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C 312

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Third Year B.Com. Examination, April/May 2012

(SIM Scheme)
INCOME TAX LAW AND PRACTICE

*C312*

Time : 3 Hours

Max. Marks : 90

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PART A

Answer any three questions. Each question carries 15 marks.

(315=45)

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1. a) How do you determine the residential status of an Individual under IT Act.

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b) How do you determine the value of residential accomadation provided by the

employer ?
2. What is perquisite ? Explain briefly the different types of perquisits.

3. Mr. Naveen furnishes the following particulars of Income for the p/y 2010-11.

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a) Basic salary Rs. 30,000 p.m.

b) DA 65% of basic salary.

c) Bonus one months basic salary.

d) Commission Rs. 15,000.

e) Conveyance allowance for office duty 1000 p.m.

f) HRA Rs. 2,500 p.m.

g) He stays in the rented house for which he is paying Rs. 4,000 p.m. as rent.
h) He contributes 13% of his salary to RPF to which employer contributes equal
amount. The interest credited to his A/c amounted to Rs. 6,500 at 13% p.a.
i) Reimbursement of medical bill amounted to Rs. 25,000 (treatment was done
in private approved hospital).
j) This personal expenses of Rs. 10,000 paid by employer.
k) He purchased NSC for Rs. 10,000; LIP paid Rs. 10,000 during the p/y.
Compute his salary income and deductions u/s 80 C for the A/y 2011-12.
P.T.O.

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C 312

*C312*

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Amount

Payments

Amount

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Receipts

4. Compute income from profession of Dr. Venkatachalapathi from the following

receipts and payments A/c for the A/y 2011-12.

Rs.

Rs.

41,000

Loan from bank

50,000

Consultation fee

50,000

Visiting fee

3,80,000

By Rent of clinic

70,000

Purchase of surgical
Equipment

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To Balance b/d

40,000

Municipal tax

19,200
10,000

22,000

Purchase of books

Rent from H.P.

84,000

Purchase of car

Agricultural income

17,200

Staff salary

96,000

Int. on P.O. SB A/c

4,000

Int. on bank loan

16,300

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Gift from patients

Donation to DNF

42,000

18,000

Car expenses

40,000

28,000

Sundry expenses

45,600

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Int. on Debentures

Winning from lottery

(Net)

Share in HUF

3,00,000

32,000

LIP

4,000

Balance c/d

43,100

7,26,200

7,26,200

Other Informations :

1) Depreciation for the whole year Rs. 40,000.

2) Bad debts as per IT rules Rs. 10,000.

3) Half of the car expenses relate to his personal use.

4) Bank loan is for professional purpose.

5. Mr. Vatarappa is the owner of following house properties in Chamarajanagar.

Particulars in respect of which for the year ended 31-3-2011 are as under.
H1

H2

H3

1,20,000

28,000

S.O.P

Standard rent

80,000

30,000

Municipal valuation

90,000

20,000

4,00,000

Actual rent for 12 months

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*C312*

C 312

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10,000

5,000

40,000

Municipal tax paid by owner

10,000

2,500

Municipal tax paid by tenant

2,500

20,000

10,000

30,000

1 month

7,000

1,00,000

Interest on loan for repairing house

5,000

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Vacancy period

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Repairs

Municipal tax (total)

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Unrealised rent allowed in the A/y 2007-08 recovered during the year for the first
house Rs. 16,000. Compute income from house property for the A/y 2011-12.

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PART B

Answer any three questions. Each question carries 10 marks :

(310=30)

6. State any ten exempted incomes u/s 10.

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7. State the provisions of IT Act, 1961 regarding recognised provident fund.

8. From the following details of Dodda Nayak for the year ended 31-3-2011. Compute
his income from other sources for the A/y 2011-12.
1) Ground rent Rs. 5,000.

2) Rent from subletting Rs. 7,000 p.m. (Rent paid 4,000 p.m.)

3) Dividend from foreign company Rs. 20,000.

4) Commission from Insurance company Rs. 10,000.

5) Dividend from co-operative society Rs. 30,000.
6) Interest on bank deposit Rs. 5,000.
7) Interest on P.O. savings bank A/c Rs. 6,000.
8) Winning from horse race (Net) Rs. 14,000.
9) Remuneration from radio talk Rs. 5,000.

10) Gifts on the occassion of his marriage Rs. 5,000.

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C 312

*C312*

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b) Cost of acquisition (in 1969) Rs. 88,000.

c) Improvements made during may 1994 Rs. 50,000.

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a) Fair market value as on 1-4-81 Rs. 2,00,000.

9. State the different types of capital assets and compute the taxable capital gain
from the following.

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d) Purchase of another property for Rs. 50,000 and invested in CGAS 1988
Rs. 25,000.

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e) Sale proceeds on 1-10-2010 Rs. 25,00,000.

CII 1981-82 100 ; 2010-11 711; 1994-95 259.

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10. Sri Shyam has the following incomes for the financial year 2010-11.

a) Income from house property situated in Srilanka 1,00,000.

b) Income from salary received in Pakistan for services rendered in India 50,000.

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c) Profit from business in Nepal controlled from Kanpur 3,00,000.

d) Profit from business in India 4,00,000.
e) Interest on England development bond 80,000.
f) Past untaxed income brought into India Rs. 20,000.

Compute G.T.I. of Shyam for the A/y 2011-12.

PART C

Answer any three of the following. Each carries five marks.

11. Define Assessee.

12. Write a note on PAN card.
13. What do you mean by bond washing transaction ?
14. Write any five taxable allowances.
15. Briefly explain the concept of income.

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*C312*

C 312

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W G
WW E. W 15 APW.
1. a)

B W P J Q W Pvw ?
P JX W Pvw ?

W G ? P W .

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2.

(315=45)

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b)

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Pv A

3. 2010-11 PR A B W PPv w.

. 30,000 WW.

b)

qr 65%.

c)

&J W .

d)

P . 15,000.

e)

Pd PPR w W WW 1,000 .

f)

wW . 2,500 WW.

g)

C wW WW 4,000 . wW w.

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a)

h) RPF TW . 13%
r w P Ar | w.
RPF TW g wx . 13% 6,500 .
i)

Q WX Sa | X . 25,000. ( TX
A B vX)

j)

A Sa . 10,000 W P .

k)

A . 10,000W E S . 10,000W
i P .
2011-12 W PR B Pvw 80 C

PW .

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C 312

B R

41,000

L wW

P
R

50,000

iP PO S 40,000
W W
19,200

50,000

70,000

3,80,000

P S

10,000

XW PvW

22,000

P S

3,00,000

B wW

84,000

96,000

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q R

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PW Por P T v. Ppa
B 2011-12 W PR PR Q.

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4.

*C312*

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P B

P wx

16,300

Aa Pd E T wx 4,000
wx
18,000

NDFW W

42,000

P Sa

40,000

o B ()

28,000

C Sa
i P

45,600
4,000

32,000

BT R

43,100

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17,200

AP Po

7,26,200

7,26,200

C W :
1) | P 40,000.
2)

BP P Pv 10,000.

3) 1/2 r

5.

4)

P Sa PWX vX.

P EPRX vX.

agW s W P 31-3-2011 PR
AWv D w.
H1
12 W wW

r wW

H2

H3

1,20,000

28,000

S.O.P

80,000

30,000

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*C312*

C 312

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90,000

20,000

4,00,000

W W (Jor )

10,000

5,000

40,000

P W

10,000

2,500

wW W

2,500

20,000

10,000

30,000

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1 W

T A
wx
5,000
7,000
1,00,000
2007-08 W W wW X 16,000
( W). B 2011-12 W PR PR Q.

WW E. W 10 APW.

(310=30)

af 10 W P BW .

7.

Wor B W W .

8.

vx P (31-3-2011) PPv W C W
BW 2011-12 W PR PR Q.
wW . 5,000.
E wW wW . 7,000 WW (wW WW 4,000).
P . 20,000.
P P 10,000.
P&Bq q . 30,000.
P s~ wx . 5,000.
Aa Pd E T wx . 6,000.
P () . 14,000.
w | . 5,000.

1)

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6.

2)

3)
4)

5)
6)
7)
8)
9)
10)

A Xr . 5,000.

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C 312

P v BW PX W v
Pvw.
a) 1-4-81 S Ppr . 2,00,000.
b) (1969 ) S ac

. 88,000.

c) 1994 W w A

B S . 50,000 CGAS 1988 X

. 25,000.

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d)

. 50,000.

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9.

*C312*

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e) 1-10-2010 o w | . 25,00,000.

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CII 1981-82 100; 2010-11711; 1994-95 259.

10. 2010-11 |P PR B PPv.

P B 1,00,000.

b)

Q v 50,000.

c)

P |PRor 3,00,000.

d)

4,00,000.

e)

CWv A vW wx 80,000.

f)

W B ( W ) PR 20,000.

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a)

2011-12 W PR Jor B Pvw.

WW E. W 5 APW.

11.

W T.

12.

(PAN) Pv WY q~ .

13.

v W WY q~ .

14.

5 WP W .

15.

B P QX .
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(35=15)