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.

Q. No.1: To compute the Gross total income and taxable income of Mr. Murugan, we need to consider the various sources of income and deductions mentioned in the information provided.

1. Income from Salary: Rs. 1,20,000
2. Interest on Government security: Rs. 20,000
3. Winning from lottery (Gross): Rs. 30,000
4. Dividend: Rs. 40,000
5. Rent from house property: Rs. 60,000 p.a.
6. Municipal taxes paid: Rs. 10,000
7. Contribution to RPF: Rs. 30,000
8. Payment of life insurance premium: Rs. 20,000

To calculate the Gross total income, we sum up all these incomes:

Gross total income = Income from Salary + Interest on Government security + Winning from lottery + Dividend + Rent from house property - Municipal taxes paid + Contribution to RPF + Payment of life insurance premium

Gross total income = Rs. 1,20,000 + Rs. 20,000 + Rs. 30,000 + Rs. 40,000 + Rs. 60,000 - Rs. 10,000 + Rs. 30,000 + Rs. 20,000

Next, to calculate the taxable income, we need to consider the eligible deductions. In this case, the life insurance premium payment of Rs. 20,000 is eligible for deduction:

Taxable income = Gross total income - Deduction

Taxable income = Gross total income - Payment of life insurance premium

Taxable income = (Rs. 1,20,000 + Rs. 20,000 + Rs. 30,000 + Rs. 40,000 + Rs. 60,000 - Rs. 10,000 + Rs. 30,000 + Rs. 20,000) - Rs. 20,000

Finally, the Gross total income and taxable income can be computed using the above calculations.

Q. No.2(a): Duty drawback, also known as drawback or export incentives, is a refund of duties and taxes paid on imported materials or inputs used in the production of export goods. It is an incentive provided by the government to promote exports and make the exported products more competitive in the international market. Duty drawback helps to reduce the cost of production for exporters and encourages them to increase their export activities.

The process of claiming duty drawback involves submitting necessary documents and evidence of export to the customs authorities. The customs authorities then verify the details and calculate the eligible refund amount based on the duties and taxes paid on the imported materials used in the export goods. The refund is then credited to the exporter's bank account.

Q. No.2(b): The situation described in the question involves the interpretation of the Articles of Association and the rights and obligations of the parties involved. Without more specific details about the provisions of the Articles of Association and the circumstances surrounding Kumaran's removal, it is difficult to provide a definitive answer.

Generally, the Articles of Association are a set of rules and regulations that govern the internal management and operations of a company. They lay down the rights and responsibilities of the shareholders, directors, and other stakeholders. If the Articles of Association contain a clause that states that A should be the Financial Advisor for a specific period and cannot be removed for misconduct, then Kumaran may have grounds to sue the company for damages if he was removed before the specified period without any valid reason or breach of his responsibilities.

However, it is important to note that the specific terms and conditions mentioned in the Articles of Association, as well as any applicable laws and regulations, will play a crucial role in determining the outcome of the case. It is advisable to consult legal professionals and review the complete set of relevant documents and agreements to provide a more accurate and informed decision.