ST.

XAVIER’S COLLEGE (AUTONOMOUS), KOLKATA

Department of Management Studies
CIA Examinations, March 2022

Subject : Taxation & Tax Planning Semester – II

Paper Code: BMHGE2123 Date: 21.03.2022
Full Marks : 40 Time: 3.00 p.m. – 4.30 p.m.

PLEASE READ THESE INSTRUCTIONS BEFORE YOU START WRITING:

 Students must write the following on the top of each page of the answer script

Name, Roll Number, Room Number, Subject, Date and Page Number

 Use fountain pen or ball-point pen of blue or black ink.

 Student will have to write the answer on A-4 size paper in his/her own handwriting.

 Every student must start answering form first page of the answer sheet.

 Answer in your own words as far as practicable.

 The duration of examination will be 1 hour 30 minutes and additional 30 minutes for
uploading the answer scripts (in PDF format)

 Save the scanned pages to a Single PDF file and name the document accurately as
“Roll No_ Paper Code” (Ex:147_BMHGE2123)
(Submission of the Answer script is allowed once only, thus make sure that you have
all your pages in order)

 The scanned answer scripts should have enough clarity to enable evaluation.

 Students will have to upload the PDF document using the File Uploading Portal
through MS Teams within 30 minutes after the completion time of the examination.
 No multiple submissions would be allowed.

In case you are not able to upload the file, matter should be brought to the notice of the
Invigilators

Page 1 of 3
 Group A
Answer any FOUR of the following [4x5=20]

1. Mr. Prakash retired on 19th March, 2022 from employment with a company after completion of 30
years and 10 months of service. He was entitled to 25 days leave for each completed year of service.
He availed 360 days leave during his service life. His basic pay was Rs 15,000 p.m. from April 1, 2021
and DA @ 50% of basic pay. He received Rs 3,60,000 as leave encashment salary. Find out the amount
of taxable leave salary for the A.Y 2022-23. [5]
2. Discuss the taxability of dividend income in the hands of a shareholder. [5]
3. Write down a note on: Residential status of an HUF [5]
4. Explain detailed provisions for calculation of pre-construction period interest on loan which
assessee has been taken for construction of property. [5]
5. Define the terms: (i) Assessee (ii) Previous Year (iii) Person as per Income Tax Act, 1961. [1+1+3]
6. “Income earned in previous year always taxed in assessment year” Do you agree? Justify. [1+4]
7. a) Rahul receives a refrigerator worth Rs 51,000 as gift from his friend on the occasion of his
marriage. He also received cash gift of Rs 10,000 from his colleagues on his marriage. Discuss the
taxability of the gifts received by Rahul.
b) Write down a brief note on: Deemed Owner u/s 27. [2.5+2.5]

Group B
Answer any TWO of the following [2x10=20]

8. Mr. Rahil is an Assistant Manager of a textile company of Jaipur (population is more than 25L),
since 2000. He has submitted the following particulars of his income for the financial year 2021-22:
Basic salary Rs 2,40,000
Dearness Allowance Rs 5,000 per month (Rs 200 p.m. enters into retirement benefits)
Education Allowance for two children at Rs 150 p.m. per child
Commission on sales 1% of turnover of Rs 10,00,000
Entertainment Allowance Rs 700 p.m.
Travelling Allowance for his official tours Rs 30,000. The entire amount is spent on the official tour.
He resides in the flat of the company. Its market rent is Rs 12,000 p.m.
Employer’s contribution to RPF is Rs 40,000 and the interest credited to this fund at 13% rate
amounted to Rs 16,250
Contribution by Mr. Rahil to RPF is Rs 40,000
Rent of the flat recovered from Mr. Rahil Rs 1500 p.m.
Compute Income under the head Salaries for the A.Y 2022-23 [10]

Page 2 of 3
9. Ritik earns the following income during the financial year 2021-22:
Rs
i Interest from an Indian company received in London 1,20,000
ii Pension from former employer in India received in USA 1,80,000
iii Profits earned from a business in Paris which is controlled in India, half of the profits
2,00,000
being received in India
iv Income from property in England received there 4,00,000
v Past foreign income brought to India 10,000

Compute his income for the A.Y 2022-23 if he is: (i) Resident and ordinarily resident in India
(ii) Not ordinarily resident in India (iii) Non-resident in India [10]
10. From the following particulars, calculate the Net Annual Value of the properties which are situated
in Kolkata:
HI H2 H3 H4 H5
Rent Received 15 18 12 16 10
Fair Rent 19 16 15 18 12
Net Municipal Value 13.5 18 9 18 9
Standard Rent 21 17 17 N.A N.A
Unrealized for the P.Y-2019-20 3 6 2.4 NIL 2
Municipal tax @ 10% of municipal value
[10]
11. Calculate tax liability of Mr. Achinta (age 54 years) whose Gross Total income is Rs.15, 70,000 if
he wants to follow
(i) Old tax regime
(ii) New tax regime [10]

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