Get fully solved assignment. Buy online from website
online store
or
plz drop a mail with your sub code
we will revert you within 2-3 hour or immediate
Charges rs 125/subject and rs 700/semester only.
if urgent then call us on 08791490301, 08273413412
DRIVE SPRING 2016
PROGRAM MBA
SEMESTER III
SSUBJECT CODE &
NAME
MF 0012
TAXATION MANAGEMENT
1
Mr. X (38 year) is employed by A Ltd. as marketing manager in Pune. The
following information is furnished by Mr. X for the previous year ending 31st
March 2015.
Basic
salary Rs. 12,00,000 p.a., DA Rs. 40,000 p.a. (36 % of DA is considered for
gratuity and Pension, but not for Provident fund). Club allowance Rs. 5,000
p.m., Furnishing allowance Rs. 2,000 p.m. and HRA Rs. 40,000 p.m. Conveyance
allowance is Rs. 2,000 p.m. which can be used both for office and private
purposes.
Up
to August 31, 2014, he resides with his parents and does not pay any rent. From
September 1, 2015 he has been allotted a company accommodation at Pune
(population 23 lakhs) in lieu of house rent allowance.
Club
allowance has been discontinued from January 1, 2015. And Mr. X has been
provided by the company club facility for private (20 %) and office use (80%).
Expenditure by the company uptil 31st March 2015 was Rs. 20,500.
On
20 Nov. 2014, Mr X has taken an interest free loan from the company (SBI
lending rate for Similar loan being 18.5 % p.a.). Mr. X and his employer
contribute @ 10 % of his salary to P.F. Interest Credited by the company in
Provident Fund on June 1, 2014 @ 9.7 % is Rs. 2,11,200.
Assuming
that income of Mr. X from Other Sources Rs. (-30,000), find out the net income
and liability of Mr. X for the Assessment Year 2015-16.
Based on above
Compute the taxable income and tax liability (before deducting TDS) of Ms. X
for the A.Y. 2015-16 Rs. 2,600 (being Income-tax refund and Rs. 200 being
Interest thereon)
Answer: Calculation of tax liability of Mr. X
Basic salary 1200000
DA 40000
Club allowance
(5000*9 months) 45000
2
a) How is advance money received against cost of acquisition adjusted?
b)
State giving reasons, whether the following assets are Short term or Long term:
i)
X purchases a house on 10th March 2012 and transfers on 6th June 2014.
ii)
Y purchases unquoted shares in an Indian company on 10th March 2012 and
transfers on 6th June 2012.
iii)
Z acquires units of mutual fund on 7th July 2013 and transfers those on 10th
July 2014.
iv)
A purchases diamonds on 12 September 2011 and gifts the same to his friend B on
31st December 2014 and B transfers the asset on 20 October 2014.
Answer: a) Adjustment
of advance money received against cost of acquisition (Section 51)
It is
possible for an assessee to receive some advance in regard to the transfer of
capital asset. Due to breakdown of negotiations the assessee may have retained
the advance. In calculating
3
Ms. A purchases a house property on 1st January 1976 for Rs. 95,000. She enters
into an Agreement for sale of the same property to Mr. X on 1st November 1983
and receives Rs. 10,000 as advance. Following the demise of Mr. X immediately
thereafter, the money was forfeited by Ms. A. Later Ms. A gifts her property to
her friend Ms. B on 15th May 1985. The following expenses are incurred by Ms. A
and Ms. B for improvement of the property:
Particulars
Cost
(Rs.)
Additions
of two rooms by Ms. A during 1978-79 25,000
Addition
of first floor by Ms. A during 1983-84 40,000
Addition
of second floor by Ms. B during 1990-91 1,15,000
Ms.
B enters into an agreement for sell the property for RS. 8,50,000 to Mr. P on
1st April 1993after receiving an advance of Rs. 50,000. Mr. P could not pay the
balance amount within the stipulated time of two months and Ms. B forfeits the
amount of advance.
Ms.
B finally transfers the property to Ms. C for Rs. 14,75,000 on 1st December
2014. Given the Fair Market Value of the property on 1st April 1981 being Rs.
1,15,000; Cost Inflation Index for 1981-82 : Rs. 100; for 1983-84 : Rs.116; for
1985-86 : Rs. 133; for 1990-91 : Rs. 182; for 1993-94 : Rs. 244 and 2014-15:
Rs.1,024 compute the Capital gains in the hands of Ms. B for the Assessment Year 2015-16.
Compute the
Capital gains in the hands of Ms. B for the Assessment Year 2015-16.
Answer: Calculation of the capital gain of Ms. B
for the A.Y 2015-16
Sale Proceeds 14,75,000
Less: Indexed
cost of acquisition 70,356
14,04,644
4
i) Ms. Brinda, a U.S. citizen visits India on 1st January 2014 to study and
conduct research on Indian folk culture. She has been regularly visiting India
for 100 days in the past five consecutive years to carry the research. Advise
the residential status of Ms. Brinda under extant rules referring to section 6
of the Income-tax Act 1961.
ii)
What are the provisions of Advance tax under section 2(1)?
Answer: i) Residential status: On the parameter of
residence in India, there are three categories: resident, non-resident, and not
ordinarily resident. The definition depends upon physical presence of the
person in case of individuals, and upon control and management in
5
Explain the need of Service tax in India. What are the different approaches to
Service tax in India?
Answer: Service
tax is a tax levied by Central Government of India on services provided or to
be provided excluding services covered under negative list and considering the
Place of
6
Mr. X (aged 59 years) furnishes the following Profit and Loss account for the
year ended 31st March, 2015. Compute the Gross Total Income of Mr. X
under respective heads, his Net Taxable Income and Tax liability in the
assessment year 2015-16.
|
Particulars
|
Rs.
|
Particulars
|
Rs.
|
|
General Expenses
|
13,400
|
Gross profit
|
3,15,500
|
|
Bad debts
|
22,000
|
Commission
|
8,600
|
|
Advance tax
|
2,000
|
Brokerage
|
37,000
|
|
Insurance
|
600
|
Miscellaneous Income
|
2,500
|
|
Salary to Staff
|
26,000
|
Bad Debt Recovery
|
11,000
|
|
Salary to Mr. X
|
51,000
|
Interest on Debenture
(Net interest Rs.22,500 + TDS Rs.
2,500)
|
25,000
|
|
Interest on Cash Credit
|
4,000
|
Interest on Fixed Deposits
(Net interest Rs. 11,700 + TDS Rs.
1,300)
|
13,000
|
|
Interest on loan to Mrs. X
|
42,000
|
|
|
|
Interest on Capital of Mr. X
|
23,000
|
|
|
|
Depreciation
|
48,000
|
|
|
|
Advertisement
|
7,000
|
|
|
|
Contribution to Employees’ Provident
Fund
|
13,000
|
|
|
|
Net Profit
|
1,60,600
|
|
|
|
Total
|
4,12,600
|
Total
|
4,12,600
|
Supplementary
information:
Permissible
depreciation as per CBDT circular is Rs. 37,300 which includes depreciation of permanent
glow sign board.
i.
Advertisement expenditure includes Rs. 3,000, being cost of permanent glow sign
board affixed outside the office premises.
ii.
Commission accrued but not received Rs. 4,500 is not credited to P & L
Account.
iii.
Mr. X pays premium of Rs. 6,000 on his own life.
iv.
General expenses includes:
a)
Rs. 500 spent for arranging a party for Mr. X’s son who arrives from Canada.
b)
Rs. 1,000 for contribution to a political party.
v.
Loan availed from Mrs. X was for payment of arrear tax.
A
Mr. X (aged 59 years) furnishes the above Profit and Loss account for the year
ended 31st March, 2015.
Compute
the Gross Total Income of Mr. X under respective heads, his Net Taxable Income
and Tax liability in the assessment year 2015-16.
Answer: Computation of Gross Total Income of Mr. X under respective heads, his Net Taxable
Income and Tax liability in the assessment year 2015-16
|
Net profit as
per profit and loss account
|
|
160000
|
Get fully solved assignment. Buy online from website
online store
or
plz drop a mail with your sub code
we will revert you within 2-3 hour or immediate
Charges rs 125/subject and rs 700/semester only.
if urgent then call us on 08791490301, 08273413412
No comments:
Post a Comment