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V! Sernester B.B.A. Exarni,lrt#fr $epternberloctcb er 2A22

(CBCS) (r + R) (2016 - 17 and Onwards)
BUSINESS ADMINISTRATION
Paper - 6.3 : lncome Tax

Time : 3 Hours Max. Marks: 70

lnstruction : Answers should be written in English only.

ECTION _ A

1. Answer any 5 sub-questions. Each sub-question carries 2 marks. {2*5=10)

a) What is Provident Fund ?
b) What are the deductions available UIS 24 ?
!

c) Write the additional conditions of Residential Status.

d) What do you mean by profession ?
e) What is cost of acquisition ?
f) Mention any four disallowed expenses, in calculation of profit from business.
g) What is the meaning of Agricultural lncome ?

SECTION _ B

Answer any three questions. Each question carries 5 marks. (3x6=18)

2. Mr. Vijayanand is a citizen of America comes to lndia on 20-3-2020 for the

first time and on 1-09-2020 he left lndia And went to Nepal on a business trip.
Again he comqp back to lndia on 26-A2-2021. Determine his residential status
for the Assessment Year 2021 * 22.

3. State, whether the following income are agriculture or non-agriculture incomes.

a) lncome from sale of forest trees of spontaneous growth.
b) lncome from agricultural land situated in urban area.
c) lncome derived f rom lease of land for grazing of cattle required for agricultural
operations.
d) Income from the sale of earth for brick making
e) lncome from dairy farming
0 lncome from dairy products. p.r.o.
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4. Mr. 'A' is aR accountant in a Bank @ Town 'S', havlng population 2,00,000 as

per 2001 census. Following are particulars of his salary for the FY 2020 - 21.
Basic pay { "t4,000 p.m.; Dearness pay { 2,000 p"m.; DA t 3,000 p.m.; Salary
in lieu of leave { 10,000; Annual bonus received t 5,000; Education Allowance
for one child T 4,000 p.m.; He has been provided unfurnished, the bank pays
for the said house T 2,500 p.m.; but deducts only T 500 p.m.; from the salary
of Mr. 'A'. Compute taxable value of rent free unfurnished accommodation for
the A. Y. 2A21 - 22.

5. Distinguish between Short term capital gain and Long term capital gain.

6. Determine the Net Annual Value of house property for the A. Y. 2A21 - 22.
Particulars T
Municipal value 1,50,000
Fair rent 1,70,000
Standard rent 1,30,000
Actual rent per month
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15,000 !

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Ititrr 19,000
House vacancy period 1 month
Municipal tax paid 15,000
SECTION _ C
Answer any 3 questions. Each question carries 14 marks. (3x14=42)
7. Following are the particulars of Mr. Ranganath for the previous year 202A - 21.
a) Profit on sale of plant @ Singapore {one half is received in India) T 2,50,000
b) Profit on sale of propedy at Bengaluru (one half received in Hong - Kong) t 50,000
c) lnterest on UK development bends { 2,00,000 of rruhich { 1,00,000 remitted
to lndia
d) Profit from business in Mangaluru, he control it from USA t 30,000
e) lncome from, business in Mysore but received in Holland t 5,00,000
f) Profit from business in Pakistan contiolled from lndia {4A% profit received
in lndia) t d;00,000
g) Dividends from domestic company { 2,00,000
h) lnterest on Post Office Savings Bank Account t 1,000
i) Past untaxed foreign income brought to lndia during previous year t 2,00,000
j) Rural agricultural income in lndia t 3,00,000
k) Salary and allowances from UNO { 3,00,000
l) lnterest and dividends from units of UTI T 20,000
m) lncome earned in Australia and received there but bror-lght to lndia { 2,00,000
n) Salary (computed) received in lndia for services rendered in Sri Lanka T 1,50,000.
Compute his taxable income for the A.ssessment Year 2021 - 22.|f .he is
(i) Resident (ii) Not ordinarily resident (iii) Non-resident.
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8. Mrs. Radha who is an officer inXYZ Ltd. gives you the following particulars .
a) Basic salary { 16,000 p.m.
b) DA t 1,000 p.m. (50% enters into all retirement benefits)
c) HRA T 5,000 p.m. {Rent paid t 7,000 @ Bangalore)
d) Conveyance allowance t 800 p.m. (T 600 p.m. used for otficial purpose)
e) CCA { 150 p.m.
f) Motor car of exceeding 1600 CC with driver provided used partly for official
and partly personal purposes.
g) Payment of her LIC premium { 8,000 by the company.
h) Children education allowance of T 200 p.m. each for her 3 children.
i) Services of Sweeper (salary T 200 p.m.) out of which 50 p.m. each recovered
from Mrs. Radha.
j) she contributes 14% of her salary to RpF and the company makes a
matching contribution to RPF, interest credited to FIPF is T 6,875- @ 1Z.b/" p.a.
compute her income from salary for the Assessment year za21 - zz.
9. The following is the P & L Alc of Mr. Ranjith for the year ending S1-08-2021 .

Particulars T Particulars {
To Salaries ',,65,000 By Gross profit 2,50,000
To Office expenses 18,000 By Bad debts recovered 10,000
To Depreciation 14,000 By Dividend 4,000
To GST 9,000 By Commission 10,000
To Legal expenses 8,000 By Rent of house property 9,000
To lncome tax 7,000 By Brokerage 10,000
To Patents purchased (1/8th) 12,000 receipts
By Sundry 5,000
To Ftepairs 6,000 income
By Share of 3,000
To Donations i 2,000 from HUF
To Provision for bad debts 3,00b
To General exfrenses 12,000
To Net profit 44,000
' 3,00,000 3,00,000
Additional lnformation :
a) Salary includes { 6,000 paid to workers employed at home.
b) Legal expenses includes { 1,000 paid to the advocate in connection with
personal case.
c) General expenses includes { 4,000 as contribution to staff welfare fund.
d) Out of the bad debts recovered only t 4,000 were allowed as deduction
earlier.
compute his income from business for the Assessment year zazl 22. -
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'10. Mr. Shivram is the owner of three houses in Nelmangala, the details are aS
follows:
Particutrars House A House B House C
Rs. Rs. Hs.
Municipal value (P.a) 1,60,000 1,72,000 1,84,000
Annual fair rental value 1,90,000 2,20,000 2,15,000
Standard rent P.a. 1,84,000 1,90,000 2,00,000
Purpose of use Let out for Let out for Sel{-occuPied
Business residence
Rent received (p.m.) 19,000 22,AOO
Municipal taxes Paid :
20
a) For the year 2A19 - 9,000 9,600
21
b) For the year 2020 * 15,000 15,200 6,00;
Repair expenses 16,000 10,b00 8,000
Unrealised rent during the year 1 month 1 month
lnterest on loan for additional
construction 49,000 69,000 1,90,000
Vacancy period 2 months 2 months 1 month
Compute taxable income trom House property for the A- Y. 2A21, -22'
11. Compute taxable salary of Mr. Flam for the A. Y.2021 - 22.
Basic salary Rs. 40;,000 P.m.
Bonus 2 rnonths basic salary.
Contribution to RPF @ 14k of salary. (both employees and employee)
commission on sales @ 7.5% on total sales of Rs. 25,00,000.
Arrears salary 4,50,000. i

Fixed medical Allowance 5,000 P.m.

Warden and proctor allowance Rs. 8,000 p.m.
Entertainment allowance @ Rs. 1,000 p.m.
Children education allowance @ Fls. 500 per child p.m. for three children'
Facility of big car along with the driver both for office and personal use.
Other particulars are :
1) Contribution to LIC Fls. 2,000 as premium as whole life policy.
2t Med claim insurance premium paid Rs. 35,000.
3) Professional tax paid during the year 200 p.m'