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Sikkim-Manipal University of Health Medical and Technological Sciences (SMUHMTS) 2009 B.B.A BB0019 – Business Taxation - Assignments for springsession - Question Paper

Sunday, 09 June 2013 09:40Web


1.A) Why is residential status of an assessee important for income tax purpose?
B) The subsequent items of incomes are received by Mr. Muralidhar for the previous
Year. obtain out the taxable income for the relevant assessment year if the assessee is
a) Resident b) Not –Ordinarily resident and c) Non-Resident.
i) Income from business in UK Rs.5 lakh, received there itself other than Rs.2 lakh
received in India
ii) Income from dividends of foreign companies received abroad Rs.3 lakh.
iii) Income from business in Bangladesh, business being controlled from India Rs.3 lakh
iv) Income from agriculture in Sri Lanka, 50% received in India Rs.6 lakh
v) Past untaxed Income earned outside India but brought into India during the
previous year.
vi) Income from pension received in India for the past services rendered in
Myamnar, Rs.2 lakh
vii) Income from house property in Nepal received and earned there itself Rs.4.5 lakh. (7 Marks)
2. Mrs. Savitha Rani is working as a chief sales executive, drawing a basic salary of Rs. 8,500 per month. Dearness pay is Rs.4,250 per month; entertainment allowance of Rs.4,000 per month; She spends almost Rs.5,000 for entertainment of the clients of the organization every month. She has been given with rent free furnished accommodation, fair value of which being Rs.12000 per month and the cost of furniture being Rs.2,00,000. She has been given with a mobile by the organization and the monthly charges on an avg. Rs.5,000 are paid by the organization. The employer pays Rs.2500 per month towards RPF and matching contribution is made by the employee. The interest on the accumulated balance of RPF at 15% interest amounted to Rs.15,000.
During the year, she paid insurance premium of Rs.60000 on her life policies. The employer has given her free use of a big car with services chauffeur and all the expenses of maintenance and driver salary are met by the employer. She has taken a medi-claim policy on her parents and the premium paid on them amounted to Rs.12000 per annum. Her income from dividends, interest and other sources amounted to Rs.3 lakh.
compute her total income and tax liability for the relevant assessment year.

3.Natesh owns 2 houses and provide their particulars for the previous year 2007-08 as under:
House A: He has let out to a friend at Rs.10000 per month who occupied it for eight months. Thereafter, it was let out at its market rent of Rs.20000 p.m. He has paid Rs.40000 as municipal taxes at 20% of MV. For re-roofing of the house he borrowed Rs.3,00,000 at 12% p.a. on 01-04-2007 from a friend. He has incurred legal expenses in this connection Rs.5000. The assessing officer denies deduction in respect of interest on a friendly loan.

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