business taxation mba iii 566324802

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Q-11 Shree Vinod Godbole own’s house at nagpur (Municipal Value Rs.20000) of the

fair rent of Rs.30000 p.a. during the previous year 2011-12 the house is used byhim for his own residence from 1st April,2011 to 30th june 2011 and let out forresidential purpose on 1st july,2011 @15000 Per month. He makes the followingexpenditure in respect of the house property:Municipal taxes Rs.16000 and Repaire 12000, fire Insurance premium Rs.13500LandRevenue Rs.14000 and ground Rent Rs.12000 were paid during the year. A loanof Rs.120000/- was taken on 1st April 2008@15%p.a. for the construction of thehouse which was completed on 1st April, 2011. Nothing was repaid on loanaccount so far. Find out his taxable income from house property for theassessment year 2012-13

Q-12. What are the various specific allowances and specific disallowances to computeincome under the head business or profession? List atleast five each.

Q-13 Profit and loss account of a trader shows Net profit Rs.138000 after debitingfollowing items-Income tax paid Rs.7000 and Income tax procedure expenses Rs.1100Interest on loan taken for payment of Income tax Rs.1000.Sales tax Rs.18000 and penalty interest Rs.5000 for delay in payment of sales tax.Penalty for Sales tax evasion Rs.4000.Cash payment to a creditor ‘A’ Rs.28000. On 28th

January 2010 in two parts Rs. 15000& 13000 respectively and ‘B’ Rs. 29700 (on 28thJanuary Rs.19700 and 30thJanuary

Rs.10000).Municipa ltax Rs1800. The 1/3 portion of the house is used for business and half portionis used for self residence and the remaining portion is let out.

The aforesaid Net Profit includes Rs.3000 for recovery of old bad debtswhich weredisallowed by Income Tax Officer. Depreciation on business assets regarding thepervious year 2010-11 is allowed for Rs.16800 according to section 32 of IncomeTaxAct was not recorded in the books. Find out taxable income from business.

Q-14 X starts a new business on December 5, 2010. it purchases the following 5 assets.Categories these into different block-Land for constructing factory RS.1260000Rollers in flour mills Rs.50000Energy saving device RS.10000Renewal energy devices Rs.860000Land for residential house Rs.927860.

Q-15 Define ‘Capital Assets’ discuss the type of capital Assets.&

When will the capital gain from residential House be exempted?



Q-16 A Co. (a partnership firm) sells a commercial building on May10,2010 for

Rs.1247500/- from the data given below, find out the income under the head“Capital Gains” for the assessment Year 2012-13

Gains” for the assessment Year 2012-13Cost of plot of land (acquired in 1984-85) Rs.50000/-

Cost of Construction (incurred in 1985-86) Rs.170000/-Cost of additional construction (incurred in 1989-90) RS.20000/-Expenditure on transfer RS.2500/-

Q-17 Compute income from other sources from the following information:

Income from agriculture land in Bangladesh Rs.6000/-Interest on fixed deposit with bank (net) Rs.13500/-Dividend received on shares (listed) of a limited company Rs.3580/-Interest on post office saving bank account Rs.1000/-

Q-18 Explain briefly.(i) Tax deducted at source. (TDS)(ii) Permanent account number (PAN)(iii) Filing of return u/s139(1)

Q-19 List out deductions permissible u/s chapter VIA.

Q-20 Write notes on:

a. Scientific research expenditureb. Bad debts.c. Maintenance of Account

Activity Part

A. Mr. Dwarka das somani (67 year) received taxable income Rs. 3,88,000 duringprevious year 2011-12. He has made the following contributions during previousyear-(i) Life Insurance Premium Rs. 17,500,(ii) National Savings Certificates (VIII) Rs. 6000.

Compute taxable income and find out tax payable for the assessment year 2012-13

B. The particulars of Mr. Romil Bandi’s previous year’s 2011-12 income are asunder-

1. Income from Salary



i. Salary from employer Rs 1,48,000 (Gross) professional tax Rs. 1,500 were

deducted against his salary.ii. His contribution to R.P.F. 15% of Salary and employer’s contribution 8%.iii. House Rent Allowance Rs 400 p.m.iv. Conveyance allowance Rs200 p.m.v. Life Insurance premium Rs. 8000, of which half amount is paid by

employer. The policy amount Rs. 70,000

2. Income from House property

i. Annual value of self residential house Rs. 8,000.ii. Annual value of rental house Rs.42,000.iii. Municipal Tax is 15%. Insurance premium of self house Rs. 300. Interest

on loan taken for construction of rental house Rs.4,500.

3. Other Income

i. Dividend from Indian companies Rs. 8,000ii. Interest on fixed deposit with Bank Rs. 16,000.iii. Interest on loan given to friend Rs.2,000.iv. Interest on post office savings Bank Rs. 1,500

Compute his total income and tax liability for the assessment year 2012-13

business taxation mba iii 566324802

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