Skip to main content

ELEMENTS OF INCOME TAX

BACHELOR'S DEGREE PROGRAMME


Term-End Examination


June, 2010


ELECTIVE COURSE : COMMERCE


ECO- 10 : ELEMENTS OF INCOME TAX


Time : 2 hours                                             Maximum Marks : 50


     (Weightage 70 %)


Note :Attempt any four questions including question no. 1 which is

          compulsory                                       

SECTION– A

  1. Gyani (Age=26) received the following emoluments during the financial year 2008-2009


Basis Pay                                               86000

Commission (50% of basis pay)       43000

Entertainment allowance                   10000

1000 cc car for office and

Personal use                                           32000

He contribute Rs. 10720 towards provident funds (employer company making matching contribution ), and Rs. 500 towards national saving certificate VIII issue. His income from other resources is Rs. 66000.                                                    On the December 2,2008 he takes an interest free loan of Rs. 45000 from the employer payable after 3 years to meet cost of medical treatment of his wife (disease is specific in rule 3A) computed the taxable income of Gyani for the A. Y. 2009-10 assuming he is  a member of recognized provident fund and taking deduction U/S 80 c into account.

  1. Define the terms ‘perquisites’ . explain , with examples, the methods of valuation of finished rent free accommodation provided by the employer to non-government employee.

  2. (a) State any four situations when a person is treated as deemed owner of a house property under income Tax Act, 1961


(b) B owns a house in Delhi. From the particulars given below, compute his taxable income from the house property for the assessment year 2009 – 2010.


Municipal Value                     220000

Fair rent                                   262000

Actual Rent (Per month)      24000

Municipal Tax paid               22000

Expenses on repairs              15000

Insurance Premium              5000

He had borrowed a sum of Rs. 1000000 @ 12% p.a on 1-7-2006 and the construction of house was completed on 28-4-2008.

  1. What are the different categories under which the assessees are divided on the basis of residence? Explain, with example, the rules of determining the residential status of an individual under the provisions of the Income Tax Act, 1961.

  2. (a) Hanu a resident individual submits the following particulars of his for the year ending 31-3-2009:



  • Royalty from a coalmine 80000

  • Agricultural income from Nepal 60000

  • Salary as a member of parliament 192000

  • Daily allowance as M.P 20000

  • He has taken a residential house on a rent of Rs. 40000 per annum half of which he sublet at Rs. 4800 per month.

  • Dividend received from Asian Paints Ltd. Rs 20000


He has incurred the following expenses :

  • Collection charges Rs. 400 for collecting dividends;


And




  • Rs, 12000 for collecting royalty income. Compute his taxable income from other sources.


       (b) Distinguish between short term and long term capital gains,


              And state the rules for taxation of short term capital gains.




  1. Write short notes on any two of the following.



  • Casual Income

  • Indexed cost of acquisition and improvement

  • Partly Agricultural income

  • Exemption regarding children education and hostel allowances

Comments

Post a Comment

Popular posts from this blog

MANAGEMENT RESEARCH -I

POST GRADUATE DIPLOMA IN TEACHING AND RESEARCH IN MANAGEMENT   Term-End Examination June 2010   PGDTRM-03: MANAGEMENT RESEARCH -I Time: 3 hours                                                              Maximum Marks: 100 Note:   (i) There are two Sections A and B .             (ii) Attempt any three questions from Section A . All questions  carry 20 marks each.             (iii) Section B i s compulsory. And carries 40 marks.                                                SECTION – A                                  3x20=60   What is meant by the term "research design" ? Examine some of the commonly used research designs. Distinguish between probability and non-probability sampling. Explain the different methods used in both types of sampling. Examine the importance of ethics in research with special reference to the rights and responsibilities of participants. Briefly discuss the different methods of research. Also mention the situations in which they are appli...
Post a Comment
Read more

OPERATIONS MANAGEMENT

COMMONWEALTH EXECUTIVE MBA/MPA PROGRAMME   Term-End Examination June 2010 C-4: OPERATIONS MANAGEMENT Time: 3 hours                                                              Maximum Marks: 100                                                                                               (Weighting 70%)   Note:    Section-A has five questions of 20 marks each. Attempt any three  Questions from Section-A . Section-B is compulsory   40 marks. SECTION – A (a) Discuss the process of launching a new product in the market. Explain with the help of suitable examples.    10+10=20    (b) A manufacturing firm has three proposals for a product. Either it can be       purchased from an outside vendor at Rs. 4.00 per unit or it can be manufactured in-plant. There are two alternatives for in-plant manufacturing. Either, a fully automatic unit is procured, involving fixed cost of Rs.30,000 and variable cost of Rs. 2.75 per  unit. Alternatively a semi-automatic unit would cost Rs. 20,000 as fixed...
Post a Comment
Read more

Steps in starting up the small-scale business

Steps in starting up the small-scale business. A potential entrepreneur has to pass through various stages for setting up small scale unit. These are as follows:- The decision to be self-employed: - An educated person has to decide between two option either to work for other as employees or to work for himself as an entrepreneur. If the person possesses the right of knowledge, skill, experience and aptitude the best option for him is to set his own enterprise. This would give him best opportunity to invest, to innovate and  to give the best shape of this ideas. Identification of opportunity: - The viability of units means the business should identify the market needs. The entrepreneur has to do, but the consumer wants he has to produce according to needs and demands of the consumer. Selection of product on the basis of the market survey: - An entrepreneur has to select the product on the basis of the market survey, An entrepreneur should select the product keeping in view his own ca...
Post a Comment
Read more