M.B.A. DEGREE EXAMINATION, APRIL 2016
DIRECT TAX LAWS
(2012 onwards)
Time 3 Hours Maximum 75 Marks
Part A 3 15)
Answer all questions.
1. Explain the following terms
Previous year
Income.
2. Define annual income.
3. What do you understand by aggregation of Income?
4. Explain GAAR.
5. Write a short notes about Deemed assets.
Part B 10 50)
Answer all questions, choosing either or
6. Following are the taxable income of Shri Ratan
Chand for the previous year 2014 -15
Rs.
Income from Salary accrued and
received in India 20,000
Profit of a hotel business at Melbourne 30,000
Sub. Code
622703
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Rs.
Dividend declared in Perth but
received in India 4,000
Income from transfer of a long-term
capital asset situated in India 20,000
Interest on debentures of a
company at Manchester, which was
received In India. 6,000
Interest received from Shri Philip, a
non-resident, on the loan provided
To him for a business carried on in India 5,000
Royalty received in Germany from
Shri Kailash a resident in India For
technical services provided for a
business carried on in Germany 20,000
(viii) Fees from an Indian Company
carrying on business at London from
technical services rendered at London
having been directly deposited
by the Company in his Bank account
in India 30,000
Compute Shri Ratan Chand's Total Income for
the Assessment Year 2015-16,if he is
Resident,
Not Ordinarily Resident,
Non-resident.
Or
Enumerate any Ten of items of income which are
totally exempt.
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7. Sri Chowdhry is purchase Officer in a company in
Kota (Population exceeding twenty-Five lakh). He
furnished the following particulars regarding his
income for previous year 2014 -15
Net basic Salary Rs.1,20,000 which is after
deducting Rs.2,000 for income tax, Rs.10,000
as contribution to recognized provident fund
and rent of the bungalow Rs.3,600.
Bonus Rs.1 800
Travelling allowance for official duty
travelling Rs.25,000.
Reimbursement of medical bills Rs.15,000
(treatment was done in a government hospital
in India)
He lived in a bungalow belonging to the
company. The company has provided on this
bungalow the facility of a gardener and a cook
each of whom is being paid a salary of Rs.250
per month and Rs.800 per month respectively.
The company paid in respect of this bungalow
Rs.4,800 for electric bill and Rs.1,200 for
water bill.
He has been provided with a large car for
official and personal use. The maintenance
and funning expenses of the car (including
driver) are borne by the company.
The following amounts were deposited in his
provident fund account
Own contribution Rs.10,000
Company's contribution Rs.10,000, and
Interest 9.5% pa. Rs.9,075.
Compute his taxable income from salary for the
assessment year 2010-11.
Or
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State the item of income from house property which
are not liable to tax.
8. an individual, submits the following information
relevant for the assessment year 20l4 15.
Profit Loss
Rs. Rs.
Salary income computed 2,42,000
Income from house property
House A 15,000
House B 17,000
House C 21,000
Profit and gains of business or profession
Business A 8,000
Business B 10,000
Business C (speculative) 11,000
Business D (speculative) 23,000
Capital gains
Short-term capital gains 6,000
Short-term Capital loss 28,000
Short-term Capital gain on sale of building 12,500
Income from other sources
Income from card games 13,000
Loss from card games 7,010
Loss on maintenance of race horses 6,000
Interest on securities 4,000
Determine the net income of X for the assessment year
2014-15.
Or
Explain the provision regarding set off and carry
forward of losses.
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9. Describe briefly the procedure for filling an appeal
to the appellate tribunal against the order of
commissioner.
Or
What is tax planning? Explain its characteristics
and its important.
10. Explain briefly the procedure of an appeal to the
commissioner.
Or
Explain the procedure for computation of net
wealth.
Part C 10 10)
Compulsory
11. Mr. Pandey, owner of three houses in Chennai, furnished
the following information. Compute his income from
House Property for the Assessment year 2014-15.
House House House
No.1 No.2 No.3
Let Self- Self-
Out occupied occupied
Rs. Rs. Rs.
Standard rent under Rent Control Act 36,000 63,500
Gross Municipal Value 34,000 56,500 30,000
Rent received 37,500
Fair rent 45,000 67,500 45,000
Repairs 2,000 Nil 3,000
Municipal Tax on Municipal value) 40% due fully paid fully paid
Interest on Loan taken for the 2,000 4,000 3,000
construction of house
Brokerage for arranging loan 500 1,000 750
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House House House
No.1 No.2 No.3
Let Self- Self-
Out occupied occupied
Rs. Rs. Rs.
Vacancy period 2 Months 6 Months 6 Months
Collection charges 3,000
Recovery of unrealized rent
(allowed as deduction In A.Y. 2012-13) 5,000