University of Mumbai 2005 B.Com Direct and indirect taxation - Question Paper

Test Papers / Previous ques. Papers of University of Mumbai
March – 2005

Time: three Hours
Marks: 100

N.B. : (1) Q. one from part I is compulsory carrying 22 marks.
(2) ans any 3 ques. from remaining ques. from part I carrying 16 marks every.
(3) Attempt all the ques. from part II carrying 10 marks every.
(4) Answers to both the parts are to be written in identical ans book.

part – I

Q.1. The subsequent is the Receipts and payments account of MR. Rajesh, an architect, for the year ending on March 31, 2004. (22)

Receipts Amount (Rs.) Payments Amount (Rs.)
To Balance b/d. 3,00,000 By Salaries to staff 88,000
To Professional fees 6,50,000 By Printing & Stationery 98,300
To Rent from House Property 1,20,000 By Society Maintainence charges for : -
Office 8,000 -
Houses 5,000 13,000
To Gift received from clients for
professional work 8,000 By Advance Tax 30,000
To Loan from HDFC Bank (on
April 1, 2003 for House at Panvel) 2,00,000 By Purchase of new house
at Panvel (on April 1, 2003) 2,50,000
By Other Office Expenses 83,000
By Purchase of Car (on April 1, 2003) 50,000
By Donation 5,000
By Mediclaim Insurance Premium (by Cheque) 10,000
By HDFC Loan Repaid 50,000
By Municipal Taxes 20,000
By Interest on HDFC Bank Loan 20,000
By Balance c/d. 5,60,700
Total 12,78,000 Total 12,78,000

You are also informed that :

(1) The details of his business assets :

Name of the Asset WDV on 1-4-03 Rate of Depreciation as per I.T. Act
Office Premises Rs. 10,00,000 10%
Furniture Rs. 3,50,000 15%
Car -- 20%

(2) He stays in a house at Vashi. He purchased a new house at Panvel on April 1, 2003. The municipal evaluation of this house is Rs. 1,00,000. It is rented at a monthly rent of Rs. 10,000 from April 1, 2003.

(3) Municipal taxes paid includes municipal taxes of house at Vashi Rs. 10,000 and Rs. 2,000 for house at Panvel, balance for office.

(4) Donation was made to Indira Gandhi Memorial Trust.

(5) 1/4th of the car use has been for personal purposes.
Determine the taxable income of Mr. Rajesh for the assessment year 2004-05. (22)

Q.2. Mr. X, joined a company, AB Ltd. on June 1, 2003 and was paid the subsequent emoluments and allowed perquisites as under : Emoluments : Basic pay – Rs. 50,000 per month Dearness Allowance – Rs. 20,000 per month Bonus (Target Achiever) – Rs. 1,00,000 per month Perquisites : (1) Furnished accommodation owned by the employer and given free of cost. Taxable value of this rent free furnished accommodation was Rs. 2,20,000. (2) Motorcar owned by the company along with Chauffeur for official and personal use, the taxable value being Rs. 36,000. (3) The company paid medical insurance premium of Mr. X amounting to Rs. 15,000. Before joining the company AB Ltd., he was a Central Government employee and retired on May 31, 2003. He was paid the subsequent emoluments and perquisites till May 31, 2003 by the Government. Basic Salary - Rs. 96,000 p.a. Dearness Allowance - Rs. 6,000 p.a. Entertainment Allowance since 1960 - Rs. 24,000 p.a. From June 1, 2003 he receives the monthly pension of Rs. 3,000 from the Government. He received Rs. 30,000 as Leave Salary in respect of earned leave at his credit. He received Rs. 1,20,000 as gratuity. calculate the taxable salary of Mr. X for assessment year 2004-05. (16)

Earning:   Approval pending.