a) Compute the capital gain in the following cases:
i) P commenced a business on 15-4-1991. The said business is sold by P on 18-04-2004 and he received Rs. 6,00,000 towards goodwill.
What will the answer in the above case, if P had acquired the goodwill for this business for a consideration of Rs. 2,00,000
ii) R has been living in a rented accommodation since may 1994, and he is paying a rent of Rs. 500 per month. The landlord got the house vacated from R on 16-7-2004 and paid a sum of Rs. 5,00,000 for vacating the house.
iii) S is a chartered accountant practicing in Delhi since January 1983. He transfers the practice to another chartered accountant Y on 15-7-2004 and charges Rs 5,00,000 towards goodwill.
iv) R purchased tenancy right on 1-4-1979 for Rs. 1,60,000. The same was sold by him on 14-8-2004. fair market value as on 1-4-1981 was Rs. 2,50,000
b)A company wants to offer an employment to a marketing expert on a monthly salary of Rs 40,000 . How would you frame the remuneration plan order to minimize the tax liability of the employee as well as the company?
c) R purchased a car on 15-5-2002 for Rs.5,00,000. Calculate the depreciation for the assessment year 2003-04 to 2004-05, assuming:
i) the car is the only item in the block
ii) 30% of the use of car is for personal purposes
d) A firm of solicitors in Calcutta engaged a barrister of London for arguing a case before the supreme court of India. A payment of 10,000 pounds was made to the barrister in London as per the terms of the professional engagement . It is claimed that since the payment is made outside India, no tax is payable on the fee paid . Is the claim correct?
e) Decide which is better alternative ? lease or buy ? in the following situations:
Tax rate :35.875%
Cost of capital :14%
Depreciation rate(Income tax):25%
Lease cost: Rs. 34000 per month for 5 years (per Rs1 lakh)
Present value of Re 1discounted @ 14% is as follows:
Year 1=.877 ; Year 2=.769 ; Year 3 =.675 ; Year 4 = .592 Year 5 = .519
f) From the following information , compute the tax payable by R Ltd for the various assessment year(s)
Assessment year Book profits Total Income rate of income
As per income tax
1998-99 10,00,000 1,60,000 35%
1999-00 12,00,000 4,00,000 35%
2000-01 15,00,000 6,00,000 35% + 10%
g) W.D.V of the block having two machines X and Y as on 1-4-2003 is Rs 60,000. Machine Z was acquired on 5-11-2003 for Rs 3,00,000 and put to use on the same date. Machine Z is sold on 28-3-2004 for Rs 4,00,000
guys please reply 2 dese answers if possible 4 u...i m vry weak in corporate tax....i wud b really helpful 2 u..!!
thnkz in adv..!