| 1. | (a) | Ms. Vaishali, employed in a private sector company, furnishes following, information for the year ended 31.03.2012. | Rs. | Income from salary (computed)
Bank interest
Tax on non–monetary perquisite paid by employer
Amount contributed by her during the year are given below:
Contribution to recognized provident fund
Subscription to eligible infrastructure bond
Health insurance premium – on self (paid by crossed cheque)
Medical expenditure for dependent sister with disability | 3,45,000
15,000
20,000
60,000
25,000
7,000
20,000 |
Compute the total income of Ms.Vaishali for the assessment year 2012–13. | 5 | (0) |
| | (b) | State whether the following are chargeable to tax and the amount liable to tax. | (i) | A sum of Rs. 1,20,000 was received as gift from non–relatives by Raj on the occasion of the marriage of his son Pravin. |
| (ii) | Arvind received Rs. 20,000 as his share from the income of the HUF. |
| (iii) | Mr. Xavier a ‘Param Vir Chakra’ awardee received a pension of Rs.2,20,000 during the financial year 2011–12. |
| (iv) | Interest on enhanced compensation of Rs. 50,000 was received as per court decree in December 2011 by Mr. Yogesh. Out of the said amount a sum of Rs.35,000 relates to preceding financial years. |
| (v) | A political party registered under section 29A of the Representation of the People Act, 1951 earned rental income of Rs. 6,00,000 by letting out premises. |
| 5 | (0) |
| | (c) | Mr. Vaibhav owns five houses at Cochin. Compute the gross annual value of each house from the information given below: | Rs. | | | House – I | House – II | House – III | House – IV | House – V | | Municipal value | 1,20,000 | 2,40,000 | 1,10,000 | 90,000 | 75,000 | | Fair rent | 1,50,000 | 2,40,000 | 1,14,000 | 84,000 | 80,000 | | Standard rent | 1,08,000 | N.A. | 1,44,000 | N.A. | 78,000 | Actual rent received
/ receivable | 1,80,000 | 2,10,000 | 1,20,000 | 1,08,000 | 72,000 |
| 5 | (0) |
| | (d) | ABC & Co purchased raw material ‘A’ for Rs. 30,00,000 plus VAT at 12.5%. Out of such raw material 80% was used for manufacture of taxable goods and the balance for the manufacture of exempted goods.
Another raw material ‘B’ was purchased for Rs. 20,00,000 on which VAT was paid @ 1%. Out of the raw material ‘B’, 50% was used for manufacture of taxable goods and the balance for the manufacture of exempt goods.
The entire taxable goods were sold for Rs.44,00,000 plus VAT at 12.5%. There was no opening or closing inventory of taxable goods or raw materials
Compute the VAT liability of ABC & Co. | 5 | (0) |
| 2. | (a) | Mr. Ramesh & Mr. Suresh are brothers and they earned the fol1owing incomes during the financial year 2011–12. Mr. Ramesh settled in Canada in the year 1995 and Mr. Suresh settled in Delhi. Compute the total income for the assessment year 2012–13. | Sr.No. | Particulars | Mr. Ramesh | Mr. Suresh | | 1 | Interest on Canada Development Bond,
(only 50% of interest received in India) | 35,000 | 40,000 | | 2 | Dividend from British company received
in London | 28,000 | 20,000 | | 3 | Profit from a business in Nagpur, but
managed directly from London | 1,00,000 | 1,40,000 | | 4 | Short term capital gain on sale of shares
of an Indian company received in India | 60,000 | 90,000 | | 5 | Income from a business in Chennai | 80,000 | 70,000 | | 6 | Fees for technical services rendered in
India, but received in Canada | 1,00,000 | – | | 7 | Interest on savings bank deposit in Uco
Bank, Delhi | 7,000 | 12,000 | | 8 | Agricultural income from a land situated
in Andhra Pradesh | 55,000 | 45,000 | | 9 | Rent received in respect of house
property at Bhopal | 1,00,000 | 60,000 | | 10 | Life insurance premium paid | – | 30,000 |
| 12 | (0) |
| | (b) | (i) Can the service tax return be revised? If so, state the relevant period before which it can be done? | (ii) | Mr. Amarnath, a registered service provider did not render any taxable services during the financial year 2011–12. |
Whether he is required to file service tax return ? Is he liable for penalty for non–filing ? If so, how much? | 4 | (0) |
| 3. | (a) | Mr. Harish is Production Manager of XYZ Ltd. From the following details, compute the taxable income for the assessment year 2012–13. Basic salary
Dearness allowance
Transport allowance (for commuting between
place of residence and office)
Motor car running and maintenance charges fully
paid up employer | Rs. 50,000 per month
40% of basic salary
Rs. 3,000 per month
Rs. 60,000 |
The motor car is owned by the company and driven by the employee. The engine cubic capacity is above 1.60 litres. The motor car is used for both official and personal purpose by the employee. Expenditure on accommodation in hotels while
touring on official duties met by the employer
Loan from recognized provident fund (maintained by
the employer)
Lunch provided by the employer during office hours.
Cost to the employer
Computer (cost Rs.35,000) kept by the employer in the
residence of Mr. Harish from 1.06.2011
Mr. Harish made the following payments:
Medical insurance premium: Paid in cash
Paid by account payee
Crossed cheque | Rs.80,000
Rs.60,000
Rs.24,000
Rs.4,800
Rs.15,200 |
| 8 | (0) |
| | (b) | Discuss the correctness or otherwise of the statement – "Income deemed to accrue or arise in India to a non–resident by way of interest, royalty and fees for technical services is to be taxed irrespective of territorial nexus". | 4 | (0) |
| | (c) | Lee Traders a registered dealer having stock of goods cost Rs. 30,000 purchased from outside the State, wishes to opt for the Composition Scheme. Advise the dealer whether it is possible?
State the conditions to be satisfied by a dealer before opting for composition scheme. | 4 | (0) |
| 4. | (a) | Mr. Ashok, an employee of a PSU, furnishes the following particulars for the previous year ending 31.03.2012. | | Rs. | (i)
(ii)
(iii) | Salary income for the year
Salary for financial year 2009–10 received during the year
Assessed income for the financial year 2009–10 | 7,25,000
80,000
2,40,000 |
You are requested by the assessee to compute relief under section 89 of the Income–tax Act, 1961 in terms of tax payable for assessment year 2012–13.
The rates of income tax for the assessment year 2010–11 are: | Tax rate (%) | On first Rs. 1,60,000
On Rs. 1,60,000 – Rs.3,00,000
On Rs. 3,00,000 – Rs.5,00,000
Above Rs. 5,00,000
Education cess | Nil
10
20
30
3 |
| 8 | (0) |
| | (b) | Will a charitable trust be forfeited of tax exemption granted to it, if it holds shares in a public sector company? Will a charitable trust having business receipt and income of Rs. 20,00,000 and Rs. 2,00,000 respectively be denied the tax exemption? | 4 | (0) |
| | (c) | Amin & Co. Ltd., is engaged in providing taxable service. For the month of October 2011, its gross receipts were Rs. 15,00,000. The break up of the receipts is given below: | (i) | Services rendered to associate enterprise during the month Rs. 3,00,000 and amount received during the month Rs. 1,00,000. | | (ii) | Services rendered in Jammu & Kashmir Rs.3,00,000. | | (iii) | The balance amount received represents services rendered during the month and realized in full. |
Compute the amount of service tax, Education Cess and Secondary & Higher Education Cess payable and the due date for payment. | 4 | (0) |
|
| 5. | (a) | Dr. Gurumoorthy, a resident individual at Madurai, aged 50 years is running a clinic. His Income and Expenditure Account for the year ending March 31st 2012 is as under: | Expenditure | Rs. | Income | Rs. | To Medicine consumed
To Staff salary
To Clinic consumables
To Rent paid
To Administrative expenses
To Donation (to IITI, Delhi
For Research approved
under section 35 (2AA)
To Net Profit | 8,40,000
4,25,000
1,55,000
1,20,000
3,00,000
1,00,000
2,92,500 | By Consultation and
Medical charges
By Income–tax refund
(principal Rs. 15,000,
interest Rs. 1,500)
By Dividend from
Indian companies
By Winning from lottery
Net of TDS
By Rent
| 21,00,000
16,500
27,000
35,000
54,000
| | | 22,32,500 | | 22,32,500 |
| (i) | Rent paid includes Rs.36,000 paid by cheque towards rent for his residence. | | (ii) | Clinic equipments are : 01.04.2011
07.02.2012 | 0pening WDV
Acquired (cost) | Rs. 4,50,000
Rs. 1,00,000 |
| | (iii) | Rent received relates to property let out at Madurai. Gross annual value Rs. 54,000. The municipal tax of Rs. 9,000, paid in January 2012 has been included in "administrative expenses". | | (iv) | Dr. Gurumoorthy availed a loan of Rs. 5,50,000 from a bank for higher education of his daughter. He repaid principal of Rs.50,000, and interest thereon Rs. 65,000 during the year 2011–12. | | (v) | He paid Rs. 60,000 as tuition fee to the university for full time education of his son. |
From the above, compute the total income of Dr. Gurumoorthy for the assessment year 2012–13. | 12 | (0) |
| | (b) | What are the different rates under VAT system ? | 4 | (0) |
| 6 | (a) | Dinesh received a vacant site as gift from his friend in November 2002. The site was acquired by his friend for Rs. 3,00,000 in April 1990. Dinesh constructed a residential building during the year 2004–05 in the said site for Rs. 15,00,000. He carried out some further extension of the construction in the year 2007–08 for Rs. 5,00,000. Dinesh sold the residential building for Rs. 55,00,000 in January 2012 but the State stamp valuation authority adopted Rs. 65,00,000 as value for the purpose of stamp duty. Compute his long term capital gain, for the assessment year 2012–13 based on the above information. The cost inflation index are as follows : Financial year
1990–91
2002–03
2004–05
2007–08
2011–12 | Cost inflation index
182
447
480
551
785 |
| 5 | (0) |
| | (b) | A car purchased by Dr. Soman on 10.08.2009 for Rs. 5,25,000 for personal use is brought into professional use on 1.07.2011 by him, when its market value was Rs. 2,50,000. Compute the actual cost of the car and the amount of depreciation for the assessment year 2012–13 assuming the rate of depreciation to be 15%. | 4 | (0) |
| | (c) | Mr. Abhishek a senior citizen, pledged his residential house to a bank under a notified reverse mortgage scheme. He was getting loan from bank in monthly instalments. Mr. Abhishek did not repay the loan on maturity and hence gave possession of the house to the bank to discharge his loan. How will the treatment of long–term capital gain be on such reverse mortgage transaction? | 3 | (0) |
| | (d) | What is EASIEST scheme and state the benefits in the context of service tax? | 4 | (0) |
| 7. | (a) | Sanjay engaged in various types of activities gives the following information for the year ended 31.03.2012. Loss from automobile business (Total turnover Rs.6,00,000)
Profit from wholesale trade in furniture items at the prescribed
percentage of turnover as per section 44AD
Brought forward loss relating to discontinued textile business
(discontinued w.e.f 01.06.2007)
Short term capital loss on sale of vacant site during the year
Profit from speculation business related to oil seeds
Loss from speculation business brought forward and related to
cotton (brought forward from assessment year 2011–12)
Brought forward unabsorbed depreciation of trade in furniture items
related to assessment year 2011–12 | 1,10,000
4,00,000
2,00,000
70,000
1,10,000
50,000
60,000
|
Note: Aggregate total business turnover of Sanjay to be assumed as below limit prescribed under section 44AB. Compute the total income of Sanjay for the assessment year 2011–12. | 8 | (0) |
| | (b) | Explain how contributions to political parties are deductible in the hands of corporate and non–corporate assessees under the Income–tax law. | 4 | (0) |
| | (c) | What records should be maintained under VAT system by registered dealer? | 4 | (0) |
| | OR | | |
| | | State briefly the contents of service tax return. | | (0) |
