This Paper has 23 answerable questions with 0 answered.<\/em><\/p>\n Maximum Marks : 100 EITHER<\/p>\n 2. (First Alternative) OR<\/p>\n 2. (Second Alternative) Business Loss Rs. 2.00 lakhs 12 (0) CA PE II Question Papers \u00a0Group II Income Tax and Central\u00a0Sales Tax November 2002 This Paper has 23 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 … 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\/24546"}],"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=24546"}],"version-history":[{"count":0,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts\/24546\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/media?parent=24546"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/categories?post=24546"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/tags?post=24546"}],"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
\nMarks
\n1. (a) Mrs. Lakshmi aged about 66 years in\u00a0a Finance\u00a0Manager of M\/s Lakshmi & co. Pvt. Ltd. based at Calcutta. She is in continuous service since 1954 and receives the following salary and perks from the company during the year ending 31.03.2002:
\n(i) Basic Salary (50,000 x 12) = Rs.6,00,000
\n(ii) D. A. (20,000 x 12) = Rs. 2,40,000
\n(iii) Bonus-2 months Basic Pay
\n(iv) Commission \u2013 0.1% of the Turnover of the Company. The turnover for the F.Y. 2001-02 was Rs. 15.00 crores
\n(v) Contribution of the Employer and employee to the PF Account Rs.3,00,000 each
\n(vi) Interest credited to P.F. Account at 9.5% \u2013 Rs.60,000
\n(vii) Rent free unfurnished accommodation provided by the company for which the company pays a rent of Rs. 70,000 per annum
\n(viii) Contribution of the Employer and employee to the PF Account Rs.3,00,000 each
\n(ix) Children\u2019s education allowance to meet the hostel expenditure of three children \u2013 Rs. 5,000 each.
\nShe makes the following payments and Investments:
\n(i) Premium paid to insure the life of her major son – Rs. 15,000
\n(ii) Medical\u00a0Insurance\u00a0premium for self – Rs. 5,000 ; Spouse – Rs. 5,000
\n(iii) Donation to a public charitable Institution registered under 80G Rs. 2,00,000
\n(iv) LIC Pension Fund – Rs.12,000
\nDetermine the tax liability for the Assessment Year 2002-03. 15 (0)
\n(b)
\n(i) In the Leap year 1999\u20132000 (Previous year) A sailor has remained on ship for a\u00a0PrivateCompany owning ocean going ships as follows:
\n(1) Outside the territorial waters of India for 183 days
\n(2) Inside the territorial waters of India for 183 days.
\nIs he considered to be resident or not for the Assessment Year 2000\u201301 (Previous year 1999\u20132000).Comment.
\n(ii) In the following cases State the head of Income under which the receipt is to be assessed and comment
\n(1) X Let out his property to Y. Y sublets it. How is Subletting receipt is to be Assessed in the hands of Y.
\n(2) X has\u00a0build a house\u00a0on a leasehold Land. He has let\u2013out the above property and claims Income from House Property under “Other sources” and deducted expenses on repairsecurity\u00a0charges,\u00a0Insurance\u00a0and collection charges in all amounting 40% of receipts.
\n(3) Z uses his property his own business can be claim depreciation.
\n(iii) Discuss the allowability of the following:
\n(1) Rajan has to pay to a Hospital for treatment Rs. 42,000 and spent nothing for\u00a0Life Insurance\u00a0or for Maintenance of Handicapped dependent.
\n(2) Rajan has incurred for treatment Rs. Nil in the previous year and deposited Rs. 25,000 with LIC for maintenance of handicapped dependants.
\n(3) Rajan has incurred Rs. 20,000 for treatment and Rs.25,000 was deposited with LIC for maintenance of handicapped dependants.
\n10 (0)<\/p>\n
\n(a) For the Asst. year 2002-03, the Gross Total Income of Mr. Chaturvedi was Rs. 1,68,240 which includes Long term Capital gain of Rs. 45,000 and Short term Capital gain of Rs. 8,000. The Gross total Income also includes interest income from Banks of Rs. 12,000. Mr. Chaturvedi has invested in PPF Rs. 60,000 and also paid a\u00a0medical\u00a0insurance\u00a0premium Rs. 11,000. Mr. Chaturvedi also contributed Rs. 15,000 to Public Charitable Trust eligible for deduction U\/S 80G. Compute the total income and tax there on of Mr. Chaturvedi, who is 70 years old as on 31.3.2001. 12 (0)
\n(b) What is Profit in lieu of Salary and under what head this is chargeable to tax? 3 (0)<\/p>\n
\n(a) Mr. A, a senior citizen, has furnished the following particulars relating to his House Properties:
\nHouse I House II
\nNature of occupation Self occupied Letout
\nMunicipal Valuation Rs. 60,000 Rs. 1,20,000
\nFair Rent Rs. 90,000 Rs. 1,50,000
\nStandard Rent Rs. 75,000 Rs. 90,000
\nActual Rent per month \u2014 Rs. 9,000
\nMunicipal Taxes paid Rs.6,000 Rs.12,000
\nInterest on Capital Borrowed Rs. 70,000 Rs. 90,000
\nLoan for both Houses were taken on 1.4.1998. House II was remained vacant for 4 months.
\nBesides the above two houses, A has inherited during the year an old house from his grand father. Due to Business commitments, he sold the house immediately for a sum of Rs.250 lakhs. The house was purchased in 1960 by his grand father for a sum of Rs.2.00 lakhs. However the fair market value as on 1.4.1981 was Rs.20.00 lakhs. With the sale proceeds, A purchased a new house in March, 2002 for a sum of Rs.100 lakhs and the balance was used in his business.
\nThe other Income particulars of Mr. A besides the above are as follows (A.Y. 2002\u201303)<\/p>\n
\nIncome from other sources (Bank Interest) Rs. 1.00 lakh
\nInvestments made during the year PPF Rs. 70,000
\nICICI Infrastructure Bone Rs. 30,000
\nCost of Inflation Index A.Y. 2002-03 426
\nCompute total Income of Mr. Y and his tax liability for the Asst. year 2002\u201303<\/p>\n
\n(b) Discuss the Tax liability of\u00a0Arrears of Rent. 3 (0)
\n3. Discuss the following with regard to: 3×6=18
\n(a) Discuss the provisions of 44 AB Audit under the Income \u2013 tax Act, 1961. (0)
\n(b) When the Dividend Income would be taxed in the hands of a Shareholder. (0)
\n(c) Discuss the Revision of order U\/S 264 of the Income \u2013 tax Act. (0)
\n4. Write short notes on any three of the following: 3×6=18
\n(a) Set off and carry forward of Losses under Capital Gain (0)
\n(b) Appeallable orders before Commissioner of Appeals (0)
\n(c) Defective Returns (0)
\n(d) Valuation of Inventory U\/S 145A of the Income \u2013 tax Act. (0)
\n5. (a) What are the different forms used in Central\u00a0Sales Tax? state, when and what purpose they are to be used? (briefly in two\/three sentences for each form). 7 (0)
\n(b) X sells his land along with the standing crops and Tress for Rs. 20 lakhs.\u00a0Sales TaxOfficer wants to assess for\u00a0Sales Tax\u00a0the value of standing Crops and Trees. Comment. 2 (0)
\n(c) X of Kolkata Sells goods to Y of Chennai and delivers the same at Kolkata to MKS Transport. The Lorry receipt was sent to Y by Post. While Goods were in transit, Y Sells the Goods to Z of Vijayawada by making an endorsement of LR and Goods were diverted to Vijayawada. Is the Second Sale between Y and Z chargeable to tax? 2 (0)
\n(d) D of Delhi comes to Hyderabad and purchased certain chemicals and transported them in his own name to Delhi. Is the Sale chargeable to Central\u00a0Sales Tax? 2 (0)
\n(e) When is a duplicate certificate of Registration issued and how? 2 (0)
\n6. State with reasons whether the following are True\/False under CST Act: 5×2=10
\n(a) Charity or Dharmada Collected by dealer will not form part of Sale\u00a0Price (0)
\n(b) Packing charges realised by the dealer was an integral part of Sale\u00a0price. (0)
\n(c) Sale of Bundles of\u00a0old newspaper\u00a0as Waste papers, are exempt. (0)
\n(d) \u2018Goods\u2019 include Shares and\u00a0Securities. (0)
\n(e) There is no benefit for a person to purchase the Goods from a registered dealer. (0)<\/p>\n","protected":false},"excerpt":{"rendered":"