PRELIMINARY EXAMINATION,MARCH 2015 T.Y.A & F. [SEM VI] TIME:- 2 1/2 HRS Subject : TAX MARKS:-75 Note: All questions are compulsory and carries 15 marks each. Q-1 Objective type question (a) state whether the following statement is true or false: (any eight) (08) 1. there are 4 due dates for payment of advance tax in case of companies. 2. the due date for filing returns for all the Assessee is 31 st October every year. 3. the premium under section 80 D can be paid by an individual for his dependent parents. 4. Partners share in the profits of the firm is not taxable 5. loss from house property brought forward can be set off against any income during the previous year 6. advance tax is payable if the tax liability is 5000 or more. 7. speculation business loss can be set off over a period of 8 years. 8. the rate of deduction of tax at source for interest is 5%. 9. capital gain can arise on transfer of any assets. 10. cost of improvement of goodwill of a business shall be taken nil. (b) Multiple choice question:- (any seven) (07) 1. When Mr. Sreenivas, an individual whose accounts are to be audited u/s. 44AB since A.Y. 2014-15. Makes an interest payment to Mr. Kartik, he willhave to deduct tax at source if the total interest paid/credited to Mr. Kartik during the year exceeds. i. 5,000/-; ii. 10,000/-; iii. 20,000/-. 2. When an E-TDS return has 600 deductee records, charges for furnishing E-TDS returns are. i. 30/-; ii. 182/-; iii. 606/-. 3. When an assessee incurs a business loss for assessement year 2012-13 and wants to carry it forward to subsequent years, he will have to file the return of income on or before. i. Completion of Assessement of 2011-12. ii. The end of Assessement year 2012-13. iii. The due date of filing return for Assessement year 2012-13.
4. Deduction u/s.54 is available only if the original asset sold is. i. Commercial Property; ii. Residential House property; iii. Vacant land. 5. the rate of tax deduction at source u/s. 194C for payments to resident contractors(company) is. i. 10%; ii. 2%; iii. 1%. 6. Book profits of firm are 10,00,000/-, the maximum deductible amount on account of remuneration to U/s. 40(b) will be. i. 6,00,000/-; ii. 6,90,000/-; iii. 5,70,000/-. 7.The due date for filing returns of income for an individual who receives only salary income is. i. 31 st July; ii. 30 th September; iii. 31 October. 8. Speculative business loss of the current year can be set-off against. i. Speculative business income of the current year. ii. Non-speculative business income of the current year. iii. Short Term Capital Gains of the current year. 9. Non-speculative business loss can be carried forward for. i. 4 years; ii. 8 years; iii indefinitely. 10. Advance tax installment due on 15 th December is applicable to. i. Registered firms; ii. Companies; iii. All assesses. Q-2. A, B and C are partners in a firm. They give you following information for the year ended 31 st March, 2014. Debit Credit To loss on sale of Machinery 15,000 By Gross Profit b/d 5,20,000 To Tax Deducted at source from business receipts 18,000 To Advance tax paid 17,000 To Salary to partners: A 1,20,000 B 1,20,000 C 1,20,000 3,60,000 To Interest on Partners Capital(15%) 80,000 To Drawing of Partners 10,000 To Net profit c/d 20,000 5,20,000 5,20,000
Additional Information :- a. Balance of capital of partners as on 1 st April, 2013 was 1,35,000/-. From the above information, for the Assessment year 2014-15 :- b. Calculate Book Profit and Remuneration of partners allowable u/s.40(b) of the Income tax Act, 1961. c. Compute the taxable income of the firm and the net tax payable by the firm. (OR) Q-2 During the previous year 2013-14 Mr. Deep sells the following assets:- Sale Proceeds Cost of Acquisition Year of Acquisition Fair Market Value As on 1-4-1981 [] Land 20000000 1600000 1977-78 2100000 Gold 1350000 240000 1979-80 235000 Debentures 157000 75000 1975-76 40000 Personal Car 125000 50000 1992-93 80000 Agricultural land in Rural areas 500000 350000 1981-82 -. Cost Inflation Index : F.Y 1981-82 :- 100, 2013-14:-939 Q-3 For the Assessment year 2014-15, Mr. bharat a resident individual, furnishes the following particulars of his income :- Income from salary 1,80,000 Income from House Property 2,20,000 Business Income (Non-speculative) 2,00,000 Income from Speculative business 1,91,000 Short term capital gains 1,25,000 Long term capital gains 2,55,000 Short term capital Loss (1,00,000) Winnings from Lotteries 5,00,000 Winnings from horse races 6,00,000 Besides, Mr Anand wants to set-off the following losses of earlier years :- Business losss of the Assessment year 2010-11 3,50,000 Short term capital loss of the Assessment year 2009-10 1,90,000 Long term capital loss of the Assessment year 2004-05 3,00,000 Loss from Lottery of the Assessment year 2010-12 2,20,000 Determine his net taxable income for the Assessment year 2014-15.
(OR) Q-3 Following is the Profit & loss A/c of Surya Ltd.the year ended 31 March, 2014. To Income Tax To Expenses To Depreciation To salary to staff To Remuneration to Partners To Interest to Partners @ 15%p.a. 1,00,000 9,52,000 1,28,000 2,00,000 5,00,000 1,20,000 By Professional fees To Net Profit c/d 2,00,000 Additional Informations : a.out of total expenses, expenses include the following : i. Capital expenditure 50,000/-. ii. Donations to Trust 70,000/-. iii. Other expenses not deductible U/s. 30 to 36 and 37 18,000/-. b. However the following expenses paid were inadvertently not recorded in books of accounts. i. Telephone charges 15,000/- ii. Electricity charges 18,000/- c. Depreciation allowable as per Income Tax is 1,10,000/-. Find out the taxable income of the firm for the Assessment year 2014-15. Q-4 Assessment year 2014-15, Mr. Shravan resident individual, furnishes the following particulars of his income :- Income from House Property 2,00,000 Business Income 4,00,000 loss from business (1,60,000) Income from Speculative business 1,51,000 Short term capital gains 75,000 Long term capital gains 1,55,000 Short term capital Loss (50,000) Winnings from bettings 6,00,000 Winnings from horse races 2,00,000 Besides, Mr Anand wants to set-off the following losses of earlier years :- Business loss of the Assessment year 2008-09 1,50,000
Short term capital loss of the Assessment year 2009-10 20,000 Long term capital loss of the Assessment year 2004-05 70,000 Loss from betting of the Assessment year 2010-12 1,20,000 Determine his net taxable income for the Assessment year 2014-15. (OR) 4. From the following information find out the amount of Advance Tax payable during the financial year 2013-14 for Mr. Sanjay (82 years) Gross Amount Tax Deducted at Source Winnings from lotteries 80,000 21,000 Rent from letting of machinery 4,20,000 60,000 Interest on Debentures received 80,000 8,000 Salary Income 15,50,000 2,22,000 Bank Interest received 18,000 1,800 LIc premium Paid 20,000 Mediclaim premium for self 18000 Medicalim premium for wife 8000 Q-5 explain the concept of set off and carry forward. OR Q-5 write short-notes on any three :- a) TDS b) advance tax c) indexed cost of acquisition d) filing of returns e)book Profit