Q.2 A domestic company in which public are substantially interested submits the following particulars of its income of the previous year ending on March 31,2013:

Rs.(i) Profits of business after deduction of donation to approved charitable institution 1,90,000(ii) Donation to charitable institution by cheque 30,000(iii) Interest on Government Securities 10,000(iv) Dividend from a domestic company (Gross) 60,000(v) Long Term Capital gain 50,000(vi) Book Profits u/s 115-JB 8,00,000During the financial year 2012-13 the company deposited Rs. 15000 in Industrial Development Bank of India. The company distributed a dividend of Rs. 1,00,000 on 06.09.2012.Compute the taxable income of the company and tax payable by it for the Assessment Year 2013-14.

Q. 3 Kwality Electronics Ltd. Is a domestic company in which public are substantially interested. The following are the particulars of income in respect of the previous year 2012-13:

Rs.

(i) Interest on Govt. Securities 20000(ii) Income from business 5,00,000(iii) Short Term Capital Gains 15,000(iv) Long term capital gains 33,000(v) Dividend from an Indian Co. (gross) 10,000(vi) Dividend from a Foreign Co. 10,000(vii) Book profits u/s 115-JB 9,00,000Compute company’s total income and its net tax liability.

Q. 5 The profit & Loss A/c of X Ltd., a domestic company, for the year ending 31st March, 2014 is given below:

Profit & Loss Account

Rs. Rs.

Exp.related to goods manufactured 10,00,000 Sale of goods manufactured by the 6,00,000Company

Exp. Related to sale of other goods 8,20,000 Sale of other goods 4,50,000Proposed Dividend 8,05,000 Long Term Capital gain 5,70,000Prov. For unascertained liabilities 40,000 Amount withdrawn for general

reserve 20,000General Reserve 60,000Income Tax Paid 30,000Wealth Tax Paid 45,000Net Profit 8,40,000

36,40,000 36,40,000

Other relevant information are as follows:(1) An outstanding liability related to sales tax for 2010-11 paid during 2012-13 Rs. 50,000 which was not charged to above P & L A/c.

(2) Brought forward loss as per books of accounts is Rs. 60,000 while the brought forward depreciation as per books of accounts is Rs. 80,000.

(3) Brought forward unabsorbed depreciation is Rs. 4,60,000.(4) Brought forward loss under the head capital gain Rs. 3,50,000.Compute the tax liability of X Ltd. For the assessment year 2013-14.

Q.2 Compute the taxable income of Rashmi Ltd., for the assessment year relating to previous year 2011-12 from the following Profit & Loss Account and additional information:

Rs. Rs.Salaries & Bonus 2,00,000 Gross Profit 7,00,000Office Rent 40,000 Interest 20,000War Risk Insurance 10,000 Postage & Stationery 6,000General Charges 20,000Reserve for Depreciation 28,000Income Tax 80,000Provision for Income Tax 1,00,000Net Profit 2,36,000

7,20,000 7,20,000Additional Information:(a) The general charges include Rs. 8,000 for advertising Rs. 2,000 for charitable donation, Rs. 4000 paid to a Motor Car company for exchange of old car for new one, Rs. 1000 for charity and Rs. 5,000 for miscellaneous repairs.

(b) The amount of depreciation admissible under the Income Tax Act is Rs. 15000 only.( c ) The amount of interest is from Government Securities and represent gross amount.

Q. 5 Prakash Ltd. Is an industrial company registered u/s 25 of the Indian Companies Act, 1956. Particulars are :

(1) Profits from business (as per P & L A/c) 28,00,000(2) Dividend from Indian Companies ( Gross) 72,000(3) Income from Royalty for providing technical know-how to an Indian concern (agreementHas been approved by the Board) 45,000(4) It is on record that business profits include Rs. 4,50,000, being the profits of a newly established industrial undertaking in which a new plant was installed on June 30, 1992 and production commenced on June 30, 1993.

(5) Profit of new Industrial unit situated at Nagaland (Backward Industrial State). This unit was established in 2006. 1,70,000

(6) A scrutiny of the Profit & Loss account further disclosed the following information: (i) Export Promotion Expenses 45,000(ii) Accrued liability of the staff gratuity provided in the accounts on accrual basis (no staff gratuity has been set up) 1,00,000

(iii) The company conducted research to develop a new product, a laboratory for this purpose was setup:

(a) Total cost debited to Building Account 1,00,000(b) Depreciation claimed 28,000(iv) Salary paid to General Manager 60,000(v) Value of perquisites provided to the General Manager 1,20,000You are required to compute the total income of the company for the assessment year 2012-13 mentioning briefly the reason for additions or exclusions made in your computation.

Corporate Society

Q.3 From the following information relating to the income of a co-operative society for the year 2012-13, you are required to compute its total income and the amount of tax payable thereon for the assessment year 2013-14:

The Society is primarily engaged in the manufacturing of fruits products (cottage Industry).(a) Income from manufacturing and marketing of fruit products 80,000(b) Interest on deposits with the Central Co-Op. Society 16,000© Income from other business 78,000(d) Income from collective disposal of the labour of its members 16,000(e) Interest on Government Securities 8,000(f) Long Term Capital Gain 25,000(g) Income from House Property 10,000On an examination of the books of accounts of the Society it has been revealed that it has given a donation of Rs. 10,000 in cash to the National Children’s Fund.

Q.4 Kanpur Multi- purpose Co-operative Society has the following incomes for the year ended 31st March, 2013. Compute taxable income and tax liability of the society for the Assessment Year 2013-14. Rs.(1) Income from small scale industry established on 1st May, 2001 1,45,900(2) Income from credit facilities to its members 35,000(3) Dividends received from other Co-operative Society 5,000(4) Taxable Income from letting godowns for storage and processing of commodities 7,000(5) Interest received on Securities listed in Stock Exchange 4,500(6) Interest on fixed deposits with U.P. Co-operative Bank, Lucknow 3,000(7) Rent received from House Property let out for residential purpose 10,000Following expenses in connection with house property let out debited to Profit & Loss account of the industry:(a) Repairs Rs 1,500, (b) Municipal Corporation Taxes paid Rs. 1,000 (c) Rent Collection Charges Rs. 600, (d) Fire Insurance Premium paid Rs. 1000.

Society donated by cheque Rs 10,000 to U.P. Government for charitable purpose.

Q.5 Raipur Co-operative Society Ltd. Raipur submits the following particulars of income:

Rs.

(i) Income from credit facilities to members 35,000(ii) Income from new undertaking for power generation & supply which Started production in 1-4-2010 40,000(iii) Income from marketing agriculture produce of its member 17,000(iv) Profit of other business (Advance tax deducted Rs. 17,000) 1,18,700(v) Interest on Securities of Co-operative Societies 10,000(vi) Dividend received from Co-operative Societies 8,000(vii) Rent received from letting the warehouse for store of commodities 60,000(vii) Rent received from a property let out to a bank (after deduction of tax@10%) 1,44,000Compute the total income and tax payable for the assessment year 2013-14.

Q.6 The following are the particulars of income of a Co-operative Society for the year 2012-13. Compute its total income and tax payable for the assessment year 2013-14, if it is (a) Rural Co-operative Society (b) Urban Consumer’s Co-operative Society.(1) Rent received from house property Rs. 60,000, Municipal Tax Rs. 2400, Rent collection charges Rs. 4000. The house let out for residential purpose.(2) Gross interest on Government Securities Rs. 40000.(3) Long term Capital gain on transfer of plot Rs. 25000 (computed).(4) Short term capital gain Rs. 8000.(5) Interest on fixed deposit with co-operative Bank Rs. 32000.(6) Income from labour supply Rs. 12000.(7) Agriculture Income Rs 20000.(8) Interest on Post office Saving bank Rs. 5000.(9) Donation to Prime Minister Relief Fund Rs. 10000 by cheque.

Q. 8 A.R.G. College Co-operative Society Davanagere had the following incomes during the year ended 31.03.2013.(a) Income from College canteen Rs. 20000(b) Income from merchandise business Rs. 55000.© Income from credit facilities given ti members Rs. 9000.(d) Interest on Government Securities Rs. 25000.(e) Interest on debentures (gross) Rs. 10000.(f) Taxable Income from House Property Rs. 12000.(g) Dividend (gross) on shares held in another co-operative society Rs. 5000.Determine the gross total income and the total income of the society for the assessment Year 2013-14.