Dibrugarh University - Direct Tax Law 2009

(b) Write short notes on the following:
a. Assessee b. Method of accounting c. Agricultural income d. Tax deduction at source from salary


3.       (a) Mr. X, Corporate manager (Sales) in vodafone ltd. Receives the following income during the year ending march, 31st, 2008:
i)        Basic Salary 300000
ii)       Leave travel concession for proceeding on leave (actual expenditure on raiol fare Rs. 11000) 10000
iii)     Tiffin allowance 4000
iv)     Re – imbursement of medical expenses incurred for his own treatment 31300
Besides, he enjoys the following perks:
i)        Free unfurnished flat in delhi (Rent paid by the company Rs. 86000)
ii)       The company provides two watchman (Salary Rs. 700 pm per person)
iii)     Free use of maruti 800 car for official as well as personal purposes (log book was not maintained by the employer)
iv)     Free meal at the work place Rs 14700 (@ Rs. 70 per day for 210 days, amount is directly paid to the canteen by the company)
v)      Interest free loan for purchasing home appliances (Amount Rs. 120000, date of taking loan march 1st, 2004. Amount outstanding between april 1st , 2007 to november 30th, 2007 Rs. 76000 and after november 30th, 2007: Rs. 50000). The SBI lending rate for similar loan on 1st april, 2007 was 15.25%. Compute his taxable income from salary for the assessment year 2008 – 2009 from the above information.
(b) Explain in detail the treatment of the following as per provisions of the income tax act, 1961:
i)        Gratuity
ii)       Encashment of earned leave

(b) Sri abhijit saikia is the owner of a house property. From the following particualrs, compute the incomes from house property for the assessment year 2008 – 2009:
Municipal valuation : 90000, Fair Ren : 110000, Standard rent fixed by the court : 100000
The house was let our w.e.f 1-4-2007 for Rs. 8000 p.m. which was vacated by the tenant on 30-9-2007. Since then it remained vacant for two months. From 1-12-2007, it was again letout for a rent of Rs. 11000 p.m..
Municipal tax paid: 20% of municipal valuation.
Insurance premium paid Rs. 3000
Interest on money borrowed for Construction of house property Rs. 30000.