Paper / Subject Code: 46018 / Finance:Direct Taxes

'TrtB ns f <ernY
I -u.ll, t I
[Time:2 % Hours]
N.B. 1) Q. 1 is compulsory.
:. 4.

2) Q.2 to Q.5 are compulsory with internal choice. .

3) Figures to the right indicate full marks. r..' 'l^:'. .

4) Workings should form part of your answer.

5) Use of simple calculator is allowed.

Q.1 (A) Choose correct alternative and rewrite the statement: (Any 8) (S)
Every assessee is a person and _

(b) Every person need not be an assessee

2. The Legal status of Ms. Hima Das, lndian sprint runner is

(a) an individual (b) a body of individuals (c) a sportsman
3.Totalincorneofapersonisdeterminedonthebasisof-
(a) Citizenship
(b) Residential Status
(c) Both Citizenship and Residential Status
4. Uncommuted Pension received by a Government employee is
(a) Exempt (b) Taiable (c) Partly Exempt
5. Mr. Kaustubh, a Chartered Accountant lets out his ownership office to another
Chartered Accountant, rent received by him is _
(a) Income. ftom BusinesS
(b) Inconre from House Property
(c) Income from Other Sources
6. Donation to Chief Minister's Relief Fund is _
(a) Allowed as business expenditure
(b) Not allowed as business expenditure
(c) Partly allowed as business expenditure
7. Cost inflation index is applicable when tltere is
(a) Long term capital gain (b) Business income (c) Short term capital gain
8. Dividend received is exempt if it is received from
(a) An Indian Company (b) A Co-operative Bank (c) Any Company
9. Gift received from brother Rs 1,00,000 is
(a) fully taxable (b) fully exempt (c) Exempt up to Rs 50,000
10. Mr. Anil is a person with a physically disability of 50Yo. He is entitled to a deduction
under section 80U of-
(a) Rs 75,000 (b) Rs 1,25,000 (c) Nil

Q.l (B) State whether given statements are True or False: (Any 7) (7)
L An association of persons consists of any person.
2. Farnily pension received by a widow of a deceased employee is income from other sources.
3. Gratuity received by Govenrment employee on retirement is fully taxable.
4. Capital gain arises on transfer of any asset.

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 Paper / Subject Code: 46018 / Finance:Direct Taxes

5. ddvance salary received by an employee from the employer is no1'aparl orGross,Salary.

'Past
6.' untaxed profits brought into India is always taxable.
7. Provision for Doubtful Debts can be deducted from profits of business.
8. Mediclaim premium paid by cash Rs 15,000 is allowed as deduction u/s 80D.
9. Municipal tax paid by owner is allowed as deduction froqr deemed to be let out property.
10. IvIr. Amitabh paid Life Insurance Premium of Rs. 50,000 onbehalf of his wife who is
dependent on him. He can claim deduction u/s 80C.

Q.2 Mr. Ganesh Kubal is employed with The N.w Cottg , Thane. He gives you following
information for the year ended 3l$ March,20l9. (15)
Particulars Rs.
Basic Salary . 50,000 per month.
Dearness allowance 60,000 per month
Leave Salary 20,000
Perquisite value of Rent-Free House 24,000 per annum
Arrears of salary (Not taxed earlier) i,60,000
Examination Remuneration received from his college 15,000
Examination Remuneration received from'"Mumbai University 8,500
Profession Tax Deducted from salary Rs. 200 per month
Other Information:
a) He received Royalty from writing books Rs. 26,000. Expenses on typing, stationery etc. were
Rs. 2.000
b) He received Honorarium from Sandip Management Institute as a visiting lecturer Rs. 5,000.
Conveyance for visiting the institute Rs. 600
c) He received Best Teacher Award of Rs 21,000 from State Covernment.
d) He received cash gift from father-in-law Rs. 51,000 on his anniversary on 15-03-2019.
e) He purchased National Savings certiflcates VIII worth Rs 50,000 & paid LIC premium of Rs 60,000
for a policy of Rs. 6,00,000 issued on 1-4-2011.
0 He had a taken a loan from Bank of India for higher education of his daughter pursuing Engineering
frorn IIT. Roorkee. For which he paid inlerest of Rs 60.000 during the year.
Compute his taxable Income for the Assessment Year 2019-20.
OR
Q.2 Mrs. Riya Ghosh has earned the following incomes during the financial year ended on 3l't
March, 2019. Compute her Gross Total Income for the assessment year 2019-20. (15)
a) Resident and Ordinary Resident
b) Resident but not Ordinarily Resident
c) Non-Resident
Particulars Rs
!,..,Friyrnents,iedeived iti U.K., for services rendered in Korea 3,00,000
2. Income from agriculture in Bangladesh 1,50,000
"3:
.Ditidend, om,,German Company, received in India 60,000
4; IlrtereSt income earned and received in India 1,70,000
'5. Income from business in Japan, controlled from India 2,50,000

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 Paper / Subject Code: 46018 / Finance:Direct Taxes

1,80,000
7. Rent from house in Kolkata, received in Korea.
taxed profits 93rn4l1 lgldqt_ 1,50,000

e.3 Mrs. Anjali Kapoor is a physically disabled person (60% disability). She gives you the
(1s)
following information for previous year 2018-19.
Particulars HousC I '-House II
Nature of occupancy Self-occupied Let Out
Fair Rent 2,00,000 3,00,000
|

Municipal Valuation (per month) 17,500 26,000

|

Rent Received (per month) (House no 2. was vacant for 3 Nit 35,000
I

months) I

Municipal taxes paid on26-07-2018 12,000 15,000

]

Other Expenses: .t:

:

Repairs
', , -12;000, 15,000

Fire lnsurattce Premium paid 13,000

',: t..-

Rent collection charges

:.' .t:::
I 12,000

Land Revenue payable

.i,. '"::
,,5,000
I

I 7,000

Details of Borrowed Capital:

lnterest Paid during lhe Year
' ,"' Sorooo I
I

qo,ooo

r' II t t-tz-zoto
I

Principal repaid 30,000 4o,ooo

Date on which loan taken

, 15-10-201 1

Mrs. Anjali Kapoor also received the following other income:

1. Dividend from Reliance Industries Ltd Rs 25,000.
2. interest on fixed deposits with Bank of Baroda Rs. 50,000.
Winning from lottery Rs. 70,000
4. Mrs. Anjali paid Medical Insurance Premium of Rs. 15,000 for self by cheque'
cornpute her Net taxable Income for the Assessment Year 2019-20.
OR
e.3 Mr. Rarnesh Mehta acquired a residential property for Rs. 2, 50,000 on t't October t994.
Additional information pertaining to property was as follows. (1s)
a) Fair market value as on 1-4-2001 was Rs. 12, 50,000
b) Cost of improvement are as follows:
Financial year Rs.
1997-98 90,000
2009- 1 0 1,50,000
2A$:75- 4,00,000
20t6-17 5,50,000
v) He sold residential property on 15-2-19 for Rs 2,00,00,000
d) He acdgired,.new residential house for Rs. 65,00,000 on20-03-2019'
e) 11e.nfgi,purlhased NHAI bonds of Rs 10,00,000 on 27-03-2019'
d) Eipenses,on hansfer amounted to Rs 1,00,000.

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Relevant Cost Inflation Indices are as follows:

Financial Year Cost Inflation Index
2001-02 100
2009 - 10 148
20t4 - t5 240
2016 - t7 264
2018- 19 280
Compute the capital gains for Assessment year 2019-20.

Q.4 Following is Profit & Loss Account of Mr. Anil Dharmadhikari for the year ended 31't
March,2019. (15)
Particulars Rs. Particulars Rs.
To Staff Salaries 2.50.000 By.Gross Profit 14.29.000
To Salary to Anil Dharmadhikari 70.000 Bv Winnine from Horse racins 81.000
To Printing & Stationery 50.000 By Dividend from Indian Co. 20.000
To Travelling expenses 60,000
To Rent 48;000
To Depreciation 64"000
To GST paid 30,000
To Advertisement 90.000
To Embezzlement by Empl oyee 1,4,000
To Drawings 56,000"
To Staff welfare expenses 1,58,000
To Income Tax r 42,000
To Net Profit :., 5,98,000
1s.30.000 15.30.000
Add itional Information :
1) Depreciation allowable as per Income Tax Rules Rs 70,000.
2) Staff welfare expenses include Rs 40,000 incurred for medical treatment of his physically
handicapped brother (90% disability).
3) Half of the Rent is for her residential flat and 1/3'd of the Travelling expenses is personal in nature.
4) Advertisement expenses include Rs. 20,000 spent on advertisement in a magazine published by a
political party. You are required to compute her Taxable income for tlie assessment year 2019-20.
OR
Q.4 (a): Mrs. Rani Rane, submit the following particulars of her income for the assessment year
2019-20. (8)
Particulars Rs.
Interest on Bank deposits 5,000
Interest on Government securities 7,000
Interest on Public Provident Fund 6,600
Interest accrued on NSC 7,500
Dividend from Tata Co. 9,700
Income frornAgriculture in Konkan 22,000
Family Pension 42,000
Compute her taxable income under the head Income from other sources.

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 Paper / Subject Code: 46018 / Finance:Direct Taxes

.t, : "..: ,t ", i r

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e.4 (b) : Dr. Leonard, a USA citizenprovides you the details of his visit to India during the last 6 __,
(7)
years.
Previous Year Days
201 8-19 183
20t7-18 190
20t6-1,7 20
2015-16 t25
2014-r5 195

2013-r4 r00
Prior to 1-4-2013 he did not visit India.
assessment y ear 2019-20.

(8)
Q.5 (a) Explain Deduction u/s 80D.
(b) Discuss any Seven items specifically taxable under the head - lncome from other sources'
(7)
OR
(1s)
Q.5 Write short notes on (any three):
l) AnY Five items exemPt u/s 10.
2) Lortg term CaPital Gain.
3) Deduction U/s 80U'
4) Incotne from Deemed to be Let Out Property'

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