2013
DIRECT TAXES
Full Marks: 80
Time: 3 hours
(The figures in the margin indicate full marks for the questions)
1. Answer the following as directed: 1x10=10
a) As per which of the following sections, ‘a person’ has been defined in the Income Tax Act?
1) Section 2 (7).
2) Section 2 (31).
3) Section 3.
4) Section 14.
b) Income tax is levied on an individual assessee. (State whether the statement is true or false)
c) All allowances are fully taxable. (State whether the statement is true or false)
d) Fringe benefits provided to the employees on which Fringe Benefit Tax is payable by the employer, is tax free in the hands of the employees. (State whether the statement is true or false)
e) The basis of charge of salary income is as per section 15 of the Income Tax Act. (State whether the statement is true or false)
f) An Indian citizen is always considered as resident and ordinarily resident in India. (State whether the statement is true or false)
g) Rent of agricultural land is _______. (Fill in the blank)
h) Receipts from horse races are taxable as income from other sources. (State whether true or false)
i) Rent of statutory deduction in case of Income from House Property is _______. (Fill in the blank)
j) Capital gains are charged to income tax on cash basis. (State whether the Statement is true or false)
2. Write short answer to the following in about 50 words each: 2x5=10
a) State the meaning of ‘Total Income’ as per the Income Tax Act.
b) State the meaning of previous year as per the Income Tax Act.
c) Define ‘Income from House Property’ as per the Income Tax Act.
d) Define ‘Net Wealth’ under the Wealth Tax Act.
e) Give the definition of ‘Agricultural Income’ as per the Income Tax Act.
3. Answer the following in about 150-200 words each (any four): 5x4=20
a) Explain the meaning of ‘Long-term Capital gains’ and ‘Short-term Capital gains’.
b) What are the ‘General Incomes’ under the head ‘Income from Other Sources’?
c) State the procedure of filing of return by an individual assessee.
d) What is ‘PAN’? How can it be procured as per the provisions of the Income Tax Act?
e) State the consequences of not deducting tax at source as per the provisions of Income Tax Act.
f) What are the deduction allowed while computing ‘Income from House Property’?
g) State the meaning ‘Profit and Gains from Business and Profession’. What is the basis of charge of these to Income Tax?
4. Answer the following:
(a) (1) Mr. Pranob had purchased a residential house property on 25-6-1988 for Rs. 1,40,000. He spent Rs. 80,000 on improvement of the house during the year 1989-90.
On 1-9-2011, he sold the house for Rs. 15,00,000. His expenses on transfer was Rs. 15,000.
Compute the amount of capital gains for the assessment year 2012-13.
Given, cost of Inflation Index (CII), 1988-89=161; 1989-90=172; 2011-12=785.
(2) Rohit is the owner of a house property in Guwahati. The house is let out at a rent of Rs. 8,000 p.m. Its municipal valuation is Rs. 1,00,000 p.a. and standard rent Rs. 84,000 p.a.
The fair rent of the house is Rs. 1,08,000. The house was self occupied for three months. Municipal taxes paid Rs. 8,000 by the owner.
Compute the Net Annual value of the house for the assessment year 2012-13. 5+5=10
Or
State the exemption available from Long-term capital gains under various subsections of section 54 of the Income Tax Act.
(b) What are the various modes of assessment of income tax as per Income Tax Act? Discuss them in detail.
Or
Discuss the provisions of the Income Tax Act regarding ‘Tax Deducted at Source’ from salary income of an individual. What are the duties of the authorized regarding this? 10
(c) Define ‘Perquisite’ with examples. Discuss the perquisites taxable in case of all employees. 10
Or
State the deduction available from Gross Total Income (GTI) under section 80C of the Income Tax Act.
(d) Mr. Saurav is employed in a private limited company in Guwahati. During the previous year 2011-12, he received the following payments from his employer:
| | Rs. |
| Basic salary Dearness allowance Entertainment allowance Servant allowance Bonus for the year Commission received | 15,000 p.m. 8,000 p.m. 1,000 p.m. 500 p.m. 70,000 35,000 |
Free furnished accommodation was provided to him for which the employer paid a rent of Rs. 6,000 p.m.
Employer’s contribution to recognized provident fund @ 15% p.a. on basic salary
Compute his income from salary for the relevant assessment year. 10
Or
Define ‘asset’ as per Wealth Tax Act. What are the components of exempted wealth as per this Act? 10
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