Institute of Chartered Financial Analysts of India (ICFAI) University 2008 C.A Accounts -PCC--08_ – 5 TAXATION.doc - Question Paper

(vi) She paid Rs.1,00,000 as tuition fee (not in the nature of development fees/ donation) to
the university for full time education of her daughter.
(vii) An amount of Rs.18,000 has also been paid by cheque on 27th March, 2008 for her
medical insurance premium.
From the above, calculate the total income and tax payable thereon by Dr. Smt. Niranjana for
the Assessment year 2008-09. (20 Marks)

ques. 3

(a) Mr. M is an area manager of M/s N. Steels Co. Ltd. During the financial year 2007-
08, he gets the subsequent emoluments from his employer:
Basic Salary
Up to 31.8.2007 Rs. 20,000 p.m.
From 1.9.2007 Rs. 25,000 p.m.
Transport allowance Rs. 2,000 p.m.
Contribution to recognised provident fund 15% of basic salary and D.A.
Children education allowance Rs. 500 p.m. for 2 children
City compensatory allowance Rs. 300 p.m.
Hostel expenses allowance Rs. 380 p.m. for 2 children
Tiffin allowance (actual expenses Rs. 3,700) Rs. 5,000 p.a.
Tax paid on employment Rs. 2,500
calculate taxable salary of Mr. M for the Assessment year 2008-09. (6 Marks)

(b) Mr. X owns 1 residential house in Mumbai. The house is having 2 units. 1st unit of
the house is self occupied by Mr. X and a different unit is rented for Rs.8,000 p.m. The
rented unit was vacant for two months during the year. The particulars of the house for the
previous year 2007-08 are as under:
Standard rent Rs. 1,62,000 p.a.
Municipal evaluation Rs. 1,90,000 p.a.
Fair rent Rs. 1,85,000 p. a
Municipal tax 15% of municipal evaluation
Light and water charges Rs. 500 p.m.
Interest on borrowed capital Rs. 1,500 p.m.
Lease money Rs. 1,200 p.a.
Insurance charges Rs. 3,000 p.a.
Repairs Rs. 12,000 p.a.
calculate income from house property of Mr. X for the A.Y. 2008-09. (9 Marks)

ques. 4

(a) Mr. P, a resident individual, furnishes the subsequent particulars of his income and other
details for the previous year 2007-08:
Rs.
(i) Income from salary 18,000
(ii) Net annual value of house property 70,000
(iii) Income from business 80,000
(iv) Income from speculative business 12,000
(v) Long term capital gain on sale of land 15,800
(vi) Loss on maintenance of race horse 9,000
(vii) Loss on gambling 8,000
Depreciation allowable under the Income-tax Act comes to Rs.8,000 for which no treatment is

Earning:   Approval pending.