M.B.A-M.B.A 3rd Sem 304 - B : Direct Taxation(University of Pune, Pune-2013)

FINANCE MANAGEMENT SPECIALISATION - II

304 - B : Direct Taxation

(2008 Pattern)

Time : 3 Hours]                                          [Max. Marks : 70

Instructions to the candidates :

1) Q. No. 1 is compulsory.

2) Attempt any four questions from the remaining.

3) Figures to the right indicate full marks.

4) Use of simple calculator is allowed.

Q1) Define the following terms :  [10]

a)  Person.

b)  Assessee. 

c)  Assessment Year.

d)  Previous Year.

e)  Gross Total Income.

Q2) a) Explain the tax treatment regarding the interest on borrowed capital while

calculating the income from house property.                                     [10]

b) When an assessee can claim unrealized rent?                                         [5]

Q3) From the following P & L A/C calculate the income from business.   [15]

Rs.                                                                                Rs.

To Rent                       40,000                 By Gross Profit                                  2,50,000

To Salary                     25,000                 By House property income             1,50,000

To depreciation          10,000                 By Income from other Sources   2,00,000

To Donation                 8,000

To Net Profit             5,17,000

   6,00,000                                                                            6,00,000

a) Depreciation to be allowed as per income tax provision is Rs.8,000.

b) Business income of Rs.12,000 is not shown in P & L A/C.

c) In the rent expenses Rs.8,000 is expenditure of personal nature.

P.T.O.

Q4) a) From the following details calculate capital gains.                                [10]

Sale consideration of residential house for Rs.30,00,000 sold on 26th Aug. 2011. The cost of acquisition of the house purchased on 1st July 2003 was Rs.10,02,000. Another residential house property was purchased on 2nd March 2012 for Rs.10,00,000. Cost of stamp duty and registration fees paid Rs.1,00,000.

Relevant Cost Inflation Index -

2003 - 04         463

2011 - 12         785

b) What do you mean by Short Term and Long - Term Capital Assets. [5]

Q5) Mr.Ramesh submits the following information about his income for the

previous year 2011 - 12.                                                                    [15]

Basic Salary                                                                                        Rs.1,20,000

Dearness allowance (Considered for retirement benefits)              Rs.40,000   

Commission                                                                                       Rs.6,000 

Children Education Allowance (For two children)                        Rs.7,200

Contribution to Statutory PF

(Matching Contribution by Employer)                                           Rs.20,000

Income from other sources                                                        Rs.86,000

Find out the net income of Ramesh for the relevant assessment year.

Q6) Write short notes on (any three) :                                                 [15]

a) Perquisites.

b) Allowances.

c) Tax Evasion Vs Tax Avoidance.

d) Self - Assessment.

e) Income from other sources.

Q7) a) Explain the provisions of ‘Minimum Alternate Tax’in respect of company

assessee.                       

                                                                                      [8]

b) Write a note on residential status of an individual and taxability. [7]

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