SVKM’S NMIMS

Pravin Dalal School of Entrepreneurship and Family Business Management(SBM’s Initiative)

Program: Master of Business Administration ( Enterpreneurship and Family Business)
Year II Trimester: V
Batch 2020-2022

Final Examination Academic Year: 2021-2022

Course: Tax Management
Marks: 40

Duration: (2 Hrs)
Instructions: Candidates should read carefully the instructions given in the question paper.

NB:
1. Answer to each new question to be started on a fresh page.
2. Figures in brackets on the right hand side indicate full marks.
3. Due weight-age will be given to clarity and neatness.

Question 1 5 Marks

State with reasons, whether the Gain or loss on sale of assets is Short term or long term in
the cases given below.
.
I. Agricultural land in Delhi acquired by company on 15.06.2017 and shown as
Investment in the books of account. The said land has been sold by the company
on 30.09.2020.

II. Mr. Arjun was holding 100 Equity shares of TCS as on 31.03.2017. Company
issued 100 Bonus shares on 01.05.2020. Mr. Arjun sold 200 shares on
01.12.2020.

III. Mr Chetan has purchase Jewellery on 01.04.2013. On his Birthday he has gifted
the same to his daughter on 01.05.2020. His daughter exchange jewellery on
01.10.2020.

IV. Household Furniture sold by Mahek after holding for 10 years on which and he
earned gain of Rs.50000/-.

V. Uttam Ind has purchased Factory premises in Ujjain on 01.04.2010 for Rs.25
Lakhs. Company has charged depreciation on Factory premises and WDV as on
31.03.2020 is Rs.7.50 Lakhs. Company has sold the factory of Ujjain for 25
Lakhs and Purchase New Factory at Varanasi for Rs. 25 Lakhs. Is Capital Gain
applicable on Factory sold? If yes whether Capital Gain is Short term or Long
Term?

1
Question 2 10 Marks

(a) Mr. Tushar Joshi sold the following capital assets during the previous year 2020-
2021. Calculate amount of capital gain liable for tax.

Diamond Residential Infosys-

Flat Share
Date of Sale 30.06.2020 31.12.2020 01.02.2021
Sale consideration 10,00,000 2,70,00,000 42,50,000
Date of Purchase 31.03.2018 30.12.1978 01.03.2020
Cost of acquisition 7,50,000 8,00,000 40,00,000
Market Value as on 01.04.2001 1.50,000 70,00,000 N.A.

Cost Inflation Index for the year 2001-02: 100, 17-18: 272, 19-20: 289 & 20-21: 301

Question 3 10 Marks

A. Determine with reason whether amount would be allowed or disallowed in the cases
given below.

I. M/s Classic Co Ltd paid Rent without Deducting TDS for the following
Property
Name of Property Person to whom Rent Amount
Paid
Factory Mr Shyam Mukherjee 2,10,000
Godown Mr Shyam Mukherjee 1,80,000
Shop Mr Nitish Jha 2,60,000
Guest House Ashish Shah 2,80,000

II. Bricks Ltd has taken Overdraft facility from IDBI and paid Interest on
Overdraft of Rs.2,85,000/- on which TDS is not deducted.

III. Mr. Satish Kumar Employee of ABCL has paid Rs.2,50,000/- towards
Brokerage for Purchase of Residential Flat without deducting TDS.

2
 IV. M/s Vipul Enterprise LLP gave contract to Devarshi Enterprise for the
following work during the year on which TDS is not deducted but
Expenses has been debited to Profit & Loss Account.
Nature of Work Date of Invoice Amount
Visiting Card 15.06.2020 28,000
Product catalogue 31.12.2020 60,000
Letter Head 28.02.2021 25,000

Question 4 15 Marks
Answer in Brief (Attempt any Three)

1. Explain exception to set off loss under Inter source adjustment?

2. Explain what is Capital Assets and Exception to Capital Assets?

3. How to determined Capital Assets as Long Term or Short Term?

4. What is TDS and explain the concept of TDS for Salary, Commission and Interest?
5. Explain any three transactions which is not regarded as Transfer for the purpose of
Capital Gain?

6. Explain the consequences of Non Deduction of TDS?