Acharya Nagarjuna University (ANU) 2005 M.Com Commerce Income Tax - Question Paper

M.Com. (Final) DEGREE EXAMINATION, JULY 2005.
Second Year
(A - ACCOUNTING)
Income Tax

Time : 3 hours Maximum : 100

part A - (5 X four = 20 marks)
ans any 5 of the subsequent.

1. (a) What is avg. rate of income tax ?

2. (b) Distinguish ranging from capital expenditure and revenue expenditure.

(c) Who is not ordinarily resident in India ?

(d) discuss the term .Annual Accretion..

(e) Income tax authorities.

(f) How do you treat voluntary foregoings ?

(g) elaborate expressly allowed deductions ?

(h) discuss 'deemed incomes'.

(i) What is revision ? Who does it ?

(j) discuss the deduction allowable under part 80 U.

part B - (4 X 10 = 40 marks)
ans any 4 of the subsequent.

2. From the particulars of Mr. Rama Rao Who is a private employee working in a city with less than four lakhs population, provided below, you are requested to calculate his salary income for the Assessment Year 2004 - 05 :

(a) Basic salary Rs. 1,20,000
(b) D.A. which enters into retirement benefits - 20% of salary
(c) Entertainment allowance Rs. 5,600
(d) Conveyance allowance Rs. 6,000
(e) Family allowance Rs. 1,500
(f) Profit bonus at 30% of salary
(g) Rent - free unfurnished accommodation with a fair rental value of Rs. 2,000 p.a.
The other details are as follows :
(i) He contibutes at 12% to an unrecognized provident fund
(ii) He pays LIC premium amounting to Rs. 4,000
(iii) 20% of conveyance allowance is used for personal purposes
(iv) Prior to first April 1955, he used to get entertainment allowance at Rs. 250 p.m.

3. define the tax exemptions available to non - residents.

4. elaborate the provisions regarding deduction of tax at source ?

5. Ram owns 2 house properties. The annual value of let out property amounts to Rs. 1,80,000. The annual value of a bungalow where he resides is Rs. 70,000. He claims the subsequent expenses in respect of let - out house :

Rs. 1,000 for insurance premium paid
Rs. 14,000 for 2 years interest on mortgage
Rs. 5,000 for vacancy allowance
Rs. 250 for ground rent
Rs. 100 for land revenue
Rs. 12,000 flor collection charges.

Municipal taxes in respect of property let are Rs. 40,000 and for self occupied house Rs. 7,000.

Ascertain his taxable income under the head income from house property.


6. Enumerate the different deductions allowable under part 36.

7. Mr. Raj is a film producer. During the previous year he sold a film projector for Rs. 1,70,000 which had cost him Rs. 1,50,000 and in respect of which Rs. 40,000 had been allowed as depreciation during the last 2 years. Expenses on sale amount to Rs. 5,000. Besides, his total income from business was Rs. 75,000 calculate his gross total income.

Earning:   Approval pending.