Dibrugarh University Question Papers: Income Tax (May' 2018)

2018 (May)
COMMERCE (General)
Course: 601 (Income Tax)
Time: 3 hours
Full Marks: 80
Pass Marks: 24
1. (a) Fill in the blanks:                                                                                   1x4=4
1)      Assessee means a person by whom any tax or any other sum of money is payable under the Income-tax Act.
2)      Agricultural income from land situated in India is fully exempted under Section 10 (1) of the Income-tax Act.
3)      Statutory Provident Fund is the oldest type of fund.

4)      House Property Income = Annual Value of Building – Specified Deductions u/s 24.
(b) Write True or False:                                                                                 1x4=4
1)      Tax is levied on total income of assessee.                     False, Taxable income
2)      The full form of EPZ is Export Promotion Zone.           False, Export Processing Zone   
3)      House rent allowance is a fully taxable allowance.    False     
4)      Actual rent is the rent which is actually received by the owner of the house from the tenant.              True
2. Write short notes on (any four):                                                           4x4=16
a)      Assessment Year.
b)      Ordinary Resident.
c)       Special Economic Zone.
d)      Education Allowance.
e)      Municipal Valuation.
3. (a) Write a note on history of Income tax in India.                                        14
Or
(b) Mention the different categories of assessee according to their residential status. How would you determine the residential status of an individual and a firm?
4. (a) Explain in brief any fourteen incomes which are exempted u/s 10 of the Income-tax Act, 1961.                       14
Or
(b) Enumerate the special provisions in respect of newly established units in Special Economic Zone as per the Income-tax Act, 1961.                                                            14
5. (a) Mr. X is an employee of Ranchi (population 15 lakhs) based on company. He provides the following particulars of his salary income:
1)      Basic salary – Rs. 12,000 per month.
2)      Profit bonus – Rs. 12,000.
3)      Commission on turnover achieved by Mr. X – Rs. 42,000.
4)      Entertainment allowance – Rs. 2,000 per month.
5)      Club facility – Rs. 6,000.
6)      Transport allowance – Rs. 1,800 per month.
7)      Free use of car of more than 1.6 litre capacity for both personal and employment purposes; expenses are met by employer.
8)      Rent-free house provided by employer; lease rent paid by employer – Rs. 6,000 per month.
9)      Free education facility for three children of the employee (bills issued in the name of employer) – Rs. 22,500.
10)   Gas, water and electricity bills issued in the name of the employee but paid by employer – Rs. 16,800.
Compute income under the head salary for the Assessment Year, 2017-18.                  14
Or
(b) Explain in brief the following items as per the Income-tax Act, 1961:                    3 ½ x4=14
1)      Profits in lieu of salary.
2)      Recognized Provident Fund.
3)      Dearness allowance.
4)      Leave encashment.
6. (a) Define annual value. How is it determined? What deductions are allowed from the annual value in computing taxable income from house property?                              2+7+5=14
Or
(b) Mr. A owns a house property in Cochin. It consists of three independent units and information about the property is given below:
Unit – 1:
Unit – 2:
Unit – 3:
Municipal rental value
Fair rental value
Standard rent
Actual rent
Unrealized rent
Repairs
Insurance
Interest on money borrowed for the construction of house property
Municipal taxes
Date of completion of construction
Own residence
Let out
Own business
Rs. 1,20,000 p.a.
Rs. 1,32,000 p.a.
Rs. 1,08,000 p.a.
Rs. 3,500 per month
For three months
Rs. 10,000
Rs. 2,000
Rs. 96,000
Rs. 14,400
01.11.2011
Calculate total income or loss under the head house property.                          4+6+4=14
(OLD COURSE)
Full Marks: 80
Pass Marks: 32
1. (a) Fill in the blanks:                                                                                      1x4=4
1)      The income tax was introduced in Indian for the first time in 1860 by British rulers.
2)      Section 10 (10) of the Income-tax Act relates to Gratuity.
3)      Advance salary received shall be taxable in the year of its receipts.
4)      Cost of improvement incurred after acquisition is to be treated as part of the cost.
(b) Write True or False:                                                                                      1x4=4
1)      A company cannot enjoy the status of not ordinary resident.              False, only individual and HUF
2)      The full amount of scholarship granted to meet the cost of education is exempted from tax.  True, Sec. 10(16)
3)      Taxable gratuity = Gratuity received – Arrear.                             False
4)      The annual value of a house property is to be determined according to the provisions of Section 32 of the Income-tax Act.                False, sec. 23
2. Write short notes on any four of the following:                                               4x4=16
a)      Assessment Year.
b)      Tax Holiday.
c)       Perquisites.
d)      Self-occupied Property.
e)      Capital Gain.
3. (a) What is income tax? Discuss the features of income tax in India.                                    2+10=12
Or
(b) “The incidence of income tax depends upon the residential status of an assessee.” Explain this statement in detail. 12
4. (a) What do you mean by tax-free income? Given ten examples of income which are totally exempted from income tax?                                3+8=11
Or
(b) Explain the following:                                                          5 ½ +5 ½=11
1)      Special Economic Zone.
2)      Free Trade Zone.
5. (a) Write a detailed note on rebate of tax under Section 88 of the Income-tax Act, 1961.          11
Or
(b) From the particulars given below, compute the gross salary of Mr. X for the Assessment Year, 2017 – 18:
1)      Salary – Rs. 1,48,000.
2)      Bonus – Rs. 12,000.
3)      Free gas, electricity, water, etc. (actual bills paid by company) – Rs. 6,000.
4)      Furnished flat provided to the employee at Kanpur (population above 25 lakhs) for which actual rent paid by the company – Rs. 78,000.
5)      The employee pays rent @ Rs. 1,000 p.m. to the company.
6)      Furniture at cost (including television, fridge and air-conditioner) – Rs. 50,000.
6. (a) State the provisions relating to computation of ‘Income from House Property’ under different categories of house property as per the Income-tax Act, 1961.            11
Or
(b) From the particulars given below, compute the income from house property which consists of two independent units having 1/3rd and 2/3rd area:         11
Date of completion of work
Municipal rental value
Fair rental value
Self-occupied portion
Let-out portion
Municipal taxes (per annum)
Fire insurance premium (per annum)
Ground rent (per annum)
Interest on loan
01.11.2011
Rs. 96,000
Rs. 84,000
2/3
1/3
Rs. 6,000
Rs. 2,000
Rs. 4,000
Rs. 7,500
7. (a) Calculate the income from other sources of Mr. Y from the information given below:                                          11
Winnings from lottery
Winnings from horse race
Rs. 1,00,000
Rs. 35,000
Gifts received during the previous year, 2016 – 17:
1)      Received Rs. 20,000 as gift from a friend.
2)      Received Rs. 1,00,000 as gift from elder brother.
3)      Received Rs. 1,40,000 as gift on his marriage.
4)      Received Rs. 80,000 as gift from his NRI friend on 01.01.2017.
5)      Another gift of Rs. 18,000 received from his friend.
Or
(b) Define capital gain. Discuss the procedure for computation of capital gains as prescribed by the Income-tax Act, 1961.

0/Post a Comment/Comments

Kindly give your valuable feedback to improve this website.