http://www.vidyarthiplus.

com

B.Com. DEGREE EXAMINATION JANUARY 2012. Third Year

Bank Management INCOME TAX

PART A Answer any THREE questions. All questions carry equal marks. 1)Define the terms

(a) Gross total income (b) Assessment year (c) Person

2)How do you determine the residential status of an Individual? liable to tax.

3 ) Explain the term Perquisites. Mention any six examples of perquisites not 4)Discuss the various expenses that are expressly disallowed in the assessment http://www.vidyarthiplus.com

http://www.vidyarthiplus.com of Business income.

5)Compute Sekars income from other sources. (a) Dividend (Gross) Rs. 5,000 (b) Receipts from letting of machinery Rs. 10,000 (c) Repairs to machinary Rs. 300 (d) Insurance premium on machinary Rs. 500 (e) Income from Gambling Rs. 15,000 PART B Answer any FOUR questions. All questions carry equal marks. 1)Explain any 10 deductions allowable from Gross total Income U/s 80. 2)Find out the business Income of Mr. Kumar for the year. Rs.Rs.To opening stock15,000By Sales 1,80,000To purchases40,000By closing stock20,000To wages20,000By Gifts from father10,000To Rent 46,000By Income Tax refund3,000To Repairs to motor car3,000To wealth tax paid2,000To medical expenses3,000To General expenses10,000To Depreciation on Motor car4,000To Advance Income Tax1,000To profit69,0002,13,0002,13,000Further information :

http://www.vidyarthiplus.com

http://www.vidyarthiplus.com (a) Mr. Kumar carries on his business from a rented building half of which is used as his residence. (b) Motor car th was used for the business and th for personal use. medical treatment.

(c) Medical expenses were incurred during the sickness of Kumar for his (d) Wages include Rs. 250 paid as salary to the Motor Car driver. 3)Mr. Saran furnishes the following : employer Rs. 4,000 Rs. 5,000.

Salary 35,000p.m.D.A.12,000p.m.E.A.1,000p.m.Club bills paid by the Domestic servants wages paid by the employer Professional tax paid by the employer Rs. 1,500 Employers contribution to RPF Rs. 8,000 Interest on RPF credited during the year Rs. 10,000 @ 10 %

Income tax paid by the employer Rs. 5,500 Calculate the salary income.

LIC premium paid by the employer Rs. 4,000 4)Madhan submits the following particulars as regards his house property (25% used for own residence, 25% used for own profession. 50% let out for residential purposes)

http://www.vidyarthiplus.com

http://www.vidyarthiplus.com Rs.Standard rent1,12,000Rent received for let out portion48,000Municipal

taxes12,000Repairs24,000Ground rent2,400LIC premium3,000Interest on loan 2,400Income from profession60,000Compute Madhans income from house property.

5)What is capital gain? What are its types? Explain the provisions relating to exempted capital gains. total income. (a) (c) (e) (f) (b) (d) 6)Mr. Magesh furnishes the following particulars of his income. Compute his Dividend on equity shares (Gross) Rs. 600

Dividend on preference shares (net) Rs. 3,200 Interest on bank deposits Rs. 2,500 Director sitting fees Rs. 1,200 Ground rent Rs. 600

Income from letting of building and machinery on hire basis Rs. 17,000

(g) (h)

Income from undisclosed sources Rs. 10,000 Income from lotteries Rs. 10,000.

7)Explain the provisions of Income Tax Act, 1961 regarding carry forward and set off of losses.

http://www.vidyarthiplus.com