Download OU B.Com 2017 Dec 3rd Sem 3509 IncomeTax 1 Question Paper

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Code No. 3509 / E

FACULTY OF COMMERCE

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B.Com. (CBCS) II - Semester Examination, November / December 2017

(Common Paper for General/Computers/Computer Applications)

Advertising/Foreign Trade and Tax Procedure Course

L Income Tax

- BC-305

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Time : 3 hours Max. Marks : 80

Part— A (5 X 4 = 20 Marks)

Note : Answer any Five of the following questions.

1. Previous year Vs Assessment year.
2. Incidence of Tax

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3. Residential status
4. Smt. Meenakshi Bhat has born in Mumbai and left first time to Australia on 14-5-2016. Determine her residential status as ‘Resident’ or not for the assessment year 2017-18.
5. Distinguish the following Cultural Income and Business Income. Manufacturing expenses including depreciation 7,00,000/-, Cost of Sugarcane (from field) 5,00,000/-, Market value of the sugarcane 7,00,000/-, Cultivation expenses 3,80,000/-
6. Sri Hari, an accounts officer in Indian Railways retired from the service after rendering 28 years. He received 7,50,000 as gratuity, on the date of his retirement monthly salary was Basic pay 35,000, DA 4,000 and HRA 750. Calculate the taxable amount of gratuity.
7. Smt. Kamala Rao purchased a house in Kakinada in the year 1990 and using for residential purpose. During the previous year and relevant year the following particulars are furnished. MRV 25,000, FRV 30,000, the expenses paid are Municipal taxes 10%, Non-Agricultural land tax Rs.1,000, Repairs 2,800, Insurance 500, and interest paid on loan taken to purchase the house 38,000. Compute income from house property.

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8. State, with reasons, owing expenses are admissible while computing business income. i) Donation to an approved trust 5,000/- ii) Legal expenses to defend a trade mark 6,000/- iii) Contribution to staff welfare fund 5,000/- iv) Sales tax paid 8,000/-

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Code No. 3509/ E

Part—B (5X 12= 60 Marks)

Note : Answer the following questions not exceeding FOUR pages each.

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1. Explain the exemptions u/s 10 of Income Tax Act 1961.
2. During the previous year and the current assessment year in college day function of your college you have received the following. Explain the nature of the receipt and comment on the taxability of the same on the basis of Income Tax Act. Merit scholarship received Rs.3,50,000/-
3. Define kinds of Agricultural Income and explain what are the conditions to be fulfilled to claim agricultural income.
4. Mr. Ramesh submitted the following particulars of his salary income : Basic salary 1,80,000/-, DA (40% of salary) 56,000/-, HRA 12,000/-, CCA 3,000/-, Entertainment Allowance 2,000/-, Professional Tax 2,400/-, Contribution to RPF 12,000/-, Interest on RPF 11,000/-, silver articles. Scholarship fee Rs. 3,600. Compute his income from salary for the assessment year 2017-18.
5. Mr. Chandra has two houses, income from house property of which are given below :

   Particulars	House I	House II
   Municipal Valuation	1,20,000	1,20,000
   Fair Rent	1,50,000	1,00,000
   Standard Rent	1,40,000	Self occupied
   Date of Completion	1-6-99	1-9-2014
   Municipal taxes paid	10,000	12,000
   Repairs	40,000	30,000
   Insurance	4,000	2,000
   Interest on borrowed capital	14,000	-
   Land Revenue	3,000	4,000
   Collection Charges	-	6,000
   Ground Rent	2,000	1,000

   OR

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   Mr. Age 55 years has two flats in one at Hyderabad and the other in Bangalore. One is self occupied by him and his wife, and another occupied by his parents and children. He claimed both the houses as self occupied but income tax officer asked to opt any one as self occupied. You are required to advise him which flat can be taken as self occupied.

   Particulars	Flat I	Flat II
   Standard Rent	50,000	96,000
   Fair Rent	65,000	1,80,000
   Municipal taxes	10%	10%
   Rebate on Municipal taxes	10%	-
   Penalty for delay in municipal taxes	-	2%
   Insurance premium	13,000	28,000
   Interest on borrowed capital	2,60,000	4,10,000

6. From the profit and loss account of Mr ‘X’ for the year ending 31-3-2017. Compute the professional income.

   Debit Side	Amount	Credit Side	Amount
   To Salaries	1,50,000	By Gross Profit	4,00,000
   To Rent	24,000	By Commission	10,000
   To Depreciation	10,000	By Bad debts recovered	20,000
   To General Expenses	30,000	By Gift Received	30,000
   To Net Profit	2,46,000
   	4,60,000		4,60,000

   Other Information :

   i) Salaries include Rs.10,000 paid to the proprietor.

   ii) Mr. Rao is a charted Accountant of Bangalore. Compute the professional income.

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