1. (a) Define the term “assessee”
and “person” under the income tax act. What is regarded as income under the
income tax act?
Or
(b) “The incidence of tax depends
upon the residential status of an assesse.” Discuss. Write four distinctions
between avoidance of tax and tax evasion.
2. (a) Following are the
particulars of salary of Mr. Borkakoty, an employee of ONGCL of Ahmedabad
(Population exceeding 25 lakhs):
a)
Basic salary 60000 p.m.
b)
DA 10000 p.m. (50% forms part of salary)
c)
Transport allowance 4000 p.m.
d)
Bonus 20000
e)
Commission 80000 on turnover
f)
Telephone bill of his residence paid by employer
20000
g)
Amount paid by employee for free supply of gas
and elecricity at residence 36000
h)
He got a loan of 1000000 from his employer at a
nominal rate of interest of 3.25% for the construction of his house. SBI
lending rate as on 1-4-2010 at 8%.
i)
He is paid house rent allowance of 10000 p.m.
till 31st july, 2010 and thereafter he is given a rent-free house
got by his company on a monthly rent of 20000. Cost of furniture 100000. Before
shifting to rent free house he was paying a rent of 8000 p.m.
k)
He is given a free lunch worth 100 per day
l)
Both he and his employer are contributing 10000 p.m.
each towards recognised provident fund (RPF)
Find out Mr. Borkakoty’s salary
income for the assessment year 2011 – 2012.
Or
(b) (i) Define annul value. How
does it differ from annual rental value?
(ii) How would
you determine the annual value of the house used by assessee as let-out and
self occupied residence in computing taxable income from house property?
3. (a) From the following
particulars, compute the business income of Mr. k.k. Boruah to be taxable for
the assessment year 2011 – 2012:
Particulars
|
Amount
|
Particulars
|
Amount
|
To salaries
To rent and taxes
To service charges
To legal expenses
To reserve for tax
To depreciation
To exp. On acquisition of patent
To office expenses
To contribution RPF
To bad debts
To Donation to NDF
To net profit
|
180000
40000
8000
10000
12000
24000
112000
84000
24000
9000
5000
211200
|
By gross profit
By dividend
By bad debts recovered (allowed earlier)
By Interest from post office savings bank
|
700000
8000
8800
2400
|
719200
|
719200
|
Other information:
a)
Legal expenses include 4000 incurred by assessee
for defending a case for damages for breach of contract which was decided in
favour of assessee
b)
Depreciation of the year on assets other than
patent rights is 33800
c)
Contribution to RPF due on 31-3-2011 – 4000
Or
(b) (i) How is cost of
acquisition determined under capital gains tax?
(ii) Explain,
in detail, capital gain exempted from tax.
4. (a) Following are the
particulars of income of Mrs. A Borgohain for the year ending 31 – 3 – 2011:
(i) salary
received from an office workin for 10 months – 600000
(ii) Interest
on government securities – 6600
(iii) Interest
from bank deposits – 7000
(iv) Rental
value of house property (Municipal tax being 1500) – 8000
(v) Profits of
retail cloth business – 294600
(vi) Dividends
from cooperative societies – 6400
(vii)
Dividends from indian companies – 5400
(viii)
Interest on debenture of a company – 6000
He is insured
for 100000 and paid an insurance premium of 15000. He donated – 4000 to a
school (recognised) in which his son is studying.
Compute her
taxable income and tax payable for the assessment year 2011 – 12.
Or
(b) (i) Explain the provisions of
the income tax Act, 1961 regarding carryforward and setoff of losses.
(ii) Explain
the provisions of sec. 80c and 80ccc of the income tax act for claiming
deduction in computing income of an individual.
5. (a) (i) What is the procedure
for filling of return of income and what is the time limit under the income tax
act, 1961?
(ii) What are
the provisions relating to deduction of tax at source from income chargeable
under the head “Salaries”?
Or
(b) (i) Draw a
list of authorities of administrative wing under section 116of the income tax
act, 1961. What are the powers of income tax officer?
(ii) What are
various appellate authorities under the income tax act? Give the procedure for
filling appeal to the appellate tribunal.