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D 30446 (Pages : 4) Name.........................................

Reg. No.....................................

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FIFTH SEMESTER (CBCSS—UG) DEGREE EXAMINATION
NOVEMBER 2022

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B.B.A.
BBA 5B 10—FINANCE ELECTIVE—I—INCOME TAX
(2019 Admission onwards)
Time : Two Hours and a Half Maximum : 80 Marks
Part A

Answer all questions.

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1. What is Total Income ?

2. Who is Assessment Year ?

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3. Shri. Ramesh, who was born and brought up in India, went for further studies to the U.K on
1st March, 2019 and came back to India on 1st October, 2020 early in the morning. Find out
his residential status for the Assessment Year 2021-22.

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4. What is Annual Accretion ?

5. What are the deductions allowed u/s 16 ?

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6. What is LTCG ?

7. The following are the assets of Mr. A as on 1st April, 2020 (Rate of Depreciation 15%) Machinery
(WDV) Rs. 3,00,000.

He purchased a car for Rs. 2,00,000 on 1st August 2020 and used in his business. The rate of
depreciation on the car is 15%. Calculate depreciation for the Assessment Year 2021-22.

8. From the following compute taxable capital gain for the previous year 2020-21 :

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a) Indexed cost of residential house Rs. 2.5 crore.

b) House sold in previous year 2020-21 Rs. 4.5 crore.

c) Two new residential house purchased in previous year 2020-21 Rs. 0.75 crore.

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9. What is STCG ?

10. Define Casual income.

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11. What is TAN ?

12. What is Tax holiday ?

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13. What is Gratuity ?

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14. How to calculate LTCG ?

15. Define Business.

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(15 × 2 = 30, Maximum ceiling 25 marks)

Part B

Answer all questions.

16. Mr. Suresh is getting a pension of Rs. 12,000 per month from a company. During the previous
year he got his two-third pension commuted and received Rs. 7,38,000.

Compute the exempted amount, if :

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a) He received gratuity ; and

b) He did not receive gratuity.

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17. The following are the particulars of income of Mr. Ramesh for the Previous Year ended on
31st March 2021 :

a) Salary Rs. 45,000 p.m.

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b) Bonus equal to two months salary.

c) Dog allowances Rs. 750 p.m.

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d) Special allowances Rs. 600 p.m.

e) Employees contribution to RPF @ 15% of salary.

f) Employer’s contribution to RPF @ 15% of salary.

g) Interest credited to the provident fund 9.5% p.a. is Rs. 28,000.

h) He is provided with free lunch in the office. The cost per meal is Rs. 30.

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i) The employer has given a small car which he uses for personal and official purposes. He
meets the expenses for the personal purpose from out of his pocket.

Compute the income from salaries of Mr. Ramesh for the Assessment Year 2021-22.

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18. From the following information compute the income of Mr. Shyam and Mrs. Shyam for the
Assessment Year 2021-22.

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Income of Mr. Shyam :

a) From business Rs. 3,90,000

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b) Interest on debentures Rs. 20,000

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Income of Mrs. Shyam :

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a) Salary income (computed) Rs. 2,50,000

b) Interest on debentures (gross) transferred by Mr. Shyam without consideration Rs. 10,000

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c) Interest on loan given to a firm Rs. 4,000.

19. Mr. Vivek’s gross total income for the previous year 2020-21 was Rs. 5,00,000. He made the following
donations by cheque :
a) Maharashtra Chief Minister’s Earthquake Relief Fund Rs. 10,000.
b) National Foundation for Communal Harmony Rs. 15,000.
c) Rs. 10,000 to an Educational Institution of National eminence.

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d) Rs. 5,000 to National Children’s Fund.
e) To Muncipal Corporation of Family Planning Rs. 40,000.
f) To Minority Community Corporation (Notified) Rs. 25,000.

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Compute taxable income for the Assessment Year 2021-22.
20. What are the differences between GTI and TI ?

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21. Income tax is charged on the income of the previous year. Do you fully agree with this
statement ? If not, what are the exceptions ?
22. Explain the capital assets exempt from tax.

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23. What are the deduction allowable under Section 57 ?
(8 × 5 = 40, Maximum ceiling 35 marks)
Part C
Answer any two questions.
24. Mr. X provides the following particulars of his income for the previous year ended on 31st March
2021 :

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a) Basic salary Rs. 40,000 p.m.
b) Bonus Rs. 1,00,000.
c) He owns a house property and the same is let out for a monthly rent of Rs. 10,000.

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Municipal value of the house is Rs. 96,000. Municipal tax paid by him amounted to
Rs. 12,000 p.a.
d) He received interest on unlisted debentures Rs. 9,000 and interest on fixed deposits in a

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bank Rs. 4,400.
e) He paid life insurance premium of Rs. 20,000 on a policy taken in 2017 (sum assured
being Rs. 2,50,000).

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f) He also paid the following donation by cheque :

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1. Banglore municipal corporation for promoting family planning Rs. 65,000.

2. The Prime Ministers drought relief fund Rs. 7,000.

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3. The Prime Ministers national relief fund Rs. 10,000.

You are required to compute the total income of Mr. X for the Assessment Year 2021-22

25. Mr. Om is a cloth merchant. From the following P&L for the year ended 31st March 2021 compute
his income from business and his gross total income for the Assessment Year 2021-22 :

Salaries and wages 15,000 Gross profit 2,70,000

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Rent and Taxes 4,000 Dividend from UTI 4,000

Domestic expenses 2,000 Rent from let out 10,000

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TDS on interest 500 house

Income tax 1,200

Postal charges 1,500

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Donation 2,500

Life Insurance premium 2,000

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Audit fees 1,500

Bad debts reserve 1,800

Bad debts 2,500

Depreciation 5,000

Net profit 2,44,500

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2,84,000 2,84,000
Other information :

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a) Rent and Taxes include Rs. 2,000 paid as Municipal Tax.
b) Value of Life Insurance Policy is Rs. 18,000.
c) Donation was given to approved institution.

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d) Permissible depreciation was Rs. 4,000.
26. In what circumstances is the income of one person treated as the income of another ?

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27. Describe any ten items of income which can be included under the head Income from Other Sources.
(2 × 10 = 20 marks)

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