C.
KANDASWAMI NAIDU COLLEGE FOR MEN
ANNANAGAR, CHENNAI – 600 102
DEPARTMENT OF COMMERCE (SHIFT –II)
MODEL EXAMINATION – NOVEMBER 2024
INCOME TAX THEORY LAW & PRACTICE – I
SUB CODE: CZ45A DATE OF EXAM: 18/10/2024
TIME: 3 HRS MAXIMUM MARKS: 75
PART – A (10 X 2 = 20 Marks)
Answer any TEN questions
1. Who is called Non-resident?
2. What is Previous year?
3. What is meant by allowance?
4. Explain the term gratuity?
5. How to calculate Gross Annual Value?
6. What is RPF?
7. What is meant by e-filing?
8. Explain the term TRACES.
9. What is short term capital gain?
10. What do you mean by perquisites?
11. From the following find the Expected Rental Value
MRV - 1,08,000
FRV – 1,20,000
SR - 1,22,000
12. What is mean by Profession?
PART – B (5X 5 = 25 Marks)
Answer any FIVE questions
13. State the objectives of taxation.
14. Mr. Indiran was born in India in the year 1984 from 2000 to 2013, he was in Australia, 2013 to
31st March 2019, he was in Malaysia. On 1st April 2019, he came to India and till date he is
staying in India. Identify his residential status for the assessment year 2024-25.
15. From the following, calculate Net Annual Value
Municipal Rental value - Rs.28,000
Fair Rental value - Rs. 34,000
Standard Rent - Rs.35,000
Actual Rent - Rs.3000 per month
Municipal tax paid by the tenant Rs.1,500.
16. Mr. Ezhumalai retired on 27.07.2022 after completing 27 years 7 months of service and received
Rs.5,00,000 as gratuity from his employer. He is covered under the payment of Gratuity Act. At
the time of his retirement, salary would be as follows:
Basic pay Rs.12,000 pm ; DA – Rs.7,500 pm; Commission on Turnover – Rs.50,000p.a.
Find out his taxable gratuity.
17. Explain who should file return of income.
18. X made the following expenditure on scientific research upto 31st March 2024. Find out the
eligible amount of deduction.
(a) On Dec 21, 2023 , X Paid Rs.60,000 to the Madras University for carrying out research in
Social and Statistical Sciences.
(b) On July 20 , 2023, X also purchased a land for Rs.6,00,000. Later on, a building for research
was constructed at a cost Rs.30,00,000.
(c) X also paid to National Lab Rs.1,00,000 for scientific research.
19. Bring out the advantages of e-filing.
PART – C (3 X 10 = 30 Marks)
Answer any TEN questions
20. Explain any ten exempted incomes u/s 10 of the Income Tax Act, 1961
21. From the following calculate Income from Salary of Mr. Manikandan who is working in ABC
International Pvt Ltd, Chennai
Basic salary – Rs. 50,000 p.m.
DA - Rs.30,000 p.m.
Bonus - Rs.1,00,000
CCA - Rs.1,500 p.m.
EA - RS.6,000 p.m.
Education Allowance Rs.8,000 p.m. (for his two children)
Hostel Allowance RS.10,000 p.m. (for his two children)
Academic Research Allowance RS.25,000 (Actual amount spent Rs.50,000)
HRA Rs.20,000 p.m. (Rent paid Rs.12000 p.m.)
Conveyance allowance for official purposes Rs.3,000 p.m.
Assume DA as forming part of salary.
22. Mr. Srinivasan owns a house which consists of two equal independent units. One is let out
and other one is self-occupied. The let out portion is also self-occupied for two months. The other
particulars are as follows:
Fair Rental value Rs..24,000
Municipal Rental Value Rs.12,500
Actual rent for the let out portion Rs.1,000 per month
Local tax Rs.2,500
Ground rent Rs.300
Interest on loan taken for construction Rs.2,500
Determine income from house property.
23. From the following P & L a/c . Calculate income from Business.
Receipts Rs. Payments Rs.
To balance b/d 1,20,000 By Car expenses 24,000
To Fee from client By Office expenses 6,000
2021-22 32,000 By Salary to staff 7,000
2022-23 25,000 By Interest on loan 1,000
2023-24 30,000 By income tax 1,500
To Presents from client’s 20,000 By Income tax penalty 600
To winning from lotteries 24,000 By wealth tax 250
By Purchase cost 5,000
By balance c/d 2,05,650
2,51,000 2,51,000
Notes:
(a) Depreciation of Rs.2,500 is to be provided
(b) Consider Rs.1,500 as opening stock and Rs.1,000 as closing stock
(c) Car is 60 % used for official purposes
(d) Income from other sources Rs.30,000.
24. What is meant by PAN? Explain its features
ALL THE BEST
