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57 views16 pagesTAX LAW Ques Paper (New)
CS EXECUTIVE TAX PAPER
Uploaded by
Athul MCopyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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/ 16
NEW SYLLABUS 5 9 7
Roll No,
Time allowed : 3 hours Maximum marks : 100
Total number of questions : 6 Total number of printed pages : 16
NOTE : (1) Answer ALL Questions.
Q) ALL the references to sections in Part-I of the Question Paper relate to the Income-
tax Act, 1961 and relevant Assessment Year 2023-24 unless stated otherwise
(3) ALL the references to sections in Part-II of the Question Paper relate to the Provisions
of GST Law and Customs Act, 1962.
(4) Wherever necessary, suitable assumptions can be made and the same be stated
clearly in the answer.
(8) Working notes should form part of the answer.
PART—I
1. Vijay, an Indian Citizen, was living in Delhi since 1972, he left for France on 1% August,
2017 and comes back on 2 April, 2022. On the same day he joined BGH Industries
Ltd., Delhi as a Chief Mechanic. He went to China for 15 days during the year in the
month of July 2022.
2/2023/TLP/NS P.T.O. 527
He furnishes following details for the previous year 2022-23 about his salary income :
(ee
Pani ‘Amount
artic @)
Basic Salary 1,22,000 p.m.
Dearmess allowance (eligible for retirement benefits) 60,000 p.m
Fixed medical allowance 200 pam
House rent allowance 25,000 p.m.
Transport allowance 2,000 p.m.
Bonus 2 months basic
salary + DA.
Club membership fee reimbursed by employer 14,000 p.a. |
Residence telephone bill paid by employer 22,000 p.a.
Contribution of employer to recognized provident fund 15% of basic
salary + DA
Two children of Vijay study in the school run by the company. The cost of education
in the similar school for the year would be 21,24,000 and the employee paid @ 50,000
to the school by way of fee.
‘Vijay gives the following information with respect to two loans taken by him from scheduled
banks for various purposes
(A housing loan of % 34,00,000/- taken on 12" March, 2022 for the purchase of
a house to be used for self-residence at a cost of & 44,00,000/-. The stamp duty
2/2023/TLP/NS
Contd, 527
a:
value of the house was & 41,00,000/- at the time of purchase. Amount of repayment
of loan during P.Y, 2022-23 was :
(A) towards principal - % 1,22,000/-
(B) towards interest - % 3,60,000/-
This is the first and only residential house owned by Vijay.
A vehicle loan of & 18,00,000/- taken on 29" May, 2022 for the purchase of new
electric car for personal use, Amount of repayment of loan during P.Y. 2022-23
was :
(A) towards principal - % 80,000/-
B) towards interest - € 1,75,000/-
Besides these loans, he has also paid a sum of & 9,000 to a political party as contribution.
The entire amount was paid in cash,
Based on the facts of the case scenario given above, answer each of the following three
parts treated as separately
(@) Determine residential status of Vijay for the assessment year 2023-24, along
detailed workings.
(©) Compute income from salary of Vijay for the assessment year 2023-24, on the assumption
that he has opted the, scheme of section 11SBAC.
(©) With reference to loans taken and contribution to political party, compute the amount
of tax benefits/deduction(s) available to Vijay under various provisions of Income-tax
‘Act, 1961 for A.Y. 2023-24, so that he gets the maximum benefits assuming that
hhe does not opt to pay tax under section 11SBAC.
(S marks each)
22023/TLP/NS P.T.O. 527
ia:
2. (@)_ BAC & Co. is a partnership firm, which sets up a new industrial unit in Noida
It incurs following expenditure in connection with the new unit :
S.No. | Particulars unc
®
@ Preparation of project report 3,00,000
wo Market survey
Total (( 9.00,000
Following further informations are available :
S. No. | Particulars ‘Amount
®
o Cost of Project 40,00,000
@ Capital employed in the new unit 45,00,000
Compute the deduction admissible to the firm ws 35D of the Income Tax Act, 1961
for the assessment year 2023-24,
(5 marks)
(®) Varun has two let out properties, the details for the previous year 2022-23 are given
as under :
Particulars House-1@) House-2 @)
Municipal value 3,70,000 7,20,000
Fair rent 3,90,000 6,80,000
Standard rent under the Rent Control Act | 4,20,000 6,90,000
2/2023/TLPINS
Contd. 527
Bc
Actual rent 6,00,000 6,00,000
Municipal tax due for the year 30,000 1,20,000
Municipal tax of past years paid during
the year 37,000 1,03,500
Interest on moneys borrowed C.Y-paid | 3,50,000 2,70,000
Interest on moneys borrowed C.Y.-not paid | 1,10,000 90,000
Compute income under the head ‘house property’ in the hands of Varun for the
_Assessment year 2023-24, assuming none opted to pay tax under section 11SBAC.
(5 marks)
(©) Geet and Jeet are two minor sons of Raghav and Riya. Business income of Raghav
is € $40,000 ind Salary income (computed) of Riya is € 2,50,000, Income of Geet
and Jeet from stage acting is € 60,000 and € 70,000 respectively. Besides interest
‘on company deposits of Geet and Jeet (deposit was made out income from acting)
are 40,000 and & 1,000 respectively.
Geet and Jeet have also resived the following birthday gifs during the financial year
2022-23 :
Cane
On 20 August, 2022, gift received by Jeet from his grandfather of € 75,000. )
On 14" November, 2022, gift received by Geet of %60,000 from Riya’s friend
and(& $0,000 from Riya's sister.
‘Compute the total income of Raghav, Riya, Geet and Jeet for the assessment year
2023-24, assuming that Raghav, Riya, Geet and Jeet does not opt to pay tax under
section 115BAC.
(5 marks)
2/2023/TLP/NS P.T.O. 527
4, (a) Nisha, a resident individual, provides following details of her income/losses for the
year ended 31.03.2023 :
s. No. Particulars Amount (%)
é Long-term capital gain on sale of equity shares
computed in accordance with section 112A 995,000
Interest on fixed deposit (gross) 73,000
3. Loss from sugar business -| 8.70.00
4. Speculation profit 2,40,000
5. Lottery income (Net of TDS) 75,000
6. Loss incurred by the firm in which she is a partner | 1,60,000
7. Salary received as a partner from partnership firm.
The same was allowed to firm. 60,000
8. Brought forward short-term capital loss on sale of gold 2,30,000
2 Brought forward loss on sale of equity shares of the
nature specified ws 111A 25,000
‘Compute gross total income of Nisha for the assessment year 2023-24 and the amount
of loss that can be carried forward, assuming that she does not opt to pay taxes
ws I1SBAC.
(5 marks)
2/2023/TLP/NS, Contd, a |
527
(6) SM Services, a partnership firm consists of 2 working partners, Su
and Murthy
with 60% and 40% share, respectively. As per the partnership deed, they are eligible
for interest on capital(@ 15% p.ad)on their capital contr
n of & 18 lakh each.
and remuneration of(% $5,000 pm to Sunil and(@ 45,000 pit to Murthy. The
firm is engaged in manufacturing business. During the year ended 31st March, 2023
the net profit as per profit and loss account was % 25,36,000 before considering
interest on capital and remuneration to partners as well as the following items : |
S.No. Particulars Amount (%)
@ Current year revenue expenditure on scientific research 2,20,000
wi Brought forward business loss of A.Y. 2018-19 32,000
(iii) Brought forward business loss of A-Y. 2014-15 40,000
(ry Unabsorbed depreciation of A.Y. 2011-12 58,000
@) Unabsorbed capital expenditure on scientific research
relating to P.V. 2019-20 75,000
(wi Current year capital expenditure on scientific research | 4,25,000
(vii) Current year depreciation under section 32 3,72,000
You are required to compute the total income of SM Services for the assessment
year 2023-24 after considering the absve items.
(marks)
2/2023/TLPINS PTO, 527
a8
(© Rajendra, aged 47 years, a resident individual, engaged in a rel business of Stationary producs
furnishes the following particulars of his income for the previous year 2022-2023 :
Ss. No. Particulars Amount (%)
@ Income from business 15,10,000
(i LIC premium paid for dependent father, aged
+ | 75 years. 25,000
Gi) Interest received from Public Provident Fund 15,000
(iv) Interest from bank on savings bank account 22,000
0) Deposit in Public Provident Fund 130,000
You are required to calculate his tax liability and advise him whether he should opt for
altemative tax regime under section 11SBAC or not for assessment yera 2023-24,
(Smarts)
Attempt all parts of either Q. No. 4 or Q. No. 4A
(@ Explain the term “return of loss” under the Income-tax Act, 1961, Can any loss
be carried forward even if retum of loss has not been filed as required under
section 139(3) of Income-tax Act, 1961 ?
(5 marks)
(6) “Income deemed to accrue or arise in India to a non-resident by way of interes,
royalty and fees for technical services is to be taxed irrespective of territorial nexus”.
Examine the correctness or otherwise of the statement with reference to the provisions
of Income-tax Act, 1961.
(5 marks)
2/2023/T LPNS
Contd. .. ae |
527
9
(©) Peepak furnished his retum of income for the assessment year 2023-24 on 22"
‘July, 2023. Due to missing information for payment of taxes in the return of income,
the Assessing Officer considers it defective under section 139(9) of the Income-tax
Act, 1961 ;
(What are the consequences if defect is not rectified within the time allowed ?
(Specify the remedies available if defect not rectified within time allowed by
the Assessing Officer ?
(5 marks)
OR (Alternate question to Q. No. 4)
44. (9) Examine the applicability of tax deduction at source provision, the rate and amount
Of TDS in the independent following cases for the assessment year 2023-24 under
the Income-tax Act, 1961. Assume that all payments are made to residents
(@ Payment made by a company to Shanti Lal, sub-contractor, & 3,50,000 with
‘outstanding balance of % 1,50,000 shown in the books as on 31 March 2023.
(6) Fee paid on 1 January, 2023 to Dr. Bhanawat by Kishan (HUF) % 40,000
for surgery performed on a member of the family.
(© Dhanpal wishes to purchase a residential house costing 60,00,000 from Priya,
‘The house is situated at Mumbai. Both the buyers as well as the sellers are
residents in India,
(@ Arun has paid % 5,00,000 on 12 October, 2022 to Cool Cold Storage
Pvt. Ltd for preservation of fiuits and vegetables. He is engaged in the wholesale
business of fruits & vegetable in India having tumover of € 4 crore during
the previous year 2022-23
(©) Ravi, a salaried individual, has paid rent of % 65,000 per month to Rajiv
from 1% August, 2022 to 31% March, 2023. Rajiv has not furnished his
Permanent Account Number.
(5 marks)
22023/TLP/NS P.T.O. _ ——<—q
527
10:
(iy Ajye a propery dene, enered imo aN ABEEMENE with Mukesh to slg plot on
6% April, 2022 for € 55 lakh. He reosived an advance of ¢ 19 iggy from him
on the date of agreement by account payee cheque. Transfer took place on 12th
September, 2022. The valuation determined by the stamp valuation authority on the
date of agreement and date of transfer was & 59 lakh and & 63 lakh, respectively,
Mukesh has sold
plot to Deepti on 24% March, 2023 for & 65 lakh, The Ga
8s per stamp valuation authority was € 64 lakh on 24! Maren, 2023,
Disouss the tax consequences of above, inthe hands of Ajay and Mukesh, Also,
compute the capital gain in the hands of Mukesh,
Note : None of the parties viz Ajay, Mukesh & Deeps are related to each ater:
the transactions are between outsiders.
(5. marks)
(i Discuss with logical reasoning whether the following are eaptal or revenue receipt!
expenses :
(@) An amount of & 1,60,000 was spent by a company for sending its production
manager abroad to study new methods of production,
(6) B & Co, received & 4,00,000 as compensation from C & Co. for premature
termination of contract of agency.
(©) Payment of © 60,000 as compensation for cancellation of a contract for the
purchase of machinery with a view to avoid an unnecessary expenditure,
(4) R Company Lid. instead of receiving royalty year by year, received it in advance
in lump sum,
(©) An employee director of a company was paid € 3,60,000 as a lump sum
consideration for not resigning from the directorship.
(5 marks)
2/2023/TLP/NS Contd, 527
tit
PARTAI
MNO & Co, a Partnership fim, is engaged in the manufacturing of equipment in the State
of Gujarat. The firm became liable for registration under GST on 14" July, 2022. It applied
for registration on 14" August, 2022 and was granted registration certificate by department
on 18" August, 2022,
MNO & Co, supplied goods to Vikram Ltd, The terms of the contract stipulated that goods
are delivered to the factory of Vikram Ltd. Goods were removed from the factory of MNO
& Co. on November 9, 2022 and were delivered to the factory of Vikram Lid, on November
15, 2022, Invoice was issued on November 18, 2022 and payment was credited to MNO
& Co's account on December 20, 2022. However, the entry was made in the books when
the cheque was received, that is on November 19, 2022.
MNO & Co, is dealing in taxable as well as exempted items. MNO & Co. has provided
following information of a consignment which is to be supplied :
S. No. Particulars Amount (%)
0 Taxable value of supplies indicated on tax invoice 28,000
Wi Value of exempted supplies shown separately in tax
invoice in $ No. (i) above 13,000
(id Value of goods to be sent to job worker on delivery
