2018
(November)
COMMERCE
(Speciality)
Course: 504
(Direct Tax - I)
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)
The total income of individual leaving India up
to the date of his departure shall be chargeable to tax in that assessment
year.
2)
Scholarship received by students must be
financed by the government.
3)
Any income received by any person for or on
behalf of the New Pension System Trust (established on February 27, 2008) will
not be chargeable to tax.
4)
Interest on borrowed capital is allowable as
deduction if capital is borrowed for the purpose of purchase, construction,
repair, renewal, etc.
(b) Choose the correct answer of the following: 1x4=4
1)
The contribution made by the Central Government
in the previous year, to the account of an employee under a pension scheme
referred to in
a) Section
80C.
b) Section
80CCC.
c) Section
80CCD
2)
Where an assessee uses his property for carrying
on any business or profession, no income is chargeable to tax under the head
a) Income
from Salaries.
b) Income
from House Property.
c) Income
from Other Sources.
3)
The Appellate Tribunal, constituted by the Central
Government, functions under the Ministry of Law, consists of which of the
following two classes of members?
a) Judicial
and accountant.
b) Commissioners
and accountant.
c) Inspector
of income tax and accountant.
4)
Statutory Provident Fund is set up under the provisions
of the
a) Provident
Fund Act, 1952
b) Provident
Fund Act, 1925
c) Income-tax
Act, 1961
2.
Write short notes on any four of the following: 4x4=16
a)
Charge of Income Tax.
b)
Entertainment Allowance.
c)
Approved Superannuation Fund.
d)
Unrealized Rent.
e)
Commission of Income Tax.
3.
(a) “Appeal against the order of the Assessing Office lies with the
Commissioner (Appeals).” Do you agree? Write an explanatory note in support of
the above statement. 14
Or
(b) Mention any fourteen such incomes that are absolutely
exempt from income tax under Section 10 of the Income-tax Act, 1961. 14
4.
(a) Shri Uttom, is an employee of an Guwahati-based company. He provides the
following particulars of his salary income: 14
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1)
Basic salary – Rs. 50,000 per month.
2)
Dearness allowance – Rs. 12,500 per month (40
per cent of which is include for the purpose of determining retirement
benefit).
3)
Bonus – Rs. 25,000.
4)
Transport allowance – Rs. 7,600 p.m. (out of
which Rs. 1,600 is used for the journey between office and residence,
remaining amount is not spent).
5)
He contributes 15% of basic salary towards RPF
and the company also makes a matching contribution.
6)
Interest credited to RPF @ 12% is Rs. 30,000.
7)
Reimbursement of medical bills Rs. 60,000 out
of this Rs. 20,000 is in respect of medical bill of his wife and she got her
medical treatment from government hospital.
8)
Leave encashment Rs. 30,000. It relates to
encashment of current year’s leave.
9)
He has been provided with a rent free house
hired by employer at Rs. 15,000 p.m.
10)
He paid Rs. 3,000 as professional tax.
|
Compute
Shri Uttom income under the head Income from Salaries for the Assessment year,
2018 – 19.
Or
(b) What do you mean by the term ‘perquisites’ under the
head salary? What are the classifications of perquisites? Explain briefly the
perquisites which are not taxable. 3+2+9=14
5.
(a) Mr. Swadhin owns resident house properties. Following are the particulars
of two house properties owned by him:
|
|
House – I
|
House – II
|
|
Municipal valuation
(in Rs.)
Fair rent (in Rs.)
Standard rent (in
Rs.)
Actual rent received
(in Rs.)
Self-occupied
Let out
Municipal taxes:
Due (in Rs.)
Paid (in Rs.)
Interest on borrowed
money (in Rs.)
|
1,00,000
88,000
90,000
9,000 p.m.
01.04.2017 to
30.11.2017
01.12.2017
31.03.2018
6,000
3,000
10,000
|
92,000
96,000
1,08,000
10,000 p.m.
01.12.2017
31.03.2018
01.04.2017
30.11.2017
8,000
NIL
42,000
|
Loan
taken to construct House – II is still outstanding. Loan was taken in 1998.
Find
out the income from house properties of Swadhin for the Assessment Year,
2018-19. 14
Or
(b) Explain how to compute income from self-occupied house
property. Write a note on special provisions with regard to unrealized rent
when it is realized subsequently. 10+4=14
6.
(a) Write a note on Central Board of Direct Taxes. Explain the powers of
Assessing Officers. 4+10=14
Or
(b) What do you mean by ‘right to appeal’? What are the
procedures in appeal? Explain in detail. 4+10=14
(OLD COURSE)
Full Marks: 80
Pass Marks: 32
Time: 3 hours
1.
(a) Write True or False: 1x4=4
1)
A company shall be ‘non-resident’ if its place
of effective management is situated wholly or partially outside India during
the relevant accounting year.
2)
Statutory Provident Fund is set up under the
provision of the Provident Fund Act, 1952.
3)
Any income derived by the SAARC fund for
regional project is exempt from tax.
4)
Income is taxable under the head Income from
House Property only if the assessee is not the owner of a house property.
(b) Choose the correct answer of the following: 1x4=4
1)
One can deposit in Public Provident Fund subject
to
a) Minimum
Rs. 500 and maximum Rs. 1,50,000 per annum.
b) Minimum
Rs. 600 and maximum Rs. 2,00,000 per annum.
c) Minimum
Rs. 700 and maximum Rs. 2,50,000 per annum.
2)
Example of an Association of Persons (AoP) is
a) A
village Panchayat.
b) Mark
fed.
c) Reliance
Industries Limited.
3)
Pankaj is entitled to hostel allowance @ Rs. 500
p.m. per child for 3 children. It will be exempted to the extent of
a) Rs.
7,200.
b) Rs.
12,000.
c) Rs.
16,400.
4)
Underground allowance granted to an employee who
is working in uncongenial, unnatural climate in underground mines is exempted
to the limit of
a) Rs.
1,000 per month.
b) Rs.
800 per month.
c) Rs.
600 per month.
2.
Write short notes on any four of the following: 4x4=16
a)
Income.
b)
Annuity.
c)
Deemed Income.
d)
Recognized Provident Fund.
e)
Municipal Rental Value.
f)
Income-tax Act, 1961.
3.
(a) Explain in detail any twelve incomes which are exempted under Section 10 of
the Income-tax Act, 1961. 12
Or
(b) “Income received in India is taxable in all cases
irrespective of residential status of the assessee.” Explain the statement in
detail. 12
4.
(a) “Income-tax concession is given to newly established units in special
economic zone.” Explain this statement.
11
Or
(b) Write brief notes on the following: 5.5+5.5=11
1)
Income which are not included in the total
income.
2)
Tax holiday for industrial units in trade zones.
5.
(a) From the following information compute the taxable income from salary of
Shri Kamal Deka for the Assessment Year, 2018 – 19: 11
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1)
Basic salary – Rs. 3,60,000 p.a.
2)
Dearness allowance – Rs. 36,000 (25% enters
for retirement benefit)
3)
Education allowance for two children at Rs.
350 per month per child and hostel allowance for two children at Rs. 450 per
month per child.
4)
Commission received on turnover – Rs. 50,000.
5)
Special allowance Rs. 3,000 per month.
6)
Entertainment allowance @ Rs. 10,000 per
annum.
7)
He is provided with a rent-free house hired by
employer at Rs. 10,000 per month.
8)
He is provided with a car of 1.8 litre
capacity (with driver) for both official and personal purposes.
9)
He receives Rs. 20,000 as leave travel
concession but has not travels anywhere.
10) Professional
tax paid by him – Rs. 250 per month.
|
Compute
the taxable income from salary of Shri Kamal Deka for the Assessment Year,
2018-19.
Or
(b) In order to encourage savings for the social security of
employees, government has set up various kinds of provident funds.
In
the light of the above statement, explain the following: 5.5+5.5=11
1)
Recognized Provident Fund.
2)
Unrecognized Provident Fund.
6.
(a) Mohan is a manager (finance) in Reliance Ltd., Mumbai and gets Rs. 34,000
per month as salary. He owns two houses one of which is let out to the
employer-company which in turn provided the same to Mohan as rent-free
accommodation. Determine the net income of Mohan for the Assessment Year,
2018-19 taking into account the following information relating property income:
11
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House – I
|
House – II
|
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Fair rent (FR) (in
Rs.)
Annual rent (in Rs.)
Municipal valuation
(MV) (in Rs.)
Standard rent
Municipal taxes paid
(in Rs.)
Repairs (in Rs.)
Insurance (in Rs.)
Land revenue (in
Rs.)
Ground rent (in Rs.)
Interest on capital
borrowed by mortgaging House – I (funds are used for construction of House –
II) (in Rs.)
Unrealized rent of
the previous year, 2003 – 04 (in Rs.)
Unrealized rent of
2017-18 (in Rs.)
Nature of occupation
Date of completion
of construction
|
60,000
63,000
61,000
NA
14,000
3,500
3,000
7,500
4,000
18,000
-
-
Let out to
Reliance
Ltd.
March 1999
|
1,82,000
1,84,000
1,85,000
NA
40,000
7,700
33,000
24,000
7,800
-
1,60,000
55,000
Let out to
Rohan for
Business
April 2001
|
Or
(b) Explain the procedure of computation of gross annual
value in the case of self-occupied house property. 11
7.
(a) What is the role of commissioner of income tax? Explain the powers which
are entrusted to him by Central Board of Direct Taxes. 11
Or
(b) Write notes on the following: 5.5+5.5=11
1)
Central Board of Direct Taxes.
2)
Commissioner of Income Tax.
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