DISTANCE EDUCATION
M.Com. DEGREE EXAMINATION, DECEMBER 2017.
TAXATION AND TAX PLANNING
(2005 Onwards)
Time Three hours Maximum 100 marks
SECTION A — x 8 40 marks)
Answer any FIVE questions.
1. What is tax planning? Explain its objectives and areas of
tax planning.
2. Explain the tax considerations in tax planning that are
relevant to self occupied property.
3. What is cost inflation index and cost of acquisition?
4. Who is a 'specified employee' under salaries? Explain any
five perquisites taxable in the hands of specified assessee.
5. State any four expenses each that are allowed and
disallowed while calculating income from business.
6. Explain "closely held company and widely held company".
Sub. Code
25
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7. Mr. Joe retired from his job on 1.12.2012 after putting
31 years and 2 months service. He is covered by the
payment of gratuity Act. He received Rs. 4,68,000 as
gratuity. At the time of retirement his monthly salary
including DA was Rs. 15,750 calculate taxable and
exempted gratuity.
8. Describe the nature of deduction and the extent of
deduction claimed for the following under the income tax
Act, 1961.
Sec. 80 G
Sec. 80 E
Sec. 80 D.
SECTION B — × 15 60 marks)
Answer any FOUR questions.
9. Discuss the tax planning areas for long term capital gains
under the income tax Act.
10. Analyse the provisions of I.T. Act 1961 regarding set off
and carry forward of losses.
11. Differentiate between
Tax avoidance and tax planning
Tax evasion and tax avoidance
Tax planning and tax management.
12. How are assessees categorised under the Income Tax Act
on the basis of their residence state the tax planning
considerations in this regard.
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13. From the following calculate gross total income of Mr. Lal
for the Previous year March 31, 2012.
Basic salary Rs. 6,250 p.m.
DA Rs. 3,000 p.m. (Forming part)
CCA Rs. 600 p.m.
Bonus 1 month basic salary
HRA Rs. 4,150 Pm; Rent paid Rs. 3,250 p.m
Academic research allowance Rs. 700 p.m.
Actual amt spent Rs. 400 p.m
Conveyance allowance Rs. 350 p.m.
Education allowance Rs. 150 p.m per child for 3 children.
He is given with a motor car of 1600 cc maruti D X along
with chatters expenses met by employee. The employer
pays Rs. 2,000 towards income tax. Employer and
Employee contribute 13.75% towards RPF. Interest
12% is credited for Rs. 12,000
His income from let out property Rs. 7,200
He received the following incomes during the previous
year
Dividends from L and T co. Rs. 9,600
Interest on fixed deposits from banks Rs. 12,400
14. Explain the tax planning considerations to be borne in
mind with regard to making investments under section
80 C and taxation for partnership firm.
15. Briefly explain the procedure involved in computation of
income from house property.