TER'S (OLLEGE (AUTONOMOUS) MUMBAI

END SEMESTER EXAMS

FRIDAY UID No.:
20h Oetober 2023 Duration: 2 Hours
SYBMS Maximum Marks: 60
Elements of Taxation Course Code: CMS0306

NOTE: 1) All questtions are compulsory. Refer to each Question for internal choice.
2) Figures to the right indicate maximum marks.

Q.1. What the tax treatnent for the different forms of salaries? (Marks 5)

Q.2.a. What are the available deductions from salary income? (Marks 3)

OR

2.b. What exemptions arc available for Retrcnchment Compensation under the Income 1ax
Act, 1961? (Marks 3)

Q.3. Mr. Ram who resides in Chennai, gets Rs. 3,00,000 as basic salary. He receives Rs. S0,000
per annum as HRA. Rent paid by him is Rs. 40,000 per annum. Find out the amount of taxable
(Marks 7)
HRA for the AY. 2022-23.

Q. 4.a. Which deductions are not allowed under section 58 ofthe Income Tax Act, 1961?
(Marks 5)

OR

Q. 4.b. During the previous ycar, Rajesh has reccived immovable property (market value Rs.
1,50,00,000) from his friend as his friend is settling abroad. The stamp duty value of such property
is Rs. 1,40,000. Check the taxability of this transaction in the hands of Rajesh. (Marks 5)

0.5. What the term Relative" means in context of Income from Other Source? (Marks 3)

Q.6. Briefly explain Company in which the public are substantially interested. (Marks 7)

0.7.a. Briefly describe the various kinds of income that can be deemed to accrue or arise in
India as per sec. 9 of the Income Tx Act, 1961. (Marks 8)

OR

Q7.b. X, a resident of Ajmer, receives Rs. 48,000 as basic salary during the previous year 2020
21. In addition, he gets Rs. 4,800 as dearness allowance forming part of basic salary, 7%
commission on sales made by him (sale made by X during the relevant previous year is Rs.
86,000) and Rs. 6,000 as house rent allowance. He, however, pays Rs. S,800 as house rent.
Determine the quantum of exempted house rent allowance. (Marks 8)

Q. 8. Briefly deseribe Indexed Cost of Acquisition. (Marks 7)

Q.9. Mr. Raja is Accounts head in M/s Rani Ltd. The following are the particulars:
 (Marks l0)

Basic salary Rs. 65,000 p.m.

Rs. 22,000p.m. (30% is for retirement
Dearness allowance
benefits)
Bonus Rs. 17,000 p.m.

,2021 at a concessional
The company has provided him with an accommodation on Ist April
Mr. Raja occupied the house
rent. The house was taken on lease by Rani Ltd. for Rs. 12,000 p.m.
Mr. Raja.
from 1st November,2021. Rs. 4,800 p.m. is recovered from the salary of
birthday. He contributes 18% of his salary
Rani Ltd. gave him a gift voucher of Rs. 8,000 on his
company contributes the same
(Basic pay + DA) towards recognized provident fund and the
amount.

liters) provides to Mr.

Motor car owned by Rani Ltd. (cubic capacity of engine exceeds 1.60
personal use. Repair and
Raja from lst November 2021 which is used for both official and
The motor car was self-driven by
running expenses Rs. 50,000 were fully met by the company.
Mr. Raja.
in the hands of Mr. Raja for the
Compute the income chargeable to tax under the head "Salaries"
Assessment year 2022-23.
is the concept of destination
Q 10.a. What is Goods and Services Tax (GST) and what exactly
based tax on consumption? (Marks 5)

OR
under the Payment of
Q10.b. Sharad, an employee of BKC Ltd., receives Rs. 2,05,000 as gratuity
service for 35 years and 7
Gratuity Act, 1972. He retires on 10th September, 2020 after rendering
of gratuity
months. The last drawn salary was Rs. 2,700 per month. Calculate the amount
chargeable to tax. (Marks 5)