Dr. K. N.

Modi University, Newai, Rajasthan 1st mid Term Examination-March 2013 MBA IV SEMESTER TAX PLANNING AND FINANCIAL REPORTING (02MBF402) Time: 2 Hrs. Max Marks-40

Note:-Attempt any 5 questions. All questions carry equal marks. 1. Write down short notes on the following: a) Assessment year b) Person c) PAN number d) Tax evasion 2. a. Income tax is assessed on the income of the previous year in the next assessment year. State the exceptions to this rule? b. What will be the previous year in relation to assessment year 2012-13 in the following cases? i. A businessman keeps his accounts on financial year basis ii. A newly started business commencing its operations from 1.1.2012 iii. A person gives Rs. 500000 @10% p.a. interest on 1.9.2011 3. a. Mohit Chauhan who is a famous singer came to India from America for the first time on 26.01.2012. He gave many performances in India from which he got Rs-400000. When he was to return to America the income tax officer gave him a notice & asked him to pay income tax immediately. He said in his reply-My previous year ends on 31.03.2012 & my tax liability will be in the assessment year 2012-13. What is your opinion in this regard? b. Explain the concept of income. 4. a. Total income of Imran Khan aged 70 a resident in India for the assessment year 2012-13 is 1090450, compute his tax liability. b. Income of Saif Ali Khan aged 50 a non-resident of India is Rs-294000. Compute his tax liability for the assessment year 2012-13. 5. What are the rules which determine residential status for the following: a. Resident & ordinarily resident in India b. Non-resident of India c. Resident but not ordinarily resident 6. Differentiate between the following: a) Previous year & assessment year b) AOP & BOI

c) Tax planning & tax management d) Gross income & Net income 7. Geeta is a lecturer in a college. Following are the details of her income for the previous year 2011-12 Basic salary @ Rs-34000 p.m. Dearness allowance @ Rs-12000 p.m. City compensatory allowance Rs 12000 House rent allowance Rs-10200 p.m. Remuneration as examiner Rs-4000 She is a member of statutory provident fund to which she contributes 10% of her salary the college contributing an equal amount. During the previous year she spent Rs 12000 on books purchased for teaching purpose & used her own car for personal as well as official work. She lives in her own house. She was sent by the college to attend re orientation program for which college spent Rs-12000 including her first class fare to & fro, seminar fees etc. She also received medical reimbursement of Rs-12000 for her nephew. Compute her taxable salary for the assessment year 2012-13 .

Dr. K. N. Modi University, Newai, Rajasthan 1st mid Term Examination-March 2013 MBA IV SEMESTER TAX PLANNING AND FINANCIAL REPORTING (02MBF402) Time: 2 Hrs. Max Marks-40

Note:-Attempt any 5 questions. All questions carry equal marks.

1. a) Explain different types of Provident funds? b) Define the term salary. 2. Angelina Jolie is a lecturer in a college. Following are the details of her income for the previous year 2011-12 Basic salary @ Rs-25000 p.m. Dearness allowance @ Rs-10000 p.m. City compensatory allowance Rs 10000 House rent allowance Rs-8200 p.m. Remuneration as examiner Rs-2000

She is a member of statutory provident fund to which she contributes 10% of her salary the college contributing an equal amount. During the previous year she spent Rs 7000 on books purchased for teaching purpose & used her own car for personal as well as official work. She lives in her own house. She was sent by the college to attend re orientation program for which college spent Rs-7500 including her first class fare to & fro, seminar fees etc. She also received medical reimbursement of Rs-12000 for her nephew. Compute her taxable salary for the assessment year 2012-13 3. a) Income tax is assessed on the income of the previous year in the next assessment year. State the exceptions to this rule? b) What will be the previous year in relation to assessment year 2011-12 in the following cases i) A businessman keeps his accounts on financial year basis ii) A newly started business commencing its operations from 1.1.2011 iii) A person gives Rs. 700000 @10% p.a. interest on 1.9.2010 4. a) Robbie Williams who is a famous singer came to India from America for the first time on 26.01.2012. He gave many performances in India from which he got Rs-800000. When he was to return to America the income tax officer gave him a notice & asked him to pay income tax immediately. He said in his reply-My previous year ends on 31.03.2012 & my tax liability will be in the assessment year 2012-13. What is your opinion in this regard?

b) What are the components of salary income? 5. Write down short notes on the following a) b) c) d) AOP TDS Perquisites Gratuity

6. Differentiate between the following a) b) c) d) Tax planning & Tax evasion Exemption & rebate Pvt. & public company Gross income & Net income

7a. Sanjay Dutt a citizen of India, left India on 21.10.2009 for employment abroad. Earlier to this date he was always in India. During 2010-11 & 2011-12 he came to India for 168 days & 185 days respectively. Determine his residential status for assessment year 2012-13 b. Bharat petroleum is an Indian Co. It carries on business in New Delhi & London. The entire control & management of it is situated outside India. 80% of the total income of the company is from the business in London. What is the residential status of Bharat petroleum?