Osmania University (OU) 2008 B.Com Computer Science INCOME TAX - Question Paper

Code No. 1017/ET
FACULTY OF COMMERCE
B.Com. III Year Examination, March/April, 2008
[Common for General, Computers, Computer Applications (Voc.)]

INCOME TAX

Time: 3 Hours Maximum Marks: 100

PART – A
(Marks: five x five = 25)
ans any 5 ques. in not exceeding 20 lines every.

1. Explain the term “Income”.
2. Calculate taxable amount of House Rent Allowance when:
a. Gross Salary Rs. 4,40,000
b. Advance Salary Rs. 60,000
c. Dearness allowance Rs. 1,20,000 (50% forms part of salary)
d. HRA received Rs. 90,000
e. Rent paid at Hyderabad Rs. 75,000

3. calculate Gross annual Value when:
a. Municipal Rental Value Rs. 1,20,000
b. Fair Rental Value Rs. 1,50,000
c. Standard Rent Rs. 1,60,000
d. Actual Rental Value Rs. 1,40,000

4. From the subsequent info compute the amount of depreciation:
a. W.D.V. on 1-4-2006 Rs. 10,00,000
b. Additions on 15-01-2007 Rs. 8,00,000
c. Transfer of 60% block of assets Rs. 12,00,000
d. Rate of depreciation 15%

5. Mr. ‘X’ purchases shares of X Ltd on 30-6-05 for Rs. 80,000. He transfers these shares on 30-6-2006 for Rs. 4,40,000. Transfer expenses 2%. calculate taxable capital gains when the CII for the year 2005-06 is 497 and 2006-07 is 519.
6. What is Best Judgment Assessment?
7. Explain Bond Washing Transactions.
8. Discuss the provisions of part 80G of IT act 1961.

PART – B
(Marks: five x 15 = 75)
ans the subsequent in not exceeding four pages every

9. a. discuss the term agricultural income and its important characteristics. Also explain the procedure of the assessment.

OR

b. explain any 10 incomes exempt from tax u/s 10 of the IT act 1961.

10. a. Mr. Ram working at State Bank of Hyderabad, draws the subsequent emoluments:
i. Basic pay Rs. 25,000 p.m.
ii. Dearness Allowance Rs. 12,000 p.m. (part of salary)
iii. Arrears of salary Rs. 48,000.
iv. Overtime remuneration Rs. 68,000
v. Leave encashed Rs. 42,000
vi. Children education allowance Rs. 2,000 p.m. (for three children)
vii. City compensatory allowance Rs. 1,500 p.m.
viii. Deputation allowance Rs. 6,000
ix. Rent-free accommodation at Warangal for which the employer pays a rent of Rs. 4,000 p.m.
x. Employee and employer contribute Rs. 60,000 every statutory provident fund and the interest credited there on at rate of 11% Rs. 44,000.
xi. Mr. Ram pays an LIP of Rs. 14,000 and employment tax Rs. 4,800

calculate income from salaries.

OR

b. Mr. ‘X’ is the owner of 2 houses. From the beneath provided info calculate income from house property:

Particulars House-I (Rs.) House-2 (Rs.)

Earning:   Approval pending.