Dibrugarh University (5th Semester) - Direct Tax I Important Questions and Answers for Upcoming Exams

Direct Tax Law I Important Questions
Dibrugarh University Important Questions

Unit 1: Basics of Income Tax

Part - A

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

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

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

Part - B

Q. Discuss about the statutory obligation to file return in income by different persons under the Income-tax Act, 1961. 2016

Q. “Right to appeal is a statutory right under Income-tax Act, 1961.” Do you agree? Write an explanatory note in support of the above statement.  2017

Q. “Appeal against the order of the Assessing Office lies with the Commissioner (Appeals).” Do you agree? Write an explanatory note in support of the above statement.  2018

Q. Write short notes on:

Assessment year (2017SN)

Person (13SN, 15SN)

Gross Total Income (15SN, 16SN, 17SN)

Scope of total income (2013SN)

Assessee including deemed assessee (13SN, 14SN, 15SN)

Charge of income tax (15SN, 18SN)

Tax Return (15SN)

Method of accounting (16SN)

Previous Year

Capital asset 

Agricultural income  

Revenue Vs Capital expenditure 

Capital receipts

Revenue Receipts Vs Capital Receipts 

Tax evasion vs. Tax avoidance  (

Income tax rate for the Assessment year 2020-21

Unit – 2: Computation of Income from Salary (THEORY OR PRACTICAL)

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 and HRA.

Q. Define ‘perquisite’ as per income tax act. Explain how perquisites are taxable in the hand of employee. 2013, 16, 18

Q. Explain the various types of Provident fund with their respective treatment as per Income Tax Act, 1961. 2015, 2017, 2019

Q. What are the essential characteristics of Salary?

Q. Explain the provisions of the income – tax Act, 1961 with regard to the following:

Ø  Gratuity                                                    2014

Ø  Entertainment allowance                                   2018SN

Ø  Value of rent free house

Ø  Commuted and Uncommuted Pension            

Ø  Retrenchment compensation                2014, 2017

Ø  Voluntary Retirement Compensation  

Ø  Approved Super Annuation fund                      2018SN

Ø  Deduction u/s 80C

Ø  Recognised provident fund

Ø  Encashment of earned leave                  2014, 2016SN

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

Ø  Profit in lieu of salary                             2016SN

Q. Practical Problems: Every Year

Unit – 3: Income under the Head House Property (THEORY OR PRACTICAL)

Q. Explain the Basis of Charge of Income under the head Income from House Property.         2014

Q. Define annul value. How does it differ from annual rental value? How would you determine the annual value of the house used by assessee as let-out and self occupied residence in computing taxable income from house property? 2014, 15, 16, 17, 18, 2019

Q. What deductions are allowed from the annual value in computing taxable income from house property?            2013, 2015, 2017

Q. Write Short Notes on:

Ø  Exempted House Property Income                    2016SN

Ø  MRV, FRV, SRV and ERV             2017SN

Ø  Deemed Ownership                     2016SN          

Ø  Deemed to be let out                  2013

Ø  Annual value

Ø  Income From Co-owned Property

Ø  Unrealised rent and its Treatment        2018SN

Ø  Treatment of unrealised rent recovered          2018

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

Q. Practical Problems: Every Year

Unit – 4: Income Tax Authorities

Q. Who can appoint Income Tax authorities? What are the authorities provided by the income tax act for administration of tax?          2015, 2016, 2017, 2019

Q. What is central board of direct taxes? Mention the power and function of income tax authorities. 2015SN, 2017SN, 2017

Q. Discuss the power of commissioner of income tax in regard to search and seizure of under the Income Tax Act, 1961. How does the same differ from the powers of Commissioner of Income Tax (Appeals)?    2014, 2019

Q. Discuss about the statutory obligation to file return in income by different persons under the Income-tax Act, 1961. 2016

Q. “Right to appeal is a statutory right under Income-tax Act, 1961.” Do you agree? Write an explanatory note in support of the above statement.  2017

Q. “Appeal against the order of the Assessing Office lies with the Commissioner (Appeals).” Do you agree? Write an explanatory note in support of the above statement.  2018

Q. State the procedure of filing an appeal under the Income Tax Act, 1961.

Q. What do you mean by appeal to Appellate Tribunal? Write a note on procedure and powers of Appellate Tribunal. 2017, 2019

Q. Discuss the powers, functions and duties assessing officers/Income tax officer.       2015, 2016, 2018

Q. What are various appellate authorities under the income tax act? Give the procedure for filling appeal to the appellate tribunal. State the orders against which appeal can be preferred.

Q. Write Short Notes on:

Ø  Commissioner of income tax      2015SN, 2018SN

Ø  Deputy commissioner of taxes   2015SN

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