University:
University of North Texas
Course:
ACCT 2010 | Accounting Principles I
Academic year:

2022
Views:

368

Pages:

12
Author:

sonalhava9qv

MOCK TEST PAPER 1 INTERMEDIATE COURSE PAPER – 4: TAXATION SECTION – A: INCOME TAX LAW SOLUTIONS Division A – Multiple Choice Questions MCQ No. Sub-part 1. Most Appropriate Answer MCQ No. Most Appropriate Answer (i) (d) 2. (b) (ii) (c) 3. (b) (iii) (d) 4. (a) (iv) (c) 5. (c) 6. (b) Division B – Descriptive Questions 1. Computation of Total Income of Mr. Akash for the A.Y.2022-23 ` Particulars ` ` Income from house property Annual value (rent received has been taken as annu value, due to absence of information relating to expec rent in the question) Less: Deduction u/s 24(a) 7,20,000 30% of Annual Value 2,16,000 Profits and gains of business or profession Net profit as per profit and loss account 75,43,815 Add: Expenses/Payments debited to profit and loss account but not allowed - Fee for late filing of income-tax return A.Y. 2021-22 – disallowed 1,000 - Salary paid to an accountant in cash exceedin 15,000 ` 10,000 – disallowed under section 40A(3) - Interest paid to NBFC on loan which is used 24,000 personal purposes ( ` 1,20,000 x 2,00,000 10,00,000) – not allowed as per section 37 - Interest paid to NBFC on which tax is not deduc 28,800 attracts disallowance @30% of ` 96,000 [Since M Akash9s turnover for the immediately preced previous year i.e., P.Y. 2020-21 exceeds ` 1 cror he is required to deduct tax at source Disallowance@30% of interest is attracted for n deduction of tax at source] - Income-tax paid for F.Y. 2020-21 3,45,000 1 5,04,000 - Interest paid on late payment of GST, allow since it is not for infraction of law but compensatory in nature. - Advertisement expenses towards an advertiseme in a souvenir published by local political p [disallowed under section 37(2B)] - 20,000 Add: Undervaluation of Closing stock 4,33,800 25,000 80,02,615 Less: Income chargeable under other heads and income not chargeable to tax but credited to profit and loss account - Dividend income from Indian companies 17,20,000 - Interest on FDs (Net of taxes) (Gross incom 1,08,000 taxable under the head