2017 (May)
COMMERCE
(General)
Course: 601
(Income Tax)
Time:
3 hours
The
figures in the margin indicate full marks for the questions
(New
Course)
Full
Marks: 80
Pass
Marks: 24
1. (a) Write ‘True’ of ‘False’: 1x4=4
a)
Body of individuals should consist of
individuals only.
b)
A resident in India cannot become resident in
any other country for the same assessment year.
c)
Casual income received by the assessee is fully
exempt.
d)
Municipal tax due is allowed as deduction for computation
of income from house property.
(b)
Fill in the blanks: 1x4=4
a)
The status of Reserve Bank of India as a person
is ____ as per the Income-tax Act.
b)
Income which accrues or arises in London from a
business controlled from India is taxable in the case of ____.
c)
An income under the head capital gain to a trade
union is ____.
d)
Employer-employee relationship is necessary to
term any receipt as ____.
2. Write short notes on any four
of the following: 4x4=16
a)
Previous year.
b)
Perquisites.
c)
Annual value.
d)
Capital assets.
e)
Income tax authorities.
3. (a) “The incidence of income
tax depends upon the residential status of an assessee.” Explain in detail this
statement. 14
Or
(b) “Income tax is charged on
the income of the previous year.” Do you fully agree with this statement? If
not, what are the exceptions?
4. (a) Mr. X has the following
Income during the previous year, 2015 – 16:
a)
Basic salary Rs. 2,60,000
b)
Dearness allowance (forming part of salary) Rs.
40,000
c)
Education allowance (for three children) Rs.
6,000
d)
Rent paid for a residential house at Guwahati
Rs. 60,000
e)
House rent allowance Rs. 48,000
f)
He has been provided with motorcar of 1.8 litre
engine capacity for the official and personal use. All expenses of the motorcar
are borne by the employer.
g)
He contributes 14% of his salary to a recognized
provident fund and his employer also contributes the same amount.
h)
Interest credited to recognized provident fund @
13% amounted to Rs. 13,000
i)
Medical expenses paid by his employer Rs. 25,000
j)
Mr. X paid Rs. 2,500 for his professional tax.
Compute the Income from salary
for the Assessment year, 2016 – 17. 14
Or
(b) Explain the provisions of
the Income-tax Act, 1961 with regard to different kinds of provident funds. 14
5. (a) Mr. Y is the owner of a
house property. From the following particulars, compute the Income from his
house property for the Assessment Year, 2016 – 17: 14
Municipal
valuation
Fair rent
Standard
rent fixed by the court
|
Rs.
1,20,000
1,40,000
1,30,000
|
The house was let out w.e.f.
01.04.2015 for Rs. 10,000 per month which was vacated by the tenant on
30.09.2015. From 01.10.2015, it was again given to rent @ Rs. 12,000 per month.
Municipal tax paid Rs. 20,000
for the house.
Municipal tax due for the house
20% of municipal valuation
Repairs, electricity, etc., paid
Rs. 7,500
Interest on money borrowed for
construction of house property Rs. 30,000
Or
(b) State the provisions
relating to computation of ‘Income from House Property’ under different
categories of house property as per the Income-tax Act, 1961. 14
6. (a) What is capital gain?
Differentiate between short-term capital gain and long-term capital gain.
Explain the procedure of computation of income from capital gains. 2+4+8=14
Or
(b) State any five items of
income included under the head ‘Income from Other Sources’. State any five
items not deductible in computing taxable income under the head ‘Income for
Other Sources’. State any four items deductible in computing taxable income
under the head ‘Income from other sources’. 5+5+4=14
(Old
Course)
Full
Marks: 80
Pass
Marks: 32
1. (a) Write ‘True’ or ‘False’: 1x4=4
a)
Total income of a person is determined on the
basis of his citizenship in India.
b)
‘Leave Travel Concession’ is a tax-free
perquisite for one journey in a block of 4 years.
c)
Tiffin allowance is fully exempted allowance.
d)
Capital gain arises from the transfer of any
capital asset.
(b) Fill in the blanks: 1x4=4
a)
A new business was commenced on 01.01.2016. The
first ‘previous year’ in this case shall be ____.
b)
Residential status is to be determined for ____.
c)
Dividend declared by a domestic company shall be
____.
d)
Deduction for interest on loan taken for
construction of self-occupied house after 01.04.1999 is allowed up to actual
amount or Rs. ____ whichever is less.
2. Write short notes on any four
of the following: 4x4=16
a)
Charge of Income tax.
b)
Method of accounting.
c)
Capital expenditure.
d)
Salary.
e)
Special Economic Zone.
3. (a) Enumerate the special
provisions in respect of newly established units in Social Economic Zone as per
the Income –tax Act, 1961. 14
Or
(b) Explain in brief various
incomes which are exempt u/s 10 of the Income-tax Act, 1961. 14
4. (a) Mr. X has the following
Income during the previous year, 2015 – 16:
a)
Basic salary Rs. 1,50,000
b)
Dearness allowance (forming part of salary) Rs.
50,000
c)
Medical allowance (actual expenditure Rs.
10,000) Rs. 16,000
d)
Educational allowance (for two children) Rs.
4,000
e)
He has been provided with motorcar of 1.6 litre
engine capacity along with a driver for the official and personal use. All
expenses of the motorcar are borne by the employer.
f)
He contributes 15% of his salary to a recognized
provident fund and his employer also contributes the same amount.
g)
The Company paid Rs. 6,000 on his training
programme.
h)
He was given cloth worth Rs. 4,000 by his
employer free of cost.
i)
A cook and a watchman have been provided by the
company who are paid @ Rs. 600 each per month.
Compute the Income from salary
for the Assessment year, 2016 – 17. 14
Or
(b) Explain in detail as to how
the following items are treated in computing taxable income: 4+6+4=14
a)
Commuted value of pension.
b)
Relief u/s 89 (1) of the Income-tax Act.
c)
Recognized Provident Fund.
5. (a) Mr. P has two house
properties situated in Guwahati. Property A is self-occupied for first six
months from 01.04.2015 to 30.09.2015 and with effect from 01.10.2015 it was let
out for Rs. 12,000 per month. Property B is let out w.e.f. 01.04.2015 at a rent
of Rs. 15,000 per month and w.e.f. 01.10.2015 it was self-occupied as Mr. P
shifted his residence from property A to B. The other details of the above two
house properties are as under –
Property A
(Rs.)
|
Property B
(Rs.)
|
|
Municipal
tax paid
Insurance
premium paid
Interest on
money borrowed for purchase of house property
|
35,000
5,000
40,000
|
29,000
6,000
45,000
|
Compute the income from house
property for the Assessment year, 2016 – 17. 14
Or
(b) Who are the persons liable
to pay tax on income from house property? Explain briefly the various types of
incomes from house property not chargeable to tax. 4+10=14
6. (a) Discuss in detail the
provisions of Income-tax Act, 1961 for determination of income from capital
gain. 14
Or
(b) Discuss in detail the
provisions of Income-tax Act, 1961 for determination of income from other
sources. 14