B_Com_Sem_3_Taxation.pdf

SNCC Assignment – 24-25 Sem-3 Taxation -1 Unit-1 1. Explain Merits and Demerits of Direct Taxes. 2. Short note: (1) Previous year,...

SNCC Assignment – 24-25 Sem-3 Taxation -1 Unit-1 1. Explain Merits and Demerits of Direct Taxes. 2. Short note: (1) Previous year, (2) Tax planning, (3) Company, (4) Casual Income, (5) Objectives of tax planning. 3. Explain Casual Income with illustration and state its exceptions. 4. What is meant by Agriculture Income? Give four illustration of Non-agriculture Income. 5. Explain term: Assesse. 6. Write a note on Tax avoidance. 7. SN on -Payment of Income Tax; Advance Income Tax; Permanent Account number Unit-2 CC 1. When is an individual considered a “Resident”, “Ordinary resident” and “Non-resident”? 2. Ms. Asha, a citizen of India, left India for the first time to take up a job in England. She visits India for the periods mentioned below: Previous Year 2017-18 2018-19 2019-20 Days Stayed in 85 days 190 days 180 days India 2020-21 150 days SN 2021-22 200 days 2022-23 210 days 2023-24 195 days Determine her residential status for the Assessment Year 2024-25. 3. What will be your answer if she has stayed in India for only 180 days during the Previous Year 2023- 24? Income Source Amount (₹) (i) Interest on Japan Development Bonds (one-third is received in India) 2,70,000 (ii) Income from agriculture in Bangladesh received there but later remitted to 93,000 India (iii) Income from property in London received outside India 5,50,000 Page 1 of 5 (iv) Income earned from business in Germany controlled from Delhi (₹ 25,000 65,000 is received in India) (v) Interest on Fixed Deposit paid by an Indian Company but received outside 40,000 India (vi) Profits from a business in Ahmedabad managed from outside India 13,27,000 4. Shri Bradman, a Non-Resident, furnishes the following particulars of income earned during the Previous Year relevant to the Assessment Year 2024-25: Determine the total taxable income of Shri Bradman for the Assessment Year 2024-25 based on the given information. Calculate his gross total income for A.Y. 2024-25. If he Non-Resident, Ordinary Resident, or Resident but not an ordinary resident. 5. Mr. Kohali, a citizen of India, has been a manager of an Indian company since 1st May 2019. He regularly visited England for company work and spent the following days in England during the last five years: CC Previous Year Ending 31-03-2020 31-03-2021 31-03-2022 31-03-2023 31-03-2024 Number of Days Stayed in 318 days 150 days 271 days 310 days 295 days England Determine Mr. Kohali's residential status for the Assessment Year 2024-25. (Note: Before 1st May 2019, he had never traveled abroad.) SN 6. The following are the incomes of Mr. Vikrambhai during the Previous Year 2023-24: Particulars Amount (₹) (1) Salary (taxable) 2,40,000 (2) Interest on Bank Deposit (₹ 1,20,000 is received from 1,60,000 a Foreign Bank) (3) Profit from Business in New York (Business is 3,75,000 controlled from India) (4) Pension from a former employer in India received in 2,50,000 New York (5) Agricultural income earned in New York 2,80,000 (6) Profit from business in Bombay (controlled from 2,80,000 New York; 50% of the profit is received in New York) Determine the total gross income of Mr. Vikrambhai for the Assessment Year 2024-25 in the following scenarios: Page 2 of 5  If he is an Ordinary Resident (ROR). If he is a Resident but Not Ordinarily Resident (RNOR). If he is a Non-Resident (NR). 7. Write Short note on: a. Exempted Income b. Agriculture Income c. Exempted income of a non-resident of Indian Origin Unit - 3 1. Write Short not on: a. Head of Income b. Taxability of Gratuity c. Perquisites d. House Rent Allowance e. Incomes are included under the heading ‘Salaries’. 2. The total gross income of Shri Kalpanath Roy for the accounting year 2023-24 amounts to ₹7,50,000. Compute the amount of deduction available under Section 80C of the Income Tax Act from his total gross income based on the following information: ₹40,000 CC Particulars (1) Employee's contribution to Recognised Provident Fund (15% of basic salary) (2) Premium paid on his life insurance policy (taken before 1-4-2012) of (3) Paid into Public Provident Fund (PPF) Account (4) Contribution under ULIP of LIC (5) Investment in eligible shares of a power sector company Amount (₹) 14,500 9,000 70,000 12,000 43,000 (6) Deposit placed with SBI for a 5-year period 16,000 SN Compute the deduction under Section 80C available for the Assessment Year 2024-25. 3. Shri Vinodbhai, a specified employee, has furnished the following particulars of his salary income for the year ended 31-03-2024: Salary Component Amount (₹) Basic Salary 20,000 p.m. Dearness Allowance 5,000 p.m. Entertainment Allowance 1,000 p.m. Project Allowance 5,000 p.a. Education Allowance (for 3 children) 6,400 p.a. Commission 9,000 p.a. Additional benefits provided by the employer: Free furnished house (owned by the employer): ○ Cost of furniture: ₹1,20,000 Domestic appliances (not owned by the employer): Page 3 of 5  ○ Hire charges paid by the employer: ₹6,000 p.a. Motor car (1.5 liters cubic capacity) for personal purposes: ○ Expenses paid by the employer: ₹18,000 p.a. Compute the taxable value of the perquisites to be included in the gross salary under the following circumstances: 1. If the house is in a city having a population of more than 40 lakhs. 2. If the house is in a town having a population of less than 10 lakhs. 4. Vishwam joined a company on 1st April 2021 as an accountant with a salary scale of ₹18,000-1,000- 30,000. Annual increments are due on 1st April. He is a specified employee and provides the following details for the year ending March 2024: Particulars Details Basic Salary ₹18,000 (as of 1st April 2021) Dearness Allowance (DA) 40% of Basic Salary Contribution to Recognized Provident Fund (RPF) by both 12% of Salary Entertainment Allowance CC City Compensatory Allowance (CCA) Interest credited to RPF @ 12% p.a. House Rent Allowance (HRA) Tour and Travelling Allowance Car provided (1.8 cc) partly for private and partly for office use. All expenses are met by the employee. ₹2,000 per month ₹2,400 ₹1,000 per month ₹1,000 per month ₹24,000 (₹8,000 are saved) Free education for 2 children in a company-run school ₹1,000 per child SN (average monthly cost per child in a similar school) Gas and water facilities provided by the company ₹6,000 Leave encashment received in cash ₹16,000 Free lunch provided on 200 working days (cost per lunch ₹100) The telephone facility was paid for by the company ₹600 per month Professional tax paid ₹2,400 House rent paid by Vishwam ₹36,000 Compute the taxable salary for the Assessment Year 2024-25. 5. Mr. Sameer Pandya is working as a Sales Manager at Natraj Ltd. The details of his salary income for the year ended 31st March 2024 are as follows: a. He is entitled to a commission of 1.5% of sales effected by him. The sales effected by him during the previous year amounted to ₹30,00,000. b. Dearness allowance (forming part of salary): ₹10,000 per month. c. Bonus: ₹35,000 (one month’s basic salary). Page 4 of 5  d. Hostel and Education Allowance: ₹1,000 per month (He has two children, and only one child is studying in a hostel). e. Diwali gift received from the employer: ₹6,100. f. Employee’s contribution to the Recognized Provident Fund (RPF) is ₹7,450 per month. The employer also contributes an equal amount. g. Interest credited to RPF @ 12%: ₹24,000. h. A residential house in Ahmedabad (population more than 40 lakhs) is provided by the company, for which the company pays a monthly rent of ₹10,000. Furniture costing ₹6,42,590 has also been provided by the company. ₹1,000 per month is deducted from his salary for the said facility. i. A car of 2000 cc has been provided along with a driver for both office and private use. j. Mobile facility provided by the company for which ₹10,000 is paid. k. The company has paid medical bills on behalf of Mr. Sameer amounting to ₹22,000. l. Professional tax paid by Mr. Sameer: ₹2,400. Compute the taxable salary for the Assessment Year 2024-25. Unit-4 1. State provisions for interest on borrowed capital for house property. CC 2. Mention the taxability of income, when housing property sublet by a tenant. 3. Mention the specific deducation allowed from the “Net Annual Value” for let out housing property. 4. Short note: - Unrealized Rent and Standard Rent 5. Write a note on deduction allowed for interest on borrowed capital. 6. Give two illustration of housing property income exempted form tax. 7. Sums (As per 24-25 edition) – 29-Mr. Kumar; 21-Shree Ketan;22-Mr. Sehvag;18-Shri Rajnikant SN Page 5 of 5