B.B.A-B.B.A TAX LAWS(Alagappa University - Directorate of Distance Education-2012)

DISTANCE EDUCATION
B.B.A. (CS)/B.B.A. (CS) (Lateral) DEGREE EXAMINATION, MAY 2012.
TAX LAWS
(2005 onwards)
Time : Three hours Maximum : 100 marks
PART A — (5 × 8 = 40 marks)
Answer any FIVE questions.
1. How is the residential status of an individual determined for I.T. purpose?
2. Write a note on incidence of tax.
3. Explain different types of provident funds and discuss the legal provisions relating to them.
4. Define Annual Value. How is it determined.
5. Define Block of Assets and Written Down Value.
6. What are capital assets? Explain.
7. What is Grossing up? State the provisions regarding grossing up of interest on securities.
8. What are the circumstances in which income of other persons is included in the total income of an assessee?
PART B — (4 × 15 = 60 marks)
Answer any FOUR questions.
9. Explain the concept of income and state its features.
10. Describe the characteristics of capital receipts with suitable examples.
11. What is agricultural income? Explain the procedure regarding how it should be taxed.
12. From the following particulars, find out the taxable salary of Mr. Arun working at Tiruchi (population more than 4 lakh) for the assessment year 2010 –11
(a) Salary Rs.12,000 p.m.
(b) D.A. Rs.1,500 p.m.
(c) Employer’s contribution to RPF 14% of salary.
(d) Rent for accommodation – fair rental value is Rs. 80,000 p.a.
(e) Interest on provided Fund balance @ 13% p.a.- Rs. 3,900.
(f) Professional tax paid Rs. 2,000
(g) Medical allowance received Rs.500 p.m.
(h) Arrears of salary Rs.13,200
13. Following is the profit and loss account of Mr. Kannan for the year ending 31st March, 2010.
Particulars Rs. Particulars Rs. Office Salary 4,800 Gross profit 1,35,532
General expenses 2,550 Commission 1,205
Bad debts 2,100 Discount 751
Reserve for bad debts 3,000 Sundry debts 202
Fire insurance premium 450 Rent of building 52,640
Advertisement 2,500 Capital gains 3,000
Interest on capital 1,000
Interest on bank loan 1,550
Donations 3,875
Depreciation 1,200
Net profit 1,70,305
1,93,330 1,93,330
(a) The amount of depreciation allowable as per I.T Rules is Rs. 1,000
(b) General expenses includes Rs. 500 spent on printing of calendars.
Compute his business income.
14. Mr. Anand let out a house. Compute the Income from H.P. from the following particulars for his let out house.
(a) FRV Rs. 36,000
(b) Actual rent received 4,000 p.m.
(c) MRV Rs. 40,000
(d) Standard Rent Rs.38,000
(e) Municipal tax 10% of MRV
(f) Education cess 2% of Municipal tax
(g) Actual repair expenses Rs.4,000
(h) Ground rent Rs. 2,000
(i) Interest on loan Rs. 12,000
(j) Vacancy period 3 months.
15. Compute the amount of capital gains exempted under Section 54 and capital gains chargeable to tax in relation to the following transactions. Mr. Ganesan sells a residential house property in Madurai for Rs. 25,00,000 on April, 2009 which was acquired by him on May 10, 1986 for Rs. 5,00,000. in August, 2009, he purchases a house in Chennai for Rs. 15,00,000. On June 30, 2010, he sells the houseproperty in Chennai for Rs. 20,00,000, CII for 1986 – 87 is 140 and for 2009–10 is 632.
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