GUG/W/18/845 1 P.T.O
Bachelor of Commerce (Computer Application) Sixth Semester
BCCA361 Income Tax
P. Pages 4 GUG/W/18/845
Time Three Hours Max. Marks 80

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

State the objectives of Income Tax.
8

Explain the meaning of previous year and Assessment Year.
OR
8

Explain the provision of 80 C.
8

State the kinds of agriculture income.
8
2.

Mr. Rajendrakumar an employee in Soney Co. Ltd. Pune given the following information for the A.Y. 2017 18
Salary Rs. 8000 p.m.
Dearness Allowance Rs. 2000 p.m. (included in terms of employment)
Bonus Rs. 15000 p.a.
City Compensatory allowance Rs. 1450 p.m.
Entertainment allowance Rs. 1000 p.m.
Commission on turnover achieved him Rs. 10000.
House Rent allowance Rs. 2300 p.m.
House Rent paid by Mr. Rajendrakumar is Rs. 3500 p.m.
Transport allowance Rs. 1200 p.m.
10) Education allowance for two children at Rs. 150 p.m. per child.
Compute the taxable salary of Mr. Rajendrakumar.
8

Mr. Sadanand, Executive officer in a company at Nagpur for the year ended 31st March 2017. He furnished the following particulars of his income.
Basic pay Rs. 13000 p.m.
Dearness Allowance Rs. 4000 p.m.
Entertainment Allowance Rs. 1000 p.m.
Assistance Allowance of Rs. 1200 p.m.
Commission Rs. 5000.
Bonus Rs. 10,000
He has been provided with small car use for office and personal purpose for which all expenses paid by company.
Tax on employment paid by employees Rs. 2500.
The company has provided a rent free furnished accommodation of the annual rent paid by company of Rs. 36000. The cost of furniture is Rs. 20000.
Compute his income from salary for the assessment year 2017-18.
OR
8

Mr. Anandkumar is Principal in a private college at Mumbai. Details of his salary income for the previous year are as under.
Salary Rs. 27000 p.m.
Employees contribution to his RPF 14% of his salary and D.A.
His own contribution to RPF Rs. 33000.
D.A. included in terms of employment Rs. 8000 p.m.
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GUG/W/18/845 2
Medical allowance Rs. 7900, actual expenditure on medical treatment Rs. 3500.
Education allowance for his 3 sons Rs. 6000.
Convence Allowance Rs. 950 p.m. actual expenditure Rs. 6000.
He appointed 3 servant at his residence at a salary of Rs. 250 p.m. each but their salary was paid by the college.
The college provided him facility of free telephone at his residence for which the college paid telephone bill of Rs. 5000 during the previous year.
10) He rendered his earned leave for one month and received Rs. 8000 in the month of December, 2016 for the same.
11) The college paid Rs. 6000 towards his life insurance premium.
12) Following deduction were made by the college from his salary.
For his contribution to R.P.F. Rs. 33000.
ii) Professional Tax Rs. 500.
13) The college has provided him a rent free accommodation the fair rent of which is
Rs. 3000 p.m. the house furnished and the cost of furniture is Rs. 25000 (W.D.V.
Rs. 15000).
14) The college paid Rs. 1800 toward his premium for group insurance.
15) He had made following saving and investment.
Unit linked Insurance Premium 10000
ii) National Saving Certificate 6000
iii) Public Provident Fund 20000
Compute the taxable income from salary and the rebate available under section 80 C of Income Tax Act.
3.

Mr. Murmade owns a house the construction of which was completed in July 2012, 50% of the floor area is let out for residential purpose. However, this portion was also self occupied for two months and 50% portion is occupised for self residence. The particular regarding the house
Fair rental value Rs. 1,48,000 P.A.
Municipal value Rs. 1,50,000 P.A.
Actual Rent Received Rs. 90,000 P.A.
Municipal Taxes paid Rs. 30,000
Repairs Rs. 36,000
Collection charges Rs. 3,000
Interest on loan taken for construction Rs. 20,000.
Determining his income from house property.
8

Mr. Ashok owns a house, at Nagpur. During the previous year 2016-17. ¾ portion of the house is self occupied for full year and ¼ portion is let out for residential purposes from 1st April 2016 to 31st December 2016 on a rent of Rs. 1400 p.m. from Jan. 2017 this portion was use for own residence. Municipal valuation of the house is Rs. 40,000 and fair rental value Rs. 48,000. He incurred the following expenditure in respect of the house property
Municipal Taxes Rs. 12000
Repairs Rs. 4000
Fair insurance premium Rs. 7000
Land Reverse Rs. 8000
Ground Rent Rs. 400
Were paid during the year. A loan of Rs. 2,00,000 was taken on 1st April 2013 10% p.a. for the construction of the house which was completed on 31st March, 2014. Nothing was a repaid on loan account so far.
Find out his income from House property for the assessment year 2017 18.
OR
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GUG/W/18/845 3 P.T.O

Following are the particulars of house properties of Mr. Vishwanath. Compute his income from house property.
Particulars
House I
House II
Construction started on
31-03-2010
10-02-2007
Construction completed on
31-3-2012
01-6-2009
Rs.
Rs.
Annual Rent
5000 p.m.
3500 p.m.
Municipal Valuation
56400
40000
Municipal Tax
5600
4000
Actual Repair Expenses
3400
1600
Interest on loan borrowed the renovate the building
3400
Nil
Insurance Premium
2400
2175
Ground Rent
1300
2150
Vacancy period
Nil
2 months
Unrealized Rent
5000
Nil
Both the above house were let out for residential purposed. The assesses has satisfied all the conditions expenses of the first house and the municipal tax of the second house were paid by the tenant.
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Mr. Avinash owns 3 house properties. House No. I and No. III are used for his residential purpose and house No. II is let out on a monthly rent of Rs. 15000. Following are the other particulars of these house properties.
Particulars
House No. I
House No. II
House No. III
Municipal Value
Fair rent
Standard rent (URC act)
Municipal tax paid
Amount spent on repairs
Interest paid on loans taken for building
Vacancy period
1,10,000
1,25,000
1,00,000
16,000
15,000
25,000

1,20,000
1,50,000
90,000
18,000
12,000
30,000
3 months
2,40,000
2,70,000
2,04,000
24,000
30,000
30,000

Mr. Avinash could not occupy house No. III for two months.
Compute the income under the head house property.
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4.

Kamalnath a resident in India earned the income during the financial year 2016 17.
Interest on securities Rs. 5000.
10% Tax free Relief Bond Rs. 50000
12% Bonds of I.D.B.I. Rs. 150000
Ground Rent for land in Nagpur Rs. 6000
2000 debentures of ABC Ltd listed on Ahmadabad stock exchange purchased at Rs. 96 each. (Face value Rs. 100)
10% dividend on preference shares of Rs. 10 each amounting to Rs. 100000 paid on 31-3-2017.
Interest on listed debentures Rs. 46,696.
He received a gift from his cousin a wrist watch Rs. 7000.
Dividend on shares of foreign company (gross) Rs. 13000.
10) Rs. 60000, Bihar Govt. Loan.
11) Rs. 20000 as a deposit at with a co-operative society.
Compute his income from other sources.
8
GUG/W/18/845 4

The Investment of Mr. Manohar 1st April 2016 were as given below.
Rs. 20000 units of mutual fund (Gross Income Rs. 1500)
Received dividend from a company Rs. 17,800.
Received dividend from foreign company (gross) Rs. 10,000.
Winning from a Lottery (Gross) Rs. 20000
Rs. 10000, securities issued by foreign Govt.
10% debentures of company (listed) Rs. 50,000.
Tax free Govt. securities Rs. 30,000.
Interest on less tax commercial securities Rs. 5850.
National plan certificate Rs. 7000.
10) Rs. 40000, 10% Tax Free debenture of a company.
11) Rs. 45000, 10% Debentures of a company (listed)
Interest on above securities falls due on 30th June and 31st Dec. every year for collection of Interest he paid Rs. 400 as collection charges to Bankers.
OR
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Following income are received by Mr. Govind during financial year 2016 17.
Honorarium from writing articles Rs. 1000.
Income from agricultural land in Sri Lanka Rs. 2500.
He gets a painting by way of gift from Mr. Nana. The fair market value of painting is Rs. 60000.
Interest on post office Saving Account Rs. 1000.
Interest on FD of PNB Rs. 250.
Dividend of Co-operative society Rs. 350.
Rent from sub letting house Rs. 2000.
Repair of above sub letting house Rs. 100.
Winning from Horse race Rs. 5600.
10) Interest on 10% Tax free debentures of Rs. 12000 (listed)
Compute Income from other sources for A.Y. 2017 18.
8

Mr. Praful had the following investment in the previous year ended on 31st March 2017.
Rs. 750 received as interest on post office recurring deposits.
Rs. 25,000, 12% Haryana State Electricity Board Bonds.
Rs. 20,000, 13% Alahabad Development Bonds.
Family pension Rs. 24000.
Rs. 1980 were received as interest on Tax free secured securities of Chits India Ltd. Co.
Rs. 36000, 10% (Tax free) listed debentures of a company.
Rs. 40000, 12% Debentures of Goa Development authority.
He took a loan of Rs. 20,000 to purchase Goa Development Authority Debentures. The interest thus accrued is due but not yet paid. In the previous year. The bank charges as collection charges on realization on interest on all securities. Interest being payable in each case on 1st Jan and 1st July. Calculate his income from interest on securities.
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5.
Write in a short answer
Explain the difference between Capital receipts and Revenue receipts.
4
Define Tax free perquisites?
4
Write any five items of income which are exempt from tax.
4
State the meaning and scope of PAN.

4