Income Tax Law and Practice Important Questions for Upcoming Exams, B.Com CBCS Pattern, Dibrugarh University

Income Tax Law and Practice Important Questions
B.Com CBCS Pattern
Dibrugarh University

Unit-I: Income Tax Law

Q. Define the term “Previous year” And “Assessment year? “Income tax is charged on the income of the previous year.” Do you fully agree with this statement? If not, what are the exceptions?  2013SN, 2022SN

Q. “The incidence of tax depends upon the residential status of an assessee.” Discuss. How Residential Status of the following is Determined:        2013, 2014SN, 2016, 2017, 2019, 2021, 2022

Ø  Individual  

Ø  HUF

Ø  Company

Ø  Firm

Ø  AOP and BOI

Q. Define the term “assessee” and“person” under the income tax act. What is regarded as income under the income tax act?

Q. What is Income? Write a brief note on incidence of tax.

Q. Explain in brief various incomes which are exempted u/s 10 of the Indian Income Tax Act.    2013, 2015, 2018, 2021

Q. Write short notes on: (a) Assessment year (2017SN) (b) Previous Year (c) Charge of income tax (15SN, 18SN) (d) Capital asset  (e) Agricultural income (f) Person (13SN, 15SN) (g) Assessee including deemed assessee (13SN, 14SN, 15SN) (h) Revenue Vs Capital expenditure (i) Gross Total Income (15SN, 16SN, 17SN) (j) Capital receipts (k) Revenue Receipts Vs Capital Receipts (l) Tax Return (15SN) (m) Method of accounting (16SN) (n) Tax evasion vs. Tax avoidance (o) NRI, Ordinarily resident and Not-ordinarily resident (2003SN) (p) Income tax authorities (2016SN) (q) Income tax rate for the Assessment year 2019 – 2020 (r) CBDT (s) Scope of total income (2013SN) (t) Maximum Marginal Rate 2022 (u) TDS and TCS (v) Agniveer Scheme

Unit – 2
(PART A): Computation of Income from Salary

Q. What Constitutes Salary Under sec.17 of Income-tax act, 1961? Explain the basis of charge of salary.

Q. What is allowance? Explain its various types including Dearness allowance (2018) and HRA (2015).

Q. Define ‘perquisite’ as per income tax act. Explain how perquisites are taxable in the hand of employee. 2017SN, 2022

Q. Explain the various types of Provident fund with their respective treatment as per Income Tax Act, 1961.     2014, 2017, 2019, 2022

Q. What are the essentialcharacteristics of Salary?

Q. Explain the provisions of the income – tax Act, 1961 concerning the following:

Ø  Gratuity

Ø  Value of rent-free house

Ø  Commuted and Uncommuted Pension         2014

Ø  Voluntary Retirement Compensation

Ø  Retrenchment compensation

Ø  Approved Superannuation fund

Ø  Deduction u/s 80C

Ø  Recognised provident fund

Ø  Encashment of earned leave                              2018

Ø  Relief u/s 89(1) of the Income tax Act.           2014, 2022

Ø  Profit in lieu of salary                            2018

Q. Practical Problems: Every Year Click here for 2009 to 2022 Solved Practical Problems

Unit – 2
(PART B): Income under the Head House Property

Q. Explain the Basis of Charge ofIncome under the head Income from House Property. 2021

Q. Define annual value. How does itdiffer from annual rental value? How would you determine the annual value ofthe house used by the assessee as let-out and self-occupied residence in computing taxable income from house property? 2015, 2016, 2017, 2018, 2019,2021, 2022

Q. What deductions are allowed from the annual value in computing taxable income from house property?

Q. Write Short Notes on:

Ø  Exempted House Property Income  2015, 2022

Ø  MRV, FRV, SRV and ERV    2018

Ø  Deemed Ownership

Ø  Annual value

Ø  Income From Co-owned Property

Ø  Unrealised rent and its Treatment

Ø  Different categories of house property (Self, Let-out and used for own business)

Q.Practical Problems: Every Year Click here for 2009 to 2022 Solved Practical Problems

Unit 3
Part A: Profits and Gains from Business and Profession

Q.Define “business and profession” as used U\S 28 of the Income “Tax Act, 1961(2017SN). Discuss in detail the general principles governing determination of business income.             2016, 2019

Q. What are income chargeable to tax under the head profit and gain of business or profession? What are the deductions allowable from this income (Sec.30 to Sec.37)? 2014, 2015SN

Q. What do you mean by the term “Depreciation”? What are the rules regarding grant of deduction for depreciation?                2015, 2017, 2018

Q. Write Short notes on:

Ø  Additional depreciation       2019

Ø  Block of assets          2018

Ø  Chargeability of PGBP           2018

Ø  Admissible and Inadmissible deduction us 40(A)/(B)/43(B)                 2015

Ø  Books of accounts

Q. One Practical Problems:

1.       Calculation of Depreciation                                2018

2.       Computation of Business Income    2014, 2016, 2019

3.       Computation of Professional income             2015, 2017

Part B: Income under the head “Capital Gains”

Q. What are Capital Assets (2016SN)? What are its various types (2017SN)? Describe the procedure of ascertaining Short Term capital Gains and long term capital Gains.                                2014, 2015, 2016, 2019, 2021, 2022

Q. What do you mean by capital gains? Explain in detail capital gain exempted from tax.    2017, 2018, 2019SN, 2022

Q.How would you determine cost of acquisition and cost of improvement u/s 49?        2021

Q. Explain the concept of Transfer under the head capital gains. Mention the transactions which are not regarded as transfer.              2015SN, 2016

Q. Write short notes on:

Ø  LTCG and STCG       2017

Ø  Deemed income                      2015

Q. One Practical Problems expected:  Computation of capital gains        2014, 2015, 2016, 2017, 2018, 2019, 2022

Income From other sources

Q. What are the incomes and deemed incomes chargeable under the head “Income from other sources”?  2021

Q.What do you mean by Income from other sources? Explain the allowed (2016) and disallowed deductions (2017SN) under the head income from other sources.

Unit 4: Clubbing of Income, Set off and Carry Forward of Losses

Q.Explain the provisions of the income tax Act, 1961 regarding carry forward and set off of losses. 2014, 2015, 2016, 2017, 2018, 2019, 2021, 2022

Q.Explain the process of setting off and carry forward of losses in computing gross total income with exception. 2016

Q. What is unabsorbed depreciation? How it is set off?             2016SN, 2017SN

Q. Explain the situations where incomeof one person included in income of other person especially for minors.

Q. How will you compute the total income of an individual and firm? Explain.

Q. Explain the tax rate applicable to a firm for the Assessment Year 2022-23.         

Q. State the Relief and Rebate in respect of income tax and rates of income tax. 2021

Q. Write short notes on:

a) Set off and carry forward of losses                     2016, 2017

b) Clubbing of Income

c) Deductions under Sec 80C

d) Deductions under Sec 80D

e) Deductions under Sec 80E

f) Aggregation of Income

Q. One Practical Problems expected: Computation of total income     2014, 2015 (Two Years), 2016, 2017, 2018, 2019, 2022

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