2014 (November)
COMMERCE
(Speciality)
Course: 504
(Direct Tax – I)
Full Marks:
80
Pass Marks: 32
Time: 3 hours
The figures in the margin indicate full
marks for the questions
1. (a) Write True or False: 1x4=4
i.
Body of individuals should consist of
individuals only.
ii.
Once a person is a resident in a previous year,
he shall be deemed to be resident for subsequent previous year also.
iii.
Retrenchment compensation received by a workman
at the time of his retrenchment is exempt under Section 10 (10B) to the maximum
extent of Rs. 5,00,000.
iv.
Municipal tax is a deduction from net annual
value.
(b) Fill in the blanks: 1x4=4
i.
A new business was set up on 15.10.2013 and it
commenced its business from 01.12.2013. The first previous year in this case
shall be ____.
ii.
Monthly pension received by a government
employee is ____.
iii.
Dividend received by a company from a domestic
company is ____.
iv.
Total income of a person is determined on the
basis of ____ in India.
2. Write short
notes on the following: 4x4=16
a)
Income tax law in India.
b)
Assessee.
c)
Scope of total income.
d)
Residence and tax liability.
3. (a) Explain
the special provisions of law relating to tax holiday for newly established
undertakings in free trade zones. 14
Or
(b) Explain the
special provisions of law relating to tax holiday for newly established 100
percent export-oriented undertakings.
4. (a) From the
following information compute the taxable income under the head ‘Salaries’ for
the assessment year 2014 – 15 of Mr. P who is a central government employee at
Dibrugarh: 14
i.
Basic salary – Rs. 30,000 p.m.
ii.
DA (enters) – 60% of salary.
iii.
Transport allowance for commuting from home to
office – Rs. 2,000 p.m.
iv.
Deputation allowance (for two months) – Rs.
3,000 p.m.
v.
Education allowance for two children at Rs. 250
p.m. per child and hostel allowance for two children at Rs. 450 p.m. per child.
vi.
He has been provided with a rent free
accommodation. The license fee for the accommodation has been fixed at Rs.
2,000 p.m. The government has also provided him with furniture items costing
Rs. 1,00,000 (w.d.v. Rs. 75,000) for his personal use.
vii.
He has been provided with the facility of a
servant and a watchman with effect from 01.10.2013 and the government is paying
Rs. 3,000 p.m. to each of them.
viii.
A laptop costing Rs. 45,000 has been given to
him for his official as well as personal purposes.
ix.
On 01.04.2013, he took a loan of Rs. 1,50,000
from his employer to buy a car at a concessional rate of interest of 8% p.a.
SBI rate of interest as on 01.04.2013 is 14% p.a.
x.
He paid professional tax of Rs. 3,000 p.a.
Or
(b) What are the
provisions of the Income-tax Act regarding the following? 5+5+4=14
i.
Gratuity.
ii.
Encashment of leave.
iii.
Retrenchment compensation.
5. (a) State the
provisions relating to computation of income from house property. 14
Or
(b) Mr. S owns a
house property in New Delhi. From the particulars given below, compute his
income from house property for the assessment year 2014 – 15:
Municipal value – Rs. 2,00,000
Fair rent – Rs. 2,52,000
Standard rent – Rs. 2,40,000
Actual rent (per month) – Rs.
23,000
Municipal taxes – 20% of
municipal value
Municipal taxes paid during the
year – 50% of tax levied
Expenses on repairs – Rs. 20,000
Insurance premium – Rs. 5,000
|
Mr. S had
borrowed a sum of Rs. 15,00,000 @ 15% p.a. on 01.07.2012 and the construction
of the property was completed on 31.01.2014.
6. (a) What are
the powers of the Commissioner of Income Tax in regard to search and seizure
under Section 132 of the Income-tax Act? 14
Or
(b) State the
scope of power of Commissioner of Income Tax. How does the same differ from the
powers of Commissioner of Income Tax (Appeals)?