2017
(August)
COMMERCE
Paper: 306
(Direct Tax Law)
Full Marks: 90
Time: 3 hours
The figures in the margin indicate full marks for the questions
1. Write short notes on the following: 4x4=16
a) Person.
b) Commissioner of Income Tax.
c) Agricultural Income.
d) Capital expenditure.
Or
Define term ‘Previous Year’ and ‘Assessment Year’ as per Income Tax Act 1961. What are the exceptions to the rule that Income of a previous year is assessed to tax in the assessment year? 4+4+8=16
2. How the residential status of an individual is determined as per Income Tax Act, 1961? Discuss the incidence of Tax on the basis of residential status. 8+8=16
Or
(a) What is the residential status of an individual for the Assessment Year 2017-18 who came to India for the first time in 2014-15 and was in India as follows: 8
| Previous Years | Presence In India |
| 2016-17 2015-16 2014-15 | 185 days 15 days 26 days |
(b) Following are the incomes of Mr. Anurag for the Financial Year 2016-17 – 8
1) Interest on Saving Bank Account in State Bank of India Rs. 7,800
2) Income from Agricultural land in Brazil and invested in Nepal Rs. 10,000.
3) Dividend received from an American Company (Rs. 2,000 received in India) Rs. 10,000.
4) Pension received in Belgium from an Indian Company Rs. 20,000.
You are required to compute his Gross Total Income for the Financial Year 2016-17 assuming him as:
a) Ordinary resident in India.
b) Not Ordinarily Resident in India.
c) Non-Resident in India.
3. Write short notes on: 8x2=16
a) Leave Salary.
b) House Rent Allowance.
Or
Mr. X is a lecturer in a college. His income for the year 2016-17 is as follows: 16
| Basic salary Dearness Allowance | Rs. 20,000 per month Rs. 6,000 per month |
He contributes 15% of his salary towards a Statutory Provident Fund to which his employer also contributes the same.
House Rent Allowance Rs. 12,000 per month. He stays in a rented house in Jorhat and pays a rent of Rs. 18,000 per month.
His employees has paid the following amount on his behalf.
a) His Life Insurance Premium Rs. 2,000 per month.
b) His professional Tax Rs. 3,800.
His savings in the financial year were –
1) National Savings Certificate Rs. 20,000.
2) Deposit in Public Provident Fund Rs. 25,000.
3) Fixed deposit in Bank Rs. 15,000.
Compute his Taxable Income for the year 2016-17.
4. Discuss the general principles governing determination of Business Income as per Income Tax Act 1961. 16
Or
Mr. R owns two house properties. Compute his income from House property for the Financial Year 2016-17. 16
| | House Property | |
| | A | B |
| Fair Rental Value Actual Rent Standard Rent Municipal Rental value Municipal Tax Actual Repair Exp. Ground Rent Interest on loan Vacancy Period Unrealised rent of the current year | Rs.1,36,000/p.a. Rs. 4,000/p.m. Rs. 38,000/p.a. Rs. 40,000/p.a. 10% Rs. 4,000 Rs. 2,000 Rs. 12,000 3 months - | Rs.1,20,000/p.a. Rs. 12,000/p.m. - Rs.1,30,000/p.a. 12% Rs. 12,000 Rs. 2,500 Rs. 48,000 - Rs. 36,000 |
To Construct House B a loan of Rs. 4,00,000 at 12% interest was taken on 1st November 2012. The Construction of the house was completed on 30th November 2015 and on December 2015 it is let out.
5. Write short notes on the following: 4x4=16
a) Wealth.
b) Exempted Assets.
c) Valuation of Assets.
d) Incidents of Tax.
Or
What do you mean by Net Wealth? How net wealth is determined under the Wealth Tax Act?6+10=16
6. Answer the following questions in short: 2x5=10
a) Assessment Year.
b) Four exempted incomes.
c) Two fully taxable allowances.
d) Annual value of a self occupied house.
e) Write the name of two Assets mentioned in section 2(ea) of Wealth Tax Act.
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