University of Mumbai 2007 B.A Economics Direct and Indirect Taxation2006 - Question Paper

Direct & Indirect Tax
April 2006
Time: three HoursMarks: 100
NB:
ques. No. one is compulsory and carries 22 marks.
Attempt any 3 ques. from ques. No. two to ques. No. 6, every carrying 16 marks.
Attempt ques. No. seven to ques. No. 9, every carrying 10 marks.
Answers to both the parts should be written in the identical answer-book.
part I
Q.1 subsequent is the Profit and Loss Account of Mr. Mangesh for the year ended 31st March, 2005:¬ 22

Profit and Loss Account for the year ended 31st March, 2005

Rs. Rs.
To Salaries 2,10,000 By Gross Profit 4,18,000
To Rent 20,000 By Interest on Bank F.D 8,000
To Postage 7,000 By Dividend from Indian Company. 20,000
To Stationery and Printing 27,000 By Dividend from Co-operative Bank 2,000
To Advertising 20,000 By Winning from Lottery 15,000
To Repairs to Office 22,700 To Interest on Debentures of
Conveyance 17,000 Limited Company 5,000
To Income tax 30,000
To Expenses in Connection with
Scrutiny case of Income Tax 4,000
To Fees paid to C.A. for Income Tax 10,000
To Miscellaneous Expenses 25,000
To Depreciation 5,000
To Donations 20,000
To Net Profit 50,300
Total 4,68,000 Total 4,68,000

Additional Information:
(1) Salaries include bonus due to employees Rs. 30,000 which was not paid before the due date of filing Income Tax Return.
(2) Rent is paid for residential house of Mr. Mangesh.
(3) Repairs to office include a. 1 time cash payment of Rs. 20,000 on 18/08/2004.
(4) Miscellaneous expenses include purchase of shares of an Indian Company for Rs. 20,000.
(5) Donations include donation by cash Rs. 15,000 and donation of books worth Rs. 5,000 both to an approved charitable trust.
(6) Depreciation as per Income Tax Rules is Rs. 4,000.
calculate the net taxable income of Mr. Mangesh for Assessment Year 2005-06.
Q 2. Mr. Chandrakant Limaye is employed as a Lecturer in Modern College. He furnishes the subsequent info for the year ending 31st March, 2005 16
(i) Gross Salary received Rs. 30,000 p.m.
(ii) Rent free bun glow (perquisite value) Rs. 5,000 p. a.
(iii) Leave Salary received Rs. 15,000
(iv) Bonus received Rs. 30,000
(v) Arrears of Salary received for (2002-03 and 2003-04)
On 17th March, 2005 Rs. 1, 50,000
(vi) Profession Tax deducted from salary Rs. 200 p.m.
(vii) Examiner ship remuneration from college Rs. 7,500
(viii) Reimbursement of Medical bills Rs. 4,800

(ix) He spent Rs. 4,500/- for purchase of books for his employment.

Earning:   Approval pending.