SRI VIVEKANANDA DEGREE COLLEGE

N R Extension, Chintamani-563125, Chikkaballapur District

SUB: INCOME TAX - II
B. Com: VI SEM MARKS: 60

SECTION – A
1. ANSWER ANY FIVE OF THE FOLLOWING SUB-QUESTIONS. (5×2=10)
a) What do you mean by Vocation?
b) Give the meaning of profession?
c) What is a capita Asset?
d) State the standard deduction for family pension.
e) What is payment of advance Tax?
f) Give the meaning of rebate?
g) What is total Income?

SECTION – B
ANSWER ANY THREE OF THE FOLLOWING QUESTIONS. (3×4=12)

2. Smt. Chamundeshwari (age 51 years), a Resident of Mysore runs a cloth business. Her Profit
& Loss A/c for the year ending 31st March 2023 was as follows:
Particulars ₹ Particulars ₹
To Salary to Staff 10,00,000 By Gross profit 30,00,000
To Rent, rates & taxes 6,00,000 By Interest on POSB A/c 40,000
To General expenses 8,00,000
To Net Profit 6,40,000
30,40,000 30,40,000
Salary includes Proprietor’s salary ₹ 1,20,000 and General expenses includes ₹ 2,00,000 spent
for daughter’s wedding.
Compute taxable income from Business for the A.Y. 2023-2024.

3. Mr. Vineeth bought a residential HP in May 2005 for ₹ 2,34,000. He renovated the property in
2009-10 at a cost of ₹ 3,21,000 and the property was Sold for ₹ 29,00,000 in Nov.2022
(Brokerage 2%). Another residential HP was bought in Feb 2023 for ₹ 6,60,000 (brokerage
2.5%) compute the taxable Capital Gain for the A.Y 2023-2024.
(CII 2005-06: 117; 2009-10:148; 2022-23: 331)

4. Sri Suresh, has the following Investments for the year ended 31-3-2023.
a) ₹ 20,000 invested in UTI @ 20% (Dividend Received ₹ 4,000)
b) ₹ 80,000 in post office saving bank A/c which earns the interest @ 5% p.a.
c) ₹ 72,000 in 10% tax free debentures of Mysore Municipal Corporation.
d) 14% Karnataka State Electricity board bonds ₹ 30,000.
e) ₹ 50,000 fixed deposits with Canara Bank Mysore @ 8% p.a.
5. Explain the types of assessment.

6. What are Due Dates for Payment of Advance Tax? Calculate advance tax if tax payable in
advance ₹ 40,500.

SECTION – C
ANSWER ANY THREE OF THE FOLLOWING QUESTIONS. (3×10 = 30)

7. From the following Profit and Loss A/c for the year ending 31/3/2023 of Sri Akil Compute
taxable income from business for the A.Y. 2023-2024.
Particulars ₹ Particulars ₹
To Office Salaries 50,000 By Gross Profit 5,80,000
To Proprietors salary 25,000 By Interest on Govt. securities 22,500
To Interest on capital 10,000 By Rent from H P 38,000
To General expenses 25,000 By Profit on sale of machinery 5,000
To Bad debts 10,000 By Interest on POSB A/c 2,500
To Advertisement 22,500 By Bad debts (earlier not allowed) 12,000
To Fire insurance premium 10,000 By Sundry income 6,600
To Income Tax 20,000
To R.B.D.D. 12,500
To Motor car expenses 6,000
To Donations 16,000
To GST 50,000
To Repairs 18,750
To Audit fees 21,500
To Other expenses 34,000
To Depreciation 21,000
6,66,600 6,66,600
Other Information:
a) Advertisement includes the cost of sign board ₹ 2,500.
b) Motor car includes expenses ₹ 5,500 as motor car expenses of private use.
c) Repairs includes ₹ 2,750 of residential house.
d) Allowable depreciation ₹ 18,000.
e) Other expenses include ₹ 2,000 related to house hold expenses.

8. Mr. Rao, a physician and resident of Chennai submits the following receipts and payments
account for the year ending 31-3-2023.
Receipts ₹ Payments ₹
To Balance b/d 70,000 By Rent of Clinic
To Consultation Fee 2021-2022 80,000
2021-2022 25,000 2022-2023 1,20,000
2022-2023 2,50,000 By Surgical equipment’s 1,000,00
2023-2024 30,000 By Computers 50,000
To Visiting fees 80,000 By Interest on loan (profession) 12,000
To Winning from lottery (gross) 50,000 By Professional books
To Interest on post-office Purchased (annual publications) 15,000
 saving A/c 30,000 By Purchase of car 1,50,000
To Gift from patients 40,000 By House hold expenses 20,000
To Share from HUF 20,000 By Income tax 5,000
To Sale of medicine 90,000 By Life insurance premium 18,000
To Loan from bank 1,50,000 By Gift to mother 12,000
By Car expenses 30,000
By Lottery ticket 25,000
By Staff salary 1,20,000
By Balance c/d 78,000
8,35,000 8,35,000
Additional information:
1. WDV of car on 31-3-2023 was ₹ 1,00,000. On which 15% depreciation to be charged.
2. Visiting fee due but not received for 2022-23 is ₹ 18,000.
3. Consultation fees due but not received for 2022-23 is ₹ 8,000.
4. Surgical equipment’s and computers were purchased and put to use on 10-9-2023.
Determine taxable income from profession for Assessment year 2023-2024.

9. Mr. Anand sold the following assets during the financial year 2022-2023.
a. Residential House: It was purchased by him during 1998-99 for ₹ 5,25,000. He has
constructed an additional room during 1999 – 2000 and first floor during 2009-10 for ₹
3,80,000. The FMV of the house on 1-4-2001 was ₹ 7,25,000. He sold the house on 30th
June 2022 for ₹ 98,00,000 and paid 2% commission. He purchased a new residential house
on 18th December 2023 for ₹ 35,00,000.
b. Debenture of A Co.: It was purchased by him during 2014-15 for ₹ 5,00,000 and sold on
30th June 2022 for ₹ 5,75,000.
c. Personal Mobile Phone: It was purchased by him on 30th September 2022 for ₹ 48,000 and
sold on 16th December 2022 for ₹ 50,000.
d. Personal gold ornaments: It was purchased by him during 2012-13 for ₹ 6,50,000 and sold
them on 13th Feb 2023 for ₹ 65,00,000.
CII for the years 2001-02 – 100; 2009-10 – 148; 2012-13 – 200; 2014-15 – 240; and
2022-2023 – 331.

10. From the following information of Mr. Pranesh compute his income from other sources for the
A.Y. 2023-2024.
a. Royalty from textbook ₹ 3,00,000 (expenses incurred in earning royalty income ₹ 20,000
b. Directors sitting fee received from X Co. ₹ 35,000.
c. He is residing in a rented house on a rent of 40,000 P.M. he sublets 40% of the house to a
subtenant on a rent ₹ 30,000 P.M. he has incurred the following expenses on entire
property.
1) Municipal tax ₹ 12,000
2) Insurance ₹ 10,000
3) Repairs ₹ 15,000
 d. Rent from letting of building along with machinery ₹ 60,000 P.M. he claimed the
following expenses.
1. Depreciation ₹ 45,000
2. Repairs ₹ 500
e. Income from agriculture in Rajasthan ₹ 3,50,000.
f. Insurance commission received ₹ 90,000 (net) and expenses incurred in earning insurance
commission ₹15,500.
g. Winning from Karnataka State Lottery ₹ 4,00,000(gross)
h. Interest on bank deposit received ₹ 90,000 (net)
i. Share from HUF ₹ 1,50,000.

11. Mr. A submits the following information:

a. Income from Salary (computed) ₹ 10,50,000
b. Income from House Property (computed) ₹ 2,50,000
c. Interest on Fixed Deposit ₹ 45,000 (net)
d. Winning from horse race ₹ 70,000 (net)
e. Life insurance premium paid ₹ 70,000
f. Contribution to PPF ₹ 30,000
g. Rent paid towards residential house ₹ 12,000 P.M. (He doesn’t own any residential house)
h. Medical insurance premium paid by crossed cheque ₹ 35,000 (policy is taken on his father,
who is a senior citizen)
Mr. A is physically handicapped person with severe disability. Compute his total income and
tax liability for the A.Y. 2023-2024.

SECTION – D
ANSWER ANY ONE OF THE FOLLOWING QUESTIONS. (8×1= 08)
12.

a. Explain the provisions related to set off and carry forward.

OR
b. Mr. Rudramurthy bought 1000 Equity shares of Sonata Software Ltd. in May 2004 at ₹ 40
per share (brokerage 1%). He received bonus shares in the ratio of 1:1 in June 2009.
Again, he was allotted right shares in the ratio of 1:1 in April 2013 at ₹ 60 per share. He
sold all the shares in Dec. 2022 at Rs. 150 per share (brokerage 0.5%). Compute the
taxable capital gain for the A.Y. 2023-2024.
(CII 2004-05 = 113; 2009-10=148; 2013-14=220; 2022-2023=331).