MOCK TEST - 001

Fill in the blanks:

1. A motor car is the only asset in a block. Cost Rs.200000. Rate of depreciation is 15%. 20% is disallowed for estimated personal use. WDV of the block is Rs........
   
2. When assessee occupies more than one house property then ............. of them shall be treated as ............. and rest shall be treated as .................
   
3. Uncommuted pension received by a government employee is ..............
   
4. In relation to sec. 24(b), unpaid purchase price of the house property ........ (can/cannot) be treated as borrowed capital.
   
5. To be a resident and ordinarily resident, an individual has to satisfy one condition of sec.... and dual conditions of sec.....
   
6. Income from supply of water for agro operation is ............

State with reason, whether following statements are true or false:

1. Recovery of arrear rent is taxable in the year in which the court declares the enhanced rent.
   
2. Basic Salary of employee of UNO is fully taxable.
   
3. Profit on sale of agro land located in a rural area is considered as agro income.
   
4. Dividend received from a company (engaged in agricultural operation) is also treated as agro income.

Mrs. John (a non-government employee) receives the following emoluments during the previous year ending March 31, 2011:

Basic pay: Rs.30000 p.a.; dearness allowance: Rs.7200 p.a.; entertainment allowance: Rs.3000 p.a.; Mrs. John is provided with a rent-free accommodation (owned by her employer) at Delhi. She receives education allowance for her son studying in U.K. Rs.600 p.m. The employer also provides her with a gardener (Rs.100 p.m.), a cook from 1-5-10 (Rs.200 p.m.) and a maid-servant (Rs.300 p.m.). She is given a newly purchased laptop for office (cost to the employer Rs.50000). On 1-10-10, she is provided with a music-system costing Rs.40000 (ownership not transferred). Professional tax paid by the employer for Mrs. John Rs.2000. The employer contributed Rs.12000 towards RPF. Interest credited in the provident fund account @ 8% Rs.1600.

Compute taxable salary for A.Y. 2011-12 in the following cases:

Case 1) Mrs. John is holding 25% voting power in the employer company;

Case 2) Mrs. John is holding 10% voting power in the employer company

Write short notes on exemption u/s 10(5) for leave travel concession.

Shyam occupied two flats for his residential purposes, particulars of which are as follows:

Income of Shyam from his proprietory business - Shyam Warehousing Corporation is Rs.650000. Determine the taxable income and tax liability for the A.Y.2011-12. You are informed that Shyam could not occupy Flat II for two months commencing from 1 December, 2010 and that he had attained the age of 65 on 23 August, 10.

Rahul Industries furnishes you the following information:

The concern acquired 5 machinery on 05-07-2010 for Rs.400000 and sold 15 machinery on 07-12-2010 for Rs.1000000. Further, as on 10-1-2011, it acquires 2 machines for Rs.300000. Compute depreciation claim for the Assessment Year 2011-12.

X, a foreign citizen (not being a person of Indian origin), came to India for the first time on 2nd December, 2010 for a visit of 210 days. X had the following income during the previous year ended 31-3-2011:

You are required to compute his total income for the A.Y.2011-12.

What do you mean by deemed owner of a house property?