee 80000 House hold expenses 18000
Sale of Medicines 135000 Rent of clinic 24000
Salary as a part time Income tax 26000
Lecturer 96000 Purchase of medicine 100000
Gifts from patients 30000 Car expenses 40000
Interest on post office Electricity and water 12000
S/B A/c12000 Salary to staff 36000
Dividends from
Domestic Co. 10000 Surgical equipment 40000
Balance c/f 191000

523000 523000

Additional info :

a) 50% of motor car expenses relates to his personal use.
b) Depreciate car and surgical equipments by 15% and books by 100%
c) Gifts include Rs. 10000, received from his patients on his birthday gift.

12. calculate taxable capital gains for the A.Y. 2006-07 from the info provided beneath.

The assessee has purchased 1600 Equity shares of Rs. 10/-each for Rs. 60 per share on first January 1989 and paid brokerage of Rs. 2,000 and transfer fee of Rs. 1,000/- on first September 1991 the Co., issued 400 bonus shares to him. In November, 2004 the Co., issued 1000 rights shares at Rs. 30/- per share to him. On first October 2005, he sold 400 bonus shares and 600 rights shares at Rs. 120 per share. On first January 2006, he sold the remaining shares with him at Rs. 90/- per share. The cost inflation indices are 1988-89 = 161, 1991-92 = 199, 2004-05 = 480, 2005-06 = 497 (Assume that the assessee has not paid securities transaction tax.)

13. Mr. A a resident of India has furnished the subsequent incomes for the P.Y. 2005-06. calculate his income from other courses for the A.Y. 2006-07.

i) Winnings from crossword puzzles (Net) Rs. 6,940.
ii) Royalty from text book written by him (Gross) Rs. 45,000. (Admissible deductions Rs. 12,500).
iii) 8% interest on Rs. 40,000 Municipal Debentures.
iv) 10% Interest on Rs. 30,000 in 7% Capital Investment Bonds of GOI and received interest for the year.
v) Rs. 2,000 as interest on bank deposits.
vi) Income from undisclosed sources Rs. 10,000/-

14. Mr. Raju has the subsequent details of his incomes for the previous year 2005-06.

A) Being a Tax Consultant
i) Receipts :
Consultation fee Rs. 2,10,000
Arbitration Charges Rs. 60,000

ii) Payments :
Rent of Building Rs. 36,000 (1/3 portion used for his residence)
Electricity and water charges for the building Rs. 10,000/-
Salary to staff Rs. 24,000/-
Stationery and other expenses Rs. 20,000/-

B) Taxable Income from House property Rs. 35,000/-

C) During the year he had sold 500 equity shares at Rs. 45/- every which were purchased by him during 1995-96 at Rs. 15 every (The cost inflation Indices are 1995-96 = 281, 2005-06 = 497).

D) Taxable income from other sources Rs. 30,000/- Mr. Raju has paid the subsequent amounts.

i) LIC premium Rs. 12,000/-
ii) Purchased NSC worth Rs. 6,000/-
iii) Donation to a charitable recognized education institution Rs. 6,000/-
iv) Medical insurance premium paid by cash Rs. 2,000/-

calculate his total income for the A.Y. 2006-07.

Earning:   Approval pending.