THE SIA COLLEGE OF HIGHER EDUCATION MARCH

P-88, MIDC Residential Area, Dombivli Gymkhana Road, Dombivli (E), 421203.
2024
External Regular Examination

SUBJECT Direct Tax Laws – II

Class SYBAF Semester III

Time 8:00 am to 10:30 am Out of 75

Q.
Question Marks
No.
1 a Choose Correct alternatives (Any 8):
8
1 In case of company if individual holds more than _______% or more equity
shares in company along with relatives then its is considered as substantial
interest.
a) 10% b)15% c)20% d) 25%
2 Exemption for minor’s income is available U/s ______
a) 10(32) b)10(10) c) 10(10AA) d)10(10A)

3 Inter source adjustment given U/s______ of income tax act

a) 64 b)62 c) 71 d) 70
4 Unilateral relief is considered as U/s______
a) 90 b)91 c)90A d)92
5 U/s 194 A TDS is deducted at the rate of ______
a) 20% b)10% c)1% d) 2%

6 No TDS has been deducted U/s 194 H where amount does not exceed Rs.
_______ during a financial year
a) 10,000 b)20,000 c) 15,000 d) 25,000

7 TDS on fees for professional services deducted under section _____

a) 194 I b)194 C c) 194 D d) 194 J

8 Loss from business and profession can be carried forward for _______
assessment years immediately succeeding AY in which loss was first
computed.
a) 7 years b) 4years c) 8 years d)6 years
9 Last date for filing of income tax return for a Individual having tax audit is
_________
a) 31July b) 30 September c) 30 November d) None of thesea

10 When advance tax paid by taxpayer is less than 90% of the assessed tax then
interest is payable U/s__________
a) 234 A b) 234 B c) 234 C d) 234 D
b State whether the following statement are True or False (Any 7): 7
1 Loss for non speculation business can be set off against income from
speculation business
2 Clubbing provisions attracts even if minor earn income out of his own skill

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 THE SIA COLLEGE OF HIGHER EDUCATION MARCH
P-88, MIDC Residential Area, Dombivli Gymkhana Road, Dombivli (E), 421203.
2024
External Regular Examination

3 Clubbing provision does not apply for the revocable transfer

4 Interest U/s 234 A charged for late payment of tax
5 Salary of a partner taxable under the head business or profession in the hands
of partner.
6 U/s 194 I a payment to Director for Director’s fee shall not attract TDS
provision if payment does not exceeds Rs. 30,000
7 Surcharge is applicable if total income exceeds Rs. 5,00,000
8 Loss from specified business U/s 35AD can be carried forward for 8 years.
9 Interest paid on loan taken from partner’s wife allowed as deduction while
calculation income of the firm
10 Deduction U/s 80 C available only for the non resident also.
Q2
A Mr. Vijay Parkar is partially blind (75% disability). He works with
MAharshtra Furniture. For the year ended 31/03/2020. He gives you
following information
Particulars Amount

Basic salary 4,80,000 PA

Commission Received 3,00,000 PA

HRA (Exempt Rs. 42,900) 1,20,000 PA

Servant’s salary allowance 60,000 PA

Tiffin Allowance 39,600 PA

Reimbursement of medical expenses 30,000

Professional tax deducted 2,500

15
Particulars of owned house

Municipal valuation (per month) 80,000

Rent received (per month) (house was vacant 1,00,000

for 2 month)

Municipal taxes paid

By owner 50,000

By tenant 10,000

Interest on capital borrowed for purchase of 1,20,000

house paid during the year

Interest O/s on 31/03/2017 60,000

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 THE SIA COLLEGE OF HIGHER EDUCATION MARCH
P-88, MIDC Residential Area, Dombivli Gymkhana Road, Dombivli (E), 421203.
2024
External Regular Examination

He had taken loan from BOM for higher education of his son
studying for engineering degree in Dehradun. During the year
he paid Rs. 40,000 as interest on this loan. He invested in PPF
Rs. 120,000 and He paid LIC premium of Rs. 40,000. He also
paid Mediclaim premium for insuring life of his parents worth
Rs. 29,000 in cash. Compute his taxable income and tax
liability for the A.Y. 2023 -24

OR
Q2 B Mr. Sagar (aged 48 years) provides you the following information calculate
his taxable income and tax liability for year A.Y. 2023 -24
1) He earned Gross income from salary worth Rs. 8,50,000 during year.
2) His net income from house property Rs. 1,20,000
3) His income from business and profession worth Rs. 2,00,000.
4) He invested in LIC for insuring his life. He paid premium worth Rs. 8
52,000
5) Mr. Sagar is a professional chess player. He earned Rs. 4,50,000
(After deducting tax of Rs. 45,000) during the year from the
tournament organized in UK.

C Mrs. Netra (age 38 years) paid advance tax as follows:

On 15/6/2022 Rs. 42,000

On 15/9/2022 Rs. 20,000
On 15/12/2022 Rs. 30,000
On 15/3/2023 Rs. 15,000
7
On assessment on her income her net taxable income comes to Rs. 12,50,000.
She paid her balance tax on 4th September 2023 while she file her return of
income. Due date for filing Return of income was 31/7/2023.

Calculate Interest U/s 234 A, 234 B, 234 C if any.

Q3 A Following is the profit and loss account of Mehta Traders, a registered

partnership firm of which Mr. A and Mr. B are equal partner
Particulars Amount Particulars Amount
To salaries 1,06,000 By gross profit 1,78,500
To electricity and 12,200 By income tax 7,700
water refund 15
To rent 2,000 By interest on 15,000
FD
To rates and taxes 2,500
To motor car 9,000
expenses

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 THE SIA COLLEGE OF HIGHER EDUCATION MARCH
P-88, MIDC Residential Area, Dombivli Gymkhana Road, Dombivli (E), 421203.
2024
External Regular Examination

To interest on 30,000
capital@10%
To repairs 6,000
To Depreciation 8,000
To trade expenses 6,500
To legal expenses 3,500
To net profit 15,500
2,01,200 2,01,200
Other particulars:
1. Salaries include: Rs. 30,000 each paid to A & B
2. Rates and taxes include municipal taxes of Rs. 1,000 paid
on premises of the partner Mr. B to be born by him
3. Legal expenses include Rs. 500 paid to advocate in
connection with litigation of the partner MR. B’s Property.
4. Trade expenses includes: Donation to charitable (approved)
Rs. 1,500 and diwali pooja expenses Rs. 1,000.
You are required to calculate taxable income of a firm.
OR
Q3 C Mr. Batra furnishes the following details for year ended 31/03/2023
Particulars Amount

Short term capital gain 1,40,000

Loss from speculative business 60,000

Long term capital gain on sale of land 30,000

Long term capital loss in speculative business 1,00,000

Income from business of textile (after allowing 50,000

current year depreciation) 8

Income from salary 1,00,000

Loss from house property 40,000

Following are the brought forward losses:

Brought forward loss from business of textile Rs. 60,000 – loss
pertains to AY 2013-14.
Compute Gross Total Income of Mr. Batra for AY 2023 -24.
Also state carry forward losses for AY 2023 -24.

D During the previous year 2022-23 the following transactions occurred

in respect of Mr. A.
a. Mr. A had a fixed deposit of Rs. 5,00,000 in Bank of
India. He instructed the bank to credit the interest on 7
the deposit @ 9% from 1-4-2022 to 31-3-2023 to the
savings bank account of Mr. B, son of his brother, to
help him in his education.

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 THE SIA COLLEGE OF HIGHER EDUCATION MARCH
P-88, MIDC Residential Area, Dombivli Gymkhana Road, Dombivli (E), 421203.
2024
External Regular Examination

b. Mr. A holds 75% share in a partnership firm. Mrs. A

received a commission of Rs. 25,000 from the firm for
promoting the sales of the firm. Mrs. A possesses no
technical or professional qualification.
c. Mr. A gifted a flat to Mrs. A on April 1, 2022. During the
previous year the flat had income as computed under
the head House Property Rs. 52,000 to Mrs. A.
d. Mr. A gifted Rs.2,00,000 to his minor son who invested
the same in a business and he got an income of Rs.
20,000 from the investment.
e. Mr. A‘s minor son derived an income of Rs. 20,000
through a business activity involving application of his
skill and talent.
During the year Mr. A got a monthly pension of Rs.10,000. He had no
other income. Mrs. A received salary of Rs.20,000 per month from a
part time job. Discuss the tax implications of each transaction and
compute the total income of Mr. A, Mrs. A and their minor child.

Q4 A Mrs. Sampada (aged 45 years) is the proprietor of SK & Co. following

is the profit and loss account for the year ended 31 March 2023
Particulars Amount Particulars Amount
To Salaries 2,15,000 By Gross Profit 8,35,500
To conveyance 75,000 By interest accrued on 12,500
NSC’s
To General 52,950 By Gift from friend and 1,52,000
Expenses relatives
To interest paid 1,20,000 By dividend from 1,30,000
Indian company
To GST 46,250 By rent Received from 2,40,000
house property
To advertising 31,000
To Bad debts 45,000
To contribution 60,000
to PPF 15
To Depreciation 50,000
To net profit 6,74,800
13,70,000 13,70,000
Additional Information:
a) Depreciation charged as per income tax act Rs. 60,000.
b) salary expenses of Rs. 35,000 are paid in cash to M/s
Bright Advertising
c) General expenses include Rs. 15000 being medical
expenses incurred for shri Prateek a handicapped
dependent aunty of Mrs .Sampada.
d) GST include Rs. 25,000 paid towards penalty to delay in
filing of returns.
e) Interest paid includes interest worth Rs. 50,000 on loan
paid for purchase of house property. Principal amount
20,000

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 THE SIA COLLEGE OF HIGHER EDUCATION MARCH
P-88, MIDC Residential Area, Dombivli Gymkhana Road, Dombivli (E), 421203.
2024
External Regular Examination

f)
Mrs. Sampada also won the award worth Rs. 25,000 from a
Beauty Competition organised by club.
g) Gift includes diamond neckless given as gift from his
brother worth Rs. 1,00,000 on her birthday and balance
cash gift of Rs. 51,000 was received from friends.
Compute the Net Taxable Income and tax liability of Shri
Samapda for the Assessment year 2023-24.
OR
Q4 B Mr. Rohan a karta of HUF provides following information for the previous
year ended 31/3/2023. Compute net taxable income for AY 2023-24
Particulars Amount Particulars Amount
To rent 1,30,000 By gross profit 8,75,000
To salaries 3,00,000 By interest on bonds 60,000
To motor car expenses 20,000 By dividend from Indian 25,000
companies
To life insurance 70,000
premium
To income tax 40,000
To printing and 20,000
stationary
To convyance 46,000
To depreciation 45,000 15
To Donation 50,000
To net profit 2,39,000
9,60,000 9,60,000
Additional information
1) Salaries include Rs. 50,000 paid to Mr. Mohan’s son. The amount is
considered reasonable based on his qualification
2) Depreciation as per IT act Rs. 25,000
3) 30% of the rent paid is towards his house property
4) He paid medical insurance premium for self Rs. 15,000 and spouse Rs.
20,000
5) He received maturity proceeds of Life Insurance policy Rs. 20,00,000

Q5 a Write a note on section 194I 8

b Write a note on Set off and carry forward of losses form business /profession 7

Q5 Write a short notes (any 3)

15
a Section 194 C
b Interest U/s 234 B and 234 A
c DTAA relief
d Clubbing provision in respect of spouse
e Salary of partner as per IT act.

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