Income Tax Law and
Practice Question Paper 2023
Dibrugarh University BCOM
3rd SEM CBCS Pattern
3 SEM TDC ITLP (CBCS) C
306
2023 (Nov/Dec)
COMMERCE (Core)
Paper: C-306 (Income Tax Law
and Practice)
Full Marks: 80
Pass Marks: 32
Time: 3 hours
The figures in the margin indicate full marks for the questions
1. (a) Write True or False of the following: 1x4=4
(i) A person who pays tax on income earned
under the Income-tax Act is a client.
(ii) Un-commuted pension received by a
government employee is taxable.
(iii) Section 22 to 27 of the Income-tax Act,
1961 deal with income from house property.
(iv) Cost of long-term debentures is eligible
for indexing.
(b) Fill in the blanks of the following: 1x4=4
(i) The residential status of the assessee is
to be determined each year with reference to the _______.
(ii) Death cum retirement gratuity paid to a
government employee is _______.
(iii) Income received as rent from
sub-letting would be taxable under the head _______.
(iv) The share of loss from a firm cannot be
set off by a partner against his _______ income.
2. Write short notes on any four of the following: 4x4=16
(a) Assessee.
(b) Total income.
(c) Recognized Provident Fund.
(d) Preconstruction period interest.
(e) Deemed profit u/s 41.
(f) Health and Education Cess (HEC)
3. (a) Explain how you will determine the
residential status of an individual. 12
Or
(b) Explain in brief at least twelve incomes
which are exempted u/s 10 of the Income-tax Act, 1961. 12
4. (a) Define the term ‘perquisite’. How is
it treated for income tax purpose? 11
Or
(b) Mr. Haloi is employed in a private
limited company in Tezpur (population is 16 lakhs). During the previous year
2022-23, he receives the following incomes:
|
|
Rs. (p.m.) |
|
Basic salary DA Lunch allowance Helper allowance (Wages paid to helper
Rs. 1,300 p.m.) Running allowance Children education
allowance Rs. 240 per child per month for 3 children Conveyance allowance (Actual amount spent Rs.
450 p.m.) Overtime allowance Medical allowance City compensatory
allowance House rent allowance (Rent paid by him Rs.
7,000 p.m.) Professional tax paid by
Mr. Haloi Rs. 2,400 |
16,000 7,000 900 1,100 700 650 750 1,200 620 5,000 |
Compute income from salary of Mr. Haloi for
the Assessment Year 2023-24. 11
5. (a) How will you determine the annual
value of house property? Explain in brief the deductions that are allowed from
the annual value in computing taxable income from house property. 11
Or
(b) Mr. Jodu owns house
properties about which detailed information is given below:
|
|
House – I |
House – II |
|
Annual MRV Annual FRV Annual standard rent Annual rent Interest on loan taken
for construction of house (p.a.) Vacancy period Municipal taxes |
Rs. 24,000 Rs. 22,000 Rs. 20,000 Rs. 30,000 Rs. 28,000 2 months 10% of MRV |
Rs. 38,000 Rs. 34,000 Rs. 40,000 Rs. 36,000 Rs. 22,000 3 months Rs. 2,400 |
Additional Information:
(i) Loan was taken for construction of House
– I by mortgaging the House – II.
(ii) Assessee receives salary of Rs. 30,000
p.m.
(iii) Both the units are let out.
Calculate his income from house property of
both the houses for the Assessment year 2023-24. 11
6. Explain the following: 4+3+4=11
(a) Short-term capital gain and long-term
capital gain.
(b) General income under Section 56(1).
(c) Block of assets.
Or
(a) Discuss the following items that are to
be dealt with in the income-tax assessment of a company: 2+3+2=7
(i) Capital expenditure on scientific
research.
(ii) Expenses incurred in respect of a branch
of the business which was discontinued by the assessee during the Accounting
Year.
(iii) Expenses for shifting an industrial
undertaking from the urban to rural area.
(b) Compute the taxable capital gains where
no deposit is made under the Capital Gains Account Scheme for the Assessment
Year 2023-24: 4
|
|
(Rs.) |
|
Purchased house property
in 2004-05 Sold house property on
11-02-2022 Purchased new house on
28-06-2022 |
10,00,000 40,00,000 10,00,000 |
7. Explain in brief the following items: 4+4+3=11
(a) Deductions u/s 80C.
(b) Provisions of income tax regarding carry
forward and set off of losses from business.
(c) Income from other sources.
Or
The Profit and Loss A/c of A, B and C
carrying on business in partnership for the year ended 31st March,
2023 is as follows:
|
|
Amount (Rs.) |
|
Amount (Rs.) |
|
Cost of goods sold Salary to partners: A B C Interest on capital
@15%: A B C Municipal taxes of house
property (total) Other expenses Net Profit |
7,90,000 1,50,000 1,00,000 55,000 40,000 10,000 60,000 5,000 2,10,000 40,000 |
Sales Interest on debenture Rent from house property
1/2 portion |
13,50,000 60,000 50,000 |
|
|
14,60,000 |
|
14,60,000 |
Additional Information:
(i) Partnership deed allows salary and
interest on capital to partners.
(ii) Out of other expenses, Rs. 48,500 is not
deductible u/s 36 and 37.
(iii) C is not a working partner.
(iv) The firm owns a house property, half of
which is occupied by the firm for its business.
Calculate the total income of the firm for
the Assessment Year 2023-24. 11
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