Babasaheb Bhimrao Ambedkar University 2007 M.Com Finance and Control Tax Planning Methods FC - 210 - Question Paper

M.Com. Tax Planning Methods FC - 210 May 2007
Time : 3 hours Maximum : 100 marks
part A — (5 ? eight = 40 marks)
ans any 5 of the subsequent.
1. Discuss the rules relating to determination of residential status of an assessee.
2. Distinguish ranging from totally and partially exempt incomes.
3. How will you treat various types of provident funds for tax purposes?
4. Smt. Shanti, who is not covered by the payment of Gratuity act, 1972 received Rs. 3,76,000 as gratuity when she retired on 24, August 2005 after 34 years and nine months service. Her last draw emoluments are
Basic salary Rs. 20,000 pm.
Servant allowance Rs. 750 pm.
Basic salary of Rs. 20,000 is after giving an increment of Rs. 1000 from January 2004.
Calculate exempted gratuity.
5. R has a house property in Chennai. Its municipal value and fair rental values are Rs. 1,00,000 and Rs. 1,20,000 respectively. It was self-occupied for by R from 1-4-2005 to
31-7-2005. W.E.F. 1-8-2005 it was let out at Rs. 9,000 pm. Municipal taxes paid during the year were Rs. 20,000 and the standard rent is Rs. 1,08,000.
Compute the annual value of the house property for the assessment year 2006-07.
6. Mr. Arumugam purchased a plot in 1986-87 for
Rs. 2,00,000 and it was sold on 15-1-2005 for Rs. 15,00,000. He paid Rs. 30,000 as brokerage charges. The invested
Rs. 2,00,000 in bonds issued by NABARD Bonds on 31.3.2005 and Rs. 3,10,000 in Bonds issued by rural electrification corporation on 1-8-2004. calculate the taxable amount of capital gain if CII for 1986-87 is 140 and for 2005-06 is 497.
7. Discuss the clubbing of income.
8. How will you assess the Taxable income of a firm?
part B — (4 ? 15 = 60 marks)
ans any 4 of the subsequent.
9. Explain the concept of income and provide its features.
10. Mr. Mani is a production Manager in an industrial unit in Chennai. The particulars of his salary income are as under :
Basic Salary Rs. 15,000 pm
Dearness allowance Rs. 5,000 pm
(Given under terms of employment)
Entertainment allowance Rs. 1,000 pm
Medical allowance Rs. 500 pm
House Rent allowance Rs. 4,000 pm
Rent paid for the house Rs. 5,000 pm
Car of 1-2 lit. capacity given by employer for private and official use. Employer meets expenses of car. He and his employer (each) contribute 15% of salary to R.P.F.
Mr. Mani had taken interest free loan of Rs. 15,000 to purchase refrigerator.
Compute income under the head salary for the A.Y. 2006–07.
11. Mr. Eden owns a house property. It is used by him thoughout the previous year 2005-06 for his residence. Municipal value of the home is Rs. 40,000 where as fair rent is Rs. 50,000. Municipal tax paid by him was Rs. 4,000. The borrowed Rs. 10,00,000 on 1.1.2000 at 10 p.a for construction of the house. The construction was completed on 1.10.2001.
Compute the income from house property for the A.Y. 2006-07.
12. Mr. Ashwin provides the subsequent info regarding his transaction for the sale of residential house during the
A.Y. 2006-07.
House purchased in 1978 for Rs. 2,50,000
Fair Market value on 1.4.84 (CII : 100) Rs. 6,00,000
Sold in Oct. 2005 (CII : 497) Rs. 30,00,000
Amount invested in purchase of
another house in April 2004 Rs. 2,00,000
Compute the amount of taxable capital gain.
13. Explain briefly the deductions from Gross Total Income under the Income Tax Act 1961.
14. From the subsequent particulars for the year ended
31st March, 2006. calculate the income under the head, “Income from Other Sources”.
Dividends (net) Ramco cement Ltd. Rs. 28,000
Dividends (gross) ACC Ltd. Rs. 12,000
Collection charges in respect of dividends @ 1% of dividend.
Rent from letting out of a building
along with plant and machinery Rs. 60,000
Depreciation on buildings Rs. 15,000
Insurance on buildings Rs. 1,000
Office expenses relating to buildings Rs. 2,000
Repairs, rates etc. Rs. 3,000
15. How would you calculate the taxable income of a firm?

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