Acharya Nagarjuna University (ANU) 2006 M.Com Commerce Taxation - - - Question Paper

calculate his total income for the assessment year 2005-06 indicating the manner of
treatment of losses and allowances.

8. Profit and loss account of Jampani Brothers (a Firm of lawyers) for the year ending 31-3-2005 as follows:
Rs. Rs.
Expenses 10,000 Receipts from clients 1,35,000
Depreciation 75,000 Bank interest 25,000
Remuneration to working Net Loss 42,500
partners 80,000
Interest on capital
to partners @20% 37,500
2,02,500 2,02,500

Other information:

(a) Out of expenses of Rs.10,000, Rs.6,400 is not deductible by virtue of part 36 and 37.
(b) Depreciation as per part 32 is Rs.27,500.
obtain out the amount of net income of the firm for the assessment year 2005-06. The remuneration and interest on capital to partners have been paid according to partnership deed which has been submitted along with return.

part C - (2 X 20 = 40 marks)
ans any 2 of the subsequent.

9. Mr. P. Bose is the owner of many properties all over India. During the year ended on 31st March, 2005 he sold a few of the properties as follows: (CII : 1981-82 : 100; 1985-86 : 133; 1992-93l : 223; 1993-94 : 244, 1994-95 : 259; 2004-05 : 480).

(a) Household furniture costing Rs.4,000 purchased 1982 sold for Rs.10,000 in August, 2004.

(b) 1 diamond necklace costing Rs.50,000 purchased in April, 2000 sold for Rs.80,000 in May, 2004.

(c) 1 house in Hyderabad purchased in 1976 for Rs.80,000 sold in January, 2005 for Rs.8,50,000. Expenses regarding the sale was borne by him of Rs.10,000. In 1979 he spent Rs.40,000 and in 1985-86 Rs.60,000. For constructing the 3rd and 4th floors of the house. Fair market value as on 1-4-1981 was Rs.1,10,000.

(d) He sold his personal Ambassador Car purchased in 1987 for Rs.18,000 at Rs.25,000 in December, 2003.

(e) He sold a plot of agricultural land at Tandur in July 2004 for Rs.50,000 and purchased a different plot of agriculture land at Tandur for Rs.30,000. The land sold was purchased only in June, 1993 for Rs.20,000.

(f) He sold 1,000 shares of ABC Ltd. For Rs.4,00,000 in December, 2005 which were purchased in June, 1992 for Rs.2,58,000.
82 : 100; 1985-86 : 133; 1992-93 : 223;
1993-94 : 244, 1994-95 : 259; 2004-05 : 480).

10. Mr. K. Nagarjuna whose gross total income in Rs.40,000 makes the subsequent donations during the previous year ending 31-3-2005.
Rs.
(a) To Prime Minister.s National Relief Fund 1,00,000
(b) To National Defence fund 2,00,000
(c) To a temple of public worship for its repair (so notified) 2,00,000
(d) To a local college for construction of commercial block 1,00,000
(e) To a poor learner as aid 10,000
(f) To municipal committee 1,00,000
(g) To Sims, Tirupathi for promotion of family planning 50,000
(h) To Chief Minister.s earthquake relief fund Gujarat 20,000

The gross total income includes Rs.10,00,000 as his share form an association of persons. calculate his total income for the assessment year 2004-05.

11. From the subsequent particulars of Srikanth calculate his total income for the assessment year 2005-06. Srikanth is employed at Delhi. During the year (2004-05) he received.
Rs.
Pay 2,000 p.m.
D.A. 1,200 p.m.
H.R.A. 350 p.m.
Commission 1,500
Bonus 2,000
Rent paid 500 p.m.

He received in cash, the subsequent income as interest (Net) during the year.
Rs.
On Tax Free Govt. Securities 3,000
On Tax Free Limited Co. Debentures (listed) 7,200
On Tax Free debentures on Textile Company (Not listed) 6,000
On U.P, Government Securities 1,500

He paid Rs.1,500 as interest on loan taken to purchase securities and Rs.400 bank charges to collect interest.
Rs.
Income from house property 90,000
Donation to national defence fund 5,000
Prime Minister.s Relief Fund 3,000
Medical insurance premium 8,000


12. explain the conditions under which authority for search and seizure can be issued.

Earning:   Approval pending.