Income Tax Law & Practice Question Paper 2021 [Dibrugarh University BCOM 3rd SEM Hons CBCS Pattern]

Income Tax Law & Practice Question Paper 2021 
[Dibrugarh University BCOM 3rd SEM Hons CBCS Pattern]

3 SEM TDC ITLP (CBCS) C 306
Income Tax Law and Practice’ 2021
(Held in January/February, 2022)
COMMERCE (Core)
Paper: C-306
Full Marks: 80
Pass Marks: 32
Time: 3 hours

The figures in the margin indicate full marks for the questions

1. (a) Fill in the blanks:                   1x4=4

(1)  Residential status is determined with reference to the individual’s _______ presence in India.

(2)  Gratuity is ordinarily taxable as _______.

(3)  All those assets to which one rate of depreciation is applicable are known as _______.

(4)  The Permanent Account Number is a _______ digit alpha numeric number which is issued by an assessing officer of the income tax department.

(b) Write True or False:              1x4=4

(1)  The present Income-tax Act came into force with effect from 1^st April, 1961.

(2)  The annual value of house property must consist of any building or lands appurtenant thereto.

(3)  Long-term capital gains on sale of securities listed in stock exchange are taxed u/s 115A of the Income-tax Act, 1961.

(4)  Total income is also known as taxable income.

2. Write short notes on any four of the following:              4x4=16

(a)  Standard deduction (u/s 16).

(b) Home loan.

(c)  Deduction u/s 54.

(d) Unexplained investment (u/s 69)

(e)  Filing of return of income.

3. (a) Explain the following (any two):      4x2=8

(1)  Assessee.

(2)  Agricultural income.

(3)  Gross total income.

Or

(b) Enumerate any four items of income which are fully exempted from income tax. Also mention any four such incomes which are partially exempted from income tax.   4+4=8

4. (a) Explain the following relating to Income from salary:                             3x3=9

(1)       House Rent Allowance.

(2)       Gratuity.

(3)       Recognized Provident Fund.

Or

(b) Mr. Rajiv is a production manager of an industrial unit at Chennai. The particulars of his salary income are as follows:

Particulars	Rs. (p.m.)
Basic Salary DA (given under the terms of employment) Entertainment allowance Medical allowance House Rent allowance Rent paid for the house	40,000 15,000 1,000 500 12,000 15,000

Car of 1.2 liter capacity provided by employer for private and official use. Employer meets of car. He and his employer (each) contribute 13% of salary to Recognized Provident Fund.

Mr. Rajiv had taken interest-free loan of Rs. 15,000 to purchase refrigerator. Compute income under the head salary for the AY, 2020-21.9

5. (a) From the particulars given below, compute income from house property which consists of two independent units having 1/3^rd and 2/3^rd area:    10

Date of completion Municipal rental value Fair rental value Self-occupied Let out   Municipal taxes Fire insurance premium Ground rent Interest on loan

01-11-2013 Rs. 96,000 Rs. 84,000 2/3rd portion. 1/3rd portion from 01-04-2018 to 31-08-2018 @ Rs. 7,200 p.m. and self-occupied from 01-09-2018 onwards. Rs. 6,000 p.a. Rs. 2,000 p.a. Rs. 4,000 p.a. Rs. 7,500

Or

(b) What is ‘annual value’? How is it determined? What deductions are allowed from the annual value in computing taxable income from house property?    2+3+5=10

6. (a) Dr. Kunal is a medical practitioner. He gives you the following summary of cashbook for the year ending on 31.03.2020:

	Rs.		Rs.
To Balance b/d ‘’ Consultation fee ‘’ Visiting fee ‘’ Gifts and presents ‘’ Sale of medicine ‘’ dividend from UTI ‘’ Life insurance maturity ‘’ Dividend from NDS	10,000 60,000 45,000 8,000 42,000 6,000 1,00,000 6,000	By Rent of clinic ‘’ Purchase of medicine ‘’ Staff salaries ‘’ Surgical equipment ‘’ Motor car expenses ‘’ Purchase of motorcar ‘’ Household expenses ‘’ Balance c/d	18,000 38,000 24,000 40,000 8,000 1,40,000 7,000 2,000
	2,77,000		2,77,000

Other Informations:

(1)    50% of the motorcar expenses incurred in connection with profession. Car was purchased in December 2019.

(2)    Household expenses include Rs. 6,800 for insurance premium.

(3)    Gift and presents include Rs. 3,000 from relatives.

(4)    Closing stock for medicine for Rs. 12,000 and opening stock on 01-04-2019 was Rs. 4,000.

Compute his professional gain for the Assessment Year, 2020-21.           10

Or

(b) Mention ten examples of expenses allowable as deduction u/s 37 of the Income-tax act while computing the profits and gains of business or profession. 10

7. (a) Mr. Sudip purchased a house on 12-04-2018 for Rs. 11,00,000 and spent Rs. 1,80,000 on its improvement on 14-07-2018. On 16-12-2019, he sold the house for Rs. 21,50,000 (stamp duty value Rs. 23,00,000) and incurred Rs. 12,000 as expenses on transfer. Compute the amount of capital gains from the AY, 2020-21.   9

Or

(b) Mention the different kinds of incomes specifically mentioned as chargeable to tax under the head, ‘Income from other sources’. 9

8. (a) From the following information relating to Financial Year, 2019-20 furnished by Mr. Shiv Prasad Gupta, compute his gross total income for the AY, 2020-21:    10

(1)       Income from salary (computed) Rs. 7,00,000.

(2)       Interest of Rs. 80,000 on the bank fixed deposit for the Financial Year, 2019-20 was credited to the Savings Bank A/c of Raman, his nephew (son of his sister).

(3)       He gifted a flat to his wife on 01-04-2019. The income from house property (computed) for the Financial Year, 2019-20 was Rs. 3,20,000.

(4)       Cash gift received by his minor son Bimal during his 10^th birthday celebration Rs. 92,000.

(5)       Income of minor daughter Sangita from fixed deposit in a bank Rs. 50,000.

(6)       Minor son’s income from fixed deposit in a bank Rs. 2,400.

Or

(b) Explain the provisions of the Income-tax Act regarding set-off and carry forward of the following:         3+3+4=10

(1)       Loss from house property.

(2)       Capital loss.

(3)       Loss of the discontinued business.