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

Q.3. a) During the previous year ending on March 31, 2004 Mr. A sells the subsequent :- (8)

Assets Date of Sale Sale Proceeds Rs. Cost of acquisition Rs. Year of purchase FMV on 1-4-81 Rs.
Shares 1-4-03 4,10,000 1,00,000 1993-94 1,80,000
Agricultural Land in Urban Area 10-6-03 23,00,000 6,17,250 1986-87 2,00,000
Agricultural Land in Rural Area 25-5-03 30,00,000 2,30,000 1973-74 3,40,000
Debentures (Listed) 10-4-03 3,17,900 2,30,615 1993-94 1,80,000
Personal Car 1-7-03 1,25,000 70,000 1986-87 Not Available

compute the income under the head Capital Gain of Mr. A for assessment year 2004-05. Cost Inflation Index : F.Y. 2003-04 – 463; F.Y. 1986-87 – 140; F.Y. 1993-94 – 244.

b) Mr. B holds the subsequent securities on April 1, 2003 : - Rs. 1,00,000 7% securities of Tamil Nadu Government. - Rs. 60,000 14% non-listed Debentures of ABC Ltd. On August 1, 2003, he borrows Rs. 33,000 at 7% p.a. and invests it in 8% securities of Central Government purchased at Rs. 110 (Face Value Rs. 100). On October 1, 2003, he further borrows Rs. 40,000 @ 8% p.a. for investing it in 10% listed debentures of DEF Ltd. Determine his income from other sources for the assessment year 2004-05. The interest on all investments are due and received on March 31 every year. (8)

Q.4. a) Mr. X is a USA citizen. He came to India on October 15, 2003 for a visit and was in India till 31st March, 2004. In earlier previous years, he is in India as under :

1993-94 188 days
1994-95 190 days
1995-96 185 days
1996-97 200 days
1997-98 40 days
1998-99 300 days
1999-00 195 days
2000-01 185 days
2001-02 100 days
2002-03 200 days

obtain out the residential status of Mr. X for the assessment year 2004-05 assuming that he is not a person of Indian origin. (8)

b) calculate the income of Mr. Kaka for the assessment year 2004-05, assuming that he is resident but not ordinary resident in India during the previous year 2003-04. (8)

(i) Interest on company deposits in India Rs. 70,000
(ii) Income deemed to be earned in India Rs. 31,000
(iii) Income from business, situated in Japan and controlled in India (40% is received in
India and balance is received outside India) Rs. 84,000
(iv) Salary received in India for services rendered outside India Rs. 92,000
(v) Interest received from Government of India (Received outside India) Rs. 1,60,000

Earning:   Approval pending.