N- 11) O BACHELOR'S DEGREE PROGRAMME Term-End Examination December, 2009 ELECTIVE COURSE : COMMERCE ECO- 11 : ELEMENTS OF INCOME TAX Time : 2 hours Maximum Marks : 50 (Weightage 70%) Note : Attempt any four questions including question no. 1 which is compulsory. 1. Mr. Trivedi is in the teaching staff of a well known 14 college in Ahmedabad owned by a limited company. During the previous year 2007-08 he gets the following emoluments : Rs. Basic Salary 1,86,000 Dearness Allowance (forming part of his salary) City compensatory Allowance Children's education allowance (Rs. 65 per month for three children) (e) House Rent Allowance (rent paid Rs. 20,000) 12,300 3,100 2,340 16,200 1 P.T.O.
He gets Rs. 18,890 as reimbursement from the employer in respect of expenditure incurred on medical treatment of his family members. He also gets Rs. 12,600 as reimbursement from the employer in respect of books and journals purchased by him. (h) He contributes 11% of his salary to recognised provident fund to which a matching contribution is made by the employer. Besides, he incurrs an expenditure of Rs. 10,000 as insurance premium on his life policy (sum assured Rs. 50,000). Compute his taxable income from his salary and the amount of deduction under section 80 C for the year 2008-09. 2. Explain the salient features of Section 80 C of the 8,4 Income Tax Act. Also explain as to how it affects the deductions under sections 80 CCC and 80 CCD. 2
3. (a) Gyaneshwar is a resident individual who 6 submits the following particulars of his income for the year ended 31-3-08. Rs. Agricultural income in 25,000 Nepal Director's Fees 10,000 Interest on postal 500 Savings Bank A /c. Interest on Deposits 2,500 with IFCI Dividend received from 3,500 a co op. society Rent from sub-letting a 60,000 house Rent payable on sub-let 46,750 house Winnings from horse 61,500 race Compute this income from other sources for the assessment year 2008-2009. (b) What do you mean by annual value of a 6 house property? Show its calculation with an example and state how does standard rent affect its determination. 3 P.T.O.
4. (a) Explain the scope of Total Income of an 6 assessee on the basis of his residential status in the previous year. (b) From the following information compute the 6 amount of long term capital gain of the assessee for the assessment year 2008-09 : Listed shares purchased on 31-08- 1998 for Rs. 40,000 sold for Rs. 1,80,000 on 1-11-07. Gold ornaments purchased for Rs. 2,00,000 on 1-9-1999 sold for Rs. 3,20,000 on 1-12-07. Cost of living index for 2007-08 was 551 and 1998-99 and 1999-2000 it was 351 and 389 respectively. Also state the amount of capital gain that shall be taxable assuming that the shares had been sold through recognised stock exchange and security transaction tax has been duly paid thereon. 5. (a) Define the term 'Perquisites' and state any 6 five perquisites that are fully exempt from tax. (b) State the consequences of delay in filling of 6 returns. 4
6. Write short notes on any three of the following : 4,4,4 Bond washing transactions. Death-cum-retirement gratuity Taxation of winnings from lotteries, horse races, card games, etc. Grossing up of interest on less tax securities (e) Deduction in respect of Entertainment Allowance. - o 0 o - 5 P.T.O.
f---11cich 34 11IT chrichl-1 titalt f qtriz R, 2009 Lild,q 01 1-1 : cllrul ntti 1..3u.-11 : 3rrzr-+7 d Tcf 7i:/z/ : 2 37A1W-ffq :50 aft ch/ 70% : fq3 err 3/7*. / f7t4' TT-r TT: 1 777rTi e WiirW q6 3.1ft-drci 1. 3ITT-qq1 QmTff 1faJIci4 14 3Turtrt I f=r -ER Lo ci 4-r-rtt 'WE k-1 P-I cc{ t I Trd crtf 2007-08 -4 I R 7 3Tr : (b) (e) 1,86,000 117.714-fff.) Irp-r t) 12,300 -Trf-d-t IT 91 3,100 cfiri f7r-te1.171 (65 T. mrci TIM 41-1 -4.Q 2,34() He 1-1 -4777 1-1-9T (f---trzrr f--trr 20,000 T.) 16,200 7 P.T.O.
31-Er4 tf-tar -R-q74 -circii -ER f-*--q, i-zr 01;1-51-nr-dift tc Li ri41thi -51FFI 18,890 T. Trf-A--*74 7 -T-r--7. -z1 1,1 31---d-T-N f9-zn-wi wi 12,600 T. (h) 3T-Er-4 k-d-a- chi 11% 1-11-61c11 7TI1 ITF-diszT r-irg 31'71-qrfTi 7--r-kai-ffrata ai-crt err Tuf-oit(r Trr-7 50,000 T. t) i 10,000 T. atf 2008-09 fry 1-).1,,{ cb -ff2it NRT 80 C cb1 71-171.1;1 2.3Tp-f*-7 3Tf rrn1 R180C cn1-41-&4 fa dt3rn1 8,4 1ft TITE -wrr--a7 f q-r-r 80 CCC '47T 80 CCD <4;1 crzl1i i c fir ichr 3 11-rf-a-ff t 8
3. (a) -11-1-Rd'1474TNT7-0-r-d-zrr fiq-rt t;- f-qth-zr 6 ci ti 2007-08 14 F.-1 4446d 31 rq 571 : T. keit Tfti. 3TFT 25,000 Thti 10,000 sich 779. Lc 500-217 wci 41( ITT.jrri 2,500 (v) TITTrt 7T1-14f-d. 74 II-1 3,500 Islas (vi) 4-1 cht-r 3i-r4 f-*-u ITT 60,000 3cif t4 (sub-letting) -9-Fr ft7-r-z (vii) 34-r4 f*-7-77 787 JR 46,750 H ch 1-1 77 tzif 'I q f f-*--trzu 1.)s 74-517 ct)1 61,500 7-rwr apt finitur.14 2008-2009 Ch 31{ a-, 7:1)-r73-Trzr a.)1,1utli (b) 4-1* I 'T qlftsit 174 74 q-,1 t? 6 d^l^t U l ct 'ICI ii 1;1 raiq ol c115 7 211 1.-1 4111 fa, 4-11-r =h f*--trzu 4:1 'qu ill a-) -f-*-7=r iachr 5 91Tr-d.WT-dfit 9 P.T.O.
4. (a) ad 7ff 14 f9-41t 3-TRTR TR 7T finiftt cr>1 6 3-Trzi 4;1 ch1 oear?if --1-fA7 I (b) -{1131T 311.47 TIT fffnftitt 6 014 2008-09 t 64, -F-rif-T-d 8144)1 11-i Itrm M 1 41 411-?TAT : 31-08-1998 40,000 T. 14. -C1-tr 71-41f=17 *zit 4)1 1-11-07 chl 1,80,000 T. 1-9-1999 at1 2,00,000 T. -4-4J-T1-Tr)-4 1-12-07 =hl 3,20,000 T. -11 Jim 2007-08 mi Mind tci ciii ci-) 551 211 33 1998-99 1999-2000 =t)i-rf: 351 74 389 211 I I fah 71--zr4.) 4-11-q c11-517 31 dti 'TT 'Arctlft ch,& chi lirrdti fwzil 4 1i1, 411 olci 111 r Trft 4q r trt? 5. (a) 31-17VI-T' (Perquisites) ch1 (-i outrr 6 L11-4 t (b).11,y0 31TW{ r4ci+, u 1 6 Lik u 11 4-1 1icil5 I 10
6. r-t 4--1 Fri PA cf-4 TR ik-rtfzwru foftr : 4,4,4 kt_g i c a (Bond washing transactions) 1--M- 9-11-3-TqW71 17-crT 1-j7Fd clka, TO3-, cir1.,11d =1;) TIFF 51fci (e) 11116-11 c4 - o 0 o - 11