M.Com. (Semester (CBCS) Examination, 2017
TAXATION (PAPER-II)
Day Date: Thursday, 20-04-2017 Max. Marks: 70
Time: 02.30 PM to 05.00 PM
N.B. Figures to the right indicate full marks.
Q.1 Select the right answers from given alternatives. 14
For Salary Quarterly TDS return is to be submitted in the Form
No.
26Q 27A 24Q 26AS
An Application for Tax Deduction Account Number is to be made
in the Form No.
48A 50A 49A 49B
TDS Certificate for other than salary is to be given in
Form Number 15 Form Number 16
Form Number 16A Form Number 15H
Interest for defaults in furnishing return of income is applicable
u/s 234A u/s 234B u/s 234C u/s 234D
Central Board of direct Taxes works under the
Finance Ministry of Central Government
Finance Ministry of State Government
Defense Ministry of Central Government
RBI Governor
Share of profit which a partner receives from a firm which is
assessed as firm shall be
Fully Exempt Taxable
Partially Taxable Included for rate purpose
A company assesses has to make payment advance tax
installments in
3 4 5 1
Interest on Partners Capital is allowable at maximum at the rate of
12% p.a. 20% p.a. 18% p.a. 12.50% p.a.
Advance tax is payable by the assessed if the tax payable during
the year
exceeds Rs. 1500 is Rs. 5000 or more
exceeds Rs. 5000 is Rs. 10000 or more
Page 1 of 5
SLR-Q 9
10) In case of HUF the Return of Income is to be signed by
Karta or Other adult member of HUF Managing Director
Manager Officer
11) The filling or Return of Loss before the due date is
Optional
Non mandatory
Mandatory if the assesses has to carry forward the loss which
are allowed to be carried and set off
Not applicable
12) Due date for filing of return of income for a person whose
accounts are required to be audited under the Income Tax Act or
under any other Law is
30th September
31st July
31st August
Not applicable
13) Filing of return in electric from plus paper form or Electric form
using Digital Certificate is mandatory for individuals and HUF if
total income exceeds.
Rs. 1000000 Rs. 500000 Rs. 250000 Rs. 800000
14) Mitakshara, School of Hindi Law is applicable.
to the whole of India except West Bengal
To the state of West Bengal
To the State of Maharashtra
To the State of Jammu Kashmir
Q.2 Write short notes on any two. 07
Prescribed time for filing of Return of Income
Return filing obligation of the Deductor with regard to tax
deducted by him during each quarter.
Partition of HUF
Protective Assessment
Q.2 Write short notes on any two. 07
Central Board of Direct Taxes
Advance Tax Installments of Non Corporate Assessee
Defective Return
Prescribed Forms for Income Tax Return
Q.3 State with reasons whether Return of Income is to be field in the
following cases for the Assessment Year 2016 17.
07
i. Mr. X an individual aged 80 years has a Gross Total Income
of Rs. 650000 and he is eligible for deduction of Rs. 150000
under chapter VI A.
ii. ABC, a Partnership Firm has a loss of Rs. 10000 during the
Previous Year 2015 16.
Page 2 of 5
SLR-Q 9
i. 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
ii. Mr. Y is an employee of ABC Ltd. draws a Salary of Rs.
490000 has income from fixed deposits with Bank of Rs.
10000; Whether Mr. Y is required to file the return of income
for Assessment Year 2016 17.
Q.4 Answer any one. 14
A Hindu Undivided family consisting of three members sharing
profit and losses equally Nitish, Lakhan and Dharam of whom
Nitish is Karta. From the profit and loss account of the family and
information given below, compute its total income for the
assessment year 2016 17.
Debit Rs. Credit Rs.
Salaries 145000 Gross Profit 516600
Office Rent 60000 Rent from house
property
90000
General Expenses 45000 Interest on F.D. with
Bank
150000
Interest on Loan 110000 Agricultural Income 230000
Income Tax 150000
TDS 20000
Advertisement 30000
Bad Debts 25000
Provision for bad
debts
15000
Advance Tax 15000
Fire Insurance 3000
Municipal taxes 9000
Household
expenses
23550
Donation 30000
Depreciation 25000
Net profit 281050
Total: 986600 Total: 986600
Additional information:
Salaries include Rs. 25,000 paid to Nitish who is looking after the
affairs of the family business and Rs. 30,000 paid to Lakhan who
is working as accountant, both Salaries are considered
reasonable.
General expenses include Rs. 3,000 paid as penalty for Violation
of Income Tax Laws, Excise Customs Law.
Donations paid are related to a Prime Minister's Relief Fund.
Depreciation allowable on block of assets amount to R. 22,000
Fire insurance and municipal taxes are relating to house property
let out.
Page 3 of 5
SLR-Q 9
A Hindu Undivided family consisting of three members Y and Z
whom X is Karta. From the profit and loss account of the family
and information given below, compute its total income for the
assessment year 2016 17.
14
Debit Rs. Credit Rs.
Salaries 45000 Gross Profit 916550
Office Rent 6000 Rent from house
property
9000
General Expenses 9000 Interest on
savings bonds
15000
Interest on Loan 4500 Dividend form
Indian Company
25950
Income Tax 15000
Advertisement 3000
Bad Debts 1500
Provision for bad
debts
3000
Fire Insurance 300
Municipal taxes 900
Household
expenses
23550
Donation 3000
Depreciation 5250
Net profit 846500
Total: 966500 Total: 966500
Additional information:
Salaries include Rs. 9,000 paid to X who is looking after the
affairs of the family business and Rs. 6,000 paid to Y who is
working as accountant.
General expenses include Rs. 2,000 Rs. 1000 paid as penalty
for Violation of Income Tax Laws and Value Added Tax
respectively.
Donations paid are related to an approved institution.
Depreciation allowable on block of assets amount to Rs. 5,000
Fire insurance and municipal taxes are relating to house
property let out.
Q.5 Answer any one. 14
A firm comprising of four Partners C and D carrying on
business in partnership, sharing Profit Losses equally shows a
profit of Rs. 100000 in its books after deduction of the following
amounts for the year.
Remuneration to Partners A who is not actively
engaged in business
48000
Remuneration to Parts B C actively engaged in
business
Partner B 60000
Partner C 72000
Interest to partner D on loan of Rs. 150000 36000
Page 4 of 5
SLR-Q 9
The deed of partnership provides for the payments of above
remuneration and interest to partner. You are required to work out
the taxable income of the Firm as well as Partners of Assessment
Year 2016-2017.
Shri A and B are equal working partners in a firm, whose Profit
and Loss Account for the year ended 31st March, 2016 is given
below. The payment of salary commission and interest 14%
has been made as per deed.
14
Particulars Rs. Particulars Rs.
To Salary, wages and bonus 4000 By Gross Profit 244500
To General expenses 13000 By interest (Bank F. D.) 9000
To Value Added Tax 300 By Bad Debts recovered
To Rent, Rates and Taxes 2500 (Disallowed in earlier
To Advance Tax 1000 year's assessment) 1100
To TDS 500
To Depreciation on
Plant and machinery 1200
To Bad debts written off 300
To Bad Debts Reserve 800
To Advertising 2000
To Subscription 1000
To Donations to a Hospital
(Notified u/s 80G)
5000
To Loss on sale of motor car 9000
To Interest on capital:
A 8400
B 5600 14000
To partner's Salaries:
A 50000
B 30000 80000
To Commission to B 10000
To Net Profit:
A 55000
B 55000 110000
Total 254600 Total 254600
Notes:
General expenses include Rs. 200 being legal charges for
drawing up a new partnership deed.
Advertising represents Rs. 2000, being cost of insertion in trade
journals.
The motor car is entirely used for private purpose of the partners.
Rent, Rates and Taxes include Rs. 1200 being rent paid to A for
premises used for business.
Allowable Depreciation on Plant and Machinery is Rs. 1500
Compute the assessable income of the firm and find out partners
income taxable under the Head Profit and Gains.