University of Mumbai 2008-1st Year Diploma Financial Management Pgdfm tax - Question Paper

TAXATION 2008

2!

noufSj    I lotal Marks : 100

(1)    Answer Question No, 1.     _f

(2)    Answer any three questions from remaining.

(3)    Figures to right indicate full marks.

Dr. Brijesh Mohan has prepared the following Receipts and Payments A/c for year ended 31 March, 2007

Receipts Rs. Payments , Rs. To Balance - 3,820 By Memberships fees . 4,500 To Consultancy Fee 1,45,000 By Medicaf Books . 17,500 To Visit Fe 72,000 By Salary 60,000 To Sale of House 1,70,000 By Rent 47,500 To Salary as Part 27,000 By Car Expenses 14,400 Time Lecture By Electricity 3,600 To Exam. Remu. 11,480 By Telephone 8,500 To Bank Interest 3,500 By income Tax 8,000 To Dividend from Co-op. Society . 3,000 By Persona! Expenses 36,000 By Investment 80,000 - . By Insurance Premium 6,000 By Donation 22,000 By Medical Instrument 60,000 By Balance 67,800 4,35,800 4,35:800

Additional Data    . .

(1)    Rent and Electricity Expenses are related to a house, 50% is used for residential purpose.

(2)    Car Exponses are allotted :

Professional Use 40%    ' '

Attending College 30%    ,

Personal Use 30%

(3)    Written Down Value of assets on 1-4*2006 were Medical Instruments Rs, 90,000

Car    Rs.1,50,000

(4)    Purchases during year :

Books on 1-9-06,    .    .

Medical Instruments on 1-11-06

(5)    Rate of Depreciation are Instruments 25% ;

Car 15% ; Books 40%

(6)    Indexed cost of Acquision of house sold during year is Rs. 98,000

(7)    Insurance premium is for-Consultancy Room and Instruments Rs. 4,200 Life insurance Premium    Rs. 1,800    V    

(8)    Salary received is net after deduction of Provident Fund Rs, 3,000/-

(9)    Donation is given to approved hospital.

(10) Salary paid to Domestic Servant @ Rs. 1000/- p.m. and remaining to compounder. Compute Total Income and Tax payable.

M/s. Shastri Brothers is a partnership firm with Ravi. Vijay and Jayesh as partner 25 sharing profits and losses in' ratio - 40% ; 30% and 30%.. The capitals contributed by each partner equally. Ravi and Vijay are working partners entitled to remuneration

per I.T Act, '    '     ~    . ' /

For year ended 31st March, 2007 net profit was Rr. 4,50,000/- This was a arrived after debiting-

(a)    Rs. 1,65,000 interest on capital @ 22% . ,

(b)    Rs 3,00,000 remuneration to partner.

(c)    Rs. 1,20,000 income fax.

* Compute income of firm and amount chargeable as income of each partner.

Define ana expuiui.....(any.....nver

(a)    Business

(b)    Capital Asset.

(c)    Person

(d)    Block of Asset

Mr. Malpani owns a building having three units of equal siza. For year* ended 31st March, 2007, particulars are :

Unit A Unit B I Unit C Fair. Rent eo;000 60,000 | . 60,000 Rent Received 72.COO i Construction Cost 3,00.000 3,00.000 3,00,000 Nature of User Residence Let Cut Office for own business Prooertv Tax Paid 3.000 8,400 3,000 Repairs 4,800 . 7,500 6,000 Interest on Loan for construction 9,00a 9,000 9,000

. The business income for year was Rs. 2,40,000 without considering sbove expenses

and depreciation @ 5%    '    .

He deposited Rs. 30,000 in Public Provident Fund and paid Rs. 10.CQ0 as donation

to a Trust. Compute Income and Tax Payable.

5.    (a) Explain provisions relating to Assessment Year and Previous Yea*.

(b) What are the provisions for computation of depreciation allowabfe. .....

6.    Dr. Mrs. Sudha provides following details of her income for year ended 3*st March, 2007. She is employed as Medical Officer in a Hospita.. Her msnthly Salary is Rs. 15,000/- p.m. Hospital deducted. Rs, 1500/- o.m. for Provident fund Rs. 200/- p.m. for profession Tax as Rs. 500/- p.m for Ir.cor-e lax.

She is a partner in Sudha Nursing Home. As per agreement her account is credited with.    _;

(i)    Remuneration Rs. 66,000

(ii)    Interest on Capital Rs. 18,000

(iii)    Share of Profit Rs. 24,000

She owns a building, which is let out on monthly ent of Rs 10,000. During year she paid property tax Rs. 24,000. House is acquired by taking loan on which she paid interest Rs. 18,000 Her investments are

(i)    ' i 2% Debentures of face value Rs. 1,50,000

(ii)    13-5% Deposit in company Rs. 1,00,000

1.000    -12% preference share of Rs. 10/- each

5.000    Equity shares on which dividend @ Rs.18/- per by Company.

She paid Rs. 21,600 Life Insurance premium and deposited R& provident fund and invested Rs. 25,000 in N.S.C.

Compute her income and tax payable.

7.    Explain the provisions relating to determination of ~

(a)    Residential status of Individual.

(b)    Short term capita! Gain long term Capital Gain

(c)    Clubbing of Income of Minor Child.

Write short notes on (any five) :~

(a)    Deductions from salary. -

(b)    Deduction from Net Annual Value.

(q)    Deductions for Investments and payments u/s 80 c.

(d)    Preliminary expenses.

(e*    Medictaim premium,

(h    Deduction for physically Handicapped person.

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