2018 (May)
COMMERCE (General)
Course: 601 (Income
Tax)
Time: 3 hours
Full Marks: 80
Pass Marks: 24
1. (a) Fill in the blanks: 1x4=4
1) Assessee means a person by whom
any tax or any other sum of money is payable under the Income-tax Act.
2) Agricultural income from land
situated in India is fully exempted under Section 10 (1) of the Income-tax Act.
3) Statutory Provident Fund is the
oldest type of fund.
4) House
Property Income = Annual Value of Building – Specified Deductions u/s 24.
(b) Write True or False: 1x4=4
1) Tax
is levied on total income of assessee. False,
Taxable income
2) The
full form of EPZ is Export Promotion Zone. False,
Export Processing Zone
3) House
rent allowance is a fully taxable allowance. False
4) Actual
rent is the rent which is actually received by the owner of the house from the
tenant. True
2. Write short notes on (any four): 4x4=16
a) Assessment
Year.
b) Ordinary
Resident.
c) Special
Economic Zone.
d) Education
Allowance.
e) Municipal
Valuation.
3. (a) Write a note on history of Income
tax in India. 14
Or
(b) Mention the different categories of
assessee according to their residential status. How would you determine the
residential status of an individual and a firm?
4. (a) Explain in brief any fourteen
incomes which are exempted u/s 10 of the Income-tax Act, 1961. 14
Or
(b) Enumerate the special provisions in
respect of newly established units in Special Economic Zone as per the
Income-tax Act, 1961. 14
5. (a) Mr. X is an employee of Ranchi
(population 15 lakhs) based on company. He provides the following particulars
of his salary income:
1) Basic
salary – Rs. 12,000 per month.
2) Profit
bonus – Rs. 12,000.
3) Commission
on turnover achieved by Mr. X – Rs. 42,000.
4) Entertainment
allowance – Rs. 2,000 per month.
5) Club
facility – Rs. 6,000.
6) Transport
allowance – Rs. 1,800 per month.
7) Free
use of car of more than 1.6 litre capacity for both personal and employment
purposes; expenses are met by employer.
8) Rent-free
house provided by employer; lease rent paid by employer – Rs. 6,000 per month.
9) Free
education facility for three children of the employee (bills issued in the name
of employer) – Rs. 22,500.
10) Gas,
water and electricity bills issued in the name of the employee but paid by
employer – Rs. 16,800.
Compute
income under the head salary for the Assessment Year, 2017-18. 14
Or
(b) Explain in brief
the following items as per the Income-tax Act, 1961: 3 ½ x4=14
1) Profits
in lieu of salary.
2) Recognized
Provident Fund.
3) Dearness
allowance.
4) Leave
encashment.
6. (a) Define annual value. How is it
determined? What deductions are allowed from the annual value in computing
taxable income from house property? 2+7+5=14
Or
(b) Mr. A owns a house property in
Cochin. It consists of three independent units and information about the
property is given below:
Unit
– 1:
Unit
– 2:
Unit
– 3:
Municipal
rental value
Fair
rental value
Standard
rent
Actual
rent
Unrealized
rent
Repairs
Insurance
Interest
on money borrowed for the construction of house property
Municipal
taxes
Date
of completion of construction
|
Own residence
Let out
Own business
Rs. 1,20,000 p.a.
Rs. 1,32,000 p.a.
Rs. 1,08,000 p.a.
Rs. 3,500 per month
For three months
Rs. 10,000
Rs. 2,000
Rs. 96,000
Rs. 14,400
01.11.2011
|
Calculate total income or loss under the
head house property. 4+6+4=14
(OLD COURSE)
Full Marks: 80
Pass Marks: 32
1. (a) Fill in the blanks: 1x4=4
1) The
income tax was introduced in Indian for the first time in 1860 by British rulers.
2) Section
10 (10) of the Income-tax Act relates to Gratuity.
3) Advance
salary received shall be taxable in the year of its receipts.
4) Cost
of improvement incurred after acquisition
is to be treated as part of the cost.
(b) Write
True or False: 1x4=4
1) A
company cannot enjoy the status of not ordinary resident. False, only individual and HUF
2) The
full amount of scholarship granted to meet the cost of education is exempted
from tax. True, Sec. 10(16)
3) Taxable
gratuity = Gratuity received – Arrear. False
4) The
annual value of a house property is to be determined according to the
provisions of Section 32 of the Income-tax Act. False, sec. 23
2. Write short notes on any four of the
following: 4x4=16
a) Assessment
Year.
b) Tax
Holiday.
c) Perquisites.
d) Self-occupied
Property.
e) Capital
Gain.
3. (a) What is income tax? Discuss the
features of income tax in India. 2+10=12
Or
(b) “The incidence of income tax depends
upon the residential status of an assessee.” Explain this statement in detail. 12
4. (a) What do you mean by tax-free
income? Given ten examples of income which are totally exempted from income
tax? 3+8=11
Or
(b) Explain the
following: 5
½ +5 ½=11
1) Special
Economic Zone.
2) Free
Trade Zone.
5. (a) Write a detailed note on rebate of
tax under Section 88 of the Income-tax Act, 1961. 11
Or
(b) From the particulars given below,
compute the gross salary of Mr. X for the Assessment Year, 2017 – 18:
1) Salary
– Rs. 1,48,000.
2) Bonus
– Rs. 12,000.
3) Free
gas, electricity, water, etc. (actual bills paid by company) – Rs. 6,000.
4) Furnished
flat provided to the employee at Kanpur (population above 25 lakhs) for which
actual rent paid by the company – Rs. 78,000.
5) The
employee pays rent @ Rs. 1,000 p.m. to the company.
6) Furniture
at cost (including television, fridge and air-conditioner) – Rs. 50,000.
6. (a) State the provisions relating to
computation of ‘Income from House Property’ under different categories of house
property as per the Income-tax Act, 1961. 11
Or
(b) From the particulars given below,
compute the income from house property which consists of two independent units
having 1/3rd and 2/3rd area: 11
Date
of completion of work
Municipal
rental value
Fair
rental value
Self-occupied
portion
Let-out
portion
Municipal
taxes (per annum)
Fire
insurance premium (per annum)
Ground
rent (per annum)
Interest
on loan
|
01.11.2011
Rs. 96,000
Rs. 84,000
2/3
1/3
Rs. 6,000
Rs. 2,000
Rs. 4,000
Rs. 7,500
|
7. (a) Calculate the income from other
sources of Mr. Y from the information given below: 11
Winnings
from lottery
Winnings
from horse race
|
Rs. 1,00,000
Rs. 35,000
|
Gifts received during the previous year,
2016 – 17:
1) Received
Rs. 20,000 as gift from a friend.
2) Received
Rs. 1,00,000 as gift from elder brother.
3) Received
Rs. 1,40,000 as gift on his marriage.
4) Received
Rs. 80,000 as gift from his NRI friend on 01.01.2017.
5) Another
gift of Rs. 18,000 received from his friend.
Or
(b) Define capital gain. Discuss the
procedure for computation of capital gains as prescribed by the Income-tax Act,
1961.
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