Direct & Indirect Taxes –BMS /IV/IAP

Time: 1.30 Hrs Marks :

40

Note:
a. Question one is compulsory.
b. Answer any one from the remaining questions.
c. Marks are indicated on the right side of each question

Q 1.Mr. Shrinivas has two houses. One is occupied and other is let out. From the following
information calculate his income from house property.

Particulars House -1 House -2

Self Occupied Let out
Gross Municipal Valuation 400000 200000
Fair Rent 480000 240000
Annual Rent (Actuals) - 264000
Taxes Paid 20000 10000
Repairs &maintenance 40000 10000
Interest on Loan 90000 60000
(borrowed after1.4.99)
Vacancy period - 2 months

Compute the income from House Property for the Assessment Year 2007-08.

(20)
Q 2. Write short notes on:
1. Agricultural Income
2. Receipts from HUF
3. Deductions available U/S 80U of IT Act
4. Annual Letting Value
5. Full Value Consideration
(10)

Q 3. What is ‘pre acquisition interest’ in the context of house loans?

Arun took a loan of Rs.100000 @15% p.a on 1.4.03 for construction of house. Construction
was completed on 20.3.06.Calculate deductible interest from Annual Value for the previous year
if the property was let out.
(10)

Q 4.. How do you compute ‘income from VLOP (vacant Let Out Property)?
(10)
 BMS /IV/ A1/Mar- 08
Direct & Indirect Taxes
Time: 2.00 Hrs Marks :
60

Note:
a. Both Questions in Section - I are compulsory.
b. Answer any three Questions from Section –II.
c. Marks are indicated on the right side of each question

SECTION- I

Q 1. From the Profit and Loss Account of Mr. Shekar and additional information given, calculate
the total income of Mr. Shekar for the Financial Year 2006-07 stating the corresponding
Assessment Year.

Particulars Rs. Particulars Rs.

To Staff Salaries 36000 By Gross Profit 154000

To Advertisement 10000 By Lottery winnings 9000
To Sales Expenses 28000 By Dividends 3000
To Administrative Exp. 5000 By Interest – Bk. Deposits 27000
To Printing & Stationery 2000
To Donations 10000
To Reserve for Doubtful Debts 6000
To Salary to Self 15000
To Income Tax 15000
To Depreciation 18000
To Net Profit 48000
TOTAL 193000 TOTAL 193000

1. Advertisement includes Rs.1000 paid to a political party for

advertisement in their Souvenir.
2. Donation of Rs.10000 in P & L account is given to Pune Minister’s
National Relief Fund.
3. Administrative expenses of Rs. 5000 includes Rs.2000 paid for
medical insurance of Mr. Shekar.
(20)
Q 2. i.. Mention any six items of Income exempt U/S 10 of the Income Tax Act.

ii. What is ‘Profit in lieu of Salary’? Explain with examples.

(10)

[PTO]

:2:

SECTION- II

Q 3. Mr. Shrinivas has two houses. One is occupied and other is let out. From the following
information calculate his income from house property.

Particulars House -1 House -2

Self Occupied Let out
Gross Municipal Valuation 400000 200000
Fair Rent 480000 240000
Annual Rent (Actuals) - 264000
Taxes Paid 20000 10000
Repairs &maintenance 40000 10000
Interest on Loan 90000 60000
(borrowed after1.4.99)
Vacancy period - 2 months

Compute the income from House Property for the Assessment Year 2007-08.

(10)

Q 4. Mr. Ching is a Japanese Citizen. He came to India on Oct.15, 2006 for a visit and was
in India till 31st March’07. In pevious years his stay in India was as under:
Year No. of Days
1996-97 188
1997-98 190
1998-99 185
1999-2000 200
2000-01 40
2001-02 300
2002-03 195
2003-04 185
2004-05 100
2005-06 200
 Find his Residential Status for the Asst. Year 2007-08, assuming he is not
a person of Indian Origin.

(10)

[PTO]

:3:

Q 5.Mr. Lal commenced business on 1.2.07. From the following information ascertain
from which month Mr. Lal will be liable to pay tax under MVAT Act. Give reasons.

No. Particulars Purch. Purch. Sales Sales

Taxed Taxfree Taxed Taxfree
1 Feb.’07 8000 50000 4000 95000
2 Mar.’07 3000 32000 5000 45000
3 Apr.’07 4000 210000 1000 305000
4 May’07 5000 175000 6000 190000
5 Jun.’07 2000 200000 2000 210000
6 Jul.’07 4000 250000 5000 275000
7 Aug.’07 4000 170000 4000 190000
8 Sept.’07 6000 180000 8000 220000

(10)

Q 6.Mr. Tembe is an employee with ABC Ltd.

Rs.
1. His monthly Salary is as below:
Basic Salary per month 5000
Dearness Allowance per month:
1.4.06 to 31.12.06 25% of Basic
Salary
1.1.07 to 31.3.07 32% of Basic
Salary
Professional Tax deducted from Salary per month 120
2. Taxable Conveyance allowance for the year 3500
3. Bonus paid @ 20% of Basic + Dearness Allowance.
4. Mediclaim premium paid by employer for Mr. Tembe 2800
Compute his taxable salary for Assessment year 2007-08.

(10)
 Q 7.Write short notes on:
1. Agricultural Income
2. Receipts from HUF
3. Deductions available U/S 80U of IT Act
4. Annual Letting Value
5. Full Value Consideration

(10)

BMS /IV/ A2/Mar- 08

Direct & Indirect Taxes
Time: 2.00 Hrs Marks :
60

Note:
d. Both Questions in Section - I are compulsory.
e. Answer any three Questions from Section –II.
f. Marks are indicated on the right side of each question

SECTION- I

Q 1. i.. Mention any six items of Income exempt U/S 10 of the Income Tax Act.

ii. What is ‘Profit in lieu of Salary’? Explain with examples.

(10)

Q 2. i.. From the Profit and Loss Account of Mr.’X’ and additional information given, calculate
the total income of ‘X’ for the Financial Year 2006-07 stating the corresponding Assessment
Year.

Particulars Rs. Particulars Rs.

To Staff Salaries 72000 By Gross Profit 308000

To Advertisement 20000 By Lottery winnings 18000
To Sales Expenses 56000 By Dividends 6000
To Administrative Exp. 10000 By Interest – Bk. Deposits 54000
To Printing & Stationery 4000
To Donations 20000
To Reserve for Doubtful Debts 12000
To Salary to Self 30000
To Income Tax 30000
To Depreciation 36000
 To Net Profit 96000
TOTAL 386000 TOTAL 386000

4. Advertisement includes Rs.2000 paid to a political party for

advertisement in their Souvenir.
5. Donation of Rs.20000 in P & L account is given to Pune Minister’s
National Relief Fund.
6. Administrative expenses of Rs.10000 includes Rs.4000 paid for
medical insurance of ‘X’.
(20)

[PTO]

:2:

SECTION- II

Q 3. Mr. X is an U S Citizen. He came to India on Oct.15, 2006 for a visit and was in India
till 31st March’07. In pevious years his stay in India was as under:
Year No. of Days
1996-97 188
1997-98 190
1998-99 185
1999-2000 200
2000-01 40
2001-02 300
2002-03 195
2003-04 185
2004-05 100
2005-06 200

Find his Residential Status for the Asst. Year 2007-08, assuming he is not
a person of Indian Origin.
(10)
Q 4. Mr. Shinde has two houses. One is occupied and other is let out. From the following
information calculate his income from house property.

Particulars House in Powai House at Wadala

Self Occupied Let out
Gross Municipal Valuation 4000000 2000000
Fair Rent 4800000 2400000
Annual Rent (Actuals) - 2640000
Taxes Paid 200000 100000
Repairs &maintenance 400000 100000
 Interest on Loan 900000 600000
(borrowed after1.4.99)
Vacancy period - 2 months

Compute the income from House Property for the Assessment Year 2007-08.

(10)

[PTO]

:3:

Q 5. Write short notes on:

1. Agricultural Income
2. Receipts from HUF
3. Deductions available U/S 80U of IT Act
4. Annual Letting Value
5. Full Value Consideration

(10)

Q 6.Mr. Thomas is an employee with Lawrence & Co. Ltd.

Rs.
1. His monthly Salary is as below:
Basic Salary per month 10000
Dearness Allowance per month:
1.4.06 to 31.12.06 25% of Basic
Salary
1.1.07 to 31.3.07 30% of Basic
Salary
Professional Tax deducted from Salary per month 240
2. Taxable Conveyance allowance for the year 7000
3. Bonus paid @ 20% of Basic + Dearness Allowance.
4. Mediclaim premium paid by employer for Mr. Thomas 5000
Compute his taxable salary for Assessment year 2007-08.
(10)

Q 7. Mr. Das commenced business on 1.2.07. From the following information ascertain
from which month Mr. Lal will be liable to pay tax under MVAT Act. Give reasons.
No. Particulars Purch. Purch. Sales Sales
Taxed Taxfree Taxed Taxfree
1 Feb.’07 8000 50000 4000 95000
2 Mar.’07 3000 32000 5000 45000
3 Apr.’07 4000 210000 1000 305000
4 May’07 5000 175000 6000 190000
5 Jun.’07 2000 200000 2000 210000
6 Jul.’07 4000 250000 5000 275000
7 Aug.’07 4000 170000 4000 190000
8 Sept.’07 6000 180000 8000 220000

(10)