\u00a0Tax Laws<\/p>\n
Time allowed : 3 hours Maximum marks : 100 (c) Robbert, a US national came to India for the first time on 1st November, 2008 for (iv) X is the owner of a house, the details of which are given below : (b) John, Jack and Jill are partners sharing profits and losses in the ratio of 2:1:1 (b) Compute the net wealth and tax liability of assessment year 2009-10 of (b) Discuss the taxability or otherwise of the following gifts received by Madhuri, a (c) State, with reasons in brief, whether the following are capital or revenue receipts\/ P A R T \u2014 B<\/strong><\/em><\/p>\n 7. Attempt any four of the following : 8. Answer any two of the following : \u00a0Tax Laws Time allowed : 3 hours Maximum marks : 100 Total number of questions : 8 Total number of printed pages : 8 NOTE : All references to sections mentioned in Part-A of the Question Paper relate to the Income-tax Act, 1961 and the relevant Assessment Year 2009-10 unless stated otherwise. P A R … Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":""},"categories":[2873],"tags":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts\/18310"}],"collection":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/comments?post=18310"}],"version-history":[{"count":1,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts\/18310\/revisions"}],"predecessor-version":[{"id":115917,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts\/18310\/revisions\/115917"}],"wp:attachment":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/media?parent=18310"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/categories?post=18310"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/tags?post=18310"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nTotal number of questions : 8 Total number of printed pages : 8
\nNOTE : All references to sections mentioned in Part-A of the Question Paper relate to the
\nIncome-tax Act, 1961 and the relevant Assessment Year 2009-10 unless stated
\notherwise.
\nP A R T \u2014 A<\/strong>
\n(Answer Question No.1 which is compulsory
\nand any three of the rest from this part.)
\n1. (a) State, with reasons in brief, whether the following statements are correct or incorrect.
\nAttempt any five :
\n(i) Income from vacant plot of land is taxable under the head \u2018income from other
\nsources\u2019.
\n(ii) The maximum income of Rs.2,25,000 is not chargeable to income-tax in case
\nof a citizen woman of 65 years age.
\n(iii) Due date for filing of return of income of an individual is 31st July of the
\nprevious year.
\n(iv) No deduction is allowable from income from salary.
\n(v) Indexation of cost of acquisition is necessary for short-term capital gain.
\n(vi) Return of income once filed cannot be revised.
\n(vii) Gift from an unrelated person is tax-free upto Rs.50,000.
\n(1 mark each)
\n(b) Re-write the following sentences after filling-in the blank spaces with appropriate
\nword(s)\/figure(s) :
\n(i) Income of a business commenced on 1st March, 2009 will be assessed during
\nthe assessment year ___________.
\n(ii) Belated return can be filed within ___________ from the end of the relevant
\nassessment year.
\n(iii) Fringe benefit tax is charged at the rate of ___________.
\n(iv) Advance tax is payable in ___________ instalments by a non-corporate assessee.
\n(v) Net wealth computed under the Wealth-tax Act, 1957 shall be rounded off to
\nthe multiple of Rs. ___________ .
\n(1 mark each)
\nTax Laws<\/strong><\/p>\n
\na period of six months. He declared following incomes during the previous year
\nending 31st March, 2009 :
\n(i) Salary received in India for four months at the rate of Rs.75,000 per month.
\n(ii) Interest on fixed deposit in a bank in India : Rs.50,000.
\n(iii) Income from agriculture in USA : Rs.10,00,000.
\n(iv) Income from a business in Nepal being controlled from India : Rs.2,00,000.
\n(v) Salary earned in USA brought into India in the previous year : Rs.5,00,000.
\nYou are required to compute Robbert\u2019s taxable income and tax liability for the
\nassessment year 2009-10.
\n(5 marks)
\n2. (a) Choose the most appropriate answer from the given options in respect of following
\nhaving regard to the provisions of the Income-tax Act, 1961 :
\n(i) The maximum penalty for failure to get accounts audited under section 44AB
\nor furnish audit report along with return of income is \u2014
\n(a) Rs.10,000
\n(b) Rs.20,000
\n(c) Rs.50,000
\n(d) Rs.1,00,000.
\n(ii) The amount of education cess and secondary and higher education cess to be
\ncollected along with income-tax for assessment year 2009-10 shall be \u2014
\n(a) 1%
\n(b) 2%
\n(c) 3%
\n(d) 4%.
\n(iii) Deduction under section 80C can be claimed for fixed deposit made in any
\nscheduled bank, if the minimum period of deposit is \u2014
\n(a) 5 years
\n(b) 8 years
\n(c) 10 years
\n(d) 12 years.<\/p>\n
\nMunicipal value Rs.30,000
\nActual rent Rs.32,000
\nFair rent Rs.36,000
\nStandard rent Rs.40,000.
\nThe gross annual value would be \u2014
\n(a) Rs.36,000
\n(b) Rs.35,000
\n(c) Rs.30,000
\n(d) Rs.40,000.
\n(v) Interest-free loan to an employee, where the amount of loan does not exceed
\nany one of the following, shall be treated as the tax-free perquisite in all
\ncases under section 17(2) \u2014
\n(a) Rs.10,000
\n(b) Rs.15,000
\n(c) Rs.20,000
\n(d) Rs.25,000.
\n(vi) The maximum exemption in respect of transport allowance granted to an
\nemployee to meet his expenditure for the purpose of commuting between the
\nplace of his residence and the place of his duty shall be \u2014
\n(a) Rs. 600 per month
\n(b) Rs. 700 per month
\n(c) Rs. 800 per month
\n(d) Rs. 900 per month.
\n(1 mark each)<\/p>\n
\nrespectively. Their summarised profit and loss account for the year ending
\n31st March, 2009 is appended below :
\nRs. Rs.
\nOffice salaries 17,040 Gross profit 1,81,710
\nBad debts reserve 3,000 Interest on
\nTelephone 6,000 securities 12,000
\nSalary to Jack 9,000 Rent received 18,000
\nCollection charges of interest on securities 150
\nInterest on loan from John 6,000
\nMunicipal taxes (let out property) 3,000
\nCommission to partners :
\nJohn 12,000
\nJack 15,000
\nJill 18,000 45,000
\nNet profit to partners :
\nJohn 61,260
\nJack 30,630
\nJill 30,630 1,22,520
\n2,11,710 2,11,710
\nCompute total income of the firm for the assessment year 2009-10 and tax liability
\nthereon. Interest paid to John has been calculated at the rate of 20% per annum
\nsimple.
\n(7 marks)
\n(c) Yash, a minor, who is a physically handicapped (suffering from disability of the
\nnature specified in section 80U), earns bank interest of Rs.50,000 and Rs.60,000
\nfrom making bags manually by himself. State whether income of Yash should be
\nclubbed with the income of his parents as per section 64(1A).
\n(2 marks)
\n3. (a) Distinguish between the following :
\n(i) \u2018Scrutiny assessment\u2019 and \u2018best judgement assessment\u2019.
\n(ii) \u2018Long-term capital gain\u2019 and \u2018short-term capital gain\u2019.
\n(iii) \u2018Exempted incomes under section 10\u2019 and \u2018deductions under section 80\u2019.
\n(iv) \u2018Previous year\u2019 and \u2018assessment year\u2019.
\n(v) \u2018Assets\u2019 and \u2018deemed assets\u2019 under the Wealth-tax Act, 1957.
\n(2 marks each)<\/p>\n
\nSona Jewels which is engaged in jewellary business. Following are the particulars
\nof assets on 31st March, 2009 :
\nRs.
\nFactory building (W.D.V) 80,00,000
\nBank balance 15,00,000
\nUnaccounted cash 5,20,000
\nSilver ware 56,00,000
\nGold jewellery 54,00,000
\nCar (W.D.V) 10,00,000
\nFarm house within municipal limit 25,00,000
\nGuest house in Britain 90,00,000
\nThe market value of car is Rs.15 lakh. The assessee has raised a loan of Rs.50
\nlakh from a bank by mortgaging guest house. The loan was utilised to construct
\nfactory building.
\n(5 marks)
\n4. (a) Who is liable to pay advance income-tax ? On what dates the instalments of
\nadvance tax are payable and what amount is to be paid under each instalment ?
\n(4 marks)
\n(b) What are the provisions regarding deduction of tax at source from the following
\nincomes :
\n(i) Winnings from lottery
\n(ii) Payment to a resident contractor
\n(iii) Commission and brokerage
\n(iv) Payment of rent.
\n(2 marks each)
\n(c) Discuss the items which are disallowed as deduction under section 40(b) while
\ncomputing firm\u2019s income from business and profession.
\n(3 marks)
\n5. (a) Karan made a gift to Sujata during their engagement which took place on
\n15th May, 2008. After their marriage which was held on 15th June, 2008, they
\ndecided to live apart owing to some reasons and they obtained a legal divorce on
\n15th September, 2008. Whether transfer made on 15th May, 2008 be included for
\nwealth-tax purposes in the hands of Karan ?
\n(3 marks)<\/p>\n
\nlady, during the financial year 2008-09 :
\n(i) Rs.30,000 from her elder sister.
\n(ii) Rs.50,000 from the daughter of her elder sister.
\n(iii) Wrist watch valued at Rs.6,000 from her friend.
\n(3 marks)
\n(c) Gaurav, aged 50 years, is an individual, whose gross total income before deduction
\nunder section 80C is Rs.1,90,000 and his total income after deduction under
\nsection 80C is Rs.95,000. Whether he is required to file return ?
\n(3 marks)
\n(d) Kundan submits the following information for the assessment year 2009-10 :
\nIncome from business Rs.20,000
\nProperty income House-A House-B
\n(Rs.) (Rs.)
\nMunicipal valuation 17,500 40,000
\nMunicipal taxes paid by tenant 1,500 2,000
\nLand revenue paid 1,000 8,000
\nRent received 19,000 34,000
\nInsurance premium paid 250 1,000
\nRepairs paid by tenant 250 9,000
\nInterest on borrowed capital for payment of
\nmunicipal tax of house property 100 200
\nNature of occupation Let out for Let out for
\nresidence business
\nDate of completion of construction 1.4.1993 1.4.1991
\nDetermine the taxable income of Kundan for the assessment year 2009-10.
\n(6 marks)
\n6. (a) Discuss the provisions relating to incidence of wealth-tax.
\n(5 marks)
\n(b) What are deemed fringe benefits ?
\n(5 marks)<\/p>\n
\nexpenditure :
\n(i) Rs.20,000 spent in connection with obtaining a licence for running a cinema
\nhall.
\n(ii) Rs.3,00,000 received as compensation for termination of contract of agency.
\n(iii) Lump sum received as advance rent.
\n(iv) Overhaul expenses of second hand machinery.
\n(v) Payment to an employee to retain him in job.
\n(1 mark each)<\/p>\n
\n(i) Briefly state the provisions of service tax regarding following :
\n(a) Liability to registration
\n(b) Procedure for registration
\n(c) Issue of registration certificate
\n(d) Time limit for registration
\n(e) Surrender of certificate of registration.
\n(1 mark each)
\n(ii) What is general rule regarding valuation of taxable service ? Indicate the position
\nwhere the gross amount charged by a service provider includes service tax payable.
\n(5 marks)
\n(iii) What is the due date for payment of service tax ? What is the rate of interest for
\ndelayed payment and penalty for default in payment of service tax ?
\n(5 marks)
\n(iv) Discuss \u2018advance ruling in service tax\u2019.
\n(5 marks)
\n(v) Explain the provisions regarding service tax on Company Secretaries.
\n(5 marks)<\/em><\/em><\/p>\n
\n(i) Who is liable to pay VAT ? Discuss the advantages of introduction of VAT in
\nIndia.
\n(10 marks)
\n(ii) Discuss \u2014 (a) Rates of VAT; and (b) Filing of return under VAT.
\n(10 marks)
\n(iii) Discuss, with suitable example, various methods for computation of VAT liability.
\n(10 marks)
\n(iv) Write notes on \u2014 (a) Registration under VAT; and (b) Zero rating.
\n(10 marks)<\/p>\n","protected":false},"excerpt":{"rendered":"