DISTANCE EDUCATION
M.Com. (Finance and Control) DEGREE EXAMINATION,
MAY 2016.
TAXATION AND TAX PLANNING
(2005 onwards)
Time Three hours Maximum 100 marks
SECTION A — 8 40 marks)
Answer any FIVE questions.
1. Explain the scope of total income.
2. Mr. a bank officer, receives Rs. 26,000 p.m as salary
and Rs. 1,000 p.m as dearness allowance. He is also
getting entertainment allowance of Rs. 800 p.m. He is
also getting a bonus equal to 3 months pay. He resides in
a house taken on rent by the bank, whose rent is Rs,
4,000 p.m. Compute his income under the head salaries
for the assessment year 2015-16.
3. State the items of income from house property which are
not liable to tax.
4. What are the allowances that are admissible in
determining the income from business?
5. Specify the rules regarding exemption of capital gains.
6. Narrate the circumstances in which the income of the
wife of an assessee are included in the assessee's total
income.
7. What are the conditions for allowing deduction in respect
of charitable donations?
8. Explain the provisions for payment of tax by companies
U/S 115 JB.
Sub. Code
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SECTION B — 15 60 marks)
Answer any FOUR questions.
9. What is meant by tax evasion? Distinguish it from 'Tax
avoidance'.
10. Name the different kinds of provident fund of which
salaried employee may be a member and state the income
tax provisions regarding each.
11. Explain the procedure for the computation of income from
house property.
12. State and explain any ten examples of income from other
sources.
13. Dr. G is a medical practitioner of Salem from the
following, calculate his income from profession for the
assessment year 2015-16
Gross receipts from dispensary 2,35,000
Gross receipts from consultation 1,65,000
Operation fees 2,50,000
Visiting fees 50,000
Gifts from patients 30,000
Medicines purchased 12,5000
Closing stock of medicine 35,000
Salaries paid to employee 1,50,000
Surgical equipments purchased 48,000
Dr.G went to attend a medical seminar in
Germany to update the knowledge and spent on it
25,000
Medical books purchased 20,000
He owns a house whose municipal value is 50,000
(Half portion of the house is used for profession. Expenses
paid on the house; municipal taxes 10% of municipal
valuation repairs Rs. 10,000)
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14. Explain the provisions regarding set off of losses while
computing the total income.
15. Discuss and illustrate the term 'Book Profit' in relation to
the assessment of firms.