JAIPUR NATIONAL UNIVERSITY

School of Business and Management

Paper Code: MBADF419

Max. Marks- 60 Duration – 2 Hrs.

Attempt all questions.

Unit- I

Q1. (a) A joined a service in the grade of Rs. 10,400 - 400 - 16,000 - 500 - 20,000 on 1.7.2014
and resigned from the service on 30.9.2019. He was also entitled to dearness allowance @ 50%,
which forms part of salary for retirement benefits. On retirement, he received a gratuity of
Rs.2,40,000. He was entitled to a pension of Rs.8,000 per month w.e.f. 1.10.2019. He got 75% of
his pension commuted w.e.f. 1.1.2020 and received a sum of Rs.6,00,000 as commuted pension.
Compute his Gross Salary for assessment year 2020-21. (6 marks)

(b) Miss Monica, a foreign national, comes to India every year for 90 days since 2003-04.
Determine her residential status for the previous year 2020-21. Will your answer differ, if she
comes to India for 100 days instead of 90 days every year? (6 marks)

OR

Q2 (a) X owns a house property in Pune, details relating to which are Municipal value
Rs.2,00,000 p.a., Fair rent Rs.1,80,000 p.a., Standard rent Rs.2,10,000 p.a. It is let out throughout
the previous year (rent Rs.10,000 p.m. up to 15/10/2019 and Rs.12,000 p.m. thereafter). The
property was transferred by X to Y on February 28, 2020. However, Y failed to recover rent for
March, 2020. Find gross annual value of the property in the hands of Y for the A.Y. 2020-21.
(6 marks)

(b) Explain assessment year u/s 2 (9) and previous year u/s 3. (6 marks)

Unit- II

Q3. (a) Explain any three incomes which are taxable under the “Profits & Gains of Business or
Profession” head. (6 marks)

(b) Explain the provisions of section 54D in relation to capital gains. (6 marks)
 OR

Q4. (a) What do you mean by Casual Income? Explain the method of grossing up casual
income? (6 marks)
(b) On 23rd December, 2019, Rajat sold 500 grams of gold, the sale consideration of which was
Rs. 13,50,000. He had acquired this gold on 20th August, 2000 for Rs. 4,00,000. Fair market
value of 500 grams of gold on 1st April, 2001 was Rs. 3,60,000. Find out the amount of capital
gain chargeable to tax for the assessment year 2020-21. (6 marks)

Unit- III

Q5. (a) Explain any four incomes that are exempted u/s 10. (6 marks)

(b) Explain the deductions under section 80U. (6 marks)

OR

Q6. (a) Compute gross total income of Mr. Jacky from following data –

Income from Salary Rs. 2,60,000, Income from house property (A) Rs. 60,000 and Income
from house property (B) (Rs. 2,80,000), Speculation income Rs. 20,000, Business income (Rs.
1,30,000), Income from activity of owning and maintaining race-horses (Rs. 1,50,000), Income
from agricultural business (Rs. 1,25,000), Short term capital gain Rs. 30,000, Long term capital
gain (Rs. 1,00,000), Income from lottery Rs. 10,000, Income from horse races Rs. 1,70,000,
Dividend income from non-domestic company (shares purchased out of borrowed money) (Rs.
90,000) and Interest on securities Rs. 20,000 (6 marks)

(b) Explain the deduction u/s 80TTA. (6

Unit-IV

Q7. (a) Explain the penalties for non-payment of advance tax? (6 marks)

(b) Compute amount of marginal relief and tax liability of XYZ Limited for Assessment Year
2020-21. The total income is Rs. 1,04,00,000 assuming that there is no income in the nature of
capital gains. (6 marks)

OR

Q8. (a) R Cooperative Society Ltd. furnishes the following particulars of its income for the
previous year ending on 31 March 2020:
(i) Interest on government securities 40,000
Profits from banking business 3,50,000
(ii)
Income from purchase and sale of agricultural implement
2,50,000
(iii) and seeds to its members
Income from marketing of agricultural produce of its members
(iv) 4,00,000
Profits and gains of business
(v) 2,20,000
3,50,000
(vi) Income from cottage industry

(vii) 30,000
Interest and dividends (gross) from other cooperative societies

Compute total income of the society and calculate the tax payable by it for the assessment year
2020-2021. (6 marks)

(b) MAT is attracted under section 115JB, on account of tax on total income being less than
15% of net profit as per the profit and loss account for the relevant previous year. Explain. (6
marks)

Unit -V

Q9. (a) Explain salient features of the GST model adopted in India. (6 marks)

(b) Mr. Bhudev Agarwal, an unregistered person receives commission of Rs. 21,00,000 as an
insurance agent from insurance company. Will he be required to charge GST on the same? (6
marks)

OR

Q10. (a) Balram, a registered supplier, furnishes the following details pertaining to the month of

August, 2019 (first month of starting of business):

· Purchases of goods within the State Rs. 8,00,000

· Purchases of goods from outside the State Rs. 10,00,000

· Inter State Sales Rs. 6,00,000

· Intra State Sales Rs. 12,50,000

The rates of taxes for the goods supplied are as under :

· CGST 6%
· SGST 6%

· IGST 12%

Compute the GST payable by the supplier Balram for the month of August, 2019. (6 marks)

(b) Explain any three advantages and disadvantages of VAT. (6 marks)