\n
This Paper has 34 answerable questions with 0 answered.<\/p>\n
Maximum Marks : 100 2 4 Pention received from State 20,000<\/p>\n 1,00,000<\/p>\n 20,000 \u2014<\/p>\n 50,000<\/p>\n 2,00,000 7 9 LIC premium paid 10,000 30,000<\/p>\n 60,000 10,000<\/p>\n \u2014 20,000<\/p>\n 30,000 15 (0) The rates\u00a0of\u00a0Income\u2013tax for the Assessment Year 2005\u201306 are:<\/p>\n Tax Rate (%) EITHER<\/p>\n 2. (First Alternative) OR<\/p>\n 2. (Second Alternative) 1,05,000<\/p>\n 50,000<\/p>\n 44,000 CA PE II Question Papers Group II \u00a0Income\u00a0Tax and Central\u00a0Sales Tax November 2007 This Paper has 34 answerable questions with 0 answered. Total No. of Questions\u2014 6] Time Allowed : 3 Hours Maximum Marks : 100 Answers to questions are to be given only in English except in the cases of candidates who have opted … Read more<\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":""},"categories":[4731,120,4930],"tags":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts\/24520"}],"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\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/comments?post=24520"}],"version-history":[{"count":0,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts\/24520\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/media?parent=24520"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/categories?post=24520"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/tags?post=24520"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nTotal No. of Questions\u2014 6]
\nTime Allowed : 3 Hours <\/em><\/p>\n
\nAnswers to questions are to be given only in English except in the cases of candidates who have opted for Hindi medium. If a candidate who has not opted for Hindi medium, answers in Hindi, his answers in Hindi will not be valued.
\nQuestions of both the Sections have been given together without the Sections being mentioned in the question-paper. Candidates are advised to attempt all the required questions in the same answer-book.
\nAttempt all questions
\nWorkings notes should form part of the answer. Wherever required, suitable assumptions may be made by the candidate.
\nMarks
\n1. (a) Rosy and May are sisters, born and brought up at Mumbai. Rosy got married in 1969 and settled at Canada since 1969. Mary got married and settled at Mumbai. Both of them are below 60 years. The following are the details of their\u00a0income\u00a0for the previous year ended 31.03.2007.
\nS. No. Particulars Rosy
\nRs. Mary
\nRs.
\n1<\/p>\n
\n3<\/p>\n
\nGovernment
\nPension received from Canadian
\nGovernment
\nLong\u2013term capital gain on sale
\nland at Mumbai
\nShort term capital gain on sale of
\nshares of Indian listed companies in
\nrespect of which STT was paid.
\n\u2014<\/p>\n
\n10,000<\/p>\n
\n5
\n6<\/p>\n
\n8<\/p>\n
\nPremium paid to Canadian Life
\nInsurance Corporation at Canada
\nMediclaim policy premium paid
\nTax\u00a0saving bond\u00a0purchased in
\nMarch, 2007
\nRent received in respect of house
\nproperty at Mumbai \u2014<\/p>\n
\n\u2014<\/p>\n
\n5,000<\/p>\n
\nCompute the taxable\u00a0income\u00a0of Mrs. Rosy and Mrs. Mary for the Assessment Year 2007\u20132008 and Tax thereon.<\/p>\n
\n(b)
\n(i) Mr. Khanna, an employee of IOL, New Delhi, a Private Sector Company, received the following for the\u00a0financial year\u00a02006\u201307:
\nRs.
\n1
\n2
\n3 Basic pay
\nHouse rent allowance
\nSpecial allowance 1,20,000
\n90,000
\n30,000
\nMr. Khanna was residing at New Delhi and was paying a rent of Rs. 10,000 a month.
\nCompute eligible exemption under Section 10(13A) of\u00a0Income\u00a0\u2013 tax Act, 1961, in respect of House Rent Allowance received.
\n(ii) If Mr. Khanna opts for rent\u00a0free accommodation\u00a0whereby IOL would be paying a rent of Rs. 10,000 per month, to the landlord and recovers a sum of Rs. 2,500 per month from Mr. Khanna which was in excess of his entitlement, what will be the perquisite value in respect of such rent\u00a0free accommodation?
\n(iii) Which of the above would be beneficial to Mr. Khanna i.e., House Rent Allowance or rent\u00a0free accommodation.
\n8 (0)
\n(c) Mr. Nigamanth, an employee furnishes the following particulars for the previous year ending 31.03.2007:
\nRs.
\n(a) Salary income\u00a0as computed (after all deductions) for the year 6,60,000
\n(b) Arrears of salary received during the year
\n(not included in the above) relating to
\nFinancial Year\u00a02004\u20132005 25,000
\n(c) Assessed\u00a0income\u00a0of\u00a0Financial Year\u00a02004\u20132005 1,20,000
\nYou are requested to compute relief under Section 89 of the\u00a0Income\u2013tax Act, 1961, in terms of tax payable.<\/p>\n
\nOn first Rs. 50,000
\nOn 50,000 \u2014 60,000
\nOn 60,000 \u2014 1,50,000
\nEducation cess \u2014
\n10%
\n20%
\n30%
\n2% (of tax payable)
\n7 (0)<\/p>\n
\n(a) Explain the provisions of\u00a0Income\u00a0\u2013 tax Act, 1961, with regard to clubbing\u00a0income\u00a0of spouse under Section 64. 6 (0)
\n(b) Elaborate the procedure for revision by the Commissioner of\u00a0Income\u2013tax of orders erroneous and prejudicial to Revenue under Section 263 of the\u00a0Income\u2013tax Act, 1961. 6 (0)<\/p>\n
\n(a) Explain the provisions of carry forward and set off of business losses under Section 72 of the\u00a0Income\u2013tax Act, 1961. 6 (0)
\n(b) Write briefly about the provisions regarding deductions from Gross\u00a0Total Income\u00a0in respect of\u00a0medical\u00a0treatment of dependent disabled under Section 80DD of the\u00a0Income\u2013tax Act, 1961 and in respect of\u00a0medical\u00a0treatment of assessee himself\/dependent under Section 80DDB of the\u00a0Income\u2013tax Act, 1961 6 (0)
\n3. (a) Fill in the blanks with reference to the provisions of\u00a0Income\u2013tax Act, 1961: 5×1=5
\n(i) Business loss is _______ (eligible\/not eligible) for set off against\u00a0income\u00a0from salaries. (0)
\n(ii) The time limit for revision of order under Section 154 is _______ years from the end of the\u00a0Financial Year\u00a0in which the order was passed. (0)
\n(iii) In the case of a person being a\u00a0partner\u00a0of a firm which is separately assessed as such, his share of\u00a0total income\u00a0of the firm is _______ (exempt\/not exempt). (0)
\n(iv) Time limit for issue of notice under Section 143(2) is _______ months from the end of the month in which the return was filed by the Assessee. (0)
\n(v) Accounting standard notified under Section 145 is applicable for those following _______ system of Accounting. (0)
\n(b) State whether True\/False with proper reasons of the following statements with regard to provisions of\u00a0Income\u2013tax Act, 1961. 5×2=10
\n(i) Mr. Dey, a non\u2013resident, residing in US since 1960, came back to India on 1.4.2005 for permanent settlement. What will be his residential status for Assessment Years 2007\u201308 and 2008\u201309? (0)
\n(ii) Arrears of rent received shall be charged to\u00a0Income\u2013tax as\u00a0income\u00a0of the previous year in which rent was received irrespective of whether the Assessee is the owner of property in that year or not. (0)
\n(iii) The deduction on account of depreciation shall be made compulsorily, whether or not the assessee claimed the deduction or not. (0)
\n(iv) Mr. Roy received a sum of Rs. 20.00 lakhs on 31.3.07 from\u00a0Life Insurance Corporation of India\u00a0in respect of a policy, where the sum assured was Rs. 15.00 lakhs, taken on 1.10.2003 and for which a one time premium of Rs. 10.00 lakhs was paid. Mr. Roy claims that the amount is totally exempt under Section 10(10D)(c) of the\u00a0Income\u2013tax Act, 1961. (0)
\n(v) \u201cA\u201d receives Rs. 2.00 lakhs from his friends on the occasion of his marriage on 22.2.07 and Rs. 1.00 lakh from the brother of his father\u2013in\u2013law on 31.3.07. A’s\u00a0income\u00a0includable under \u201cother sources\u201d for the previous year 2006\u201307 would be Rs. 3.00 lakhs. (0)
\n4. Write short notes on any three of the following with reference to the provisions ofIncome\u2013tax Act, 1961: 3×6=18
\n(a) Amortisation of expenditure incurred under voluntary retirement scheme. (0)
\n(b) Provisions of presumptive taxation for computing profits and gains of Civil Construction under Section 44AD of the\u00a0Income\u2013tax Act, 1961. (0)
\n(c) Restrictions on deductions allowable to the Partnership Firm in respect of salary and interest to its\u00a0partners\u00a0under Section 40(b) of the\u00a0Income\u2013tax Act, 1961. (0)
\n(d) Provisions of self\u2013assessment under Section 140A of the\u00a0Income\u2013tax Act, 1961. (0)
\n5. (a) State with brief reasons whether the following statements are true or false as per the provisions of Central\u00a0Sales tax\u00a0Act 1956: 5×2=10
\n(i) Works contracts are not liable for Central Sales\u2013tax. (0)
\n(ii) A branch outside the State is also a dealer. (0)
\n(iii) A dealer must obtain registration only if the turnover exceeds the limit prescribed in Sales\u2013tax law of the \u2018Appropriate State\u2019. (0)
\n(iv) If the person furnishing surety dies, the dealer must inform the occurrence within 90 days. (0)
\n(v) Insurance charges incurred prior to delivery of goods to the buyer would form part of the turnover. (0)
\n(b) Fill in the blanks in the light of the provisions of Central Sales\u2013tax Act: 5×1=5
\n(i) A & Co. of Mumbai sold goods to B & Co. is not a registered dealer under the CST Act. A & Co. ………. (can\/cannot) collect tax from B & Co. for the inter\u2013state sale. (0)
\n(ii) Government gives subsidy to compensate the cost of production which is more than controlled sale price. The subsidy so received ………. (would\/would not) form part of turnover. (0)
\n(iii) Javed of Lucknow purchased goods from Bedi of Kanpur and paid State sales tax @ 8%. Later Javed sold those goods to Jain of Mumbai, Javed ……….. (can\/cannot) claim refund of tax paid on within the State purchase as he has done inter\u2013state sale of those goods subsequently. (0)
\n(iv) Raj of Mysore sold paddy to Ram of Delhi. Ram converted paddy into rice and exported later. The sale by Raj to Ram is ………. (sale in the course of export\/an inter\u2013state sale). (0)
\n(v) World & Co. despatched goods to its agent Best Ltd. The onus of proving it as transfer to agent is on ……….. (principal\/agent\/sales tax authority). (0)
\n6. Explain any two of the following with reference to the provisions of the Central Sales\u2013tax Act: 5×2=10
\n(a) State any five forms\/declarations used by dealers for availing concessional rate of tax\/exemption from tax. (0)
\n(b) When a sale is said to take place in the course of inter\u2013state trade or commerce? (0)
\n(c) Hari a Registered Dealer (with Head Office at Mumbai) furnishes the following information:
\nRs.
\n(i) Inter\u2013state sale of goods (of this Rs. 8,10,000
\nis the value of goods transferred to branch at
\nChennai and covered by Form “F”) 38,00,000<\/p>\n\n
\nCalculate the turnover and CST payable if all sales are made to Registered Dealers @ 4%.<\/p>\n","protected":false},"excerpt":{"rendered":"