M.Com. (Semester (CBCS) Examination Oct/Nov-2017
TAXATION
Day Date: Saturday, 18-11-2017 Max. Marks: 70
Time: 02.30 PM to 05.00 PM
Instructions: All questions are compulsory.
Figures to the right indicate full marks.
Q.1 Choose the alternatives given below. 14
Salary received by Member of HUF in his Personal capacity.
Is taxable in the hands of HUF
Is Partly Taxable
Is taxable in the hands of individual
Is taxable in the hands of Individual HUF
Central Board of Direct Taxes works under the
Finance Ministry of Central Government
Finance Ministry of State Government
Foreign Ministry of Central Government
RBI Governer
In case of HUF return of income in general is to be signed.
By the Partner By the Individual
By the Karta of HUF By the Director
TDS Certificate for payment of Salary is to be given in.
Form No 10 Form No 16D
Form No 16 Form No 16A
The prescribed period for filing of return, where the accounts are not subject to
audit is.
31st August of the relevant assessment year
31st July of the relevant assessment year
30th September of the relevant assessment year
31th October of the relevant assessment year
TDS for payment of Professional Fees is to be made under section.
194D 194C
194H 194J
A company assessee has to make payment of advance tax installments in
3 4
5 1
Advance tax is payable by the assessee if the tax payable during the year.
Exceeds Rs.1500 Exceeds Rs.5000
Is Rs. 5000 or more Is Rs. 10000 or more
Share of Profit from the firm received by the partner is
Taxable in the hands of partner
Exempt in the hands of partner
Partly Taxable in the hands of partner
Taxable at Maximum Rate in the hands of partner
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10) An Application for Permanent Account Number is to be made in the Form No.
48A 49A
50A 49B
11) Insurance Premium paid by Karta on the life of member of HUF is allowable
as deduction from the income of HUF u/s
80C 80GG
80G 80D
12) At present Centralised Processing Centre for income tax purpose is at
Mumbai Bangaluru
Chennai Solapur
13) The income of Partnership firm is taxable at the rate of
10% Plus Education Cess Higher Education Cess
39% Plus Education Cess Higher Education Cess
15% Plus Education Cess Higher Education Cess
Non Taxable
14) Dayabhaga, School of Hindi Law is applicable.
In the whole of India except West Bengal
In the State of West Bengal
In the State of Maharashtra
In the State of Jammu Kashmir
Q.2 Write short notes on any two 07
Prescribed Time for Filing of Return of Income
Mitekshara and Dayabhaga
Voluntary Return
Remuneration to Partners
Write short notes on any two 07
Central Board of Direct Taxes
Revised Return
E-filing of Return of Income
Best Judgement Assessment
Q.3 ABC Ltd. Took a building on rent form XYZ w.e.f.01.04.2015 on a rent of
Rs.20000 p.m. It is also took on hire machinery on hire from MNO w.e.f.
01.04.2015 on hire charge of Rs. 12000 p.m. Calculate the amount of Tax
Deductible at Source in both cases.
07
Compute the advance tax liability of an Assessee Mr. Suresh who is
individual below 60 year of age, for the Assessment Year 2016-2017
Amount
Grass Total Income 1000000
Payments towards
PPF 100000
Life Insurance Premium 20000
Tax saving mutual funds 30000
Medical insurance premium 15000
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Answer the following: 07
Self Assessment
Documents as proof of Identity and Address for Permanent Account
Number for Individual.
Q.4 Answer any one 14
From the following particulars furnished by Mr. Nitishkumar the Karta of the
HUF. Compute the total income of the family for A.Y.2016-17
Profits from business 42000
Salary received by a member of the family employed in a
Government Department
6000
Director's fees received by the Karta 4000
Municipal value of the Property let out (rent receivable Rs.8400) 6000
Municipal taxes paid on the above property 600
Dividend from Co-operative society 4000
Contribution to Unit Linked Insurance Plan of UTI 4000
Donation to National Children's Fund 3000
Long term taxable capital gain of sales of Building 22200
OR
From the following particulars of Shri. Gopikisan is Karta of HUF, Compute the
total income of the family for the Assessment Year 2016-17
Profit from family business as per profit and loss account is Rs. 50000. It
was computed after debiting:
Loss from speculation business Rs.5000
Salary of Karta Rs. 18000 and
An irrecoverable loan given to a relative of the Karta without interest
Rs.6000
But the dividend of Rs. 3000 from co-operative society is credited to profit
and loss account before computing the profit
The family has let out its own building for business at a rent of Rs. 600
p.m., the municipal tax being paid Rs. 1200
The family has earned bank interest Rs. 4000 and donated to the Rajiv
Gandhi Foundation Rs.5000
One member of the family is a partner in firms in which, Rs. 25000 are
invested by the family. During the previous year Rs. 12000 as salary and
Rs. 4500 as interest on capital were earned. The member's share of profit
in the firm was Rs.5000 for the year.
One member of the family is a Government employee whose salary was
Rs. 30000 for the previous year.
Another member of the family converted his property Rs. 30000, 12%
debentures of Maharashtra Government on 01.04.2010 into HUF Property.
Interest is received by the family on 30th June and 31st December
Contribution to Jeevan Surakasha Annuity Plan of LIC Rs.7000.
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Q.5 Answer any One 14
Patel Co. is a Partnership Firm consisting of three partners, Mr. Patel, Mr.
Malhotra and Mr. Anand, sharing profit and loss in the ratio of 3:2:3. The firm
was doing business of manufacturing electrical appliances. Profit and loss
account of firm for the year ending 31.03.2016 was as under.
Particulars Rs. Particulars Rs.
To Purchases 750000 By Sales 1670000
To salary to staff 300000 By long Term Capital
Gain
490000
To Interest on Partners: By Debenture Interest 40000
Patel
30000 By Miscellaneous
Business Receipts
4000
Malhotra
220000 By interest on
drawings recovered
from Mr. Patel
16000
Anand 70000 320000
To Depreciation 180000
To Remuneration to
Partners:
Patel 102000
Malhotra 60000
Anand 72000 234000
To Miscellaneous
Expenses
180000
To Net Profit
Patel 96000
Malhotra 64000
Anand 96000 256000
Total 2220000 Total 2220000
The following further details are furnished:
The firm was assessed as a registered firm upto and inclusive of the
Assessment Year 2015-16.
Firm has completed all the formalities to be considered as a partnership
assessed as such.
The partnership deed was amended on 01.04.2015 providing remuneration
and interest to partners as under-
Partner Remuneration Interest on Capital
Mr. Patel (Working Partner) Rs. 8500 p.m. 20%simple interest
Mr. Malhotra (Sleeping Partner) Rs. 5000 p.m. 24%simple interest
Mr. Anand (Working Partner) Rs. 6000 p.m. 20%simple interest
Depreciation eligible under the income tax act works to Rs. 96000.
Under miscellaneous expenses Rs. 82000 are Inadmissible expenses, out
of which Rs. 60000 were donation given to an approved Charitable Trust.
For the Assessment year 2015-16, the firm was assessed on a business
loss of Rs. 40000 and Capital Loss Rs. 10000 respectively.
Compute the Total Income of the Firm and tax payable by it.
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Q.5 X and Y are the partners in a professional firm sharing profits and losses in
proportion of 3/5 and 2/5 respectively. X is the working partner and their
capital accounts are Rs. 40000 and 60000 respectively showing credit
balance. The following is the profit loss account of the firm for the year
ending 31-03-2016:
Particulars Rs. Particulars Rs.
Salary to Staff 41000 Gross Receipts 369300
Salary to Partners: Commission received 8700
X 35000
Rent from House
Property
6000
Y 5000 40000 Bad debts recovered 5000
Commission to Partners
X 25000
Y 5000 30000
Interest on capital
X 5600
Y 8400 14000
General Expenses 10000
Income Tax 5000
TDS 5000
Municipal Taxes 1000
Repairs 750
Collection charges of
rent
250
Bad Debts 2000
Reserve for doubtful
debts
4000
Depreciation 6000
Net profit transferred to
Partners Capital A/c
230000
Total 389000 Total 389000
Other Particulars:
Municipal taxes, repairs and collection charges pertain to house property
letout.
General expenses include Rs. 6000 for purchase of stamp paper for
executing the partnership deed, Rs. 1000 private loans irrecoverable, Rs.
1500 being loss of cash at partner's residence and balance to defend the
title to the premises of profession.
Of the bad debts recovered, Rs. 3500 only were allowed as deduction in
the earlier assessments.
Depreciation allowable as per Income Tax Rules is Rs. 6500
Compute the total income of the Firm.