Ms.

Monu chaudhary
Name of subject-in-charge(s):

Paper (Subject Name): Corporate Taxation

Paper Code: BCOM 301

Ms. Monu chaudhary

Signature(s) of Subject-in-charge(s):

ANSWER KEY

1. C 2. b 3. a 4. b 5. a 6. d 7. a 8. d 9. a 10. d
11. a 12. c 13. c 14. a 15. a 16. c 17. a 18. a 19. a 20. d
21. c 22. b 23. b 24. 25. a 26. a 27. a 28. a 29. a 30. c

Terminal Test September 2024

B.com (H) Semester-V

Paper Title: Corporate Taxation

Time: 2 ½ Hour
Paper Code: BCOM214 Max. Marks: 60

(NOTE: INFLUENCING EVALUATOR BY GIVING NAMES, SYMBOLS ETC. IN ANSWER

BOOK WOULD BE TREATED AS UFMS)

PART A
MCQ’S: SELECT THE MOST APPROPRIATE ANSWER (10 X 1)

1. The year in which income is earned is known

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a. Assessment Year
b. Financial Year
c. Previous Year
d. Calendar Year

2. The transfer of income without the transfer of an asset shall be taxable for
a. Transferor of transferee at their mutual consent
b. only for the transferor
c. only for the transferee
d. neither for the transferor nor for the transferee

3. Mr. V transfers the house property to Mrs. J for inadequate consideration , then income from such
house property shall be subject to provisions of :
a. Sec 64 (1)(iv)
b. Sec 26
c. Sec 27
d. Sec 64 (1A)

4 . Income tax in India is charged at the rate prescribed by :

a. The Finance Act
b. The Income Tax Act
c. The Central Board of Direct Taxes
d. the Ministry of Finance

5. The term ‘income’ includes the following types of incomes:

a. Legal
b. Illegal
c. Legal and illegal both
d. None of the above

6.. Residents includes-

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a. NRI
b. Ordinarily resident
c. Not ordinarily resident
d. B & C both

7. Assessee includes-
a. Individual
b. HUF
c. Company
d. All of the above

8. Income accruing in India in previous year is taxable for –

a. Resident
b. Not ordinarily resident
c. Non-resident
d. All of the above

9. Income accruing from agriculture in a foreign country is taxable in the case of an assessee who is –
a. Ordinarily Resident
b. Not-ordinarily resident
c. Non-resident
d. None of the above

10. Foreign income received in India during the previous year is taxable in the case of –
a. Resident
b. Not-ordinarily resident
c. Non-resident
d. All of the above

11. Every year, the residential status of an assessee —

a. May change

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b. Will certainly change
c. Will not change
d. None of the above.

12. The residential status of an assessee is determined for the relevant __________.
a. Assessment Year
b. Financial Year
c. Previous Year
d. Calendar Year

13. If control and management of the affairs HUF is situated wholly outside India it would become a
________.
a. Ordinary Resident
b. Non Ordinary Resident
c. Non Resident
d. None of the above

14. Which of the following income is agricultural income –

a. Rent received from agricultural land
b. Income from dairy farm
c. Income from poultry farm
d. Dividend from a company engaged in agriculture.

15. Income accruing from agriculture in a foreign country is taxable in the case of an assessee who is –
a. Ordinarily Resident
b. Not-ordinarily resident
c. Non-resident
d . None of the above.

16. Which of the following income is an agriculture income-

a. Income from brick making

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b.Income from agriculture land situated in Pakistan
c. Prize from government on account of higher crop yield
d. Compensation received from insurance company on account of loss of crop.

17. Bad debts incurred are allowed to be debited to profit and loss account
a. Yes
b. No

18. Additional depreciation is allowed to an assessee @

(A) 20 %
(B) 10 %
(C) 15 %
(D) 5%

19. Depriciation is computed

a. single asset
b. Block of assets

20. The income of minor child shall be taxable in excess of _________ in the hands of parents.
a. Rs. 5,000
b. Rs. 10,000
c. Rs. 1,000
d. Rs. 1,500

21. An income derived from land situated in India is agricultural income

a. True
b. False
c. Don’t know

22. Rate of depreciation for furniture & fittings is

a. 15 %

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b. 10 %
c. 18 %
d. 20 %

23. Income of minor

a. 10(31)
b. 10(32)
c. Don’t know

24. Which of the following income is taxable under the head ‘income from salary’
a. Salary received by a partner from firm
b. Salary received by a Member of Parliament
c. Salary of a Government Officer
d. None of the above.

25. Compute PGBP Income if loss in speculation business is 100000 and trading business income is
200000
a. 100000
b. 300000
c. 200000
d. None of the above

26. Loss under the head house property can be carried forward and set off in subsequent
a. 8 Years
b. Cannot be carries forward
c. Can be carried forward for 4 years
d. Unlimited period

27. Which of the following is correct

a. LTCL can be set off from LTCG only
b. LTCL can be set off from STCG only

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c. Loss of business income can be set off from salary income
d. Loss of speculation business can be set off fron normal business income

28. Basic condition will be for a person who leaves India for employment-
a. At least 182 days in India
b. At least 60 days in previous year & 365 days in preceding 4 years
c. At least 730 days in preceding 7 years
d. All of above

29. Loss on account of owning and maintaining race horses can be carried forward for

a. 8 years
b. 4 years
c. Infinitely
d. Nothing mentioned in law

30. Compute the taxable income of Mr. J if his income from salary is rs. 400000 and loss from self
occupied property is 270000

a. Rs. 400000
b. Rs. 130000
c. Rs. 365000
d. Rs. 200000

PART B
SHORT QUESTIONS: WRITE SHORT NOTES ON ANY TWO OF THE FOLLOWING (2 X 5)

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 1. Explain section 35D and section 35 DD?
2. Discuss the provisions of section 44 AD under presumptive taxation scheme ?
3. Explain the deduction provided u/s 33AB of profit and gains from business and profession?
4. Explain the provisions of set off and carry forward of losses under the head house property,
PGBP (Normal business losses, speculation business losses and speculation business losses)
and capital gains ?
5. The taxable profit claimed by ABC Ltd. is 2200000 which includes the following deductions –
a) Deduction under section 10AA – 250000
b) Deduction under section 35 AD of an asset purchased – 100000 which includes
depreciation on such asset of 10000
c) Deduction under section 80C- 15000
d) Deduction under section 80H – 25000
Calculate the tax payable by ABC Ltd. ?
6. X Ltd. is incorporated in Bangalore on September 6, 2023. The following expenses were
incurred by the company before the commencement of Business :
a. Expenses on issue of shares- 250000
b. Expenses o issue of Debentures – 220000
c. Expenses on raising lon term loans – 12300
d. Expenses on preparation of Feasibility Report – 34567
e. Expenses on Conducting Market Survey – 120000
f. Expenses on Engineering Services related to business- 50000
g. Legal charges for creating drafts and agreements -17000
Determine the amount of deduction u/s 35D ?
.

PART C
LONG QUESTIONS: ANSWER ANY FOUR OUT OF THE FOLLOWING QUESTIONS (4x10)

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1. An analysis of the profit & loss account and the balance sheet of kapil as at March 31,
2023,reveals that the following expenses which were due, were though debited to profit and
loss account , but have been paid 31-3-2023 :
 Sales tax rs. 50000 (rs. 20000 paid on 14-09-2023)
 Excise duty rs. 120000 ( rs. 40000 paid on 14-09-2023, rs. 40000 paid on 15-12-2023
and rs. 40000 paid on 24-12-2023)
 Bonus to staff rs. 60000 ( rs. 58000 paid on 10-09-2023 and rs.2000 paid on 15-12-
2023)
 Employers contribution to provident fund rs. 55000 ( 25000 paid on 15-07-2023 ,10000
paid on 30-09-2023 , 20000 paid on 15-12-2023)
The due date for filing return of income is 30-09-2023 , in which previous year above
payments can be claimed as a deduction ?

2. Discuss the provisions under section 10AA (special economic zones) and it's applications in
the context of tax planning while setting up of new business?

3. State all the points of differences between tax avoidance, tax evasion, tax planning and tax
management?

4. Determine the disallowances in the given cases as per sec 40A (3) and also explain rule 6DD

 Generally, X pays salary to his employees A, B & C by account payee cheques . Salary
for the month of December 2023 is however paid to employees by bearer cheques
(payment being rs. 6000, 10000 and 10500 respectively. )
 X Ltd. Purchases goods on credit from A Ltd. On May 10, 2023 for rs. 6000 and on
May 30 2023 for rs. 5000 . The total payment of rs. 11000 is made by a crossed cheque
on june 1, 2023.

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5. Mr. A is a Chartered Accountant in practice. He engages his wife Mrs. Seetha as an employee
for audit works and pays a sum of rs. 20000 p.m. towards salary . Mrs. Seetha before marriage
has completed her C.A. articleship training and is presently awaiting result of the final
examination . Examine the Tax implications in resepect of above transaction?
Also explain the provisions of clubbing of income of a minor child ?

6. Differentiate between Alternate Minimum Tax and Minimum Alternate Tax ?

Also, explain the provisions of alternate minimum tax in detail ?
B) Taxable income of a company ( whose normal rate of tax is 30 % ) is Rs. 4800000 and
book profit is Rs. 1,01,000.
Calculate Tax payable by the company ?
7. Define Capital Asset , What are its exceptions and exceptions to such exceptions ? What are
the different types of capital assets. Also, define holding period ?

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