F–5892 Sub.

Code
7BCOE1A

B.Com. DEGREE EXAMINATION, NOVEMBER 2021

Fifth Semester

Commerce

Elective : INCOME TAX – I

(CBCS – 2017 onwards)

Time : 3 Hours Maximum : 75 Marks

Part A (10  2 = 20)

Answer all questions.

1. Define. Income Tax.

2. What is direct tax?

3. What is previous year?

4. What is assessment year?

5. What do you mean by provident fund?

6. Give any two exemptions of Income from house property.

7. Give any two admissible expenses.

8. What is business income?

9. What is transfer under capital gain?

10. What is cost of acquisition?

Part B (5  5 = 25)

Answer all questions, by choosing either (a) or (b).

11. (a) What are the objectives of taxation?

Or
(b) Explain the significance of good tax system in India.

12. (a) Calculate Total income of Mr. Asokan from the

following:
Rs.
House property loss 70,000
Long term capital loss 15,000
Short term capital gain 40,000
Other sources income 30,000
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 .
70,000
15,000
40,000
30,000

Or
(b) Mr. Kumar leaves India for the first time on
10.06.2014 and comes back on 01.06.2017. He again
leaves on 15.07.2019 to come back on 01.03.2020.
At present he is in India. Find out his residential
status for AY 2021-22.

13. (a) Compute salary from the particulars given below :

Rs.
(i) Net Salary received 80,000
(ii) Income tax deducted at source 5,000
(iii) Professional tax paid by employer 2,400
(iv) Group insurance premium (contribution of
employee deducted by employer) 2,400
(v) Rent of house deducted out of salary 5,600

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 .
(i) 80,000
(ii) 5,000
(iii) 2,400
(iv)
) 2,400
(v)
5,600

Or
(b) Calculate Gross Annual Value (GAV) and Net
Annual Value (NAV) from the particular given
below.
Rs.
Municipal rental value 80,000 p.a
Fair rental value 85,000 p.a
Standard rent 60,000 p.a
Actual rent 50,000 p.a
Municipal Tax 8,000

.
80,000
85,000
60,000
50,000
8,000

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14. (a) Cash book of an auditor for the period ended
31.3.2021
Rs. Rs.
To balance b/d 9,614 By office expenses 24,150
To audit fees 54,000 By personal expenses 4,769
To accountancy By membership fees 4,045
work fee 25,475 By income tax 2,493
To other source By car purchased 23,450
Income 27,745 By car expenses 5,420
To rent from house By insurance (house) 300
Property 14,000 By balance c/d 67,157
To Dividend received 950
1,31,784 1,31,784

Depreciation on car @ 10%; 2/4 of car expense for

personal purpose. Compute Professional income for
the AY 2021-22.
31.3.2021

.
9,614 24,150
54,000 4,769
4,045
25,475 2,493
27,745 23,450
5,420
14,000 300
950 67,157
1,31,784 1,31,784

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 10%; 2/4
2021-
22 .

Or

(b) Compute the basic salary of Mr. Ramu for the

assessment year 2021-22 from the following
information:

Rs.

Salary received 18,000

Tax deducted at source 2,000

Own contribution to provident fund 3,000

18,000

2,000

3,000

15. (a) Mr. Arun is a film producer. During the year

2020-21 he sold a film projector for Rs.1,70,000.
Which had cost him Rs.1,50,000 and in respect of
which Rs.40,000 had been allowed as depreciation.
Expenses on sales amounts to Rs.5,000. Compute
the capital gain.

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 2020-21
.1,70,000
.1,50,000
.40,000
.5,000.

Or

(b) Explain the term capital asset for Income tax

purposes.

Part C (3  10 = 30)

Answer any three questions.

16. Explain the tax system in India.

17. Calculate Income from salary at Mr. Rajesh a Director

employee of HD Ltd; Bilaspur, Basic salary Rs. 40,000
pm, DA Rs.12,000 (Not forming part) p.m. Bonus
Rs.50,000, HRA Rs.8,000 p.m. (Rent Paid Nil) Both the
employer and the employee contribute 14% of salary
towards RPF. The employee was provided with an
Ambassadar car (1800 cc) for his personal and official use
along with a driver and the employer meets expenses.
The employer pays Rs.2,000 professional tax and
Rs.3,000 Insurance premium of Mr. Rajesh’s spouse.

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 40,000,
.12,000 ( ) .50,000,
8,000 (
)
14%

(1800 )

2,000

3,000.

18. Calculate the tax liability of Mr. Ramesh for the

AY 2021-22 for the particulars given below
Rs.
Income from salary (after
standard deduction) 3,00,000
Income from house property 74,000
Income from other sources 1,50,000
Donation to national defence fund 8,000
2021-22,

3,00,000
74,000
1,50,000

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 8,000

19. From the following details, compute income from other

sources,

Rs.

(a) Interest on bank deposits 10,000

(b) Royalty on books deposits 60,000

(c) Horse race income deposits 4,000

(d) Lottery income deposits 14,350

(e) Director fees received 3,000

(f) Family pension 45,000

(g) Examiner ship remuneration 6,000

(h) Expenses for writting books 4,500

10,000

60,000

4,000

14,350

3,000

45,000

6,000

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 4,500

20. Mr. Mohan provided the following data regarding his

transactions for the sale of his residential house.
Compute the amount of capital gain to be included in the
total income for the AY 2021-22.
Rs.
House purchased in 1994-1995 5,00,000
Sold in November 2020 25,50,000
Purchased another house in September 2020 3,50,000
Deposited in capital gain account scheme,
in January 2021 4,00,000
The cost inflation indices were as follows
1994-1995 – 259
2020-2021 – 301
Compute the house property Income.

.
1994-1995 5,00,000
2020 25,50,000
2020 3,50,000
2021
4,00,000

1994-1995 – 259
2020-2021 – 301

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