M.Com. DEGREE EXAMINATION, APRIL/MAY 2018.
Second Semester
TAXATION
(Common for M.Com. (Professional General)
2 1730124
Time 3 Hours Max. Marks 70
SECTION — A
Answer any FIVE questions. 4 20 Marks)
1. Assessment year.
2. Resident.
3. Advance salary.
4. Gross annual value.
5. Deemed business profits.
6. Depreciation.
7. Zero coupon bond.
8. Input tax credit.
SECTION — B
Answer all FIVE questions. 10 50 Marks)
9. What do you mean by Income Tax? Give an overview of Income Tax Act. 1961.
Or
What are the exempted incomes under section 10 of the Income Tax Act?

10. Explain the procedure to compute gross annual value of let out house
property.
Or
Mr. Raj Kumar has the following receipts from his employer:
Basic pay Rs. 3,000 p.m.
Dearness allowance (D.A.) Rs. 600 p.m.
Commission Rs. 6,000 p.a.
Motor car for personal use (expenditure met by the employer)
Rs. 500 p.m.
House rent allowance Rs. 900 p.m.
Find out the amount of HRA eligible for exemption to Mr. Raj Kumar
assuming that he paid a rent of Rs. 1,000 p.m. for his accommodation at
Kanpur. DA forms part of salary for retirement benefits.
11. Explain the different deductions under the head income from business or
profession.
Or
Mr. Gamma, a proprietor started a business of manufacture of tyres and
tubes for motor vehicles on 1.1.2016. The manufacturing unit was set up on
1.5.2016. He commenced his manufacturing operations on 1.6.2016. The total
cost of the plant and machinery installed in the unit is Rs. 120 crore. The said
plant and machinery included second hand plant and machinery bought for
Rs. 20 crore and new plant and machinery for scientific research relating to
the business of the assessee acquired at a cost of Rs. 15 crore. Compute the
amount of depreciation allowable under section 32 of the Income-tax Act,
1961 in respect of the assessment year 2017-18.
12. Explain six incomes which are chargeable under income from other sources.
Or
Ms.Usha purchases 1,000 equity shares in X Ltd., at a cost of Rs. 30 per share
(brokerage in January 1995. She gets 100 bonus shares in August 1999.
She again gets 1100 bonus shares by virtue of her holding on February 2005.
Fair market value of the shares of X Ltd. on April 1,2000 80. In January
2017, she transfers all her shares Rs. 200 per share (brokerage
Compute the capital gains taxable in the hands of Ms. Usha for the A.Y.
2017-18
Cost Inflation Index for F.Y. 2000-01: 100, F.Y. 2005-06: 117 F.Y. 2016-17:
272.
13. What is the need for GST? Explain the origin and background of GST in
India.
Or
What are the different types of returns under GST Act? Explain the
procedure of filing of monthly returns.
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