Second Year Second Term B.B.A (Honours) Final Examination 1999 Management ourse !o.

" ##$ (Taxation) Full Mar%s & 9' Time & ( Hours )!.B. !um*ers on rig+t margin indicate ,ull mar%s. All -uestions are o, e-ual .alue. Ans/er an0 ,i.e o, t+e ,ollo/ing1 1. a. *. c. d. e. a. *. c. d. 5. a. *. c. d. e. a. *. c. d. a. *. c. d. 2+at are t+e 3ur3oses o, tax4 Ex3lain t+e c+aracteristics o, income. !arrate t+e e,,ects o, classi,ication o, income on assessment. 6iscuss t+e im3ortance o, income 0ear and assessment 0ear in determining tax. Ex3lain t+e met+ods o, determining residential status. 2+o is an assessee4 S+o/ t+e classi,ication o, an assessee. 2+at is meant *0 residential status o, an assessee4 Ho/ /ould 0ou ,ind out residential status o, an indi.idual and an unregistered ,irm4 State t+e im3ortance o, determining residential status. 2+at are t+e 3rocedures o, settling o, losses4 Ex3lain t+e conditions o, carr0 ,or/ard o, losses. !arrate t+e reasons ,or tax e.asion and tax a.oidance. Ex3lain t+e common met+ods o, tax e.asion and tax a.oidance. 2+at is .alue added tax4 2+o are t+e income tax aut+orities4 6iscuss t+e 3o/er and ,unctions o, !ational Board o, 8e.enue. 6iscuss t+e 3o/ers and ,unctions o, A33ellate 9oint ommissioner o, Taxes. 6iscuss t+e 3rocedure o, ,iling settlement and decision o, a33eal to t+e A33ellate 9oint ommissioner o, Taxes. 6iscuss t+e classi,ication o, securities. 2+at are t+e rules regarding grossing u3 o, interest on securities4 2+at is annual .alue o, +ouse 3ro3ert04 Ex3lain t+e met+ods o, determining annual .alue o, +ouse 3ro3ert0. Mr. Alam constructed a t/o:storied +ouse in ;us+tia. He +as occu3ied t+e ground ,loor ,or +is residence /+ere as t+e u33er ,loor /as let out ,or a mont+l0 rental .alue o, T%. ('''. <t+er 3articulars ,or t+e +ouse ,or t+e 0ear ended 5' t+ 9une= #''' are gi.en *elo/>: i.) @round 8ent T%. $'' ii) Munici3al Tax 3aid T%. 1=''' iii) 8e3airing ost T%. #=''' i.) Aegal ,ee T%. $'' .) Salar0 o, nig+tguard T%. 1#=''' .i) Bnsurance 3remium T%. 7=''' .ii) Bnterest o, HBF Aoan T%. #(=''' T+e Munici3al .alue o, t+e +ouse +as *een T%. 9'='''. T+e +ouse +as remained .acant t/o mont+s. alculate t+e annual .alue and t+e annual income ,rom +ouse 3ro3erties o, Mr. Alams +ouse. 2+at are t+e di,,erent %inds o, met+od o, accounting on income ,rom *usiness or 3ro,ession4 6iscuss. Ho/ 0ou /ill com3ute o, ca3ital gain4 2+at is income ,rom di.idend4 2+at are t+e allo/a*le deductions o, income ,rom ot+er sources4 Mr. Bslam +as got an agricultural ,arm and ,or t+e 0ear ended 5' t+ 9une= #''' +is income arising t+ere ,rom +as *een as ,ollo/s (+e +as not maintained no *oo%s o, accounts)>: i) Cadd0 ,rom culti.ation T%. #=?'=''' ii) 2inter cor3s T%. ('=''' iii) Cadd0 ,rom Barga T%. ('=''' i.) 8ent ,rom lease o, agricultural land T%. 1$=''' .) @odo/n rent recei.ed T%. 1'=''' 6uring t+e 0ear +e +as s3ent T%. (=''' ,or local land tax and T%. 1'=''' ,or 5 ( ( ( 5 ( ( 7 ( 5 5 ( 7 # # ( 5 9 ( # ( ?

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interest on loan o, Banglades+ ;ris+i Ban%. om3ute +is agricultural income. D. Mr. Hossain is a ser.ice +older. His sources o, income ,or t+e 0ear ended 5' t+ 9une= #''' /ere as ,ollo/s>: a. Bncome ,rom salar0>: i) Basic Salar0 T%. 1$=''' ii) 6earness allo/ance T%. #'E o, *asic salar0 iii) Entertainment allo/ance (3er mont+) T%. 5'' i.) Medical allo/ance (3er mont+) T%. $'' .) Bonus T%. 5'=''' .i) S3ecial allo/ance T%.$=''' .ii) His o,,ice 3ro.ides +im /it+ a car ,or o,,icial 3ur3ose. .iii) He is a mem*er o, t+e recogniFed 3ro.ident ,und o, t+e com3an0 to /+ic+ +e contri*utes 1'E o, t+e *asic salar0 and +is em3lo0er contri*utes a similar amount. 6uring t+e 0ear a sum o, T%. 1=''' /as credited to +is C.F. account as interest. ix) He +as *een 3ro.ided /it+ an un,urnis+ed accommodation t+e annual .alue o, /+ic+ is T%. $'=''' and +e is re-uired to 3a0 T%. ('=''' annuall0 on account o, it. *. Bncome ,rom Securities> i) He +as 15E tax:,ree and 1#E less:tax @o.ernment Securities /ort+ T%. #'=''' and T%. 1$=''' res3ecti.el0. ii) He also recei.ed T%. 1'=''' and T%. 1$=''' on tax:,ree and less:tax commercial securities res3ecti.el0 and 3aid *an% c+arge T%. $''. iii) He recei.ed interest o, de*entures T%. 5'='''. c. Bncome ,rom +ouse 3ro3erties> He is a o/ner o, a +ouse and it /as let:out at a mont+l0 rent o, T%. 1'=''' and t+e Munici3al .alue o, t+e +ouse is T%. 1=''='''. T+e ex3enditure o, t+e +ouse /ere as ,ollo/s> i) Fire Bnsurance Cremium T%. 1='''. ii) Munici3al Tax T%. 1=''' T+e +ouse remained .acant ,or one mont+. d. Bncome ,rom agriculture> i) Bncome ,rom tea garden T%. 1=''=''' ii) Bncome ,rom ru**er garden T%. $'=''' e. Bncome ,rom *usiness > i) Bncome ,rom 3artners+i3 ,irm T%. #'='''. ,. Bncome ,rom a3ital gain> He sold a mac+ine T%. 1=#'='''. Bts ,air mar%et .alue /as T%. 1=$'='''. Bt /as *oug+t *0 +im 1' 0ears *ac% and original cost /as T%. #=''='''. Allo/a*le de3reciation o, it /as T%. ?'='''. g. Bncome ,rom ot+er sources> i) Bncome ,rom ,ixed de3osits T%. $'='''. ii) Bncome ,rom 3ostal de3osit accounts T%. #'='''. iii) CriFe ,rom CriFe *ond T%. 1=''='''. i.) 6i.idend (3u*lic Atd. o.) T%. #'=''' 6uring t+e 0ear +e incurred t+e ,ollo/ing ex3enditures> i) Ai,e insurance 3remium T%. 7'=''' on a Goint li,e 3olic0 /it+ +is /i,e. T+e 3olic0 is ,or T%. $=''='''. ii) Curc+ased a sa.ings certi,icates T%. $'='''. iii) Bn.ested T%. ($=''' in B B Mutual Fund. i.) Curc+ased o, *oo%s T%. 1=''' and s+ares o, T%. 1$='''. From t+e a*o.e in,ormation= calculate Mr. Hossains total taxa*le income= 1? in.estment allo/ance and tax lia*ilities.