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

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 and services of a 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 amounted to Rs.3 lakh.
compute her total income and tax liability for the relevant assessment year.
3. Mention with reasons the tax treatment of the subsequent items in the hands of an assessee.
a) Bonus received from LIC of Rs.15000 at the time of maturity of an endowment policy.
b) Gift of Rs. 40,000received from his dad.
c) Gift of Rs. 15000 received from a lawyer from his client in appreciation of services rendered
d) Interest of Rs.10000 received on income tax refund order dated 20th March 2008 but delivered on 16th April 2008.
e) Family pension received by the widow of a deceased employee.
f) Leave encashment of Rs. 50000, received by the legal heirs of an employee, who suddenly expired during service.
4. A residential house, purchased by Kishore Kumar in July 1989 for Rs.4,00,000, is now sold on first May 2007 for Rs.25 lakh. He paid 2% brokerage. Determine the capital gain in the subsequent cases:
a) He purchases a residential house in July 2006 for Rs.470000, constructs 1st floor on it by January 2008 at a cost of Rs.373024 and deposits Rs.400000 in a bank under capital gain scheme account on 31st December 2008 being the due date for furnishing return of income.
b) He purchases a residential house for Rs.1600000 on one September, 2007 but sale deed is executed in November 2008.
c) He constructs a house at a cost of Rs.1500000 by the end of October 2008, being the due date of furnishing return.
d) No house is purchased within 1 year before the date of transfer; he also fails to acquire any house by 31 October, 2008 , being the due date of furnishing return of income and no deposit is made under Capital Gains Scheme Account by the stated date.
e) He constructs residential house by April 2009 at a cost of Rs.20,00,000.
5. The subsequent is the profit and loss account of the United Plastic for the P.Y. 2007-08

Rs.

Rs.
To Op. Stock
30,000
By Sales
6,10,000
“ Purchases
1,59,000
“ Dividends (Gross)
6,000
“ Wages and Salaries
50,000
“ Rent from staff quarters
7,000
“ Rent
20,000
“ Interest on Govt.
Securities
50,000
“ Reserve for bad debts
10,000
Closing. Stock
25,000
Advertisement
5,000
Income from Smuggling
10,000
Depreciation on Machinery
5,000
“ Dividend from Foreign Co. (net)
2,000
“ Wealth tax
7,000


“ Interest
* Reserve for IT
7,000
7,000


“ Sales Tax
15,000


“ Insurance
2,000


“ Donation
25,000


“ Loss on sale of old Typewriters
3,000


“ Computer
45,000


“ Staff Welfare Fund
40,000


“ Net Profit
2,80,000



7,10,000

7,10,000

You are needed to calculate taxable income for the assessment year 2008-09 after taking into account the subsequent information:-
a)Both opening and closing stocks are undervalued by 10%
b)Bad debts amounted to Rs. 2000
c)Purchases include Rs. 25,000 paid in cash.
d)Traced embezzlement by an employee in business Rs. 3,000
e)Allowable depreciation amounted to Rs. 4,000, excluding computer.
f)Interest of Rs. 7,000 includes interest on loan taken to buy shares:
Rs. 3,000
g)Donations charged above paid in cash is deductible u/s 80 G.


6.Mr. Jayanth settled in Japan, comes back to India on 25 August 2007 to settle down here permanently. He purchased a house property on two October 2007. He started business on one November 2007. He disclosed subsequent incomes/outgoing during the financial year 2007-08.
(a)Income from house property Rs. 25000
(b) Business profits 350000
(c) Loss from speculation business 58000
(d) Dividends from Japanese company 60000
(e) Profits from Japanese business, controlled
from India but received there 100000
(f) Deposit in public provident fund 40000
Determine his residential status, total income and tax liability for the previous year 2007-08. Would you change your ans if house property is purchased on one October 2007?

Earning:   Approval pending.