Answer ALL question each 10 Marks.

1.Mr. Landlord is the owner of two houses in respect at these he has furnished the 4. From the following P & L a/c calculate income from business for
following particulars. House ‘A’ House ‘B’ the assessment year 2012–13.
Rs. Rs. Rs. Rs.
(a) Date of completion at construction 31.03.1996 1.7.2000 To Rent & Rates 45,000 By Gross Profit 2,25,000
(b) Municipal rental value 3,60,000 6,00,000 To Dep. on machinery 8,000 By Income from other sources 1,50,000
(c) Actual rent received 3,00,000 60,000 p.m. To Dep. on furniture 2,000 By Income from capital gain 1,00,000
(d) Municipal Taxes paid 36,000 30,000 (Due) To Purchase of motor car 50,000 By Miscellaneous income 1,25,000
(e) Ground Rent 1,000 7,800 To Car expenditure 3,000
(f) Interest on loan taken for construction 50,000 1,82,000 To Advertisement (Cash) 25,000
To Net profit 4,67,000
Compute his Income from House property for the assessment year 2010-11. Out of the 6,00,000 6,00,000
Municipal Taxes of House ‘A’ Rs. 18,000 one paid by the tenant. (a) Allow Rs. 5,000 as depreciation on machinery.
(b) 50% of motor car expenses relates to personal use.
2.Calculate Income from Profession from the following Receipts and payments given by (c) Miscellaneous receipt is approved by I.T. authority as
Mr. Anbalagan. business income.
Receipts Rs. Payments Rs. (d) Motor car has no depreciation.
Balanced c/d 1,20,000 Car Expenses 24,000
Fees from client: Office Expenses 6,000 5.
2010-11 25,000 Salary to staff 7,000
2011-12 30,000 Int. on. Loan 1,000
2012-13 32,000 Income Tax 1,500
Present from client 20,000 Income Tax Penalty 600
Winning from Lottery 24,000 Wealth Tax 250
Purchases cost 5,000
Balanced c/d 2,05,650
2,51,000 2,51,000
(a) Depreciation at Rs. 2500 is to be provided
(b) Consider Rs. 1,500 as opening stock and Rs. 1000 as closing stock.
(c) Car is 60% used for official purpose. (d) Income from other sources Rs. 30,000

3. Mr. Vijayan’s house details are as follows. (50% own residence and 50% let out).
Municipal value 1,12,000 Municipal tax 12,000
Ground rent due 2,400 Rent received (let out) 48,000 Repair 24,000
Insurance premium 3,000
Interest on loan for house construction 2,400
Compute house property income for the AY 2012–13.
 S.S GOVT.ARTS COLLEGE TIRUTHANI S.S GOVT.ARTS COLLEGE TIRUTHANI
INCOME TAX LAW AND PRACTICE –I DATE:10/10/17 INCOME TAX LAW AND PRACTICE –I DATE:10/10/17
Answer ALL question each 5 Marks. Time : 1.30 hrs Answer ALL question each 5 Marks. Time : 1.30 hrs

1.From the particulars given below, compute Gross Annual Value(GAV). 1.From the particulars given below, compute Gross Annual Value(GAV).
MRV (Municipal Rental Valve) 70,000 P.a. MRV (Municipal Rental Valve) 70,000 P.a.
FRV (Fair Rental Valve) 76,000 P.a. FRV (Fair Rental Valve) 76,000 P.a.
Standard Rent 79,000 P.a. Standard Rent 79,000 P.a.
Actual Rent 84,000 P.a. Actual Rent 84,000 P.a.
2.Calculate Income from house property from the following: 2.Calculate Income from house property from the following:
MV 6,000 P.M. MV 6,000 P.M.
FRV 7,000 P.M. FRV 7,000 P.M.
SR 6,250 P.M. SR 6,250 P.M.
Actual Rent 7,500 P.M. Actual Rent 7,500 P.M.
The house has been let out from 1st Jan of 2000. In the year 2005 and 2006 it was self- The house has been let out from 1st Jan of 2000. In the year 2005 and 2006 it was self-
occupied. Again from 1st April 2006 it was let out. During the current P.Y. 2011-2012 half- occupied. Again from 1st April 2006 it was let out. During the current P.Y. 2011-2012 half-
month rent could not be realized. month rent could not be realized.

3. 18. From the following P & L A/C calculate income from business. 3. 18. From the following P & L A/C calculate income from business.
To rent 40,000 By G/P 2,50,000 To rent 40,000 By G/P 2,50,000
To Salary to employee 25,000 By H.P Income 1,50,000 To Salary to employee 25,000 By H.P Income 1,50,000
To depreciation 10,000 By IFOS 2,00,000 To depreciation 10,000 By IFOS 2,00,000
To Donation 8,000 To Donation 8,000
To N/P 5,17,000 To N/P 5,17,000
6,00,000 6,00,000 6,00,000 6,00,000
(a) Depreciation to be allowed as per income tax provision Rs. 8,000 (a) Depreciation to be allowed as per income tax provision Rs. 8,000
(b) Business income at Rs. 12,000 is not shown in the P&L A/C. (b) Business income at Rs. 12,000 is not shown in the P&L A/C.
(c) Rs. 8,000 of the rent its of personal motive. (c) Rs. 8,000 of the rent its of personal motive.

4. 16. Mr. Rahul submits the following particulars of his business of which, you calculate
the income from business. Net profit as per P & L a/c (after charging following) Rs. 40,000.
(a) Sales tax Rs. 2,000 and Income tax Rs. 3,000. (b) Bad debts provision Rs. 1,000.
(c) Commission to procure business order Rs. 4,000. (d) Interest on capital Rs. 1,500.
(e) Depreciation Rs. 2,000 (but as per Income Tax Rules Rs. 1,800 only)
4. 16. Mr. Rahul submits the following particulars of his business of which, you calculate
the income from business. Net profit as per P & L a/c (after charging following) Rs. 40,000.
(a) Sales tax Rs. 2,000 and Income tax Rs. 3,000. (b) Bad debts provision Rs. 1,000.
(c) Commission to procure business order Rs. 4,000. (d) Interest on capital Rs. 1,500.
(e) Depreciation Rs. 2,000 (but as per Income Tax Rules Rs. 1,800 only)

5. From the following calculate gross annual value. 5. From the following calculate gross annual value.
Particulars House1 House2 House3 House4 House5 Particulars House1 House2 House3 House4 House5
MRV 20,000 25,000 30,000 35,000 40,000 MRV 20,000 25,000 30,000 35,000 40,000
FRV 40,000 32,000 26,000 28,000 Nil FRV 40,000 32,000 26,000 28,000 Nil
SR 30,000 28,000 32,000 N.A. N.A SR 30,000 28,000 32,000 N.A. N.A.