Fall 2009

MBA-III SEMESTER

MF0003 – TAXATION MANAGEMENT

(B0769)

ASSIGNMENT SET 1 – (30 MARKS)

Note: Answer all the questions. Each question carries 10 marks

1. Following are the taxable income of Sri. Akash for the previous year 2008-09

1. Income from salary accrued in India and received in India 75,000

2. Dividend income declared in United States but received in India 50,000
3. Income from long term capital gains in India 30,000
4 Interest on debentures of a company at Paris, received in India 10,000
5. Royalty received in Paris for technical fee provided for a business 15,000
carried on in London.
6 Interest received from Vivek, a non-resident on the loan provided to 6,000
him for the business carried on in India.
7. Profit from cloth business in Malaysia 85,000
Compute Sri. Akash’s total income for the assessment year 2009-10
if he is (i) Resident, (ii) Not Ordinarily Resident (iii) Non Resident.

2. Compute income from house property from the following particulars for the assessment
year 2009-10

I II III IV
Municipal Value 40,000 45,000 50,000 52,500
Fair Rental Value 35,000 46,000 54,000 65,000
Rent received 32,000 37,000 45,000 55,000
Standard Rent 36,000 40,000 48,000 57,000
Vacancy Period 3 months - - -
Repairs 15,000 14,000 17,000 19,000
Municipal Tax:
- Paid 6,000 3,500 - -
- Due 1,800 2,400
The assessee had borrowed on 1.10.2002 Rs.3,50,000 at 14% for the construction of
the second house which was completed on 31-12-2005. As on 1-4-2008 Rs.3, 00,000
was outstanding. In respect of the fourth house one month rent was unrealized. The
claim was genuine and satisfied the conditions: and the recent received was for 10
months.

3. What is a Provident fund? Explain briefly various types of Provident Funds.

Fall 2009

MBA-III SEMESTER

MF0003 – TAXATION MANAGEMENT

(B0769)

ASSIGNMENT SET 2 – (30 MARKS)

Note: Answer all the questions. Each question carries 10 marks

1. What are the expressly disallowed expenses while computing income under the head
profits and gains from business or profession?

2. Write short notes:

a. Unabsorbed depreciation

b. General deductions (Section 37(1) )

3. Mr. Radha Krishna, an individual submits the following information relevant for the
assessment year 2009-10

Profit Loss
Salary Income (computed) 54.000
Income from House Property
House 1 17,000
House 2 23,000
Profit & Gains of business or Profession
Business X 7,000
Business Y 14,000
Business Z (speculative) 15,000
Business A (speculative) 19,000
Capital Gains
Short term capital gains 8,000
Short term capital loss 12,000
Long term capital gains on sale of land 24,000
Income from other sources:
Income from card games 6,000
Loss on card games 9,000
Loss on maintenance of race horses 4,500
Fall 2009

Interest on securities 3,000

Determine the net income of Mr. Radha Krishna for the
assessment year 2009-10