Determine the legal status of the following, as per sec 2(31) of the Income tax Act, 1961 1. M.S.

University 2. Dinesh Mills Ltd. 3. Vadodara Municipl corporation 4. Taxman Publications (P) Ltd. 5. Laxmi Commercial Bank Ltd. 6. ABC Group Housing Co-operative society 7. XY and Co. firm of X and Y. 8. A joint family of Mr. Patel, Mrs. Patel and there Sons A and B and Unmar ried Daughter D. 9. Mr. Janak Shah, a lecturer in M.S.University. 10. Mrs. Gandhi, a sole proprietor of a business 11. Mr. Mukeshbhai, a director in Reliance Co. Ltd. 12. Life Inurance Corporation of India. 13. Mr. Jata Shankar, an employee. 14. Tata Iron and Steel Co. Ltd. 15. Kamdar Sangh. 16. Union Bank of India. 17. Master Sarman, a minor admitted to the benefits of partnership. 18. Miss X, a partner in a firm. 19. North Gujarat University, Mehsana. 20. Vadodara Bar Council. 21. Sayaji Vihar Club. 22. Vadodara Chamber of Commerce. 23. Shah Parikh & Co. A firm of Chartered Accountants. 24. Bodeli Nagar Panchayat. 25. Johnson Ltd. Incorporated under company Law of U.K. 26. Persons joining together under an agreement for betting horse racing. 27. Nadiad Municipility. 28. National Insurance Company. 29. Vadodara Furniture Merchants Association. 30. Gujarat State Financial Corporation. 31. The Peerless General Finance and Investment Co. Ltd. 32. Bombay Port Trust. 33. Food Corporation of India. 34. G.A.C.L. QUESTIONS ON RESIDENTIAL STATUS Q.1 Mr. Nitin Patel, a citizen of India, has left for Japan on 1st April, 20 06 to set up his business there. He comes to India every year for three months i.e. July, August and September. Determine his residential status for the previo us year 2008-09. Q.2 X, a citizen of India, is employed in the Indian Embassy at Tokyo, Japan . He received salary from the Government of India during the year ending March31 2012 for services rendered by him in Tokoyo. Examine the tax liability of sal ary in the hands of X for the assessment year 2012-2013. He is a non resident fo r the assessment year 2012-2013.

Q.1 Q.2 Q.3 Q.4 Q.5 Q.6

what is an assessment year? what is a previous year? who are included in person Who is regarded as assessee What is gross total income?

Discuss whether the following are true or false:(i) On rendering some service to a manufacturing garments unit, X is pai d remuneration in kind. Since he has not received anything in cash, it is not a inc ome (ii) On sale of goods illegally imported from a foreign country, Mr. X g enerates a surplus of Rs.25,000/- As the income is derived from an illegal activ ity, it is not chargeable to tax. (iii) Out of Rs.25000/- per month received by Mrs. A from her husband fo r household expenses, she saves approximately Rs.5000/- per month which is depos ited by her in a bank account. Rs.5,000/- per month is income of Mrs.A (iv) Salary paid to B by his employer X Ltd. Out of capital reserve, is not income in the hands of B. Q.7 what are the different categories of assesses according to their residen tial status? How is this status determined? Q.8 Assessees have been divided into three categories on the basis of their residential status. Explain how these categories are defined and how they affect the tax liability of an assessee? Q.9 In what way does the liability of tax of non ordinarily resident from that of a resident person under the Income-tax Act? person differ

Q.10 Mr. X an employee of the Maharashtra Government, retired on 31-01-2012 and received Rs. 6,00,000/- as cash equivalent of earned leave to his credit. Is Rs. 6,00,000/- exempt from tax? Q.11 Mr.A an employee of the Central Government, receives Rs.78,000/- as grat uity at the time of his retirement on 31-01-2012. Is gratuity fully exempt form tax? Q.12 Mr.R, a Gonernment employee received Rs. 2,17,000/- as gratuity at the t ime of retirement on 30-04-2012. on may 15,2012 he joins a private sector compan

y on monthly salary of Rs. 30,000/-. om tax?

Is the gratuity received by him exempt fr

Q.13 Mr. P an employee of PQ co. Ltd., receives Rs. 78,000/- as gratuity. H e is covered by the payment of Gratuity Act, 1972. He retired on 31-12-2011 Afte r rendering service of 38 years and 8 months. At the time of retirement his mont hly basic salary and dearness allowance was Rs.2,400/- and Rs.800/- respectively . Is the entire amount of gratuity exempt from tax? Q.14 Mr. R, who resides in Delhi, gets Rs.3,00,000/- per annum as basic salar y. He receives Rs. 5,00,000/- as basic salary. He receives Rs. 50,000/- per annu m as house rent allowance,. Rent paid by him is Rs.40,000/- per annum. Find out the amount of taxable house rent allowance for the assessment year 2011-12. Q.15 Mr.P who is posted in Bhopal gets Rs.60,000/- per annum as basic pay. He gets Rs. 9,000/- per annum as house rent allowance, though he pays Rs.12,000/ - per annum as rent. During the previous year 2011-12, he receives Rs.5,000/- he receives as advance salary of April 2012. Can he claim the entire amount of hou se rent allowance as exempt from tax for the assessment year 2012-13? Q.16 Mr. X, a resident of Jaipur, receives Rs. 1,92,000/- per annum as basic salary during the previous year 2011-12. In addition, he gets Rs.19,200/- per a nnum as dearness allowance forming part of basic salary for computation of all r etirement benefits. 7% commission on sales made by him (sale made by him during the relevant previous year is Rs.86,000/-) and Rs. 24,000/- per annum as house rent allowance. He however pays Rs.21,500/-per annum as house rent. Det ermine the quantum of house rent allowance exempt from tax. Q.17 Mr.X, an employee of J (P.) Ltd., posted at Ajmer (Population : 19 lakh ), draws Rs.3,00,000/- as basic salary, Rs.10,000/- as dearness allowance (formi ng part of salary for all retirement benefits) and Rs. 5,000/- as commission. Be sides, the company provides a rent free furnished accommodation in Ajmer. The ho use is owned by the company. Fair rent of the accommodation is Rs.50,000/- per a nnum. Cost of the furniture is Rs. 2,00,000/-. Determine the taxable value of th e perquisite for the assessment year 2012-13. Q.18 Find out the taxable value of the perquisite in respect of car in the fo llowing different situations for the Assessment year 2012-13. (i) Mr. x employed by the company. He has been provided a car (1200 cc) owned by the employer, cost of the car is Rs.4,26,000/-. The expenditure incurre d by the company on maintenance of the car are- petrol Rs.46,000/-, Driver Rs 36 ,000/- and maintenance : Rs.10,000/-. The car can be used by x partly for offici al purposes and partly for private purposes. A sum of Rs.12,000/- is recovered f rom X. (ii) Assume in situation 1 above that the car is used only for private p urposes. (iii) A car (1,800 cc) is owned by the employer (Cost of the car being R s.4,80,000/-), x, an employee, can use it partly for official purposes and partl y for private purposes. Expenses for private purposes are, however, incurred by x. During the previous year 2011-12, the total expenditure incurred by X is Rs. 50,000/-on car and Rs.20,000/- on driver. (iv) Assume in situation 3 above that the car can be used only for priv ate purposes. (v) X owns a car (1400cc). He uses it partly for official purposes and p artly for private purposes. During the previous year 2011-12, he incurs a sum o f Rs 40000 on running & maintenance of car. Besides, he has engaged a driver(sal ary Rs 240000). The employer reimburse the entire expenditure of Rs 64,000. Logb ook of the car is not maintained.