S.P.

Desai Chartered accountant MMS Tax short questions

Taxation: Short Questions

1 Karta of HUF was in India for only one day during the previous year 2011.12,All the other members of the family were there in India . Karta feels the Residential status of his is Non Resident for the Assessment year 2012.13, hence HUF for that year is Non Resident. Discuss. 2.The meetings of the members of Company including Special general meetings during the P Y 2011.12 were held in India ,however all the meetings of the Board except one was held in Dubai during the year, discuss the residential status of the Company for A Y 2012.13 assuming the Company is Incorporated in London. 3. Mr. A has gone out of India for the first time on 1-1-2011,for the purposes of watching Cricket match, discuss Residential status of Mr. A for the said P.Y. 4.Mr B ,U S Citizen went out of India for the purposes of employment on 1.1.2011 He came for the first time in India on 1.4.2009 and is continuously was in India since then ,Discuss Residential status of Mr B for that P Y 5What rates of taxes are applicable for the Previous Year 2008.09,discuss the Assessment Year, Budget Finance bill for that Previous year. 6.Mr C earned Income of Rs 500000/- on 02.01.1998, Discuss with reference to the date concept of Previous ,Assessment Year, and Finance Act & Budget for the relevant year. 7Mr B is a Partner of B C & Co Partnership Firm, remuneration received by Mr B from the said Firm Mr B had taken as Salary for the said previous year. Discuss. 8.Mr A died & Mrs C wife of Mr A received family pension of Rs 90000/- from the Company in which A was employed , discuss taxability therefore ,Mrs C had considered the same as Salary in her I Tax Return. 9.Mr A owns House which is given on Rent To Mr B ,Mr B sublet a part of the said house to Mr C and treats this as Income from House Property discuss. 10.Mr B earns lottery Income of Rs 60000/-(Net) for which he had purchased Lottery Tickets worth Rs 15000/- TDS Of Rs 20000/- was there discuss the taxable Income. 11.Mr B had paid Rs 15000/- towards medical treatment of his son who is permanently handicapped dependent on Mr B ,Assessing Officer contends allowable deduction Rs 15000/- only Discuss. 12.Mr N gives donation of Rs 15000/-as medicines to a registered Trust having Registration Certificate under Section 80G ,claims the same as deductible under 80G Discuss. 13.Mr X received Salary of Rs 1229340/-after deduction of Prof Tax 2500/-,PF 110000/-Hosing Loan Rs 258900/-(60% being Interest, rest Principal. Compute Taxable Income.

S.P.Desai Chartered accountant MMS Tax short questions 14.Mrs X carries out retail business in readymade garments ,where yearly Sales are 1289200/-having Net Profit @20% before Depreciation of Rs 48900/-on car 50% of the same is used for Personal purposes. Compute Taxable Income. 15.Mr B carried business in stationary gross Profit Rs 178000/-& Net Profit Rs 83200/-after charging expenses of Rs 38000/- being personal expenses. 16Mr A is having in his stock of stationery on 1.4.2011 Rs 5000/-,during the year 2011.12 Purchases were Rs 100000/- Sales were Rs 225000/-on 31.03.2012 stock was Rs 2500/- calculate chargeable expenses of stationery. 17 Mr. X had taken medical insurance of Rs. 18,200, 50% of which paid in cash, Rs. 15,000 another medical insurance on his wifes parents. Discuss deductibility under Sec 80D. 18 Mr. A had taken a loan from his friend Rs. 5 lakhs @ 10% p.a for the purposes of his higher studies eligible under Sec. 80E, he claims the interest paid on such loan being deductible. Discuss. 19 Mr. B hospitalized and incurred expenditure of Rs. 5000, in respect of a disease specified and claims Rs. 40000 as expenditure deductible under the relevant section. Discuss. 20 Mr. A had a machinery of Rs. 50,000 on which depreciation allowable is 10% p.a . He lets out the machinery for 2 months and received rent of Rs. 30000. Mr. A had incurred total maintenance expenses on the machine Rs. 12,000. Calculate the taxable income under the head income from other sources. 21 Mr. B received foreign currency gift worth Rs. 1,50,000 from Mr. C who is his friend. Mr. B claims the said gift as exempted one since received in foreign currency. Discuss. 22. Mr. C received jewellery worth Rs. 60000 as gift from Mr. D who is not relative of Mr. C claims the same being exempt in his income tax return. Discuss 23 The cost of the land purchased on 1.1.1960 for Rs. 30000 (market value as on 1.4.81 Rs. 2,00,000), The purchaser claims the deduction while computing capital gain the cost being Rs. 10 lakhs as on 31.3.12 being market value as on that date. Discuss 24 Mr. C constructs first floor on 31.3.1978 for Rs. 50,000, constructs 2nd floor on 31.5.1992 for indexed cost Rs. 3,00,000 , incurs repairs expenses on the property on 31.5.1993 , indexed cost Rs. 1,00,000. Calculate the allowable improvement cost with justification.