Bachelor of Commerce – B.Com Second Year Solved Assignments for 2020 Annual Examinations
BCOM Part 2 Solved Assignment
Code : ITA
Course Title : Income Tax & Auditing
ITA: Income Tax & Auditing Solved Assignment for 2020 Annual Exams
Following are the questions of ITA: Income Tax & Auditing of SOL – BCOM Assignment for 2020 Annual Examinations. To download answers of all the questions of this assignment in English click on the question, subject to availability of answer, you can view or download the answer there.
Contact us For Hard or Scanned Copies of Hand Written Assignments
Question 1. (a)Mr Deepanshu, a 35 years old Indian citizen and resident in India in the previous year. He is conducting three different business activities (speculative and non-speculative). He also has income and losses from House property, capital gains and other sources. He is confused in setting-off and carry forward of losses from different sources among different heads on intra head and inter head basis. Help and guide him.
Question 1. (b)Ms. Mohini, a non-resident, aged 61 years, in the previous year 2018-19, earned Rs. 3,50,000 from processing of agricultural produce in India. She earned USD 5,000 (1 USD=72) from agricultural land in Australia. Her non-agricultural income in India was Rs. 7,50,000 and outside India was Rs. 60,00,000 (estimated). She has contributed USD 1,000 in PM Relief Fund in Australia and Rs 70,000 (via Bank NEFT transfer) to the ‘International Society for Krishna Consciousness’ (eligible u/s 80G) in India. Compute her total taxable income in India for the A.Y. 2019-20.
Question 2. Ms. Shreya, 33 years old, a non-resident, owns a house in India which is let out wef 1st October 2018. The construction of the house was completed on 1st Sept. 2018. The house is let out on a monthly rent of Rs. 75,000. Rent of two months could not be realized. Other details of the house are as follows:
Municipal valuation – Rs. 50,000 pm
Municipal taxes due for 2018-19 – Rs. 50,000 out of which taxes paid during the year are Rs. 30,000. Out of this Rs. 30,000, Rs. 20,000 is paid by the owner and Rs. 10,000 is paid by the tenant during the previous year 2018-19.
Ms. Shreya took a loan of Rs. 15,00,000 from HDFC Bank on 1st September 2013 @ 12.5% per annum for construction of this house. Rs. 2,00,000 was repaid on 31st March 2016. Remaining amount is unpaid so far.
Compute net income and tax liability of Ms. Shreya for the assessment year 2019-20. She spends Rs. 30,000 on medical treatment of her dependant brother who is suffering from a disease specified in the rules made by the Board and claims a deduction for the same under relevant section. Her income from other sources is Rs. 5,70,000 and a loss of Rs. 50,000 (short term) from Capital Gains head.
Question 3. Mr. Ishank is employed with the central government with effect from 10th August 2013. His details of income and investments for the previous year 2018-19 are as follows:
Rs.
Income from salary 12,60,000
(Rs. 1,05,000 per month)
Loss from House Property 15,000
Income from other sources 1,10,000
He deposits Rs. 60,000 in public provident fund and pays Rs. 30,000 as tuition fees of his younger sister studying in a school in Delhi. He also contributes Rs. 20,000 towards ICICI’s Retirement Benefit Fund. He donated Rs. 15,000 (Rs. 5000 in cash and rest via online net-banking transfer) towards PM Cares Fund. He donated Rs. 2000 in cash to one of local NGOs, (not registered under section 12AA). He contributes 15% of his salary towards notified pension fund of central government. His employer also contributes the equal amount to his pension fund. 12 years old daughter of Mr. Ishank earned Rs. 30,000 (eligible u/s 64(1A)). Wife of Mr. Ishank is a housewife and she earned Rs. 2,00,000 by some handcraft work. Compute total taxable income of Mr. Ishank for the assessment year 2019-20.
Question 4. (a)What do you mean by continuous Audit? Distinguish between continuous Audit and Annual Audit.
Question 4. (b)“Accounting is a necessity to business but auditing is a luxury” Comment on the statement.