Q. No.1.From the following information compute the Gross total income and taxable income of Mr. Murugan of Chennai.
Income from Salary 1,20,000
Interest on Government security 20,000
Winning from lottery (Gross) 30,000
Dividend 40,000
Rent from house property – Rs.60,000 p.a.
Municipal taxes paid 10,000
Contribution to RPF 30,000
Payment of life insurance premium of Mr. Murugan 20,000
Q.No.2(a) Briefly explain the concept of Duty draw back.
(b) The Articles of Association has contained a clause that A should be the Financial Advisor of the company for a period of five years and he should not be removed for misconduct. Kumaran acted as Financial Advisor for a period of two years. Later, the company has removed him. Kumaran sues the company for damages. Decide.