INTERMEDIATE EXAMINATION
June 2024 P-7(DITX)
Syllabus 2022
DIRECT ANDINDIRECT TAXATION
Time Allowed: 3 hours
Full Marks: 100
The figures in the margin on the right side indicate full marks.
Where considered necessary, suitable assumptions may be made and
clearly indicated in the respective answer.
All workings should form part of the answer.
Section-A
(Compulsory)
1. Choose the correct option from the four
alternatives given: 2x15=30
) Mrs Parul isengaged in the business of growing and manufacturing rubber in India.
Her income from this activity for the Financial year 2023-24 is R 2,50,000. Asper
the Income Tax Act, 1961 her agriculture will be:
(A) 2,50,000
(B) 1,87,500
(C) 1,62,500
(D) ? 1,50,000
(ii) Ganesh (aged 45 years), employed in Moses Ltd., has received children education
allowance of ? 2,000 per month. He has 3 school going children. How much of
education allowance is taxable under the Income Tax Act, 1961for the assessment
year 2024-25?
R24,000
(B) ? 13,200
R21,600
(D) 20,400
31966 Please Turn Over
P-7(DITX) (2)
Syllabus 2022
(ii) Racquired an asset for5,22,000 which includes ? 72,000 as GST for which Rhas
claimed input tax credit. The actual cost of acquisition to be included in the block ot
asset under The Inconme Tax Act, 1961 for the assessment year 2024-25 shall be:
(A) 5,22,000
(BYT 4,50,000
(C) ? 5,94,000
(D) NIL
(iV) Mr Radhe is a working and Mr Shyam is a non-working partner of M/s Sun-Shine
partnership firm. M/s Sun-Shine partnership firm is subjected to tax audit under
section 44AB of the Income Tax Act, 1961 for the previous year 2023-2024. What
is the due date for filing return of income for Mr Radhe and Mr Shyam for the
assessment year 2024-2025?
A 31st July, 2024 for both Mr Radhe and Mr Shyam
(B) 31st July, 2024 for Mr Radhe and 31st October, 2024 for Mr Shyam
(C) 31st July, 2024 for Mr Shyam and 31st Octobe, 2024 for Mr Radhe
(D) 31st October, 2024 for both Mr Radhe and Mr Shyam
(v) Amount received by the nominee at the time of closure or opting out of National
Pension System (NPS) referred to in section 80CCD of the Income Tax Act, 1961
due to death of assessee is exxempt upto of total amount payable for the
assessment year 2024-25.
(A)100%
(B)40%
(C) 30%
(D) 25%
(vi) Mr Jiyansh sold his capital asset on 16th July, 2023 and tax payable on long-term
capital gain is ? 1,25,000. What will be the advance tax payable by him on 15th
September, 2023?
(A) ? 18,750
(B) 37,500
(C) ? 31,250
(D) ? 56,250
P-7(DITX)
(3)
Syllabus 2022
(vi) What is the monetary limit for gifts given by the employer to employee in a financial
year so that it is not treated as supply under GST law ?
(A) ? 1,00,000
(B} 50,000
(C) ?25,000
(D) NIL
(vii) Who will levyand administer IGST ?
(AY CBIC
(B) State Government
(C) Union Territory
(D) Central Government
(ix) What is the monetary limit for generating E-way bill under the GST law?
(A) ? 50,000 or more
(B) 1,00,000 or more
(C) More than 50,000
Dr More than25,000
(x) Which of the following statements is incorrect?
(A) Power to levy GST on alcohol for human consumption remains with the state
gOvernment.
B) Along with GST, additional excise duty is levied by the state government on
tobacco.
Aes For petrol and diesel, the GST council has to decide the date from which GST
will be applicable.
(D) Crude oil and natural gas are not taxable under GST law.
(xi) Under GST, due date of filing of GSTR-7 (Return for authorities deducting tax at
source) is (Assume there is no extension).
(A) 10th day of the following month
(B) 13th day of the following month
(C) 18th day of the following month
(D) 20th day of the following month
P-7(DITX) (4)
Syllabus 2022
(xii) Mr Raja supplied a machinery to Mr Ranka on 28th July, 2023. The applicable rate
of GST on that day was 12%. With effect from Ist August, 2023, the GST rate for
that
such machinery was revised to18%. Mr Raja issued an invoice for the sale of
machinery to Mr Ranka on 4th August, 2023. He received the payment for the same
applicable rate of GST in
on 10th August, 2023. What will be the time of supply and
such a case?
(A) 28th July, 2023 and at 12%
(B, 4th August, 2023 and at 18%
(C) 4th August, 2023 and at 12%
(D) 10h August, 2023 and at 18%
(xiii) A credit note is issued by and it is a document accepted for GST
purposes.
(A) supplier, for increasing the tax/ taxable value
(B) supplier,for reducing the tax/ taxable value
(C) recipient, for increasing the tax/ taxable value
value
(9) recipient, for reducing the tax/ taxable
the Customs Tariff
(xiv) On which of the following values IGST cannot be levied under
Act, 1975?
(A) Assessable value of imported article plus Basic Customs Duty plus Social
Welfare Surcharge.
(B) Basic Customs Duty plus Anti-dumping Duty.
(e) Basic Customs Duty plus Compensation Cess.
(D) Assessable value plus Basic Customs Duty plus Anti-dumping Duty plus
Safeguard Duty.
have efteet
(xv) Under the Customs Tariff Act, 1975, Safeguard Duty shall be ceased to
on the expiry of. (unless revoked earlier) from the date of its impositio
However, the Central Government may extend the period of levy to
(A) 5years; 10 years
(B) 4 years; 10 years
(C) 3 years; 5 years
(D) 1year; 5years
(5) P-7(DITX)
Syllabus 2022
SECTION - B
(Answer any five questions out of seven questions given.)
Each questions carries 14 Marks. 14x5=70
2. (a) Vijay, a software engineer born and brought up at Chennai, left for
employment
on 20th August, 2019 to Country X. He returned to India on 05.06.2023 and joined
ABC Ltd. as CEO. He has the following incomes for the financial year 2023-24:
S. No
Particulars Amount )
(i) Income from salary (computed) 9,00,000
(ii) Interest on bank fixed deposits in India 30,000
(ii) Interest onbank deposits in Country X 50,000
(iv) Income from rubber estate in Sri Lanka 2,00,000
Income from business in Malaysia
(V) 4,50,000
(vi)
Royalty income from a company in Dubai 1,20,000
Assume that incomes given above have been computed with eligible deductions.
lgnore section 115BAC of the Income Tax Act, 1961. Determine the residential
status of Vijay for the assessment year 2024-25 and compute his total income.
(b) Mrs Simran (aged 45 years) is the HR manager in Shiv Pvt. Ltd. She has given the
details of her income for the previous year 2023-2024:
S. No Particulars
i) Basic salary is ? 70,000 per month upto 31st July, 2023 and
75,000 per month from lst August, 2023. Salary is due and paid
on the last day of every month.
(i) Dearness allowance @25% of basic salary (not forming part of
salary for retirement benefits).
(i) Bonus equal to one month salary is paid in July, 2023 on basic
salary plus dearness allowance applicable for that month.
(iv) Contribution of employer to recognized provident fund account of
the employee @ 15% of basic salary.
(V) Motor car owned by the employer (cubic capacity of engine
exceeds 1.60 litres) provided to the employee from lst January,
2024 which is used for both official and personal purposes. Repair
and running expenses of 27,000 from Ist January, 2024 to 31st
March, 2024, were fully met by the employer. The motor car was
self-driven by the emnployee.
P-7(DITX) (6)
Syllabus 2022
S. No Particulars
(vi) I 10,000 paid as Hostelexpenses allowance for 2 children.
(vii) ? 48,000 paid as Education facility for 2 children in a school
maintained by employer.
Youare required to calculate the income chargeable to tax under the head salaries in
the hands of Mrs Simran for the assessment year 2024-2025.
Assume Mrs Simran exercises the option of shifting out of the default tax regime
provided under section 115BAC of the Income Tax Act, 1961. Indicate clearly the
reasons for treatment of each item.
3. (a) Mr Aaradhya provided the following information in respect of his various house
properties:
Particular H1 H2 H3
Used For Self Occupied|Self Occupied Self Occupied
Situated at Delhi Indore Mumbai
Gross Municipal Value ) 2,50,000 3,50,000 7,50,000
Fair Rent ) 2,00,000 3,00,000 7,00,000
Standard Rent() 3,00,000 3,00,000 6,50,000
15% 15% 15%
Municipal Tax
|Repairs ) 12,000 8,000 10,000
Interest on Loan ) 70,0001,50,000 2,50,000
Loan Taken on 1998-99 1998-99 2019-20
He does not opt to be taxed under section 115BAC of the Income Tax Act, 1961.
Compute the income from house property chargeable in the hands of Mr Aaradhya
for the assessment year 2024-25.
(b) Mr Aman engaged in retail trade of stationary items, reports a turnover of
{2,99,00,000 for the financial year 2023-2024. Amount received in cash during the
previous year 2023-2024 is 13,50,000 and balance through prescribed electronic
modes on or before the due date for filing the return specified in section 139(1) of the
Income Tax Act, 1961.His income from the said business as per books of accounts
? 14,50,000 computed as per the provisionsof Chapter IV-D, Profit and gains from
business or profession of the Income Tax Act, 1961.
Retail trade is the only source of income for Mr Aman, Assessment year 2023-202+
was the first year for which he declared his business income in accordance with tie
provisions of presumptive taxation under section 44AD.
(7) P-7(DITX)
Syllabus 2022
Decide
whether Mr Aman is eligible for
chargeable to tax for the presumptive determination of his income
If so,
determine assessment
his income
year 2024-2025.
from retail trade as per the applicable presumptive
provisions.
Indicate clearly the reasons for treatment of 7
4. (a) MS. Kavita, an individual, sold an
each item.
agricultural and for
The land 1S located at 3.6 kms (aerial distance) from the 40 lakh on 10.03.2024.
local limits of munic1pality
whose population was 600000 according to the last preceding
by her on 30.06.2014 for 18 census. It was acquied
lakh.
She alsO Sold a vacant land located in urban area for75 lakh in
June, 2023 and the
value of land for stamp duty purposes was 80 lakh. This vacant land was obtained
as gitt tTom her father in May 2013 which was originally acquired by
her
October, 2001 for 12 lakh. The Fair Market Value (FMV) of the vacantfather in
land in
May 2013 was 40 lakh.
Kavita deposited? 30 lakh in section 54EC bonds on 25.03.202A.
COst intlation index: F.Y. 2001-02 = 100: F.Y.2013-14 = 220:; F.Y.2014-15 = 240,
FY.2023-24 = 348.
Ünder the Income Tax Act, 1961 compute income from capital gains in the hands of
Kavita for the assessment year 2024-25.
She does not opt to be taxed under section l15BAC of theIncome Tax Act, 1961.
(b) Mrs Bharti(aged 50 years), submits the information of following transaction/income
during the previous year 2023-2024:
S.No Particulars Amount
Dividend received from co-operative society 15,000
) of
(ii) Winning from game show "Kaun Banega Punji-Pati" (Net 87,500
TDS)
(ii) Pension received from employer of deceased husband @5.000 60,000
per month
market value
(iv) She purchased a painting for 65,000, although fair
(FMV)was 80,000
machinery
Rent received of a factory building along with plant andinsurance)
(v)
(Mrs Bharti has spent 2,000 on repairs, 2,500 on 95,000
on factory building is 5,000 and on
Further,the depreciation
plant & machinery is 3,500 land 80,000
(vi)Rent received from a vacant plot of
to relative 7,500
(vii) Interest received on loan given
are required to compute the income of Mrs Bharti chargeable under the head
You 2024-25, assuming Mrs Bharti
Income from other sources for the assessment year
regime provided under section
exercise the option of shifting out of the default tax 7
115BAC.
P-7(DITX) (8)
Syllabus 2022
5, (a) Mr Anupreet provides the following information of income/losses for the previo
year 2023-24:
S. No Particulars Amount
() Salary income 5,00,000
(i) Loss under the head house property 2,20,000
(iii) Profit from speculation business 6,00,000
(iv) Loss from non-speculation business 3,00,000
(v) Loss from other sources 3,00,00
(vi) Loss from LTCG 1,50,000
(vi) Profit from STCG 40,000
(viii) Carried forward loss of speculation business(P. Y. 2019-20) 3,50,000
(ix) Unabsorbed depreciation of shut down business( P.Y. 2015-16 ) 1,65,000
You are required to compute the total income of Mr Anupreet for the assessment
year 2024-25 showing clearly the manner of set off and the items eligible for carried
forward with reasons.
He filed his Income Tax Return on time every year. He does not opt to be taxed under
7
section 115BAC of the Income Tax Act, 1961.
particulars of
(b) Mr Pawan, aged 36 years, a resident individual furnishes the following
his income for the previous year 2023-2024:
Particulars Amount ()
S. No
Annual value of let-out property 60,000
(i)
S,36,000
(ü) Profit and gains from manufacturing business (After
deducting normal depreciation, of ? 8,000 and additional
depreciation of ? 4,000)
1,00,000
(iii) Interest received on fixed deposit from bank (Gross)
60,000
(iv) Interest received from company deposits (Gross)
1,000
(v) Saving bank account interest received by minor son of
Mr Pawan
P-7(DITX)
(9) Syllabus 2022
He contributed the following amounts by cheque:
Amount )
SNo Particulars
25.000
(i) Sukanya Samriddhi Account Scheme in the name of his
minor daughter
30,000
() Own contribution to Recognised Provident Fund
20,000
(iii)Prime Minister's National Relief Fund
income and his tax liability for the
YOu are required to calculate total taxable
regime under section 115BAC of
assessment year 2024-2025 under the default tax
as per the normal provisions of
the Income Tax ACt, 1961 and optional tax regime
the Act.
under default tax regime under section
Advise Mr Pawan whether he should pay tax 7
115BACor normal provisions of the Act.
limitations in pre-GST regime in the context of indirect taxes,
6. (a) State the difficulties / 7
introduction of GST.
which were removed with the
(meaning, functions and salient features ) on GST Network
(b) Write a short note
(GSTN).
store and also a footwear showroom, is registered under
fancy
7. (a) Mrs Pooja, running a Pooja is not engaged in making
in the State of Uttarakhand. Mrs
GST in same PAN
Her aggregate turnover in the preceding financial year
any inter-State supply. showroom.
and? 45 lakh from footwear
2022-23 was 50 lakh from fancy store
answers with
provisions of GST law, examine the issue and provide the
As per the
followings:
supportingexplanatory note to the
eligible to opt composition scheme in the financial year 2023-24?
(i) Is MrsPooja
possible for Mrs Pooja to opt composition scheme only for fancy
(ii) Whether it is
for footwear showroom?
store and normal scheme
running arestaurant as well as fancy store, whether
(iii) Rework, if Mrs Pooja is
composition scheme, if aggregate turnover in the preceding
she is eligible for the
2022-23 was? 30 lakh from fancy store and 35 lakh from
financial year 7
restaurant service.
P-7(DITX) (10 )
Syllabus 2022
(b) Mr Jay received an advance of R25,000 on 7th May,2023 for supply of goods .He
delivered the goods on 16th May, 2023. He raised an invoice of 75,000 on 20%
June, 2023 and received the balance payment on the same day by NEFT in his bank
account.
What willbe the time of supplyfor above transaction under GST law for the purpose
of payment of tax?
What will be your answer if the above information related to service instead of
goods and Mr Jay would have provided services on 16th May, 2023?
8. (a) As per the provisions of GST 1aw, determine the effective date of registration in the
following independent cases:
(4) The aggregate turnover of M/s Parwati and Company, Utensil Trader of Delhi
has exceeded the applicable threshold limit of 40 lakh on lst October, 2023.
It submits the application for registration on 20th October, 2023. Registration
certificate granted to it on 25th October, 2023.
(ii) Mr Hardik is an architect in Jaipur (Rajasthan). His
aggregate turnover
exceeds?20 lakh on 25th September, 2023. He submitted the application for
registration on 27th October, 2023. Registration certificate granted to him on
10th November, 2023.
Legal provision should form part of your answer. 7
(b) Shyam Trade Company of Kolkata has imported one machine by Air from USA.
Shyam Trade Company has given the following particulars related to this transaction:
S, No Particulars Amount
(i) FOBvalue of the machine US $25,000
(i1) Air freight, loading, unloading & handling US$ 3,000
charges associated with the delivery of the
imported goods to the place of importation
(iiü) Licence fee relating to imported goods, US $ 500
the buyer was required to pay in USA as a
condition of sale
(iv) Design and engineering charges paid to 10,000
consultarncy firm in Mumbai
(v) Buying commission paid in India ?15,000
(vi) Insurance charges paid to the insurer in India 8,000
(vii) Demurage charges for delay in clearing the ? 12,000
machine from Airport paid byimporter
(11 ) P-7(DITX)
Syllabus 2022
Date of Bill of entry 30-07-2023
exchange rate as notified
by CBIC=?75 per US
$, Rate notified by RBI
=776 per US $)
Date of arrival of aircraft 10-08-2023
exchange rate as notified
by CBIC=?77 per US
$, Rate notified by RBI
=78per US $)
Youare required to determine the assessable value of machine imported by Shyam
Trade Company under the Customs Act, 1962.
Showworkings with explanations.
