Kerala University 2005 B.Com XII--WEALTH TAX AND GIFT TAX PROCEDURE AND PRACTICE - Question Paper

FOURTH SEMESTER B.Com. DEGREE EXAMINATION, APRIL/MAY 2005
(Vocational Course)

Branch : Tax Procedure and Practice

Paper XII--WEALTH TAX AND GIFT TAX PROCEDURE AND PRACTICE

Time : 3 Hours Maximum : 70 Marks
part A
- Answer any 5 ques..
every ques. carries two marks.


1. Define “Net Wealth" under the Wealth Tax Act ?
2. What is meant by "Debt" under the Wealth Tax Act?
3. Name the kinds of exempted assets under Wealth Tax Act.
4. Who is the "Donor" under Gift-Tax Act ?
5. Name any 4 gifts exempted under the Gift Tax Act.
6. What is "Impartible Estate" ?
7. Define "Gross Maintainable Rent".


part B
ans any 6 ques..
every ques. carries five marks.


8. Name any 5 guiding principles by which location of assets be evidenced.
9. Explain the meaning of "Debt owed" under the Wealth Tax Act.
10. How will you value jewellery under the Wealth Tax Act ?


(5 x two = 10 marks)

11. For the assessment year 2003-04, Mr. X submits the subsequent particulars of his assets and
liabilities. Determine his wealth tax liability on the assumption that X is resident /non-resident in India:-.
Jewellery in India-Rs. 64,00,000.

Residential house outside India-Rs. 31,70,000.

Capital borrowed for purchasing house' outside India-Rs. 28,000.

Capital borrowed for acquiring jewellery in India-Rs. 43,000.

12. The building is situated on a freehold plot of 18,000 sq. ft. The floor space index permissible is 2.
The built up floor area is 32,000 sq. ft. The net maintainable rent is Rs. 50,000 p.a. obtain out the
value of the building.


13. The net wealth (before provision of wealth tax) of Mr. R. is Rs. 14,00,000. calculate the Wealth tax
payable.
14. A Hindu undivided family consists of Mr. A, his widowed mother, his wife, his son, and a minor
daughter. He converts his self-acquired property worth Rs. 90,000 into joint family property. calculate the value of deemed gift.
15. What are the points worthnoting in relation to the evaluation by the Gift Tax Officer ?
(6 x five = 30 marks)


part C
Answer-any 2 ques..
every ques. carries 15 marks.

16. Briefly discuss the procedure for assessment under Wealth Tax Act 1957.

17. By whom is the gift-tax payable ? What happens when the donor is not traceable ?

18. Mr. R, a citizen of India and resident in India discloses the subsequent info for computing
his wealth tax liability on 31st March 2003 :-

(a) Immovable property in Paris-Rs. 3,00,000. (b) Cash in hand Rs. 50,000.

(c) Coparcenery interest in HUF-Rs. 1,50,000.

(d) Shares in Indian Companies held for more than six months prior to evaluation date-
Rs. 4,50,000.
Residential house-Rs. 1,80,000.

National Savings Certificates purchased on 15th June 2002-Rs. 85,000. Loan taken on Paris property-Rs. 1,00,000.

Outstanding electric and grocers' bills-Rs. 20,000.

Income-tax liability as per notice of demand served on 31st December 2001--Rs. 30,000.

calculate his net wealth.

19. Mr. R has the subsequent assets and liabilities on the evaluation date :-
(a) Residential house-Rs. 40 lakhs.
(b) A farm house 15 km. away from the local limits-Rs. 10 lakhs (from Kolkata).
(c) Cars for personal use-Rs. six lakhs. _
(d) Jewellery-Rs. 14 lakhs.
(e) Aircraft for personal use-Rs. 150 lakhs.
(f) Urban land (construction not permitted under the law)-Rs. 10 lakhs.
(g) Cash in hand-Rs. 1'/2 lakhs.
(h) Shops provided on rent----Rs. 20 lakhs.
(i) Gold deposit bonds-Rs. 10 lakhs.
(i) Loan taken to purchase the air craft Rs. 50 lakhs.
calculate Mr. R's Net Wealth.
(2 x 15 = 30 marks)

Earning:   Approval pending.