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

3.The construction of house property was completed in March 2005 and was let out for residential purpose
4.Expenses on income tax proceedings include Rs.1000 paid for the preparation of return of income
5.Receipts outstanding from patients for 2007-08 amounted to Rs.8000
5.Mr. X purchased 10000 equity shares of TT company listed in stock exchanges in India and abroad and a constituent of BSE500 on 15th March 2005 per share. He sold the shares at Rs.5000 per share on 31st December 2007. The brokerage and securities transaction tax deducted were 0.5% and 0.75% respectively. Examine the liability of Mr. X to income tax for the assessment year 2008-09. Will your ans be various , if instead of selling the shares in the market , Mr X privately transferred the shares to his son at the identical price? ( Cost inflation factors: 2004-05 485; 2005-06: 497; 2006-07: 519; 2007-08: 551)
6.A) Diana, a lady, receives the subsequent gifts during the year ending 31-3-2008.
i)Rs.30000from her elder sister
ii)Rs.50000from the daughter of her elder sister
iii)Rs. 125000 from different friends on the occasion of her wedding.
explain the taxability or otherwise of these gifts in the hands of Diana. four marks
B) Amit, a captain in Indian army was killed at Kargil war. The widow of Amit was paid an ex gratia payment of Rs.50000 in March 2008, besides the family pension during the year of Rs.90000. She wants to know about the taxability of both the receipts. three marks
C) Srinivas purchased in 1992, 10000 shares of BMC Ltd., for Rs.5 lakh by borrowing money from a bank. He holds them as investments. He received dividend income on these shares of Rs.1,00,000 for the previous year 2007-08 on tenth December, 2007. He has paid interest of Rs. 85,000 on the loan to the bank. Please advise Srinivas , how should he deal with these facts in computing his income? 3 Marks
ASSIGNMENT
BBA-IV SEMESTER
SUBJECT CODE 0019 - BUSINESS TAXATION
4 CREDITS-60 MARKS
SET II
1. A) elaborate the differences ranging from direct tax and indirect tax? (3 Marks)
B) What rules of Income Tax, you adopt for reducing the tax on the income from
House Property? (7 Marks)

2. Mrs Saritha Rani is working as a Chief Sales Executive, drawing a basic salary of Rs. 10,500 per month. Dearness pay is Rs.5250 per month; entertainment allowance of Rs.5000 per month; She spends almost Rs.5,000 per month for entertaining the clients of the employer.. She has been provided house rent allowance of Rs.10000 per month and she pays a rent of Rs.12000 per month in Bangalore. She has been given with a mobile by the organization and the monthly charges on an avg. Rs.5000 are paid by the organization. The employer pays 20 per cent of basic salary towards RPF and matching contribution is made by the employee. The interest on the accumulated balance of RPF at 15% interest amounted to Rs.30000.

Earning:   Approval pending.