VELS INSTITUTE OF SCIENCE, TECHNOLOGY AND ADVANCED STUDIES

SCHOOL OF _MANAGEMENT STUDIES

Department of COMMERCE(A & F)
Model Examination Nov 2021
SUBJECT TITLE: INCMETAX LAW & PRACTICE - I Maximum Marks: 100
SUBJECT CODE: 18CBCF52 YEAR/SEM: III YEAR/5TH SEM
Register No: Invigilator Name &
Signature:
Date: 11-11-2021 Duration : 3HRS
Knowl Marks
Q. Ma C
PART-A (Answer all the questions) edge awarde
No rks O
Level d
1 Who is called ‘Representative Assessee’? 3 1 K3

2 Mr J an Indian citizen goes abroad on 1.4.2013 for the first time. He 3 2 K4

returns to India on 15.02.2020, During the P.Y 2020-2021, he was in
India only for 185 days. Find his residential status for the assessment
year 2021-22.
3 Define the term “Salary”. 3 2 K4

4 Compute the amount of basic salary for the previous year 2020-21 of an 3 1 K2
officer of a public sector undertaking who is appointed on 1.9.2015 in
the grade of Rs.18000- 500 - 20000- 600- 26000. He gets his increment
after every twelve months and his salary is due on the last date of the
month.
5 Calculate taxable HRA from the following: HRA received -Rs.1000 p.m. 3 1 K2
Rent paid for rented house -Rs.1500 p.m. Salary -Rs. 10500 p.m. D.A-
Rs. 500 p.m.
6 Write a note an ‘unrealised rent’. 3 1 K3

7 From the volume particulars compute gross annual value. Municipal 3 2 K4

value is 60,000,, fair rent 65,000 standard Rent 59,500 , actual rents
72,000.
8 What do you mean by ‘Self generated assets’. 3 2 K4

9 A firm’s stock of goods valued on 1.04.2020 at Rs. 2,50,000 at 20% 3 1 K2

below the cost. Calculate the amount of under valuation of stock.
10 State the meaning of Additional Depreciation. 3 1 K2

PART-B (Answer any 5)

11 State the different classes of Assessees. 8 2 K2

Particulars of income of Mr Subramanian who is resident but not
ordinary resident in India for the assessment year 2021 -22 are given
below. 
12 1.Income earned in Pakistan but received in India Rs.5,00,000 8 2
K4
2.Share of profit from a firm in India Rs. 1,00,000
3.Past untaxed foreign income Rs. 3,00,000.
Compute Gross Total Income.
13 8 2
What are the fully exempted allowances as per IT act? K2
Calculate taxable HRA from the following: HRA received -Rs.1000 p.m.
14 Rent paid for rented house -Rs.1500 p.m. Salary -Rs. 10500 p.m. D.A- 8 2
K5
Rs. 500 p.m.
Calculate the amount of R.P.F. which is taxable.
15 A.Salary Rs. 7,500 p.m 8 2
B.Employer’s contribution to RPF @ 14% of Salary K5
C.Interest credited to RPF during the year @ 12% is Rs. 24,000.
 Mr R has got house A. The particular for the previous year 2020 -21 are
given below 
A.Fair rent Rs 90,000
B.Standard rent under rent control act Rs 70,000 
16 C.Municipal value are Rs 80,000 8 1
D.Municipal tax paid by the owner RS8000  K3
E.Annual rent Rs 96,000
F.Annual rent received Rs 80,000 
G.Vacancy period two months
Determine the annual value for the previous year 2020-21.
 Explain ‘Deemed profit’ U/S 41.
17 8 1
K4

Mr. Arumugam has provided the following particulars. Written down

18 value of block of plant and machinery on 1.4.2020 was Rs. 6,00,000, A 8 1 K5
new machinery was purchased in May 2020, costing Rs. 2,00,000. He
sold machinery on 15th Sep 2020 for Rs. 80,000. The rate of depreciation
of all machinery is 15%. Calculate the amount of depreciation.
PART -C (Answer any 2)
For the accounting year ended 3l march 2021, Mr.sasikanth furnished
the following particulars of his income.
A.salary received in India 60000.
B.profit from business in Germany but received in India Rs. 15000.
C.income from house property in Pakistan deposited in bank there
Rs.12000.
D.profit from business established in Bangladesh but business is
controlled from India Rs. 46000.
19 E.income accrued in India but received in Sweden Rs. 25000. 15 2 K2
F.In this accounting year Mr. Sasikanth has brought into India foreign
income of earlier year Rs. 42700.
G.profit from sales of plant at Mumbai (50%received in Bankok)
Rs.160000.
H.Interest on Japan development bonds (60%received in India). Rs.
100000.
Compute the total income if (i) he is Resident (ii) Not Ordinarily
Resident or (iii) he is Non-Resident.
Compute the taxable salary of Mrs Davi of Madurai (population 18
lacs) for the AY 2021-2022 from the following particulars :
A.basic pay Rs.8000 pm
B.dearness allowance of Rs 2000 PM (enters into retirement benefits) 
C.bonus Rs.8000 p.a
D.Rent free accommodation provided by the employer, the fair rental
value of which is Rs 20000 PA. The cost of furniture provided there is
20 Rs. 10000 15 2 K2
E.entertainment allowances Rs 500pm
F.Employees contribution to RPF is at 15 % of salary
G.Employer’s contribution to RPF is at Rs 15000 P.a.
H.Interest credited to Provident fund at 9.5% per annum amounted to Rs.
1900
I.Free use of a larger motor car for both official and personal purposes.
Driver is also provided by the employer.
21 Mr. Faiz has occupied two houses for his residential purpose, particular 15 2 K2
of which are as follows:
Particulars         House I           House II
  Rs.   Rs.
Municipal valuation 30,000 30,000
Standard rent 20,000   ----
Fair rent 18,000 35,000
Municipal taxes paid   2,400 3,600
Repairs       Nil     200
Ground rent   7,000                 400
 Insurance premium   1,300       600
‘Faiz’ borrows Rs. 30,000 @ 20% interest p.a for construction of house
II (date of borrowings: June 1, 2010; date of Repayment of loan
10.5.2019 construction of both houses is completed in May 2015).
Compute the taxable income under the head of house property.
Mr. Y is a Chartered Accountant in Chennai. You are given the income
and expenditure account for the year 2021-22. Compute his income from
profession for the AY : 2021-22.

Expenditure Rs. Income Rs.

To Office 33,000 By Audit fees 3,00,000
Rent
To Salary to 75,000 By Financial 60,000
staff Consultancy
services
To Charities 5,000 By Interest on 22,000
deposits
To Gift to 6,000 By Dividend on 6,000
relatives units of UTI
To 2,400
Subscription
22 for-  Journals 15 1 K2
To Drawings 16,000

To Car 24,000
expenses
To Household 8,600
expenses     
To NSC 40,000
Purchased
To Net income 2,10,000

4,20,000 4,20,000

Additional information
1.Office rent Rs. 3,000 paid not recorded.
2.Depreciation of car during the year is Rs. 6,000
3.30% of car expenses are related to personal purpose.
Marks Obtained for the CO’s
CO
CO1: CO2: CO3: CO4: Total Marks:
5:

Distribution of Questions based on Bloom’s Taxonomy-Knowledge Level