Bms Semester Iv Iap & Exam Paper

Direct & Indirect Taxes –BMS /IV/IAP Time: 1.30 Hrs 40

Marks :

Note: a. Question one is compulsory. b. Answer any one from the remaining questions. c. Marks are indicated on the right side of each question Q 1.Mr. Shrinivas has two houses. One is occupied and other is let out. From the following information calculate his income from house property. Particulars Gross Municipal Valuation Fair Rent Annual Rent (Actuals) Taxes Paid Repairs &maintenance Interest on Loan (borrowed after1.4.99) Vacancy period

House -1 Self Occupied 400000 480000 20000 40000 90000

House -2 Let out 200000 240000 264000 10000 10000 60000

-

2 months

Compute the income from House Property for the Assessment Year 2007-08. (20) Q 2. Write short notes on: 1. 2. 3. 4. 5.

Agricultural Income Receipts from HUF Deductions available U/S 80U of IT Act Annual Letting Value Full Value Consideration (10)

Q 3. What is ‘pre acquisition interest’ in the context of house loans? Arun took a loan of Rs.100000 @15% p.a on 1.4.03 for construction of house. Construction was completed on 20.3.06.Calculate deductible interest from Annual Value for the previous year if the property was let out. (10) Q 4.. How do you compute ‘income from VLOP (vacant Let Out Property)? (10)

BMS /IV/ A1/Mar- 08 Direct & Indirect Taxes Time: 2.00 Hrs 60

Marks :

Note: a. Both Questions in Section - I are compulsory. b. Answer any three Questions from Section –II. c. Marks are indicated on the right side of each question SECTION- I Q 1. From the Profit and Loss Account of Mr. Shekar and additional information given, calculate the total income of Mr. Shekar for the Financial Year 2006-07 stating the corresponding Assessment Year. Particulars To Staff Salaries To Advertisement To Sales Expenses To Administrative Exp. To Printing & Stationery To Donations To Reserve for Doubtful Debts To Salary to Self To Income Tax To Depreciation To Net Profit TOTAL

Rs. 36000 10000 28000 5000 2000 10000 6000 15000 15000 18000 48000 193000

Particulars

Rs.

By Gross Profit By Lottery winnings By Dividends By Interest – Bk. Deposits

154000 9000 3000 27000

TOTAL

193000

1. Advertisement includes Rs.1000 paid to a political party for advertisement in their Souvenir. 2. Donation of Rs.10000 in P & L account is given to Pune Minister’s National Relief Fund. 3. Administrative expenses of Rs. 5000 includes Rs.2000 paid for medical insurance of Mr. Shekar. (20)

Q 2. i.. Mention any six items of Income exempt U/S 10 of the Income Tax Act. ii. What is ‘Profit in lieu of Salary’? Explain with examples. (10) [PTO] :2: SECTION- II Q 3. Mr. Shrinivas has two houses. One is occupied and other is let out. From the following information calculate his income from house property. Particulars Gross Municipal Valuation Fair Rent Annual Rent (Actuals) Taxes Paid Repairs &maintenance Interest on Loan (borrowed after1.4.99) Vacancy period

House -1 Self Occupied 400000 480000 20000 40000 90000

House -2 Let out 200000 240000 264000 10000 10000 60000

-

2 months

Compute the income from House Property for the Assessment Year 2007-08. (10) Q 4. Mr. Ching is a Japanese Citizen. He came to India on Oct.15, 2006 for a visit and was in India till 31st March’07. In pevious years his stay in India was as under: Year No. of Days 1996-97 188 1997-98 190 1998-99 185 1999-2000 200 2000-01 40 2001-02 300 2002-03 195 2003-04 185 2004-05 100 2005-06 200

Find his Residential Status for the Asst. Year 2007-08, assuming he is not a person of Indian Origin. (10)

[PTO] :3: Q 5.Mr. Lal commenced business on 1.2.07. From the following information ascertain from which month Mr. Lal will be liable to pay tax under MVAT Act. Give reasons. No. 1 2 3 4 5 6 7 8

Particulars Feb.’07 Mar.’07 Apr.’07 May’07 Jun.’07 Jul.’07 Aug.’07 Sept.’07

Purch. Purch. Sales Sales Taxed Taxfree Taxed Taxfree 8000 50000 4000 95000 3000 32000 5000 45000 4000 210000 1000 305000 5000 175000 6000 190000 2000 200000 2000 210000 4000 250000 5000 275000 4000 170000 4000 190000 6000 180000 8000 220000 (10)

Q 6.Mr. Tembe is an employee with ABC Ltd. Rs. 1. His monthly Salary is as below: Basic Salary per month 5000 Dearness Allowance per month: 1.4.06 to 31.12.06 25% of Basic Salary 1.1.07 to 31.3.07 32% of Basic Salary Professional Tax deducted from Salary per month 120 2. Taxable Conveyance allowance for the year 3500 3. Bonus paid @ 20% of Basic + Dearness Allowance. 4. Mediclaim premium paid by employer for Mr. Tembe 2800 Compute his taxable salary for Assessment year 2007-08. (10)

Q 7.Write short notes on: 1. Agricultural Income 2. Receipts from HUF 3. Deductions available U/S 80U of IT Act 4. Annual Letting Value 5. Full Value Consideration (10)

BMS /IV/ A2/Mar- 08 Direct & Indirect Taxes Time: 2.00 Hrs 60

Marks :

Note: d. Both Questions in Section - I are compulsory. e. Answer any three Questions from Section –II. f. Marks are indicated on the right side of each question SECTION- I Q 1. i.. Mention any six items of Income exempt U/S 10 of the Income Tax Act. ii. What is ‘Profit in lieu of Salary’? Explain with examples. (10) Q 2. i.. From the Profit and Loss Account of Mr.’X’ and additional information given, calculate the total income of ‘X’ for the Financial Year 2006-07 stating the corresponding Assessment Year. Particulars To Staff Salaries To Advertisement To Sales Expenses To Administrative Exp. To Printing & Stationery To Donations To Reserve for Doubtful Debts To Salary to Self To Income Tax To Depreciation

Rs. 72000 20000 56000 10000 4000 20000 12000 30000 30000 36000

Particulars By Gross Profit By Lottery winnings By Dividends By Interest – Bk. Deposits

Rs. 308000 18000 6000 54000

To Net Profit TOTAL

96000 386000 TOTAL

386000

4. Advertisement includes Rs.2000 paid to a political party for advertisement in their Souvenir. 5. Donation of Rs.20000 in P & L account is given to Pune Minister’s National Relief Fund. 6. Administrative expenses of Rs.10000 includes Rs.4000 paid for medical insurance of ‘X’. (20) [PTO] :2: SECTION- II Q 3. Mr. X is an U S Citizen. He came to India on Oct.15, 2006 for a visit and was in India till 31st March’07. In pevious years his stay in India was as under: Year No. of Days 1996-97 188 1997-98 190 1998-99 185 1999-2000 200 2000-01 40 2001-02 300 2002-03 195 2003-04 185 2004-05 100 2005-06 200 Find his Residential Status for the Asst. Year 2007-08, assuming he is not a person of Indian Origin. (10) Q 4. Mr. Shinde has two houses. One is occupied and other is let out. From the following information calculate his income from house property. Particulars Gross Municipal Valuation Fair Rent Annual Rent (Actuals) Taxes Paid Repairs &maintenance

House in Powai Self Occupied 4000000 4800000 200000 400000

House at Wadala Let out 2000000 2400000 2640000 100000 100000

Interest on Loan (borrowed after1.4.99) Vacancy period

900000

600000

-

2 months

Compute the income from House Property for the Assessment Year 2007-08. (10)

[PTO] :3: Q 5. Write short notes on: 1. Agricultural Income 2. Receipts from HUF 3. Deductions available U/S 80U of IT Act 4. Annual Letting Value 5. Full Value Consideration (10) Q 6.Mr. Thomas is an employee with Lawrence & Co. Ltd. Rs. 1. His monthly Salary is as below: Basic Salary per month 10000 Dearness Allowance per month: 1.4.06 to 31.12.06 25% of Basic Salary 1.1.07 to 31.3.07 30% of Basic Salary Professional Tax deducted from Salary per month 240 2. Taxable Conveyance allowance for the year 7000 3. Bonus paid @ 20% of Basic + Dearness Allowance. 4. Mediclaim premium paid by employer for Mr. Thomas 5000 Compute his taxable salary for Assessment year 2007-08. (10) Q 7. Mr. Das commenced business on 1.2.07. From the following information ascertain from which month Mr. Lal will be liable to pay tax under MVAT Act. Give reasons.

No. 1 2 3 4 5 6 7 8

Particulars Feb.’07 Mar.’07 Apr.’07 May’07 Jun.’07 Jul.’07 Aug.’07 Sept.’07

Purch. Purch. Sales Sales Taxed Taxfree Taxed Taxfree 8000 50000 4000 95000 3000 32000 5000 45000 4000 210000 1000 305000 5000 175000 6000 190000 2000 200000 2000 210000 4000 250000 5000 275000 4000 170000 4000 190000 6000 180000 8000 220000 (10)