ASSAM ROJGAR SAMACHAR

Tuesday, October 25, 2011

Dibrugarh University - Income Tax 2010

1.       a) State whether the following statements are true or false :
i)        An assessee is always a person but a person may or may not be an assessee. - TRUE
ii)       According to income tax act, 1961, the previous year is that year in which income is earned to be taxable in the next year. - TRUE
iii)     Gross total income of an assessee consists of income from salaries, house property, profit and gains of business or professions, capital gains and from other sources. - TRUE
iv)     As per sec. 2(1A) of income tax act, 1961, agriculture income in India is not chargeable to tax. - FALSE (UNDER SEC 10[1])
v)      Incidence of tax of a taxpayer depends on his residential status, the place and time of receipt of income. - TRUE(SEC. 5)
        b) Fill in the blanks with appropriate word/words:
i)     Foreign income is not taxable in the hand of NON RESIDENT Indian.
ii)    Compensation received from a public sector company at the time of voluntary retirement is EXEMPTED UPTO RS. 5LACS from tax.
iii)   An educational scholarship received by Mr. Pradip college lecturer finance by Government of India is EXEMPTED income.
iv)   Income from lottery and horseracing is a CASUAL income as per Income tax Act.
vi)     Income tax rates are fixed by the FINANCE ACT and not by income tax act.
        c) Determine the residential status in the following cases for the assessment year 2008-09:
            i)         The control and management of an HUF is situated in India. The manager of the HUF visited England with his wife from 15-08-2007 to 30-06-2008. Earlier to that he was always in India.
            ii)        A company whose registered office is in USA, is party controlled and managed from its branch established in India.
                                                                                                                OR

2.       Mr. Pranjal working as a Manager (sales) with HL Ltd., provides the following information for the year ending March 31, 2009 :
                Basic Salary—Rs 1, 44,000
                DA (50% of it is meant for retirement benefit Rs 1, 44,000)
                Commission as a percentage of turnover of the employer company—0.5%
                Turnover of the company—Rs 50, 00,000
                Bonus—Rs 30,000
                Gratuity (received in service)—Rs 30,000
                Own contribution towards RPF—Rs 25,000
                Employers contribution towards RPF—20% of basic
                Interest contribution in the RPF @ 15%--Rs 15,000
                Gold ring worth Rs 10,000 was given by employer on his 20th wedding anniversary
                                He received interest Rs 5,860 on bank fixed deposit, dividend of Rs 1,260 from shares of Indian companies and interest of Rs 7,540 from the debenture of Indian companies. Made payment by cheques of Rs 15,370 towards premium on LIP and Rs 12,500 for Mediclaim insurance policy. He invested in 6 years NSC Rs 30,000, FDR of SBI for 7 years Rs 50,000. He has donated Rs 11,000 to an institution approved under section 80G and of Rs 5,100 to Prime Minister’s national relief fund during the year.
                                Compute his total income and tax payable thereon for the assessment year 2009-10.
                                                                                                OR
a)      Define ‘perquisite’ as per income tax act. Explain how perquisites are taxable in the hand of employee.
b)      Find out the income from house property chargeable to tax for the Assessment year 2009-10 in the following cases :
                               
Particuals
X (Rs)
Y (Rs)

Municipal Value (MV)
Fair rent (FR)
Standard rent (SR) under the rent control act
Actual rent if property is let out throughout
The previous year
Unrealized rent of previous year 2008-09
Period when the property remains vacant(In number of month
Loss due to vacancy                       
Tax of the year 2008-09
Paid by X and Y during 2008-09
Paid by X and Y after March 31, 2009 Paid by tenants during 2008-09
1, 20,000
1, 30,000
1, 10,000
1, 26,000
10,500
(1) 
10,500
18,000
17,000
1,000
-     

1, 20,000
1, 30,000
1, 10,000
1, 26,000
     Nil
     Nil
     Nil
    18,000
      8,000
     1,000
     9,000





                Apart from paying municipal tax, no other expenditure is incurred by X in respect of the house property for generating income from property.

3.       a) B. Boruah and Associates are chartered accountants in Jorhat. They have submitted the following income and expenditure account for the year ending 31-03-2009. Compute the income from profession :
               
Expenses
Amount (Rs.)
Incomes
Amount (Rs.)
To drawings
To office rent
To telephone installation
Charges (OYT)
To electricity bill
To salary of staff
To charities
To gifts given to relatives
To car expenses
To subscription for journal
To institute fee
To stipend given to trainees
To net income

72000
48000

15000
6000
75000
800
10000
25000
3000
1300
24000
395900
676000
by audit fee
by financial consultancy service
by dividend from company
by dividend on units of UTI
by accountancy work

460000
140000
15000
11000
50000








676000
               
        Additional information:
i)        Depreciation of car during the year amount to Rs 15000
ii)       25% of the time car is used for personal purpose
        b. What are income chargeable to tax under the head profit and gain of business or profession?
                                                                                                OR
4. Mr. Talukdar, a resident individual, furnishes the following information for the assessment year 2009-10:
       
Particulars
Amount (Rs.)
Basic pay
Project allowance
Education allowance (Rs 200 per month for two sons and Rs 150Per month for a daughter)
Hostel allowance (Rs 650 per month for one child)           
Transport allowance (for journey between office and residence)
Free car (1150 c.c) facility for Mr. Talukdar for official and private Purposes
Cost of employers free meals in office
Employers contribution towards URF
Share of profit from a firm
Share of profit from an association of person
Share of profit from an HUF
Income from betting
Income from business
Payments and investments:
Contribution towards UPF
Payment of premium on mediclaim insurance on Talukdar’s father who is resident in India
Payment of premium on own medical policy
Investment in NSC VIII issue
Donation to an approved public charitable institution
130000
39400
6600
7800
9600
27000
12700
3000
36000
34000
18000
2400
481600

6700
500
16000
5000
3000

        Determine the net taxable income of Mr. Talukdar for the assessment year 2009-10.
                                                                                OR
b)      How deductions are made in respect of the following section of the income tax act 1961?
i)        Deduction under section 80C and 80D
5.    Write short notes on:
        a)  Tax deduction at source
        b) Advance payment of tax
        c) Procedure for filing an income tax return of an individual
        d) CBDT
                                                                                OR
a)      Explain the procedure of filing an appeal under the income tax act, 1961
b)      Mention the power and function of income tax authorities in respect of appointment and penalties.