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Paper / Subject Code: 2108000404030002 / INTRODUCTION TO TAXATION

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72

63
2108000404030002

0A
59
12

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07

4C
FE
Second Year B.B.A (Sem)- IV

2A
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31
9D

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3
Examination April-2023 Seat No:

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32

12

07

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FE
36

4
Introduction to Taxation

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9D

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2
23
9E

77
32

0
41
F4

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A
36

3F
C

72
15

A
9
2

2
[Time: Three Hours] [Max. Marks:70]

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63
63

41
Student’s Signature

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E3
1. Figures to the right indicates full marks of that question.

4C
Instructions

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15

23

59
32
9
A0

7
2. Show necessary working notes wherever required.

63

1
4

D0
6

4
5F

3F
3
C
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2C
3. Use simple calculator.

9
4

12
49

5
0

63
72

63

FE
A

D0
4
F

3
07

C
0

C
15

3
E
A

59
4

32

12
9D

49
0
72

FE
0A

36
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F
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07
Q.1 Do as Directed. (Any SEVEN) 14

15

3
E
2A

32

12
9D
3F

9
A0

3
1. Define "Previous Year".

F4

36
77

C4
12

4C
A0

5
E

9E
0
2. Define "Person" as per Income tax act, 1961.
C4

32
31

12
D
F

0
2
3

F4
0A
9

6
7

6
32

C4
12

3. Write Full forms: CGST, SGST, IGST, UTGST.

E3
7

4C

15
FE

A
36

C4

32
D

49
A0
4. Match A with B

72

63
23
9E

36
2

5F
E5

C
A0
3

A B
F4

9E
D0
36

04
4

31
3F
2C

2
15

F4
Section 80 D Deduction for Interest on Education loan

0A
59

77

C6
12
9

63
63

15
F4

A
Section 80 G Deduction for Life Insurance Premium

04
4

9D
F
E3
4C

63
15

0A
77
32

Section 80 E Deduction for Medical Insurance Premium 2

9

5
A0

4C
63

1
4

FE

D0

2A
6

4
5F

Section 80 C Deduction for Donations

E3
4C

A0
A0

2C

77
1

2
9

5
A0

A0
3
72

63

1
4

D0
6

4
F

3F
3
07

C
A0

2C

5. Mr. A has joined a company in a grade of 35000-1000-38000-1500-45000 on 1/10/2017

72
5

59
04

2
9D

07
63
72

41
4

FE
with two increments at the time of joining. You are required to find out his total basic
0A

C6

5F

9D
E5

3
07

23
E
2A

salary for AY 2022-23.

32
1
9D
3F

49

E5
A0

63

41
36
77

6. Mr. B came to India for the first time on 15th August, 2021 and left India on 19th
12

5F
E5

3F
4C
A0

C
E
D0
C4

2
31

12
3F

9
0

February, 2022. What is his residential status for AY 2022-23?

63
2

F4
A
59

77

6
32

C4
12

E3
C
0

15
FE

7. Mr. C has sold a residential house on 1/1/22 at 4,68,000 which was purchased on 5/1/09
D0

2A
36

4
C4

32
49
A0

63
23
9E

59

36
7

at 66,000. He has purchased a new residential flat for 2,85,000 on 4/3/22. CII for 2008-
32

5F
7

4C
0
41
F4

FE

9E
D0

2A
36

31

09 is 137 and for 2021-22 is 317. He has paid transfer charge of 6800 at the time of sale
A0
2C

23
9E

F4
59

77

C6

of this house. You are required to determine his taxable capital gain as per section 54.
0
63

41

15
F4

04
D
F
E3

2C

63
15

8. Mr. D is resident but not ordinarily resident in India for AY 2022-23. You are required
23

0A
9

7
49

E5

4C
63
63

41

D0

to determine his taxable income in India from the following information.

5F

F
E3
4C

A0
2C

2
3

77
31

(a) Profits on sale of a building in India but received in Sri Lanka Rs. 14,80,000. (b)
2
9

E5
A0

A0
63

1
F4

D0
C6

3F
E3

Income from Property in Canada received outside India Rs. 86,000.

2C

72
15

59
04

12
9

07
3
63

F4

E
0A

36

9D
F
4C

C
15

23
9E
2A

Q.2 (A) Mr. E (Foreign citizen) though employed in a foreign country has frequently visited in 7
32

E5
A0

63

41
F4

36
77

India for Company's work as stated below:

3F
4C
A0

2C
15

E
D0

12
9
A0

Previous Year No. of days stayed Previous Year No. of days stayed
63
72

63

F4

C4
E3
07

4C
A0

2016-17 182 2019-20 359

15

32
9D

49
A0
72

63

2017-18 260 2020-21 60

36
5F
E5

07

4C
A0

2018-19 264 2021-22 79

9E
31
9D
3F

A0
72

F4

Determine his residential status for the Assessment Year 2022-23.

C6
12

07

A0

15
FE

04
9D

72

63
23

A
5

07

4C
A0
41

FE

1
9D

A0
2C

72
23

07

A0
63

41

FE

9D
E3

2C

72
23

07
63

41

FE

9D
E3

9E3632C4123FE59D0772A0A04C6315F4
2C

23
 A
9

77

C6

F
E5

A0

15
Paper / Subject Code: 2108000404030002 / INTRODUCTION TO TAXATION

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04
3F

72

63
0A
59
12

5F
07

4C
FE

2A
C4

31
9D
(B) What is Gratuity? Explain rules regarding taxability of Gratuity. 7

A0
3

C6
32

12

07

A0
FE
36

4
C4

9D

A0
2
23
9E
OR

77
32

0
41
F4

D0

A
36

3F
C

72
15

A
9
2

2
9

E5
(A) Mr. F a Canadian citizen came first time in India on 1/5/17. From the following details, 7

A0
63
63

41
F4

D0
F
E3
4C

72
determine his residential status for the AY 2022-23 with showing necessary working

15

23

59
32
9
A0

7
63

1
4

E
notes.

D0
6

4
5F

3F
3
C
A0

2C
E

9
4

12
49

5
0

63
72

63

FE
A

D0
4
F
Date of Arrival in India Date of Departure from India

3
07

C
0

C
15

3
E
A

59
4

32

12
9D

49
0
1/5/17 1/8/17

72

FE
0A

36
C6

C4
F
E5

07
1/4/18 6/6/18

15

3
E
2A

32

12
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3F

9
A0

3
1/1/20 9/2/20

F4

36
77

C4
12

4C
A0

5
19/6/21 1/8/21 E

9E
0
C4

32
31

12
D
F

0
2
3

F4
0A
9
19/3/22 21/5/22

6
7

6
32

C4
12

E3
7

4C

15
FE

A
36

C4

32
D

49
A0
72

63
7
23
9E

36
2

5F
(B) Explain: Tax Avoidance, Tax Evasion and Tax Planning.

E5

C
A0
3

1
F4

9E
D0
36

04
4

31
3F
2C

2
15

F4
0A
59

77

C6
12
9

63
63

15
F4

Mr. G has Joined KK Ltd of Surat on 1/12/16 in the grade of 57,000- 1,000- 63,000-3,000-

E
Q.3 14

04
4

9D
F
E3
4C

63
15

0A
77
90,000 with three increments at the time of joining. On 1/12/19 company gave him two
32

2
9

5
A0

4C
63

1
4

FE

D0

2A
6

4
5F

additional increment with his regular increment. Following received during PY 2021-22.
E3
4C

A0
A0

2C

77
1

2
9

5
A0

(1) He received bonus as a 15% of basic pay. (2) company has provided him a motor car of

A0
3
72

63

1
4

D0
6

4
F

3F
3
07

C
A0

2C

72
5

1600 CC for his personal as well as business purpose. Company has paid Rs. 85,000 for
E

59
04

2
9D

07
63
72

41
4

FE
0A

maintenance charges including salary of driver (3) company contributes 15% of basic
C6

5F

9D
E5

3
07

23
E
2A

32
1

pay in employee's recognized provident fund and employee contributes 13% in his RPF.
9D
3F

49

E5
A0

63

41
36
77
12

5F
E5

3F
4C

(4) Interest credited in RPF on 31/12/2021 Rs. 1,87,500 at a rate of 12.5%. (5) Company
A0

C
E
D0
C4

2
31

12
3F

9
0

63
2

has provided residential flat for which company has to pay Rs. 14,000 monthly rent.
F4
A
59

77

6
32

C4
12

E3
C
0

15
FE

D0

Company has also provided furniture of Rs. 2,40,000 in this flat. You are required to
2A
36

4
C4

32
49
A0

63
23
9E

59

36
7
32

compute his gross salary for AY 2022-23.

5F
7

4C
0
41
F4

FE

9E
D0

2A
36

31
A0
2C

23
9E

F4
59

77

C6
0
63

41

OR
15
F4

04
D
F
E3

2C

63
15

23

0A
9

7
49

E5

4C
63
63

41

D0

(A) Mr. H is sales manager employed by Sony Ltd at Banglore. Details of his salary for PY 7
5F

F
E3
4C

A0
2C

2
3

77
31

2
9

E5

2021-22 are as follow.

A0

A0
63

1
F4

D0
C6

3F
E3

2C

72

(1) Basic Salary Rs. 2,25,000 per annum. (2) Dearness allowance Rs. 35,000 per annum.
15

59
04

12
9

07
3
63

F4

(3) Commission on sales Rs. 1,85,000. (4) House rent allowance Rs. 70,0000 per
0A

36

9D
F
4C

C
15

23
9E
2A

annum. (Actual rent paid Rs. 7,000 per month) (5) Children education allowance Rs.
32

E5
A0

63

41
F4

36
77

7,000 per annum for his 2 children. (6) Hostel expenditure allowance Rs. 12,000 per
3F
4C
A0

2C
15

E
D0

12
9
A0

63
72

annum for his 1 child staying in hostel. (7) Entertainment allowance Rs. 6,000 per
63

F4

C4
E3
07

4C
A0

15

annum. You are required to compute his gross salary for AY 2022-23.
32
9D

49
A0
72

63

36
5F
E5

07

4C
A0

9E
31
9D

(B) What is Perquisite? Explain rules regarding Motor Car and Rent Free Accommodation.
3F

7
A0
72

F4
C6
12

07

A0

15
FE

04
9D

72

63
23

A
5

07

4C
A0
41

FE

2
9D

A0
2C

72
23

07

A0
63

41

FE

9D
E3

2C

72
23

07
63

41

FE

9D
E3

9E3632C4123FE59D0772A0A04C6315F4
2C

23
 A
9

77

C6

F
E5

A0

15
Paper / Subject Code: 2108000404030002 / INTRODUCTION TO TAXATION

D0

04
3F

72

63
0A
59
12

5F
07

4C
FE

2A
C4

31
9D
Q.4 (A) Calculate taxable capital gain of Mr. I for accounting year 2021-22, from following 7

A0
3

C6
32

12

07

A0
details:

FE
36

4
C4

9D

A0
2
23
9E

77
32

0
41
F4

D0

A
36
Assets Urban Land Jewellery Personal Car

3F
C

72
15

A
9
2

2
Dt. of purchase 1/2/1997 21/2/2009 5/1/2007

E5

A0
63
63

41
F4

D0
F
E3
Purchase price 1,35,000 1,50,000 1,00,000

4C

72
15

23

59
32
9
A0

7
Fair M V on 1/4/2001 1,60,000 -- --

63

1
4

D0
6

4
5F

3F
3
C
A0

2C
Selling price 5,75,000 4,64,000 55,000

9
4

12
49

5
0

63
72

63
Sales expenses 15,000 10,000 3,000

FE
A

D0
4
F

3
07

C
0

C
15

3
E
Relevant Index No. 100 137 113

59
4

32

12
9D

49
0
72

FE
0A

36
He purchased a new residential flat for Rs. 6,00,000. All the assets were sold during

C6

C4
F
E5

07

15

3
E
2A

32
Feb. 2022. The cost inflation index for 2021-22: 317. Find out taxable capital gain as

12
9D
3F

9
A0

F4

36
77

C4
12

4C
per section 54F.

A0

5
E

9E
0
C4

32
31

12
D
F

0
2
3

F4
0A
9

6
7

6
32

C4
12

E3
7

4C
7

15
FE

A
(B) Mr. J had purchased a residential house for Rs. 22,60,000 during the year 2004-05. He
36

C4

32
D

49
A0
72

63
23
9E

36
2

had paid Rs. 6,58,500 as additional construction expenses during the year 2007-08. On

5F
E5

C
A0
3

1
F4

9E
D0
36

04
4

31
8/8/2021, he sold the above house for Rs. 88,29,800 and paid 2.5% brokerage. 3F
2C

2
15

F4
0A
59

77

C6
12
9

63
63

On 5/1/2022, he purchased another house for Rs. 9,90,000. Relevant Cost inflation

15
F4

04
4

9D
F
E3
4C

63
15

index numbers are as under: 3

0A
77
32

2
9

5
A0

4C
63

1
4

FE

D0

2A
6

4
1. P Y 2004-05: 113, 2. P Y 2007-08: 129, 3. P Y 2021-22: 317
5F

E3
4C

A0
A0

2C

77
1

2
9

5
Find out the tax free capital gain according to Section 54 for the A Y 2021- 22.
A0

A0
3
72

63

1
4

D0
6

4
F

3F
3
07

C
A0

2C

72
5

59
04

2
9D

07
63
72

41
4

FE
0A

OR
C6

5F

9D
E5

3
07

23
E
2A

32
1
9D
3F

49

E5
A0

63

41 7
36
77
12

5F
E5

(A) Mr. K purchased personal painting @ Rs. 2,17,000 during 2004-05. During 2005-06

3F
4C
A0

C
E
D0
C4

2
31

12
3F

9
0

63
2

residential house was purchased @ Rs.1,37,700 & in 2009-10 Rs.2,75,500 paid for
F4
A
59

77

6
32

C4
12

E3
C
0

15
FE

construction of house.
D0

2A
36

4
C4

32
49
A0

63
23
9E

59

36
7

On 1/8/2021 he sold painting at Rs. 16,00,000 and paid Rs. 4900 as brokerage. On the
32

5F
7

4C
0
41
F4

FE

9E
D0

2A
36

31

same day he sold a residential house Rs. 18,00,000 and paid 1% brokerage. On
A0
2C

23
9E

F4
59

77

C6
0
63

1/11/2021 he invested Rs. 15,00,000 in 5 years bond of NHAI. Relevant Cost inflation
41

15
F4

04
D
F
E3

2C

63
15

index numbers are as under: For year 2004-05: 113, 2005-06: 117, 2009-10: 148, 2021-
23

0A
9

7
49

E5

4C
63
63

41

D0

22: 317. Find out the taxable capital gain according Sec. 54 EC for the A Y 2022-23.
5F

F
E3
4C

A0
2C

2
3

77
31

2
9

E5
A0

A0
63

1
F4

D0
C6

7
4

3F
E3

(B) List out different heads of income. Explain income from house property.
2C

72
15

59
04

12
9

07
3
63

F4

E
0A

36

9D
F
4C

C
15

23
9E
2A

Q.5 Answer ANY TWO from the following. 14

32

E5
A0

63

41
F4

36
77

(1) Process of Filing ITR Online

3F
4C
A0

2C
15

E
D0

12
9
A0

(2) Deductions from total income

63
72

63

F4

C4
E3
07

4C
A0

(3) Advantages of GST

15

32
9D

49
A0
72

63

(4) Explain terms: Goods, Services, Business

36
5F
E5

07

4C
A0

9E
31
9D
3F

A0
72

F4
C6
12

07

A0

15
FE

04
9D

72

63
23

A
5

07

4C
A0
41

FE

3
9D

A0
2C

72
23

07

A0
63

41

FE

9D
E3

2C

72
23

07
63

41

FE

9D
E3

9E3632C4123FE59D0772A0A04C6315F4
2C

23