D 90025 (Pages:4) Name......
Reg. No
FIFTH SEMESTER [Link].S.. DEGREE EXATTINATION
NOVEMBER 2O2O
(CUCBCSS-UG)
[Link].
BCM 5B Og-INCOME TAX LAW AND ACCOUNTS
(20L7 Admissions)
Time : Three Hours
Maximum : B0 Marks
Section A
Answer all questions.
Each question carries I marh.
A) Fill in the blanks :
1 Assessment year is the period of'12 months
commencing from Every .year.
2 When the income earned in an year is taxed in the
same year, it is called
3 CBDT stands for --
4 Salary is defined as per section _.
5 Payment nade by an employer to employee monthly,
other than salary is called
B) Choose the correct answer from the bracket
:
6 Income tax is a _.
A) Professional tax. B) Direct tax.
C) Indirect tax. D) Service tax.
7 Income tax rates are lixed tn_
A) Income tax Act. B) Finance Act.
C) Income tax rules. D) Finance rules.
8 chiìdren education allowance is exempt up to per
month per child for two children.
A) Rs. 100. B) Rs. 150.
C) Rs. 200. D) Rs. 250.
Turn over.
c) D 90025
9 Foreign allorvance is a
A) Allowancc' B) l'ully Taxable Allowance'
Fully Exempted
--.
C) Partly Exempted Allowance. D) None of these.
10UndertheheadIncomefromHousePropertythebasisofchargeiS-.
A) Rent Received. B) Gross Annual Value.
C) Annual \¡alue. D) Municipal Value.
(10x1=10marks)
Section B
Answer at [Link]. five [Link].
Eaclt. question caníes 4 marlzs.
All questions can be øttended.
Ouerall Ceiling 2O.
l,1 What is previous year ?
L2 What is residential status ?
13 What is partly agriculture income ?
14 What is Gratuity ?
15 Define Perquisite.
16 What is composite rent ?
77 What is nunicipal valuc ?
18 Define Professiort.
19 What is capitaì asset ?
20 What is cost of acquisition ?
(5x4=20marks)
Section C
Ansuter at least. fowt questiotts.
Each question carries 8 marles.
AII [Link] can be attended.
Ouerall Ceilirtg 32.
2l Mr. Raja enters into a job in 2016. His particulars of job for the previous yeat 2079-2020
are as under. Basic salary 50,000 p.m., D.A. 10,000 p.m. (Half forming part of salary),
HRA 12,000 p.m. and actual rent paid Rs. 6,000 p.m. Employer aud employee contributed
LBVo of salary torvards recognised provident fund. Life insurance premium paid
3 D 90025
22 Mr. Ram owns a house property which has two identical units. One unit is let out for resiclential
purpose and other unit is self'occupied by him during the previous ycar. The partictrlars of
the house property are as follows :
Municipal value - Rs. 6,00,000 p.a. : actual rent - Rs. 50,000 p.m. : standard Rent-Rs. 5,50,000
p.a.
The house remained vacant for two months ancl Rule 4 has been satisfiecl by hirn.
Compute the income from House property.
Calculate income from other sources from the following particulars :
1. Winning from lottery Rs. 1,00,000
2. Received from race winnings Rs. 35,000
3. Interest received from listecì debenturc Rs. 9,000
4. Interest onIOo/o tax free debentures of Rs. 10,000.
5. Received Rs. 25,000 as gift from a fricnd.
6. Received Rs. 50,000 as gift f'rom clder brother
7. Received Rs. 30,000 as gift on his marriaE¡e.
B. Received Rs. 80,000 as gift frorn another friend.
Calculate Taxable income.
Mr. Laloo Singh, received education allowance of 80 p.m. for his lst child, 90 [Link]. for his 2nd
Child and 120 p.m. for his 3rd child. He aìso received hostel allowance of'1,000 [Link]. None of'
his Childrcn are sturìying. Find taxable Childrcn Education Allowance and Flostcl allorvance.
Cómpute income from "income from other sourccs" froln the following ¡rarticulars subnrittcd
By Mr. Somau :
1. Diviclend (gross) 9,600.
2. Expenses incurred for jts collection 500.
3. Receipt from letting of plant and machinery 10,000.
4. Repairs of plant and machinery 4,000.
5. Insurance premium in respect of plant and lnachinery 2,000.
6. Depreciation allowed for letting 4,000.
26 Calculate capital gain from the following data. Sold self generatcd goodwill f'or a business
Rs. 7,00,000 bonus shares in Kairali Ltd (not listcd) and (being short term capital assets) soìd
for Rs. 4,00,000. Business income Rs. 30,000. Long tcrm capital loss iu the transfer of a building
Rs. 20,000. Face value of bonus shares sold Rs. 3,00,000.
. 4 D 90025
27 X, a resident of'Ajmer, receives'48,000 as basic salary during the previous year 2018-19. In
addition, he gets ' 4,800 as dearness allowance forming part of basic salary, 77o cammission on
sales made by him (sale madc by X during the relevant previous year is ' 86,000) and ' 6,000
as house rent aÌlowance. Hc, however, pays ' 5,800 as house rent. Determine the quantum of
exempted house rent allowance.
Explain four incomes exempted from tax.
(4x8=32marks)
Section D
Answer any orne qttestiort.
TIrc question carries 78 nmrlzs.
29 N{r. Anil submits the following particulars in respect of his business :
Opcning stock 1,08,000 Salcs 11,50,000
Purchascs 9,46,000 Intercst 11,000
Salary 54,000 Other busincss receipts 3,500
Rent and rates 24,00Ø Closing stock 1,35,000
Interest on loan 10,000 Bad debt recovered 10,000
Dcpreciation 1,13,000 Agricultural income 50,000
Advcrtisement 24,000
Sales tax 2,940
Loss on sale ofshort term assets 9,000
Othcr expenscs 5,060
Income tax. 1,000
Net profit 60,000
3,06,000 3,06,000
Opcnirrg stock wâs overvalued by 10 o/o and cìosing stock undervaìued by 10o/o.
Salary includes excess payment of Rs. 2,000.
'I'he amount of'advertiscmcnt was given in cash Sales tax was paid on 15.05.2018.
Other expense include Rs. 4,000 donation to Rajiv Gandhi relief fund.
Calculatc busincss income anrl tax liabilit¡'of'Anil.
30 Mr. Sree is the owner of a house in I{ottayam. The details regarding her house arc given
below. Municipal value 8,400, Rent reccivecì 9,000, Total Municipal tax 1260, Municipal tax
paid by tenant 420, Ground rent 250, Repairs 2000, Interest on loan taken for renewing the
house 300, Unrealized rent recovered 4000. Computc her income from house property for the
^.Y. -2020-21..
31 Explain the provision for the valuation of motor car under the heacl salaries.
(1 x 18 = 18 marks)