ASSIGNMENT

DRIVE SPRING 2014

PROGRAM MBADS (SEM 3/SEM 5)

MBAFLEX/ MBAN2 (SEM 3)

PGDFMN (SEM 1) SUBJECT CODE & NAME

MF0012 & TAXATION MANAGEMENT

BK ID B1760

CREDIT & MARKS 4 Credits, 60 marks

Q.No Questions Marks Total Marks

1 The provisions in Chapter VIA are in the form of deductions (80C to 80U) from the total income. Explain the general rules for claiming deductions and after this explain each major spheres deductions under sections (80C to 80U)

A Explanation of general rules for claiming Deductions under section 80C to 80U Explanation of each spheres of deductions under sections (80C to 80U)

4 6

10

2 Write short notes on: a) Profit in Lieu of salary-Sec 17(3) b) Tax planning avenues for salary income

A Explanation of Profit in lieu of salary Explanation of Tax planning avenues for salary income

4 6

10

3 There certain important things to know under Section 54ED. Explain all the important conditions in Section 54ED in Capital Gain. Mr. A acquired a plot of land on 15th June,1993 for Rs. 10,00,000 and sold it on 5th Jan,2010 for Rs.41,00,000. The expenses of transfer were Rs.1,00,000. Mr.A made the following investments on 4th Feb,2010 from the proceeds of the plot.

a) Bonds of Rural Electrification Corporation redeemable after a period of three years Rs. 12,00,000.

b) Deposits under Capital Gain Scheme for purchase of a residence house Rs.8,00,000 (he does not won any house). Compute the capital gain chargeable to tax for the AY 2010-11

A Explanation of Section 54ED Computation of Capital Gain chargeable

5 5

10

4 Elaborate and write on the administrative mechanism envisaged in the DTC in Tax

Management and also write on the assessment procedure.

A Explanation of Tax administration Explanation of Appeals and revision Explanation of assessment procedure

4 3 3

10

5 Service tax is a tax levied on services. List down the registration under service tax rules. Write down the procedure for registration and payment of service tax. Compute the taxable turnover and service tax liability for the year 2 of a new company in each of the following situations:

Particulars Situation 1

Situation 2

Situation 3

Year 1 800000 800000 1100000

Year 2 800000 1100000 800000

A List of registration under service tax rules Explanation on procedure for registration Explanation on payment of service tax Service tax computation

1 2 4 3

10

6 Capital structure is said to be optimum when the firm has selected a combination of equity and debt that minimizes the cost of capital. What are the major considerations in capital structure planning? Write about the dividend policy and factors affecting dividend decisions.

A Explanation of major considerations in capital structure planning Explanation on dividend policy Explanation on factors affecting dividend decisions

6 2 2

10

*A-Answer

Note – Answer all questions. Kindly note that answers for 10 marks questions should be

approximately of 400 words. Each question is followed by evaluation scheme.