| 1. | (a) | Choose the correct alternative: | 1x13 | |
| | | (i) | The basic exemption limit for a non–resident woman above the age of 60 years for the assessment year 2012–13 is | (a) | Rs. 1,90,000 | (b) | Rs. 1,80,000 | (c) | Rs. 2,40,000 | (d) | Rs. 2,50,000 |
| | (1) |
| | | (ii) | When a person retires from a profession and receives any amount towards self–generated goodwill, it is | (a) | Taxable as income from profession | (b) | Exempt income under section 10 | | (c) | Not taxable since there is no cost of acquisition | (c) | Taxable as capital gain |
| | (1) |
| | | (iii) | Mr. Xavier received Rs. 2,00,000 from the prospective employer before joining duty in order to resign from the present employer. Subsequently, he joined the new employer. The amount received is | (a) | Taxable as income from business | (b) | Taxable as salary income | | (c) | Exempt from tax u/s 10 | (d) | Exempt being capital receipt. |
| | (0) |
| | | (iv) | Jain introduced his motor car costing Rs. 3,00,000 acquired in April, 2009 into the business newly commenced by him from 01.04.2011. The actual cost of car for the purpose of depreciation would be | (a) | Rs.3,00,000 | (b) | Rs.2,16,750 | (c) | 1,50,000 | (d) | Rs. ‘Nil’ not eligible for depreciation |
| | (0) |
| | | (v) | For non–Government employee governed by Payment of Gratuity Act, 1972, the monetary limit for exemption is | (a) | Rs. 5,00,000 | (b) | Rs. 3,50,000 | (c) | Rs. 10,00,000 | (d) | Limitless |
| | (0) |
| | | (vi) | Unrealised rent of Rs. 50,000 was received in June, 2011. The property was sold before April, 2011. How much of unrealized rent is taxable? | (a) | Rs.50,000 | (b) | Rs.35,000 | (c) | Rs.30,000 | (d) | Not taxable |
| | (1) |
| | | (vii) | A registered charitable trust meant for educational purpose has annual aggregate receipt of Rs. 80,00,000. Its income after expenses is Rs. 20,00,000. The income liable to income-tax would be | (a) | Rs. 80,00,000 | (b) | Rs. 60,00,000 | (c) | ‘Nil’ | (d) | Rs. 30,00,000 |
| | (0) |
| | | (viii) | Pravin received Rs. 1,000 per month as transport allowance. The amount eligible for exemption would be | (a) | Rs. 1,000 p.m. | (b) | Rs. 200 p.m. | (c) | Rs. 800 p.m | (d) | Rs. ‘Nil’ fully taxable |
| | (0) |
| | | (ix) | Jayant working in a college received Rs. 2,000 per month as research allowance for pursuing research. The taxable portion of allowance would be | (a) | Rs. 2,000 p.m. | (b) | Rs. ‘Nil’ | (c) | Rs. 1,000 p.m. | (d) | Rs. ‘Nil’ fully exempt |
| | (0) |
| | | (x) | Pankaj was provided accommodation in a hotel by the employer for 10 days mnsequent to his transfer from Mumbai to Kolkata. The cost of accommodation was Rs. 30,000 to the employer. The value of perquisite is | (a) | Rs. ‘Nil’ | (b) | Rs.30,000 | (c) | Rs. 15,000 | (d) | Rs. 20,000 |
| | (0) |
| | | (xi) | A & Co., a partnership finn, contributed Rs. 1,00,000 towards family planning programme among the employees. The amount eligible for deduction would be | (a) | Rs. 1,00,000 | (b) | Rs.20,000 | (c) | Rs. 1,50,000 | (d) | Rs. ‘Nil’ not eligible for
deduction |
| | (1) |
| | | (xii) | A sum of Rs. 50,000 was written off as bad debt in the assessment year 2008–09 and was disallowed. During financial year 2011–12 Rs. 20,000 was recovered. Out of the recovery how much is taxable? | (a) | Rs. 20,000 | (b) | Rs. Nil | (c) | Rs. 30,000 | (c) | Rs. 70,000 |
| | (1) |
| | | (xiii) | Pon Ltd. incurred Rs. 35,00,000 towards voluntary–retirement compensation paid to its employees in the financial year 2011–12. How much is deductible for the assessment year 2012–13 out of the said payment | (a) | Rs. 7,00,000 | (b) | Rs. 5,00,000 | (c) | Rs. 35,00,000 | (d) | Rs. 3,50,000 |
| | (0) |
| | (b) | Fill up the blanks: | 1x12 | |
| | | (i) | Salary expenditure not recorded in the books is taxable as unexplained expenditure and at the same time ____________ it is (deductible/not deductible) for computing total income as per section 69C. | | (1) |
| | | (ii) | Amount received under keyman insurance policy including bonus thereon is __________ (income/exempted income) under the Income–tax Act, 1961. | | (0) |
| | | (iii) | Income of minor child when subjected to clubbing, a sum of Rs. ____________is exempt. | | (0) |
| | | (iv) | Deposit in public provident fund in the name of minor child is ______________(deductible/not deductible) under section 80C in the hands of contributing parent. | | (0) |
| | | (v) | An individual can avail the benefit of exemption in respect of leave travel concession offered by his employer ______________in a block of four years. | | (0) |
| | | (vi) | The maximum amount of exemption in respect of encashment of earned leave is Rs. _____________. | | (0) |
| | | (vii) | A charge created consequent to the decree of a Court of law is _____________(application/diversion) of income. | | (0) |
| | | (viii) | Amount recovered by an employer from the employees towards the latter’s share of provident fund contribution is ____________(income/not an income) of the assessee–employer. | | (0) |
| | | (ix) | Loss from non–speculation business ___________(can/cannot) be set off against profits derived from speculation business. | | (0) |
| | | (x) | Salary foregone is ___________(taxable/not taxable) in computing the income from salaries in the hands of the concerned employee. | | (0) |
| | | (xi) | The monetary ceiling limit for exemption for gratuity received w.e.f. 21.05.2011 under the Payment of Gratuity Act, 1972 is Rs. ___________. | | (0) |
| | | (xii) | Fixed medical allowance of Rs. 2,000 per month paid by an employer is _____________(taxable/exempt) in the hands of the employee. | | (0) |
| 2. | (a) | Following details are furnished by Mr. Appaji for the year ended 31.03.2012: | | Rs. | | (i) | Profit on sale of shares in Indian company, sold in India
but proceeds received in France |
30,000 | | (ii) | Dividend from a Korean company received in France | 50,000 | | (iii) | Rent from property in Sri Lanka deposited in Sri Lanka but later
remitted to India through approved banking channel–Gross |
1,00,000 | | (iv) | Dividend from ABC (P) Ltd. | 20,000 | | (v) | Income from nursery in Gujarat | 40,000 |
Compute the total income of Mr. Appaji if he is | (i) | Resident and ordinarily resident; | | (ii) | Resident but not ordinarily resident; | | (iii) | Non–resident. |
| 9 | (0) |
| | (b) | Ms. Monisha, a Sikkimese woman, married Mr. Atul of Surat in June, 2006. She has income from let out property at Sikkim being Rs. 10,000 per month. She is employed in a bank at Surat and her salary income for the year ended 31.03.2012 was computed at Rs. 3,12,000. Determine her total income.
What would be your answer if she got married on 30th June, 2010? | 4 | (0) |
| | (c) | Is any income of Khadi and Village Industries Board exempt from tax? If not, state taxable and exempted items of income. | 2 | (0) |
| 3. | (a) | State how the residential status of a company is determined under the Income–tax Act, 1961. | 3 | (0) |
| | (b) | Mr. Rajan doing business, donated Rs. 50,000 to Madras University on 10.01.2012, to be used for scientific research programme approved by Principal Scientific Advisor to the Government of India. | (i) | How much of such donation is deductible in computing business income of Mr. Rajan for the assessment year 2012–l3? How much of such donation is deductible in computing business income of Mr. Rajan for the assessment year 2012–l3? | | (ii) | If Mr. Rajan was an employee having only salary income, what would be your answer? |
| 3 | (0) |
| | (c) | Mr. David is employed in Vertex Co. Ltd., Mumbai. His salary details for the financial year 2011–12 are given below: | (i) | Basic salary Rs. 70,000 per month; | | (ii) | Dearness allowance 50% of basic salary (Eligible for retirement benefits); | | (iii) | House rent allowance Rs. 10,000 per month (Rent paid by employee Rs. 15,000 per month); | | (iv) | Bonus Rs. 30,000 per annum; | | (iv) | Both David and his employer contribute Rs. 15,000 each per month towards pension scheme notified in section 80 CCD. |
Calculate the total income of Mr. David for the assessment year 2012–l3.
Determine the amount of contribution to the pension scheme eligible for deduction in the hands of employer. | 9 | (0) |
| 4. | (a) | Under what head of income is family pension assessed? Is any deduction available for such amount received ? | 3 | (0) |
| | (b) | State the due dates for filing of return of income under section 139(1) of the Income–tax Act, 1961 in the following cases, for the assessment year 2012–l3: | (i) | By a non–working partner of a LLP, whose accounts are required to be audited under section 44AB; | | (ii) | By a company which has entered into international transactions with a non–resident and is required to file audit report in this regard; | | (iii) | By a University whose gross fee receipts are Rs. 3 crores. |
| 3 | (0) |
| | (c) | Write a brief note on the valuation of self–occupied house property for the purposes of the Wealth–tax act,1957. | 4 | (0) |
| | (d) | The following are the income details of Padmaja Textiles LLP, for the assessment year 2012–13: | Rs. | Book profits of the LLP (before considering interest and remuneration to partners)
Interest to partners at 15%
Remuneration to working partners as per books
Permissible deduction u/s 80–ID |
15,00,000
2,10,000
4,50,000
6,20,000 |
Compute the tax payable by the LLP for the assessment year 2012–l3. | 5 | (0) |
|
| 5. | (a) | Vaibhav Solvents Ltd. is an existing Indian Company, which sets up a new industrial unit. It incurs the following expenditure in connection with the setting up of a new industrial unit: | Rs. | Preparation of project report
Feasibility report expenses
Expenses for raising additional capital required for the new unit
The following additional data are given:
Factory construction cost
Cost of project
Capital employed in the new unit | 4,00,000
6,00,000
3,00,000
12,00,000
40,00,000
30,00,000 |
Compute the deduction admissible to the company under section 35D of the Income–tax Act, 1961 for the assessment year 2012–13. | 5 | (0) |
| | (b) | State the conditions to be fulfilled for claiming deduction of unrealized rent while computing the income from house property. | 5 | (0) |
| | (c) | A domestic company derives the following income for the year ended 31.3.2012: Income from business
Chargeable long–term capital gains from sale fo vacant site | Rs. 90 lakhs
Rs. 30 lakhs |
Compute the total income and tax payable by the company for the assessment year 2012–13. Ignore MAT provisions. | 5 | (0) |
| 6. | (a) | What are the circumstances the Assessing Officer may refer the valuation of the capital asset to the Valuation Officer under section 55A of the Income–tax Act, 1961? | 5 | (0) |
| | (b) | Mr. Ram, the kartha of a Hindu Undivided Family (HUF) invested family .funds of Rs. 5 lakhs in the shares of Hanumaan Couriers P. Ltd. He was appointed as the Managing Director of the company and was paid a remuneration of Rs. 3.6 lakhs for the year ended 31.3.2012. Discuss whether the said remuneration will be assessed in the individual hands of Mr. Ram or in the hands of the HUF, for the assessment year 2012–13. | 4 | (0) |
| | (c) | R Ltd., which had taken up a building on lease, sub–leased the building along with the Furniture to T Ltd. on 01.04.2009. The monthly lease rent is Rs. 10,000 for building and Rs. 4,000 for furniture upto 31.03.2011 and 50% increase in each, for the year ended 31.03.2012. The entire amount was in arrears and only on 31.03.2012, the whole of the lease amount was paid by T Ltd. to R Ltd.
Discuss the obligation of T ltd. to deduct tax at source from the above payment. What is the rate of TDS and the amount of tax to be deducted ? when should this TDS amount be remitted? | 6 | (0) |
| 7. | (a) | Explain the tax treatment for set off and carry forward of loss from house property. | 5 | (0) |
| | (b) | Dinesh having a proprietary concern by name ‘Dinesh Jewellers’ has the following assets and liabilities as on 31.03.2012: | (Rs. in lakhs) | | Assets | | Plot of land (600 sq. mts) at Indore on which a building has been
constructed without the approval of appropriate authority
Building constructed on the above said land at Indore without
the approval of the appropriate authority and used for his business purpose
Jewellery held as stock in trade
Gold jewellery meant for personal use brought into India from Malaysia,
where he was residing, on his return to India on 1.11.2008
for permanently residing in India
Motor car (WDV)–Rs. 5 lakhs, Market value
Interest in the coparcenary property of the Hindu Undivided Family of
which he is a member
Cash in hand recorded in the books of account
Fixed deposits in a nationalised bank
Liabilities
Loan borrowed for marriage of daughter
Loan borrowed for construction of building at Indore |
30
40
60
10
6
20
2.5
8
5
8 |
The amounts stated against the assets, except cash in hand, are the values determined as per section 7 of the Wealth–tax Act, 1957 read with Schedule III thereto.
Compute the net wealth of Dinesh as on 31.03.2012. | 10 | (0) |
| 8. | (a) | Mr. Arvind (aged 45 years) has total income of Rs. 7,80,000 for the previous year ended 31.03.2012. He has credit by way of tax deducted at source of Rs. 20,000. He paid advance tax of Rs. 20,000, Rs. 25,000 and Rs. 20,000 before 15th of September, December and March during the financial year 2011–12.
Assume he would be filling his return of income on 31.10.2012 after paying self assessment tax, compute interest payable by him under sections 234B and 234C of the Income–tax Act, 1961. | 7 | (0) |
| | (b) | Compute total income of Mr. Malik for the assessment year 2012–13 from the following particulars: | Rs. | Income from house property (computed)
Income from salary (computed)
Long–term capital gain from sale of vacant site (computed)
Business loss–computed (automobile business)
Income from growing and manufacturing coffee (cured and roasted)
Tuition fees for higher education pursued by Mrs. Malik
Tax saver deposit in the name of Mrs. Malik
Public provident fund deposit in the name of minor son Pervez | (1,40,000)
4,60,000
2,00,000
80,000
1,00,000
25,000
10,000
15,000 |
| 8 | (0) |
