University of Pune 2011-4th Sem B.B.A BUSINESS TAXATION ( ) - - Question Paper

Total No. of ques. : 7] [total no. of Printed Pages : 3

[3972]-[403]
B.B.A.(Semester - IV) exam - 2011
BUSINESS TAXATION
(New 2008 Pattern)

Time:3 Hours] [Max. Marks:80

Instructions :

(1) Attempt any 4 ques..
(2) All ques. carry 20 marks.


Q.1) explain definition of 'Person'.What is its importance?

Q.2) discuss provisions of Allowances,which are fully and partly Exempt
under Income Tax Act,1961 ?

Q.3) discuss provisions of the income tax act regarding:

(a) Long Term Capital Gain on Transfer of Residential House.

(b) Short Term Capital Gain on Transfer of Listed Securities.

Q.4) discuss deductions in respect of Certain Payments from Gross Total
Income U/s 80C, 80D and 80E.

Q.5) Mr. Suraj, an employee of a Sole Proprietary Firm ,Pune has provided
the subsequent info for the Financial Year, 2010-11

Rs.
________________________________________________________________________________
Salary 1,08,000

Bonus 20,000

Commission on sales @ 5% of turnover 30,000

Contribution to Unrecognised Provident Fund made by both, 11,700
the employer and himself.

Interest credited to WRPF Balance @ 12% 11,000

Vehicle Allowance (spent for office purpose) 4,800

Medical Allowance 4,800

Rent Free Furnished accommodation for which employer pays a
rent of Rs. 1,800 p.m.

Cost of Furniture in the accommodation 30,000

Watchman's Salary paid by the employer 3,000 p.m.

Gas, Electricity and Water Bill reimbursed by
the employer Hospital Bill paid by the employer 13,000

Hospital Bill paid by the employer 18,500

He has paid Rs. 2,600 as Professional Tax.

calculate his Net Salary for the A. Y. 2011-12.

Q.6) Mr. Sagar is a Registered Medical Practitioner. He keeps his books on cash basis
and his summarized cash account for the year ended 31st march,2011 is as under:

________________________________________________________________________________
Particulars Rs. Particulars Rs.
________________________________________________________________________________
Receipts Payments

Balance b/d 1,10,000 Clinic Rent 15,000

Visiting Fees 65,000 Staff Salaries 80,000

Consultation Fees 65,000 Electricity and Water 9,000

Sale of Medicines 25,000 Medical Books 4,000

sale of Old Equipment
at Book Value 8,000 Purchase of Medicines 30,000

Operation Theatre Rent 15,000 Motor Car Expenses 15,000

Interest and Dividend 20,000 Audit Fees 20,000

Staff Welfare Expenses 8,000

Entertainment Expenses 6,000

Surgical Equipment 30,000

Balance c/d 91,000
________________________________________________________________________________
3,08,000 3,08,000
________________________________________________________________________________


Additional Information:

(1) Depreciation as per Income Tax Rules on motor Car for professional use Rs. 6,000.

(2) 1/3 of motor car expenses relate to his personal use.

(3) The rate of depreciation on surgical equipment is 15%. The W.D.V. of equipment
brought forward from earlier year was Rs. 23,000.

(4) Audit Fees include Income Tax appeal expenses Rs. 5,000.

calculate Taxable Income from Profession for the A.Y. 2011-12.

Q.7) Mr. Ram, a Senior Citizen of Pune, employed in Tata Ltd., furnished you the
subsequent info in respect of the F.Y. 2010-11:

(1) Basic Salary Rs. 25,000 p.m.

(2) Dearness Allowance : 20% of basic salary

(3) Transport Allowance : Rs. 12,000

(4) City Compensatory Allowance : Rs 1,500 p.m.

(5) Pension from the previous employer : Rs. 5,000 p.m.

(6) He had contributed Rs. 1,200 p.m. to the unrecognised Provident Fund and an equal
amount is contributed by the company.

(7) During the year, he has received interest on Government Security Rs. 18,000 (Gross)
and Family Pension of his spouse Rs. 3,000 p.m.

(8) He has self occupied property. On first January, 1996 he had borrowed Rs. 4,00,000
for acquisition of the house.

During the year he has paid Rs. 24,000 as principal, Rs. 32,000 as interest on this loan.
Municipal Taxes Rs. 3,000 and repairs Rs. 2,000.

(9) During the year he has made investment in national Saving Certificates of
Rs. 20,000 and has paid Rs. 18,000 as Premium on Life Insurance Policy of his son.

(10) The company has deducted Income Tax at Source Rs. 4,000 and Professional Tax Rs.3,300.

You are needed to complete Taxable Income and Tax Liability of Mr. Ram for Assessment
year 2011-12.


----------------------------

Earning:   Approval pending.