M.Com-M.Com Accountancy 2nd Year Paper - V : Taxation (Acharya Nagarjuna University - Center for Distance Education, Guntur, Andhra Pradesh-2013)

(DCM 25) 
M.Com. (Final) DEGREE EXAMINATION, DEC. - 2013 
Second Year 
A - ACCOUNTING 
Paper - V : Taxation 

Time : 03 Hours                                                                    Maximum Marks : 80

 SECTION-A 
Answer any Five of the following 
(5 × 4 = 20) 

1) a) Person 

b) PAN 

c) Resident 

d) Perquisite 

e) Previous Year 

f) Long-term Capital gain 

g) Partly exempted income 

h) Search 

 

SECTION-B 

Answer any Four of the following 
(4 × 5 = 20) 

2) Discuss the relationship between residential status and incidence of tax. 
 
3) What are the powers of ITO? 

4) State the penalties levied under the law. 

5) How do you to compute annual value of house property? 
 
6) Define salary income 
 
7) Explain the assessment of agricultural income. 
 
8) List out the income from other sources. 
 

 

SECTION-C 

Answer any Two of the following 

(2 × 20 = 40) 

9) From the following particulars of Mr. Pratap compute his total income for the assessment  year Pratap is employed in Bangalore. 

 

Rs. 
Pay 20,000 p.m. 
D.A. 12,000 p.m. 
H.R.A. 3,500 p.m. 
Commission 7,000 
Bonus 20,000 
Rent paid 3,000 p.m. 
He received in cash, the following income as interest (Net) during the year. 

 

Rs. 
On tax free Govt. securities 5,000 
On tax free limited co-debentures (listed) 12,000 
On tax free debentures on textile 10 (not listed) 6,000 
On A.P. Government securities 7,000 
He paid Rs. 4,000 as interest on loan taken to purchase securities and Rs. 1,400 bank charges 
to collect interest 
Rs. 
Income from house property 1,80,000 
Donation to national defence fund 20,000 
Prime ministers relief fund 3,000 
Tsunami relief fund 5,000 
Medical insurance premium 8,000 

 

10) Smt. Latha, an accountant in a Limited Company at Hyderabad submits the following  particulars of her income for the year. 

a) Salary @ Rs. 12,000 p.m. 
b) D.A. @ Rs. 3,000 p.m. (enters into salary for calculating retirement benefits) 
c) Bonus Rs. 10,000 p.a. 
d) Commission Rs. 12,000 p.a. 
e) Own contribution to R.P.F. @ 15% of salary and the company also contributes similar  amount. 
f) Interest on Provident Fund at 16% rate Rs. 6,400 
g) Free furnished house at Hyderabad. Fair rent of the house is Rs. 18,000 p.a. Cost of  furniture is Rs. 15,000. 
h) 18 H.P. car is provided for official and personal purposes. All expenses of the car  including driver’s salary of Rs. 500 p.m. are paid by the employer. 
i) Education allowance for 3 children @ Rs. 100 per child, p.m. paid by the company 
j) Profession tax paid by her Rs. 1,200.  Compute her income from salary for the assessment year. 

 

11) Describe the procedure of claiming refund of tax. 12) Bring out the provisions of law relating computation of income from companies. 

Earning:   Approval pending.