IT 2nd

SRI NITHYANANDA SWAMY EDUCATIONAL TRUST (R)
SMT. NALINI RAGHUNATHA RAO DEGREE COLLEGE Income TAx Time: 1 hours V BBM. Max. Marks: 50
SECTION - A Answer any five of the following questions. (2x5=10)
1.What do you mean by Profession ? 2.What are Perquisites? 3. How will you teart the employer contriution to RFP Act for Tax. 4. How do you treat cost of patent rights while computing income from Business? 5. Give any four examples for Fringe Benefits.
6. Who is a specified employee ? SECTION - B Answer any two the following. (5x2=10)
7. Mr. X is employed in A Ltd. getting basic pay of Rs.20, 000 per month and dearness allowance of Rs.7, 000 per month (half of the dearness allowance forms part of salary for the purpose of retirement benefits). The employer has paid bonus @Rs.500 per month, Commission @1% on the sales turnover of Rs.20 lakhs, and house rent allowance of Rs.6, 000 per month. X has paid rent of Rs.7, 000 per month and was posted at Agra. Compute his gross salary for the assessment year 2011-12 8. Briefly explain the tax teartment of leave encashment.
9. Mr.Chandra shekar retires from LMN Ltd., on 30-06 2010. He gets pention of Rs. 2,000 p.m. upto 31.01.2011. With effect from 01-02-2011 he gets 60% of pension commuted for Rs.40, 800. Determine the taxable pension of Mr. Chandra shekar for the AY 2011-12 assuming that he is also receiving gratuity. SECTION - C Answer any two of the following. 10. Dr. Gurudev, a medical practitioner,
(15x2=30)
furnishes his Receipts and Payments Accountant for the previous year ended 2010-11. You are required to compute his income from profession for the A.Y. 2011-12. Receipts and Payments Account Rs. 40000 Purchase of Professional books Rs. 30000
Balance b/f
Visiting fee 120000 Consultation fee 80000 Sale of Medicines 135000 Salary as a part time Lecturer 96000 Gifts from patients 30000 Interest on post office S/B A/c 12000 Dividends from
Membership fee of Medical Council 6000 House hold expenses 18000 Rent of clinic 24000 Income tax 26000 Purchase of medicine 100000 Car expenses 40000 Electricity and water 12000 Salary to staff 36000
Domestic Co. Balance c/f
10000 191000
Surgical equipment
40000
523000 523000 Additional information : 50% of motor car expenses relates to his personal use. b) Depreciate car and surgical equipments by 15% and books by 100% c) Gifts include Rs. 10000, received from his patients on his birthday gift 11. Mr. Narendra a practicing Chartered Accountant gives you the Receipts and Payments of his profession for the year ended 31-3-2006. Receipts Rs. Consultation 120000 Audit fees 150000 Appellate Tribunal Appearance 80000 Payment from clients 260000 Miscellaneous (Professional) 40000 Payments: Office expenses 75000 Office rent 36000 Salaries 60000 Printing and stationery 6000 Purchase of books (Annual publication) 5000 Subscription to C.A. Institute 12000 Travelling expenses 10000 Interest on Bank loan 8000 Donation to National Defence Fund 20000 Bank loan was taken for construction of his residential house. He is running his profession in his own building. 20% of traveling expenses are not allowed. Compute his income from profession for the A.Y. 2011-12 12. Mrs. Ranga is an employee of State Bank of India ; She furnishes the following information
for computation of her taxable salary for the Assessment Year 2011-12 : i) Basic Salary Rs. 12,500-500-18,000 p.m. from 1-1-2006. ii) Dearness Allowances @ 15% of salary. iii) Entertainment Allowances, Rs. 250/- p.m., Bonus Rs. 4,000/-, Children Education Allowances for her three children Rs. 200/- p.m. per child and Traveling Allowances for tour Rs. 15,000/- (during the year she spent Rs. 14,000/- on these travels). iv) She and her family members took medical treatment in a private hospital during the year. The bank reimbursed Rs. 25,000/- regarding these expenditures. v) The bank has provided her an accommodation by deducting Rs. 1,000/- p.m. from her salary, but the bank is paying a rent of Rs. 5,000/- p.m. to the owner of this house. Furniture costing Rs. 30,000 is also provided in this house by the bank. vi) Employee and employer contributed 15% of her salary and D.A. towards the SPF. The interest credited to the P.F. A/c is Rs. 3,300/- @ 10% during the year. vii) During the year the bank has paid her Employment Tax of Rs. 2,000/- Income Tax of Rs. 8,000/- and Health Insurance Premium of Rs. 1,500/-.

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SRI NITHYANANDA SWAMY EDUCATIONAL TRUST (R)

Domestic Co. Balance c/f

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