2017 (November)
COMMERCE
(Speciality)
Course: 504
(Direct Tax - 1)
The figures in the
margin indicate full marks for the questions
(NEW COURSE)
Full Marks: 80
Pass Marks: 24
Time: 3 hours
1.
(a) Write True or False: 1x4=4
1) Indian
income is always taxable in India irrespective of the residential status of the
tax payer.
2) Scholarship
granted by government to students to meet the cost of education is not exempted
from tax.
3) Salary
paid to a partner is chargeable under the head ‘salaries’.
4) Employer’s
contribution towards approved superannuation fund is chargeable to tax in the
hands of employees to the extent such contribution exceeds Rs. 1.5 lakh per
assessment year.
(b) Choose the correct answer to the following: 1x4=4
1) For
the assessment year 2017-18 rebate under Section 87A is available in the case
of the residential individual, if his taxable income is
a. Rs.
3,00,000 or less.
b. Rs.
4,00,000 or less.
c. Rs.
5,00,000 or less.
2) If
title of ownership of a house property is under dispute in a court of law, the
decision as to who is the owner rests with?
a. Government
of India.
b. State
Government.
c. Income
Tax Department.
3) An
appeal against the order of the assessing officer lies with
a. Commissioner
(Appeals) [Sec 246A].
b. Principal
Commissioner of Income Tax.
c. Joint
Commissioner of Income Tax.
4) As
per National Pension System, it is mandatory for persons entering the
government service on or after January 1, 2004 to contribute
a. 20%
of salary every month towards NPS.
b. 15%
of salary every month towards NPS.
c. 10%
of salary every month towards NPS.
2.
Write short notes on any four of the following: 4x4=16
a) Assessment
Year.
b) Gross
Total Income.
c) Retrenchment
Compensation.
d) Municipal
Valuation.
e) Central
Board of Direct Taxes.
3.
(a) “Right to appeal is a statutory right under Income-tax Act, 1961.” Do you
agree? Write an explanatory note in support of the above statement. 14
Or
(b)
Write an explanatory note on residential status of an individual and an HUF. 8+6=14
4.
(a) Shri Ratan, a manager of a Guwahati based Company. He submits the following
particulars of his salary Income:
1) Basic
salary – Rs. 14,000 per month.
2) Dearness
Allowance – Rs. 8,400 per month (Rs. 1,300 per month enters into retirement
benefit)
3) Education
allowance for two children at Rs. 6,000 p.a. per child Rs. 3,000 and hostel
allowance for two children at Rs. 350 p.m. per child.
4) Commission
– Rs. 25,100.
5) Leave
encashment – Rs. 10,000.
6) Employer’s
contribution to RPF – Rs. 25,200.
7) Travelling
allowance for his official tours Rs. 20,000. Actual expenditure on tour
amounted to Rs. 17,000.
8) Interest
credited to RPF account in the previous year @ 10% amounted to Rs. 8,000.
9) He
resides in the Bungalow of the company. Its fair rent is Rs. 6,500 p.m. The
company deduct Rs. 1,200 p.m. from salary as rent of the Bungalow.
10) He
paid professional tax of Rs. 250 per month.
Compute
Shri Ratan’s income under the head ‘income from salary’ for the assessment
year, 2017-18. 14
Or
(b)
What is Provident Fund? Explain different types of provident funds and their
tax treatment. 4+10=14
5.
(a) Mr. Kalyan owns a resident house property. It has to equal residential
units – unit 1 and unit 2. While unit 1 is self-occupied by Kalyan for his
residential purpose, unit 2 is let out (rent being Rs. 8,000 p.m., rent of 2
months could not be recovered). Municipal value of the property is Rs.
1,40,000, standard rent is Rs. 1,30,000 and fair rent is Rs. 1,45,000.
Municipal tax imposed @ 12% which is paid by Kalyan. Other expenses for the
previous year 2016-17 being repairs Rs. 250, insurance Rs. 600, interest on
capital (borrowed during 1997) for constructing the property Rs. 63,000. Find
the income from house property of Kalyan for the assessment year 2017-18. 14
Or
(b)
Explain how to compute income from a let out house property. Write a short note
on interest on borrowed capital. 10+4=14
6.
(a) Write a note on Income-tax Authorities. Explain the powers of Central Board
of Direct Taxes. 4+10=14
Or
(b)
What do you mean by appeal to Appellate Tribunal? Write a note on procedure and
powers of Appellate Tribunal.
(OLD COURSE)
Full Marks: 80
Pass Marks: 32
Time: 3 hours
1.
(a) Write True or False: 1x4=4
1) A
person may have dual residential status, i.e., he may be resident of one or
more countries in a relevant previous year.
2) Salary
also includes income tax of employee paid by employer.
3) Fair
rental value is based on the rent prevailing for similar type of accommodation
in same or similar type of locality.
4) Public
Provident Fund (PPF) offers self-employed people the benefit to enjoy deduction
u/s 80C.
(b) Choose the correct answer to the following: 1x4=4
1) Perquisites
or benefits or any other remuneration received from other than the employer,
would be taxable under the head.
a. Income
from Salaries.
b. Income
from House Property.
c. Income
from Other Sources.
2) Artificial
Juridical person’s example is
a. State
Bank of India, Dibrugarh.
b. Delhi
University.
c. Guwahati
Municipal Corporation.
3) Tribal
areas/Scheduled areas allowances as specified in rule 2BB, exemption to State,
Assam and other similar States are subject to limit of
a. Rs.
500 per month.
b. Rs.
200 per month.
c. Rs.
100 per month.
4) Mohan
is entitled to education allowance @ 6,000 p.a. per child for 3 children. It
will be exempted to the extent of
a. Rs.
4,000.
b. Rs.
2,400.
c. Rs.
1,200.
2.
Write short notes on any four of the following: 4x4=16
a) Previous
year.
b) Leave
travel concession.
c) Standard
deduction.
d) Fair
rental value.
e) Perquisites.
f) Deemed
receipt.
3.
(a) Explain the provisions relating to newly established units in special
economic zone [Section 10AA] of the Income-tax Act, 1961. 12
Or
(b) “Liability of an assessee is determined with reference to
his residence.” Explain the statement in detail. 12
4.
(a) Mention any eleven exempted incomes u/s 10 of the Income-tax Act, 1961. 11
Or
(b)
Write notes on the following: 5
½ x2=11
1) Tax
holiday for industrial units in trade zones.
2) Tax
holiday for newly established units in special economic zones.
5.
(a) Shri Swadhin Jyoti originally hail from Assam is working at Pune in a
company. He provides the following information about his salary income:
1) Basic
salary @ Rs. 20,000 p.m.
2) Dearness
allowance @ Rs. 3,000 p.m.
3) City
compensatory allowance @ Rs. 1,000 p.m.
4) Entertainment
allowance @ Rs. 14,000 p.a.
5) Commission
received on turnover Rs. 25,000.
6) Rent-free
accommodation of (furnished) on which employer pays municipal tax on Rs. 65,000
p.a. and furniture value is Rs. 1,40,000.
7) Medical
bills reimbursed by company (treatment taken from a private hospital) Rs.
15,000.
8) He
is provided with a car of 1.8 Lt capacity which is partly used for personal and
partly for employment purposes.
9) During
the year, he travelled in connection with his job and his travelling allowance
is allotted to Rs. 20,000. Actual expenditure on tour amounted to Rs. 18,000.
10) Professional
tax paid by him is Rs. 2,500.
Compute
the taxable income from salary of Shri Swadhin Jyoti for the assessment year,
2017-18. 11
Or
(b)
What do you mean by the term perquisites under the head salary? Explain the
following in terms of –
a. Valuation
of perquisites in respect of free education;
b. Valuation
of medical facilities. 5
½ +5 ½=11
6.
(a) From the information given below, find out the income under the head
‘Income from House Property’ for the assessment year, 2017-18:
|
Particulars
|
House – I (Rs.)
|
House – II (Rs.)
|
|
Fair Rent
Annual Rent
Municipal valuation
(MV)
Standard rent (SR)
Municipal taxes paid
Repairs
Insurance
Interest on capital
borrowed by mortgaging House – I
(funds are used for
construction of House – II)
Unrealised rent
2016-17
|
70,000
73,000
-------
71,000
NA
16,000
4,000
5,000
16,000
-
|
1,72,000
1,74,000
(after deduction of unrealized rent)
1,75,000
NA
40,000
8,000
55,000
-
-
55,000
|
The
above property is let out throughout the previous year 2016-17. 11
Or
(b)
Explain the procedure of computation of gross annual value in the case of let
out house property. 11
7.
(a) Who is an assessing officer under income-tax department? Explain the power
of assessing officer. 11
Or
(b)
State the authorities that are authorized u/s 132(1) of the Income-tax Act,
1961, to issue orders regarding search and seizure. What are the rules
regarding retention of seized books and documents? 6+5=11
***
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