DISTANCE EDUCATION
M.Com. DEGREE EXAMINATION, MAY 2018.
TAXATION AND TAX PLANNING
(2005 onwards)
Time Three hours Maximum 100 marks
SECTION A — × 8 40 marks)
Answer any FIVE questions.
1. Define Income. Explain the features of Income.
2. Write short note on Basic conditions and Additional
conditions while identifying the residential status of an
individual.
3. Mr. Muthukumar is employed in ABC Ltd., Bangalore.
He gets the following emoluments.
Basic Salary Rs. 12,500 p.m
DA [forms part] Rs. 6,000 pm.
Bonus Rs. 5,000
Fees Rs. 1,000
commission on turnover achieved [turnover achieved
Rs.1, 50,000]
HRA Rs. 7,250 p.m. [Rent paid
Rs. 6,400 p.m.]
EA Rs. 4,000 p.m

Calculate gross salary
Sub. Code
25
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4. How to treat partly let out and partly self occupied
houses? Explain with suitable example.
5. Brief about "under-valuation and over-valuation of stock"
with suitable example.
6. What are the incomes that can be taxed under the head
income from other sources?
7. Differentiate deductions u/s 80 G with limitations and
without limitations.
8. Write short notes on clubbing of income.
SECTION B — × 15 60 marks)
Answer any FOUR questions.
9. Explain agricultural income and the procedures
regarding how it should be taxed.
10. Explain the various types of allowances.
11. How to calculate gross annual value and net annual
value while calculating income from house property?

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12. Explain the expenses expressly disallowed u/s 40 while
calculating income from business.
13. Explain the interest income, which are fully exempt from
other sources of income.
14. Bring out various deductions available from GTI while
calculating taxable income.
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