DISTANCE EDUCATION
M.Com. DEGREE EXAMINATION, MAY 2017.
TAXATION AND TAX PLANNING
(2005 onwards)
Time Three hours Maximum 100 marks
SECTION A — 8 40 marks)
Answer any FIVE questions.
1. Explain the concept of Tax Planning.
2. Explain how to identify the residential status of an
Individual.
3. Explain the perquisites taxable for specified employee
only.
4. From the following, calculate Gross Salary of Mr. Kailash
who is employed in TY Ltd Chennai.
Salary Rs. 9,000 p.m
DA Rs. 5,000 p.m. [Rs. 2,000 p.m. forms part
of salary]
HRA Rs. 3,000 p.m. [Rent paid Rs. 2500 p.m.]
Project allowance Rs. 600 p.m
5. Explain the tax treatment regarding interest on borrowed
capital while calculating income from house property.
6. What are the various expenses, which are expressly
disallowed while calculating income from business?
Sub. Code
25
DE-396
2
wk14
7. Explain any four deductions exemptions available u/s 54
while calculating capital gain.
8. Briefly discuss the provisions regarding set-off and
carry-forward of losses.
SECTION B — × 15 60 marks)
Answer any FOUR questions.
9. Explain the various incomes exempted u/s 10.
10. Explain the rules regarding partly taxable and partly
exempted allowances with suitable examples.
11. Mr. A owns two houses, one in Mumbai and one in
Kolkata. The house in Mumbai has a municipal valuation
of Rs. 1,85,000 and FRV of Rs. 1,75,000. The house comes
under the Rent control Act and the rent fixed by the Rent
control Act Rs. 1,60,000. The house has been let out at a
monthly rent of Rs.15,000 from 1st May 2015 to
31st Dec 2015. From 1st Jan 2016 the rent was increased
by Rs. 2,000. Rent for the month of March 2016 could not
be realized. The municipal valuation of Kolkata house is
Rs. 1,45,000 and FRV is Rs. 1,55,000. This house is
actually let out at a rent of Rs. 6,000 p.m. The house is
occupied throughout the year. Calculate net annual
value, if 10% is municipal tax, out of which 25% is due.
The Mumbai house was vacant in April 2015.
12. Explain the various expenses which are expressly allowed
while calculating income from business or profession.
13. Discuss grossing up of income and its calculation with
suitable examples.
14. Explain the various deductions available to Individual
u/s 80.
15. Discuss how to calculate tax liability for an Individual
and a Firm.