Question 1) Answer all the questions:
i) How would you find out the residence of an individual assesses.
ii) How would you compute the annual value of house property?
iii) What is the difference between short term and long term capital assets?
iv) Describe the provision related to set off and carry forward of house property losses.
v) What are the similarities in assessment of individual and HUF.
Question 2) Describe provision of the Income Tax Act pertaining to the following expenses:
a) Expenditure on scientific research.
b) Capital expenditure for technical know how.
Question 3) Describe with suitable example the circumstances under which income of other persons are included in total income of the assesses.
Question 4) Mr. A appointed as manager in Reliance Ltd., Delhi on 1st December, 2005. He has submitted the following particulars of his income for the previous year:
i) Net salary Rs. 72,000 after deduction of contribution to recognized provident fund Rs. 10,800 and rent of bungalow @ 10% of salary.
ii) Dearness allowance Rs. 600 per month; bonus Rs. 9,000 per annum; entertainment allowance Rs. 600 per month; children education allowance Rs. 100 per month per child for two children; travelling allowance Rs. 9,000(actual expenses Rs. 6,000) and commission on sales Rs. 40,000.
iii) Free supply of water and electricity for which employer spent Rs. 1,000 in previous year.
iv) He resides in the bungalow of the company. Its fair rent is Rs. 4,000 per month. A watchman and cook have been provided by company at the bungalow who are paid Rs. 40 per month each.
v) He has been provided with a motor car of 1.8 liters c.c, for his office as well as personal use.
vi) Employer contribution to recognized provident fund is Rs. 18,000 and the interest credited to this fund @13% per annum amounted to Rs. 16,250.
Calculate the taxable income from salary of Mr. A for the assessment year 2012-2013.