ASSIGNMENT
Corporate Taxation Q1) Discuss the evolution of Income tax law in India? Q2) Explain the following terms: (i) Previous Year, (ii) Assessee , (iii)Income, (iv) Casual Income Q3) Income Tax is a tax on income and not on receipts. Discuss this statement and give the essential characteristics of the term Income ? Q4) Define the term Income. Distinguish between the gross total income and total income? Q5) The following are the incomes of Shri Ram Prasad for te previous year 2007-08: a) Profit from business in Iran received in India Rs. 5000; b) Income from House property in Iran received in India Rs.500; c) Income from house property in Pakistan deposited in a bank there Rs.1000; d) Profits of Business established in Pakistan deposited in a bank there Rs.20,000 (out of Rs.20,000 a sum of Rs.10,000 is brought into India)-this business is controlled from India; e) Accrued in India but received in England Rs.2000; f) Profits earned from Business in Kanpur Rs.6000 g) Income from agriculture in England it is all spent on the education of children in London Rs.5000 h) Past untaxed foreign Income brought into India during the previous year Rs.10,000 From the above particulars ascertain the taxable income of [Link] Prasad for the p.y 2007-2008 if [Link] Prasad is I) a resident II) a not ordinary resident and a non resident . Q6) Enumerate any fifteen items of income which are totally exempt?
Q7)Write note on any one of the following: Profits of newly established industrial undertaking in free trade Zone. Profits of Newly established 100% export oriented undertakings. Q8) What is meant by perquisites? What are tax free prequisities? Q9) What are the provisions of the Income tax act regarding Leave travel concession? Q10) [Link] is the General manager of transport company drawing salary of Rs.11,00 [Link] company has provided him with accommodation for which 10% of his salary is deducted .Actual rent paid by the company for the accommodation is Rs.54,000 [Link] is also receiving entertainment allowance of Rs.500 [Link] is provided by the company with large car for hhis personal and offical [Link] for personal use are borne by the assessee [Link] of assessees family have a visited a [Link] places in a compnays buses for which [Link] has been [Link] fare for all these visits during the accounting year amounted to [Link] is in receipt of bonus equivalent to 2months salary .Compute his taxable income under the head salary for the A.Y 2008-2009. Q11) X retires from service on 30th November 2007 and he is in receipt of Rs.3000 p.m. as pension upto 31st January 2008 payable on the last day of each month. On 1st Feb,2008he gets two-thirds of his pension commuted for Rs.1,20,000 Determine the chargeable pension in case he is former employee of : a) Central Government b) Punjab government c) ABC [Link] he is not in receipt of gratuity . Q12)Define annual valueand state the deductions that are allowed from the annual value in computing the income from house property? Q13) Mr.A is the owner of a house in Mumbai completely let out for residential purposes ,consisting of two flats of different sizes .They are let out at Rs.5000p.m and Rs.7000 p.m [Link] value of the house of Rs.96,[Link] rate of municipal tax is @ 15% p.a The particulars are as follows: The house is newly constructed ,construction was completed on ist April 2003.
Interest on loan of Rs.1,00,000 taken on 1.4.2000 @ 10%p.a to construct the house,is Rs.10,000 for the Year. Interest for the preceding three years was also paid but not claimed as deduction. Collection Charges claimed by him were Rs.700 but actual expenses were Rs.500 for the year. Compute his income from house property for the A.Y 2008-2009 Q14) In computing income from Business what are the provisions relating to following expenses: Expenses on Scientific Research; Deduction in respect of Preliminary Expenses; Bad debts Q15) On the basis of Trading and P& l account of [Link] calculate his income from Business/Profession for the assessment year 2008-2009: Salary 1,00,000 Gross Profit 3,96,260 Advertising 45,500 Rent on Property 48,000 Office Expenses 92,500 Refund of 3,000 income Tax Insurance 86000 Bad Debts 7800 expenses recovery Fire Insurance 3400 (H.p) Life Insurance 5000 premium Depreciation on 13,000 Motor Tax Provision 26,000 Entertainment 18,500 Expenses Cost of Patent 21,000 Motor expenses 12,000 Bad Debts 2500 General 3000 Expenses Net Profit 1,04,060 4,55,060 4,55,060
Other Informations: Advertising includes:1)Goods presented to customers (30 articles @ Rs.800 each); 2)[Link] to customers ( two T.V @ Rs.4500 per set);3)Diaries/calendars trs.3000; 4) Balance amount Newspapers Advertisement. Salary paid to one employee @ Rs.8000 p.m Recovery of Bad debts includes Rs.6000 which was not accepted by [Link] deduction in 2006-2007 Cost of the motor is Rs.1,00,000 on which depreciation allowed @ 15% p.a.