GUG/W/18/808 1 P.T.O
Bachelor of Business Administration Fifth Semester
BBA345 Income Tax
P. Pages 4 GUG/W/18/808
Time Three Hours Max. Marks 80

Notes 1. All questions are compulsory.
2. All questions carry equal marks.
1.

Explain the kinds of income basic principle of income tax, basic concept of income and concept of income.
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What is mean by Assessment year and previous year
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OR

Explain the difference between capital receipts and revenue receipts.
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Explain the following terms
Person ii) Assessee
iii) Agricultural Income iv) Casual Income
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2.

Mr. Manoj is a production manager of an industrial unit of a company in Chennai. The particulars of his salary income are as under
Particular Rs.
Basic Salary 15,000
ii) Dearness Allowance
(given under terms of employment) 5,000
iii) Entertainment allowance 1,000
iv) Medical allowance 500
House Rent allowance 4,000
vi) Rent paid for the house 5,000
Car of 1.2 It capacity provided by employer for private and official use Employer meets expenses of car. He and his employer (each) contribute 15% of salary to R.P.F. Mr. Manoj had taken Interest free loan of Rs. 15,000 to purchase refrigerator compute income under the head salary for the assessment year 2017-18.
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Mr. Kamalakar an employee of a company in Nagpur, furnishes the particulars of his salary for previous year 2017-18 as under.
Rs.
Basic Salary 12,000 p.m.
ii) Dearness Allowance (Not for retirement benefits) 1,200 p.m.
iii) Employee's contribution to R.P.F. 10% of basic salary
iv) Employer's contribution to RPF 15% of basic salary.
Professional tax deducted from his 40 p.m. salary.
He has been provided with a rent free house for which a company collects Rs. 1,000 p.m. The fair rent of the house is Rs. 8,000 p.a. The company has also reimbursed the expenditure of Rs. 24,000 on the motor car owned by Mr. Kamlakar which is used partly for official use and partly for personal. He received Rs. 6,000 as travel concession for himself and his family to visit his home town.
He is insured for Rs. 80,000 and has paid a premium of Rs. 4,000 during the previous year.
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OR
*0620*
GUG/W/18/808 2

Mrs. Vandana a sales executive in A ltd. in Mumbai, gets the following employments during the previous year ending March 31 2018.
Basic salary Rs. 54,000 per month, Dearness allowance (part of salary for superannuation and other retirement benefits) Rs. 2,000 per month, Entertainment allowance Rs. 24,500 per month, Special allowance Rs. 50,000 per month
House Rent allowance Rs. 9,000 per month, rent paid by her Rs. 16,000 per month and helper allowance for domestic use Rs. 5,000 per month.
The employer-company provides a Maruti Alto Car for personal use of Mrs. Vandana (employer's expenditure Rs. 1,37,800 depreciation of the car 10% Rs. 12,600)
The employer also provides free club facility for personal use of Mrs. Vandana (expenditure of the employer Rs. 52,100) and free lunch (cost being Rs. 55 per day for 100 days)
While her employer contributes Rs. 7,000 p.m. towards recognized provident fund, she contributes Rs. 8,000 p.m. Her income from other sources is Rs. 1,67,900. Interest credited on August 10, 2017 12% in the provident fund account is Rs. 30,000. During the year, Mrs. Vandana pays insurance premium of Rs. 10,000 on insurance policy on the life of her mother and Rs. 3,000 on her own life insurance policy (sum assured Rs. 50,000) premium of Rs. 9,000 on insurance policy on the life of her husband falls due on March 23, 2018 though she pays the same on April 13, 2018. Determine the total income from salary of Mrs. Vandana for the assessment year 2017-18.
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3.

Mr. Sultan is the owner of house property in Amravati its MV is Rs. 75,000, F.R. is Rs. 1,00,000 standard rent is Rs. 90,000, it has been let out for Rs.90,000. Municipal Tax Rs.20,000 paid by tenant. Mr. Sultan however bears the following expenses on tenants amenities under an agreement
Water charges Rs. 1,000 lift maintenance Rs. 1,000, Salary of grad ever Rs.1,200 and lighting of stairs Rs.800.
Mr. Sultan claims the following deductions
Repairs Rs.30,000, land revenue Rs.1,000 and collection charges Rs.2,000 compute his taxable income from house property for the A.Y. 2017-18.
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Mr. Rupesh has two houses, details are given below
1st House
2nd House
Municipal value
37,500
50,000
Use
Self Residence
Let out
Rent realised

60,000
Municipal tax
9,000
15,000
Land revenue
100
125
Interest on loan taken for reconstruction
8,000
3,150
Compute his income from house property.
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OR

Mr. Zamare submits the following information for A.Y. 2017-18 in respect of his property at Nagpur.
Fair rental value 3,00,000
ii) Municipal value 3,10,000
iii) Standard Rent 3,50,000
iv) Actual Rent 6,00,000
Unrealized rent for the previous year 2016-17 50,000
vi) Municipal taxes paid 40,000
vii) Expenditure on repairs 10,000
viii) Insurance premium 5,000
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GUG/W/18/808 3 P.T.O
ix) Ground rent 1,000
Interest on loan against the property utilized for
construction of a new property 20,000
xi) The property remained vacant for a period of
3 months during previous year 2016-17
Compute income under the head 'Income from House Property' for A.Y. 2017-18.

Mr. Nagarjun owns to houses, the particulars of which are given below for the previous year 2016-17.
Particulars
House A Rs.
House B Rs.
Standard Rent
36,000
56,000
Rent Received
36,000
Nil
Fair Rent
42,000
62,000
Municipal Valuation
24,000
44,000
Municipal taxes (paid)
1,200
2,200
Municipal taxes
1,200
2,200
Ground Rent (Paid)
1,000
500
Interest on loan for construction
15,000
20,000
Nature of occupation
let out
self occupied
Compute Income from house property for the assessment year 2017-18.
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4.

Mr. Amit Submits following particulars of his income for A.Y. 2017-18 compute his total income and tax payable.
Rs.
Dividends from Indian Companies 2,600
ii) Interest on fixed deposit with bank 15,400
iii) Income from the units of the Unit Trust of India 3,900
iv) Interest accrued on National savings certificate VIII Issue 2,000
Honorarium received as examiner not being casual income 12,500
vi) Gift (in cash by cheque) from friends received during the year 51,000
vii) Assessee's own contributions to URPF 41,000
viii) Interest on his own contribution to unrecognized provident fund 15,000
ix) With drawal from National Saving Scheme (1987) account
(including interest) 2,400
Interest on deposit with private concerns 14,000
xi) Interest on Debentures 2,600
xii) Wining from TV Game show (Gross) 1,40,000
xiii) T.D.S. on Winning from TV game show 30% 42,000
xiv) Deposit in PPF A/c 58,000
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Mr. Bharat who is resident of India furnished the following particulars of his investments for the previous year ended 31st March 2017.
Rs. 10,000 units of Mutual Fund (Gross income Rs. 1,200)
ii) Rs. 10,000 in post office saving bank account which earns interest 3.5% p.a.
iii) Rs. 9,000 in fixed deposit account with Allahabad Bank on which interest 10% is
payable.
iv) 10% Rs. 20,000 Debentures (listed of a Tea Company)
Rs. 2,000 interest received on National Development Bonds.
vi) Rs. 1,000 interest received on the debentures of a Co-operative Society.
vii) 10% U.P. State Electricity Boards Bonds Rs. 10,000
viii) Rs. 10,000 in 7-year Post Office National Saving Certificates interest p.a. is
payable on the same every year.
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GUG/W/18/808 4
ix) Rs. 36,000 10% Tax free Debentures of Agra Municipal Corporation. Interest being payable on 31st December,
Rs. 900 received by an account payee cheque is interest on debentures (listed) of a company in which public are substantially interested.
He collected the entire interest himself and claimed Rs. 200 as his own fees for collection of interest.
Calculate the taxable income under the head 'Income from other sources' for the Assessment year 2017-18.
OR

Following incomes are received by Mrs. Vandana during financial year 2016-17.
Rs.
Honorarium received for writing articles in Magazines 1,000
ii) Income from agriculture in Srilanka 2,500
iii) Ground rent from hand in Gwalior 5,000
iv) Interest on P.O.S.B. A/c 1,000
Interest on deposits with Industrial Finance Corporation 250
vi) Dividend from Foreign company 350
vii) Rent from betting of building along with plant 2,000
Repairs to above said plant 100
viii) Wining from Horse Race 2,000
ix) Interest on Rs. 12,000 10% Tax free Debentures (listed) of Aravind Co.
You are required to calculate "Income from other sources" of Mrs. Vandana for the Assessment year 2017-18.
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Mr. Raj submits the following particulars for A.Y. 2017-18 compute his taxable Income from other sources.
Rs.
Rent from letting of factory along with plant and machinery
installed therein (letting cannot be separated) 90,000
ii) Rent from letting of DG set for factory (stand by) 15,000
iii) Collection charges in relation to rent 500
iv) Fire Insurance premium for factory building 800
Fire insurance premium for plant machinery 400
vi) Repairs to factory building 5,000
vii) Depreciation
On building, Plant, machinery 6,000
On DG set 2,000
viii) Income from sub-letting of office premises taken on rent 20,000
ix) Rent paid to owner for office premises 12,000
Winnings from lottery (TDS Rs. 30,000) 1,00,000
xi) Interest on Govt. Securities 5,000
xii) Interest from Bank 3,000
xiii) Interest on Income Tax refund of Rs. 2,000 for A.Y. 2017-18. 1,200
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5.
Answer in brief
Other Provision relating to casual income.
4
House Rent Allowance.
4
Annual value of let-out house property.
4
Procedure to apply for PAN.
4