B.

COM DEGREE MODEL EXAMINATION NOV–2018

FIFTH SEMESTER
INCOME TAX–I
TIME:3 HRS MAXIMUM:100 MARKS

SECTION A (5 *10 = 50)

Answer any FIVE questions.
All questions carry equal marks.

1.Explain any ten exempted income.

2. What tests would you apply to distinguish the capital receipts from the revenue receipts?

3. Define ‘Annual value’. How is it determined?

4. Mr. B, a married citizen of India left for Germany for the first time on 15-9-2016 on a business trip
He returned to India on 5-6-2017. During his absence from India he maintained a dwelling house for
himself in Calcutta. What will be his residential status for the Assessment year 2018-19.

5 Mr. Yash sold an asset on 15.8.2017 (CII.264) for RS. 1,24,000. The cost price of the asset purchased
on 11.2.2006 is Rs 20,000. The fair market value of the same on 1.4.2001.(CII. 100) was Rs. 20,000.
The income of Mr. Yash from other sources during the previous year was Rs. 22,700.In the above
problem how will be capital gain be treated?

6. Mr..A invested Rs. 1,00.000 in 8% tax-free debentures of a company. What will be his taxable
interest for the previous year ending on 31-3-2018 if the rate of deduction of tax at sources is @
20.6% . Interest accrues on 1st Jan. every year.

7. Mr. Kumar retired on 31-12-2015 and his pension was fixed at 3,600 p.m. He got commuted pension
Rs. 2, 00,000 from his employer, a limited company. Find out the taxable amount of commuted value
of pension it: (a) he gets gratuity and (b) he does not get gratuity.

8. A house was completed on August 1, 2017 and following information is available about this house
Fair rental value of the House Rs. 38,000 p.a.
Municipal value of the House Rs. 40,000 p.a.
Actual Rent Rs. 4,500 p.m.
Municipal Taxes Rs. 4,000 p.a.
Interest on Loan Rs. 9,000 p.a.
Let out for the period 1-08-2017 to 31-03-2018.
Calculate Income from House Property for the previous year ending on 31-3-18.
 SECTION B- (2x25=50 marks)
Answer any TWO questions.
All questions carry equal marks.

19. How would you determine the residential status of a person?

20. R.Lakmi has the following investments and incomes in the previous year ended 31-3-2018.Calculate
her income from other sources.
1. Dividend from a company Rs.7800
2. Eaxaminarship remuneration Rs.2000
3. Royalty by the publication of a book Rs.48000
4. Winnings from lottery(net)[received on 1.3.2018] Rs.34550
5. Rs.40000, 10% debenture of a company (listed)
6. Rs.40000,12 % Punjab Govt. securities
7. Rs.50000, 13% less tax commercial securities.
8. Rs.40000,10% tax –free debentures of a company.
9. Rs.4036, as interest on tax free debentures (listed)[received on 1.3.2018]
In October 2017 she should the above Rs.40000 ,10% (tax free) debentures of a company for
Rs.45000 .In December 2007 she inherited Rs.60000 ,10% .(tax free) debentures (listed) of XY
Ltd.,from her father .Interest on above securities falls due on December 31st of every year. She
claims the following deductions : a. Collection charges for interest and dividend @ 2% of net
amount realized . b. Purchase of lottery tickets Rs.2000.

21. Mr. Ram an employee of Calcutta based company provides the following particulars of his salary
Income.
Rs.
(a) Basic Salary 34,000 p.m
(b) D.A 15000 p.m
(b) Profit Bonus 10,000
(c) Commission on turnover achieved by Mr. Ram 40,000
(d) Rent free house provided by employer. Lease rent paid by employer 6,000 p.m.
(e) Free Education facility for three children of the employee (Bills issued in the name of employer)
22,500 Compute Income under the head salary for the Assessment year 2018-19.

22. Profit and loss a/c of Mrs.Raju and company.

General expenses 7000 Gross profit 140000

Fire insurance premium 2000 Bad debts recovered but
Bad debts 1000 disallowed earlier 4000
Salary 65000 Interest from govt .securities 4000
Advertisement (in cash) 22250
Proprietor’s salary 12500 Rent received from employees 12000
 Interest on capital 2000
Income tax 1000 Interest from debtors for
Depreciation 2000 delayed payment 6000
Sales tax (due) 5000
Advance income tax paid 1000
Donations 500
Motor car expenses 750
Municipal taxes of quarters
Let to employees 5000
Net profit 39000
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166000 166000
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General expenses include Rs.4000 paid as compensations to an old employee whose services were
terminated in the interest of the business and Rs.2200 by way of help to a poor student. Depreciation
calculated according to the rates comes to Rs.2900. Sales tax was paid on 1.5.2018. Date filing of return
is 31.7.2018. 50% of motor cars expenses are for proprietors personal use.
Compute business income.