CORPORATE TAX PLANNING

                    ASSIGNMENT-A
1.     Define ‘annual value’ and discuss the deduction to be made out of Annual Value for computing income from house property?

2.    Explain the procedure for registration under Service Tax.
3.    How do you determine the residential status of company?

4 .     Write short note on any three of the following.
a.    What is Permanent Account Number?
b.    What do you mean by GTI?
c.    Who is specified employee?
d.    Define previous year.
e.    Expand CBDT and CIT.

 
5 .     Discuss briefly the provisions relating to set off and carry forward of non-speculative business losses?        
6 .     When an individual is assessable in respect of income of his or her minor child?      
  
7 .     Explain the different kind of provident fund. 

       
    
 
8 .     Differentiate between the following: (i) “Defective return of income” and “Belated return of income” (ii) “Tax avoidance” and “Tax Evasion”      

                                                    ASSIGNMENT-B

                                                     CASE STUDY

Dr. Bankey Lal, a businessman, constructed a multi-storied building consisting 16 flats of equal size. The construction was started in April 2004 and completed on March 31, 2008. Of these 16 Flats, 8 were let-out to tenants for their residence, 2 to tenants for their business, 2 were used by Doctor Bankey Lal for their business, 2 were used by him for his own business and 2 were allocated to 2 employees of Dr. Bankey Lal; Business for their residence and the occupation of these 2 flats by the two employees facilitated the carrying of on his business. The rent charged from each of the ten tenants were Rs 500 p.m. but from the two employees of Dr. Bankey Lal@ Rs 200 p.m. One of the tenants were in arrear of rent for two months during the year and was unable to pay the same. After, he vacated the flat, Dr. Bankey Lal had to wait for two months to get new tenant. The expenses incurred by Dr. Bankey Lal in respect of the flats during the year ended on 31 March 2013 were as follows :- Municipal taxes for each flat Rs 750, cost of repair of each flat Rs 500, annual interest on loan on construction of house Rs 24000, Fire is insurance premium for flat Rs 100, Law charges in connection with a lease agreement were paid for each flat  Rs 500.

1.   Compute the income from house property of Dr. Bankey Lal for the                           assessment year 2013-2014.

ASSIGNMENT- C

1. Which of the following types of income is not specifically exempt from income tax
Options     
    
Statutory redundancy pay 

Income from Individual Savings Accounts 

Any benefit in kind provided to employees by an employer 

Income from National Savings Certificates 

2. The basic rate of income tax on non-savings income for tax year 2012-13 is:

20% 

10% 

40% 

50% 

3. If a married couple (or civil partners) receive joint income, the amount of that income will normally be divided equally between them for tax purposes. True or False

True
False

4. A taxpayer has taxable income for 2012-13 (after deducting the personal allowance) of £75,200. None of the income is derived from savings or dividends. The income tax liability for the year is:

£15,040 

£23,206 

£30,080 

£37,600 

5. A taxpayer has taxable income for 2012-13 (after deducting the personal allowance) of £185,300. None of the income is derived from savings or dividends. The income tax liability for the year is:

£92,650 

£74,120 

£70,776 

£37,060 

Question No.  6     
Which of the following types of income is received by individuals without deduction of basic rate tax?     
  
Options     
    
Loan interest paid by UK companies 

Building society interest 

Patent royalties 

Bank interest received on a National Savings bank account 

Question No.  7      
In 2012-13, an individual receives net building society interest of £792. The equivalent gross income is:     
  
Options     
    
£792 

£1,320 

£880 

£990 

Question No.  8     
In 2012-13, George has property income of £8,780 and net bank interest of £4,000. He claims the personal allowance of £8,105. What is the income tax borne for the year?     
  
Options     

£931.50 

£864.00 

£1,135.00 

£567.50 

Question No.  9      
In 2012-13, an individual receives a net dividend of £648. The equivalent gross income is:     
  
Options     
    
£720 

£810 

£648 

£6,480 

Question No.  10      
In 2012-13, Steven has business profits of £34,125, net bank interest of £1,240 and net dividends of £9,000. He claims the personal allowance of £8,105. What is the income tax payable for the year after subtracting tax deducted at source?     
  
Options     
    
 
£7,234     

£5,924     

£8,154     

£6,164     

Question No.  11      
Which of the following is not a "chargeable person" for CGT purposes     
  
Options     
    
An individual who is resident and ordinarily resident in the UK 

A company which is resident in the UK 

A partner in a UK partnership 

A trustee of a UK trust 

Question No.  12      
Which of the following is a "chargeable asset" for CGT purposes?     
  
Options     
    
A motor car 

A taxpayer's principal private residence 

A taxpayer's holiday home 

Gilt-edged securities 

Question No.  13      
Which of the following could give rise to a capital gain (or allowable loss)?     
  
Options     
    
A gift of an asset to a charity 

A transfer of an asset between a husband and wife who live together during the tax year in which the transfer occurs     

A disposal caused by the death of the taxpayer 

The receipt of compensation on the destruction of an asset 

Question No.  14      
A taxpayer has a single capital gain in 2012-13 of £18,000. The gain does not qualify for entrepreneur's relief and there are no other gains or losses in the year. 
The taxpayer's taxable income for the year (after deducting the personal allowance) is £20,000 and there are no Gift Aid donations or pension contributions during the year. The CGT liability for the year is:     
  
Options     
    
£1,332 

£2,072 

£3,240 

£3,603 

Question No.  15     
A taxpayer has a single capital gain in 2012-13 of £15,600. The gain does not qualify for entrepreneur's relief and there are no other gains or losses in the year. 
The taxpayer's taxable income for the year (after deducting the personal allowance) is £50,000 and there are no Gift Aid donations or pension contributions during the year. The CGT liability for the year is     
  
Options     
    
£900 

£4,368 

£1,400 

£2,808 

Question No.  16      
A taxpayer has a single capital gain in 2012-13 of £22,500. The gain does not qualify for entrepreneur's relief and there are no other gains or losses in the year. The taxpayer's taxable income for the year (after deducting the personal allowance) is £30,000 and there are no Gift Aid donations or pension contributions during the year. The CGT liability for the year is:     
  
Options     
    
£2,142 

£5,863 

£2,895 

£3,332 

Question No.  17      
A taxpayer has a capital loss brought forward from the previous tax year of £2,000. In 2012-13 he has capital gains of £18,200 and allowable losses of £700. What is the CGT assessment for 2012-13?     
  
Options     
    
£17,500 

£15,500 

£6,900 

£4,900 

Question No.  18      
Betty died on 30 November 2012, having made net capital losses of £5,000 between 6 April 2012 and the date of her death. Her net gains in the previous three years (and the annual exemption for each of those years) were as follows: 
                    Net gains         AE   
                       £                       £ 
2009-10     20,500      10,100 
2010-11     9,000        10,100 
2011-12     12,500      10,600 
  
Betty's CGT assessment for 2009-10 is:     
  
Options     
    
£5,400 

£10,400 

£7,300 

£8,400 

Question No.  19     
Betty died on 30 November 2012, having made net capital losses of £5,000 between 6 April 2012 and the date of her death. Her net gains in the previous three years (and the annual exemption for each of those years) were as follows: 
                  Net gains      AE   
                       £                        £ 
2009-10     20,500      10,100 
2010-11     9,000        10,100 
2011-12     12,500      10,600 
            
Betty's CGT assessment for 2011-12 is:     
  
Options     
    
£12,500 

£10,600 

£1,900 

£nil 

Question No.  20     
Payments on account of capital gains tax fall due on 31 January in the tax year concerned and on the following 31 July. True or False?     
  
Options     
    
True   

False 

Question No.  21      
In some cases assessment year and previous year can be same financial year.     
  
Options     
    
True 

False     
 

Question No.  22      
A.O.P should consist of:     
  
Options     
    
Individual only     

Persons other than individual only
     
Both the above 

None of the above 

Question No.  23      
Body of individual should consist of:     
  
Options     
    
Individual only     

Persons other than individual only 

Both the above     

None of the above 

Question No.  24      
A new business was set up on15-11-2008 and it commenced its business from 1-12-2008.The first previous year in this case shall be:     
  
Options     
    
15-11-2008 to 31-3-2009 

1-12-2008 to 31-3-2009     

2008-2009     

None of the above 

Question No.  25      
A person leaves India permanently on 15-11-2008.The assessment year for income earned till 15-11-2008 in this case shall be:     
  
Options     
    
2007-08     

2008-09     

2009-10 

All of the above 

Question No.  26      
Surcharge in case of an individual or HUF for assessment year 2009-10 is payable at the rate of:     
  
Options     
    
12% of the income-tax payable provided the total income exceed Rs.60,000.     

10% of the income-tax payable provided the total income exceeds Rs.10,00,000     

5% of the income-tax payable if the total income exceeds Rs.8,50,000     

None of the above 

Question No.  27      
Surcharge in case of a firm for assessment year 2009-10 is payable at the rate:     
  
Options     
    
2.5% of income-tax payable     

5% of income-tax payable     

10% of income-tax payable 

All of the above 

Question No.  28      
The maximum amount on which income-tax is not chargeable in case of firm is:     
  
Options     
    
Rs.1,00,000     

Rs. 90,000     

Nil     

None of the above 

Question No.  29     
The maximum amount on which income-tax is not chargeable in case a co-operative society is:     
  
Options     
    
Rs.50,000 

Rs.30,000     

Nil 

Question No.  30     
A local authority is taxable at flat rate of income-tax.     
  
Options     
    
 
True     

False     

Question No.  31     
Income which accrue outside India from a business controlled from India is taxable in case of:     
  
Options     
    
Resident only     

Not ordinarily resident only 

Both ordinarily resident and NOR 

Non-resident     

Question No.  32     
Income which accrue or arise outside India and also received outside India taxable in case of:     
  
Options     
    
resident only     

not ordinarily resident     

both ordinarily resident and NOR 

none of the above     

Question No.  33     
TI of a person is determined on the basis of his:     
  
Options     
    
residential status in India     

citizenship in India     

none     

both of the above     

Question No.  34     
Once a person is a resident in a P.Yr. he shall be deemed to be resident for subsequent P. Yr.     
  
Options     
    
True     

False     

Question No.  35     
Once a person is resident for a source of income in a particular P. Y r. he shall be deemed to be resident for all other sources of income in the same P. Yr :     
  
Options     
    
True 

False     
 

Question No.  36     
R Ltd., is an Indian company whose entire control and management of its affairs is situated outside India. R Ltd., shall be:     
  
Options     
    
Resident in India     

Non-resident in India 

Not ordinarily resident in India     

All of the above 

Question No.  37     
R Ltd., is registered in U.K. The control and management of its affairs is situated in India .R Ltd shall be:     
  
Options     
    
Resident in India     

Non-resident     

Not ordinarily resident in India 

None of the above 

Question No.  38      
R, a foreign national visited India during previous year 2008-09 for 180 days. Earlier to this he never visited India. R in this case shall be:     
  
Options     
    
Resident in India     

Non-resident     

Not ordinarily resident in India 

None of the above 

Question No.  39     
An Indian company is always resident in India     
  
Options     
     
True     

False     

Question No.  40     
Dividend paid by an Indian company is:     
  
Options     
    
Taxable in India in the hands of the recipient 

Exempt in the hands of recipient     

Taxable in the hands of the company and exempt in the hands of the recipient     
All of the above