CHRIST (DEEMED TO BE UNIVERSITY),Bengaluru - 560029

End Semester Examination December - 2022

Bachelor of Business Administration (BBA) V SEMESTER
Code: BBA532 Max.Marks: 50
Course: TAXATION LAWS Duration: 2Hrs
SECTION A
Answer any Three questions. Each carries Five marks. 3X5=15
1 Melbon Engineering Ltd, a company incorporated in Australia has entered
into an agreement with ONGC an Indian company for rendering technical
services to the latter for setting up a new refinery and oil Rig. As per
the agreement Melbon Ltd. has rendered technical services to ONGC both
off- shore and on shore at a fee of Rs.60 lakhs and 40 lakhs respectively.
Melbon Ltd is claiming that the fees received in respect of off-shore
services is not subject to income tax in India because the deal was
happened outside Indian territory. Discuss the validity of the claim.
2 Illustrate How do you determine the taxable value of the facility of
residential accommodation provided to employees by employer.
3 State the rules regarding set off and carry forward of the following
losses while computing Total income. a) Ordinary business loss b) Loss
under the head House property and c) Speculation business loss.
4 Explain the provisions of section 80G of Income Tax Act 1961.
5 A Merchant from Bangalore purchased raw materials worth Rs.450,000/- at a
Trade discount of 10% from Surat which is subject to GST @12%. He has sold
out finished products priced Rs.350,000/- to a Merchant in Mumbai and
further sold goods at Rs.300,000/- to a local business man. Both of these
transactions are subject to GST @12%. Find out net amount of GST payable
by the Merchant.
SECTION B
Answer any Two questions. Each carries Ten marks. 2X10=20
6 For the year ended 31st March 2022 the business of Mr.X made a net profit
of Rs.4,50,000/- The following expenses were debited in the profit and
loss account: -
a) Capital expenditure incurred for facilitating inhouse research
Rs.75000/-
b) Donation to political party Rs.15,000/-
c) General expenses Rs.25000/-
d)Payment of an advertisement bill in cash Rs.18000/-
e) Provision for GST payment Rs.50,000/- out of which Rs.30,000/- paid
before the due date of filing tax return.
f) Opening stock debited in the account Rs.66,000/- which is @ 10% above
the cost.
g) Embezzlement of cash by an employee Rs10,000/-
h) Reserve for bad debts Rs.7500/-
i) GST Payable Rs.16000 out of which Rs.10000 paid before the due date of
filing return of GST.
j) Cost of Technical know-how purchased Rs.60000/-
k) Rs.10,000 paid towards corporate social responsibility activities of
the company.
The following items were credited to the P&L account in addition to normal
business incomes.
Recovery of bad debt which is not allowed as deduction in the past
Rs.20,000/- Profit on sale of shares of an Indian company Rs.25000/- and
 Interest on India government bonds Rs.10,000/-
Find out Taxable income from business for the financial year 2021-22 as
per the provisions of Income tax Act 1961.
7 Mr.X owns an agricultural land in an urban area of Jalandhar which he sold
on 10th June 2021 @ Rs.90 lakhs. The same land was purchases by him in
1998 at Rs.750,000. The FMV of this land on 1st April 2001 was Rs.12
lakhs. Expenses on sale Rs.180,000/- During November 2021 he has purchased
5 acres of agricultural land in a rural area at a total cost Rs.25 lakhs.
Cost inflation index of the year 2001-02 was 100 and 2021-22 is 317. He is
the owner of one residential house in Jalandhar. Find out capital gain
subject to income tax and advise him about further options for investment
of capital gain to reduce the income tax burden.
8 Mrs. Suhasini Naidu who is a practicing advocate, furnishes the following
details of her income of the previous year 2021-22
a) Income from profession Rs.12,00000/- Expenses relating to practice of
profession Rs.3,60,000.
c) Agricultural income from wheat cultivation in Bhutan Rs.160,000/-
d) Winnings from crossword puzzle Rs.10,000 from a publishing company.
e) Winnings from State lottery Rs70000 [net amount received].
f) Interest on post office savings bank account Rs7500.
g) Interest on debentures of Reliance industries Ltd. which are listed in
BSE Rs 27000 [net].
h) Income from royalty of writing books Rs.50000/- She claims following
deductions from the
income of royalty income:
salary to clerk Rs 10000, stationery expenses Rs 5000 and printing charges
Rs1000 in connection with printing and publication of the book.
i)Rent of land let out to a company for car parking Rs.60000/-
j) Interest on Karnataka government securities Rs.12000/-
k) Interest on tax free securities issued by government of
India.Rs.10000/-
l) Dividend from co-operative society Rs.10000/- During the year she has
made the following investments.
Compute her GTI of the assessment year 2022-23.

SECTION C
Case Study(Compulsory Question). 1X15=15
9 Dr. Bhaskar a practicing doctor, submits you the following details of his
income of the financial year 2021-22
a) Gross Income from profession Rs.18,00,000/-
b) Expenses relating to practice of profession Rs.600,000/-
c) He is an examiner of various medical colleges and this source gave him
a remuneration of Rs25,000/-
d) Amount received on maturity of life insurance policy from LIC
Rs.2,50,000/-
e) Winnings from horse race Rs210,000/- [net amount received after TDS].
f) Interest on fixed deposit with an NBFC Rs.10,000/-
g) Interest on debentures of Reliance industries Ltd. which are listed in
BSE Rs 18000 [net].
h) Interest on tax free securities issued by government of
India.Rs.10,000/
i) Long term Capital gain on sale of a piece of land in Bangalore city
limits Rs.300,000/- out of which he was invested Rs,100,000/- long term
Bonds of NHAI within the prescribed period.
j) He is living in his own house which he was constructed with the help of
a housing loan from HDFC bank in the year 2013. For the year 2021-22 the
interest on housing loan was Rs.75000/-
k) During the year he has made a deposit of Rs.70,000/- to Public
provident Fund and repayment of housing loan Principal Rs.1,60,000/-
compute his total income subject to Income tax in the assessment year
2022-23.