Dibrugarh University - Direct tax law 2011

Or

(b) Write short notes on the following:

a. Agricultural income b. Person  c. Capitalreceipts d. Assessee

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(b) Ascertain the residential status of the assessee in the following cases for the assessment year 2010-2011: Solution Available here

i. Mr. A is a citizen of  india. He left for iran on 18^th april, 2009 and could not return to india till the end of the financial year 2009-2010.

ii. Mr. P left for USA on 10^th mar, 2007 after having lived in india for 20 years. He returned to india on 10^th september 2009.

iii. Mr.S is a citizen of india. He left on 15^th may, 2009 for london for higher studies. He came back to india on 25^th may, 2009. He maintained a dwelling place in india during his absence.

iv. Mr. K, a senior scientist goes to Nigeria on a job approved by central government for a period of 3 years on 15^th september, 2009. He has never been out of india before.

Salary @ Rs. 10000 p.m.

Arrears of salary Rs. 5000

DA @ Rs. 4000 p.m.

Employer is paying insurance premium of Rs. 1000 pa on his life.

Bonus Rs. 15000

Education allowance for his two children @ Rs. 300 p.m.

Cash gift Rs. 20000

City compensatory allowance @ Rs. 1000 p.m.

Medical expenses paid by employer Rs. 18000

He contributes 15% of his salary to a recognised provident fund and his employer also contribute the same.

He is given luch allowance @ Rs. 100 for 250 days during the previous year.

He is provided with a mobile phone, the bill of which is paid by the company Rs. 6000.

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(b) Explain the provisions of the indian income tax act, 1961 with regard to the following:

(i) House rent allowance

(ii) Gratuity

(iii) Residential accomodation provided by employer

(iv) Encashment of earned leave.

Determine the taxable income of Mr. X for the assessment year 2010 – 2011 assuming that he pays Rs. 70000 in the public provident fund.

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(b) Whatdo you mean by the term “Depreciation”? What are the rules regarding grant ofdeduction for depreciation?

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(b) What are the exempted assets as per provisions of the wealth tax act, 1954? Discuss in detail.