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VI Semester B.B.A. Examination,

September 2020
(CBCS) (F +R) (2016-17 and Onwards)
BUSINESS ADMINISTRATION
Paper 6.3: Income Tax
Time 3 Hours Max. Marks 70
instruction: Answers should be written in English only.

SECTION- A

1. Answer any 5 sub-questions. Each

sub-question carries 2 marks. (5x2-10)
a) What is agricullural income ?

b) Who is'deemed to be an assessee' ?

c)Define the term 'income'

d) Define Annual value' of a house property.

e)What is a 'profession' ?

1) What are bond washing transaclions?

9) What is casual income ? Slate an
example.

SECTION-B

Answer any 3 questions. Each question carries 6 marks

(3x6=18)
2. Briefly discuss the Canons of Taxation.
3. Mr. Omer comes to India from
Egypt for
first time on 1-10-2017 and
the
joined
a company monthly salary of Rs. 40,000. On 15-10.2017, he has
on a
also
started his own business and earns Rs.
25,000 p.m. Determine his residential
status for the A.Y. 2019-20.

P.T.O.
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4. Mr. Kishen is drawing a monthly salary of Rs. 45,000 and D.A. 10% of
salary. He is also geting entertainment allowance of Rs. 2,000 p.m. But, he
has actually spent Rs. 10,000 on the
company's customers entertainment.
He is also provided a tacility of small car for his personal and official use, all
the expenses of the car are bome
by the company. He is also provided with
a rent free house owned by the
company at Mysuru; the FRV of the house is
Rs. 20,000 p.m.

Compute his Taxable Salary for the A.Y. 2019-20.

5. Miss Savithri is the owner of a house and its details are as followS
Rs.
Actual Rent (p.m.)
15,750
Municipal value (p.a.)
1,50,000
Fair Rental value (p.a.) 1,95,000
Standard Rent
1,65,000
Municipal Tax paid by Tenant
3,000
Municipal Tax outstanding
4,000
Unrealised Rent one month's

Vacancy period one month

Compute income from House Property of Miss. Savithri for the A. Y. 2019-20.

6. Mr. Rao (Resident) is an employed of Karnataka State Government since 2009.

He submits the following details of his income and expenditure for the P.Y.
2018-19.

Rs
a) Income from salary (Net) 7,50,000
b) Rent received from house property 60,000
c)Income from other sources (computed) 1,40,000
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d) Own contribution to NPS 50,000
e) Employer's contribution to NPS 50,000
)Health insurance premium paid 15,000
Compute his Total Income for the A. Y. 2019-20.

SECTION-C

Answer any 3 questions. Each question carries 14 marks. (3x14-42)

7. Following are the
particulars of income of Mr. Rayan for the previous year 201&-19
a) Income from agriculture in
Shivamogga Rs. 45,000 but Rs. 25,000 received
in Chennai.

b) Income from business in Sri Lanka, controlled from Chennai Rs. 75,000.
c) Income from house property in Bengaluru Rs. 90,000.
d) Income from business in Singapur: the business is controlled from
Shivamogga Rs. 1,00,000.

(But Rs. 45,000 is received in Bengaluru)

e) Share of profit from partnership firm in Mumbai Rs. 18,000.
1) Income from business in Mumbai but received in Australia Rs. 35,000.
g) Profit from business in London controlled from India Rs. 50,000 (% being
received in India).

h) Dividend received in Sydney from a company registered in India Rs. 22,000.

i)Income from house property in Nepal, deposited by the tenant in a foreign
branch of Indian Bank located in Nepal Rs. 18,000.

) Profit on sale of plant at Kolkata Rs. 80,000 (50% received in

Bangladesh).
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Compute his GTI for the A.Y. 2019-20 if
he is
a) A Resident,
b) A not ordinarily resident and
c) A non-resident.

8. 1Mr. Sajan Kumar, a General

Manager in a Company in
Delhi, provides you the
details of his income
during the P.Y. 2018-19.Compute his income from
taxable for the A. Y. 2019-20 salary

a) Basic salary Rs. 50,000 p.m.

b) D.A. Rs. 25,000 p.m.
c) Medical Allowance Rs.
1,500 p.m. (but he spends Rs. 1,200 p.m.)
d) He has been
residing in a furmished house provided by thecompany. The
annual fair rental value of the house
is Rs. 1,80,000. The company has also
provided the facility of a refrigerator, A.C. and furniture at the house
Rs. 2,50.00.
costing

e) He is also been provided the services of a cook, a

sweeper and a watchman
on a monthly
salary Rs. 1,800 each paid by the company.
of

) He contributes 15% of his salary towards RPF and

company also contributes
the same to the fund.

g) Interest on RPF Rs. 5,800 credited 14% p.a.

h) He has paid Rs. 600 as professional tax during the P.Y.

9. From the below given information, determine income from salary of Shri Abdul
Taxable for the A.Y. 2019-20.

a) Basic salary Rs. 30,000 p.m.

b) D.A. 60% of basic salary (Forming part of salary).

c) Bonus-Two months basic salary.
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d) Commission p.a. Rs. 15,000.
e) Medical allowance Rs. 750 p.m.

Children education allowance Rs. 600 p.m. for his

hostel allowance of Rs. two children and also
1,000 p.m. for both of them.
9) He gets HRA Rs. 12,000
p.m. but he pays a monthly
rent of the house in
Bengaluru Rs. 11,000.
h) He is entitled to utilise a car
less than 1.6 litre capacity
company for his both official and
provided by the
personal use. All the expenses of the car
are borne by the
employer.
i) He contributes 15% of his
salary to SPF and the company also contributes
the same to the fund.

i) Interest credited to SPF11% p.a. Rs. 11,000.

10. Mr. Shivram is the owner of three houses in
Chikkaballapur the details are as
follows:

Particulars House A House B House C

Rs. Rs. Rs.
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
Usage nature Let out for Let out for Self-occupied
Residence Business
Rent received (p.m.) 19,000 22,000
Municipal taxes paid
a)for the year2017-18 10,000 10,600

b) for the year 2018-19 16,000 17,200 6,000

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Repair expenses 16,000 10,000 8,000

Unrealised rent during the
year 2018-19 One month's One month's
Interest on loan for

additional construction
49,000 69,000 1,90,000
Vacancy period 2 months 2 months 1 month
Compute Taxable income from
House Property for the A.Y. 2019-20.
11. Mr. Abraham, a business man
ended 31-3-2019.
provides you his Profit and Loss Ac for the year
Particulars Rs. Particulars Rs.
To Staff salaries
52,000 By Gross Profit 2,75,500
To Advertisements
34,000 By Rental income
To Interest on Capital 15,000 from house property
1,45,000
To House hold
expenses 65,000 By Winnings from
To Reserve for Bad debts
8,500 Lottery (Net)
To
85,000
Income Tax paid 38,000 By Dividends from
To Municipal Tax on VR India Ltd.
(gross) 32,000
house property 35,000 By Interest on debentures
To 1,90,000
Repairs to house
By Bad debts recovered
property 12,000 (fully allowed earlier)
To Insurance premium 15,200
on own life
18,000
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To Fire insurance

premium (Rs. 8,000 for

house property)
25,000
To Bad debts written off
8,000
To General expenses
45,000
To Net profit
3,87,200
7,42,700
7,42,700
Other intformation:
1) He owns a big house 25% portion is used for this business.
2) General expenses include Rs.
12,000 spent on the birthday of his wife.
Compute Taxable Income from Business for the A.Y.
2019-20.