Tuesday, April 02, 2019

Dibrugarh University Question Papers: Direct Tax Law II (May' 2017)


2017 (May)
COMMERCE
(Speciality)
Course: 601
(Direct Tax - II)
Time: 3 hours
The figures in the margin indicate full marks for the questions

(NEW COURSE)
Full Marks: 80
Pass Marks: 24
1. (a) Write True or False:                             1x4=4

1)      The income earned from a smuggling business is taxable under the head of income from business and profession.                                         True, Whether business is legal or illegal it is taxable
2)      Stock-in-trade, raw materials, consumable stores held by the assessee for his business and profession is capital asset.                    False, excluded from capital asset
3)      Short-term capital loss can be set off from either short-term capital gain or long-term capital gain.  True
4)      Income from card game, horse race, gambling is taxable under the head of income from other sources.  True
(b) Fill in the blanks:                                        1x4=4
1)      The maximum qualifying amount of deduction u/s 80C is 1,50,000.
2)      Deduction under Section 80D for health insurance premium paid can be claimed by an individual and HUF.
3)      Long-term capital gain = Net transfer price – Indexed cost of acquisition and Improvement.
4)      For computing depreciation under the Income-tax Act, 1961 intangible assets are included under 25% block.
2. Write notes on the following:                                4x4=16
a)      Meaning of ‘business’ and ‘profession’ as defined u/s 28 of the Income-tax Act.
b)      Long-term and short-term capital assets.
c)       Corporate assessee.
d)      Procedure to set off of unabsorbed depreciation.
3. (a) What do you mean by the term ‘depreciation’? What are the conditions regarding the claim of deduction of depreciation?                                                    4+10=14
Or
(b) Dr. Arunabh is a medical practitioner. He gives you the following summary of cashbook for the year ending 31.03.2016:
Summary of Cash book

Rs.

Rs.
To Balance
To Consultation Fee
To Visiting Fee
To Gifts and Presents
To Sales of Medicine
To dividend from UTI
To Life Insurance Maturity
Dividend from an Indian Company
10,000
60,000
45,000
8,000
42,000
6,000
1,00,000
6,000
By Rent of Clinic
By Purchase of Medicine
By Staff Salaries
By Surgical Equipment
By Motor Car Expenses
By Purchase of Motor car
By Household Expenses
By Closing Balance
18,000
38,000
24,000
40,000
8,000
1,40,000
7,000
2,000

2,77,000

2,77,000
Information:
a)      50% of the motor car expenses are incurred in connection with his profession. Car was purchased in December 2015.
b)      Household expenses include Rs. 6,800 paid as insurance premium.
c)       Gifts and presents include gift worth Rs. 3,000 from relatives.
d)      Closing stock for medicine Rs. 12,000 and stock on 01.04.2016 for the Assessment Year 2016-17.         14
4. (a) Discuss the provisions regarding exemption of long-term capital gain under Section 54 of the Income-tax Act, 1961. 14
Or
(b) Mr. Anuraag owns two residential houses one at Jorhat and other at Dibrugarh. He submits the following information about sale of assets during previous year, 2015-16 (CII-1081)
Assets
Residential House
Plot
Jeweler
Date of Acquisition
Cost of Acquisition
FMV as on 01.04.81
Date of Sale
Sale Price
01.03.79
Rs. 1,40,000
Rs. 2,00,000
15.06.15
Rs. 24,00,000
01.11.90
Rs. 1,60,000
-
16.06.15
Rs. 11,20,000
03.04.2000
Rs. 80,000
-
17.06.15
2,80,000




Investments 
Date of Acquisition
Amount Invested (Rs.)
Residential House
Bonds of National Highway Authority of India
19.12.15
12.12.15
 13,00,000
1,00,000



Cost Inflationary Index for
1990-91 – 182
2000-01 – 406
2001-02- - 426
2015-16 – 1081
You are required to compute taxable capital gain of Mr. Anuraag for the Assessment year, 2016-17.                        14
5. (a) Discuss in detail the procedures as per the Income-tax Act regarding set-off of losses within the head and outside the head. How are brought forward losses set off?                                                  7+7=14
Or
(b) Mr. A submits the following information of his incomes and losses for the year ending 31.3.2016.

Rs.
1. Salary income (computed)
2. Income from house property:
House A (income)
House B (loss)
House C (self-occupied) (loss)
3. Income from Business:
Cloth business (profit)
Hardware business (loss)
Speculation profit
Speculation loss
4. Capital gains:
Short-term gain
Short-term loss
Long-term gain
5. Other sources:
Income from betting
Loss from card games
Income from card games
Interest on securities
24,000

10,000
40,000
28,000

10,000
12,000
12,000
17,000

8,000
24,000
8,000

12,000
6,000
9,000
8,000
Compute the Gross Total Income of Mr. A after making inside and outside head adjustment of losses. You are also to show how much loss is to be carried forwarded to set off against future income.                                          14
6. (a) (i) Discuss any seven approved savings schemes which are eligible for deduction under Section 80C of the Income-tax Act, 1961.                                                            7
(ii) From the following particulars of the Mr. X, compute the amount of deduction u/s 80C for the previous year, 2015-16 7

Rs.
1. Life Insurance Premium paid during the previous year, 2015-16
On his own life
On the life of his wife
On the life of his father
All life policies were taken in 2010
2. Contribution towards RPF
3. Deposit in public provident fund
4. Group insurance premium
5. Invested in NSC (VIII issue) out of his Agricultural Income
6. Repayment of loan taken from SBI for construction of his residential house Rs. 4,000 p.m. which includes Rs. 1,000 p.m. interest.
7. Accrued Interest on NSC (VIII issue)

30,000
10,000
10,000

24,000
45,000
3,000
10,000


4,000
(b) Explain the methods commonly used by tax payers to minimize tax liability.                  14
(OLD COURSE)
Full Marks: 80
Pass Marks: 32
1. (a) Write True or False:                             1x4=4
1)      The income earned from a smuggling business is taxable under the head of income from business and profession.
2)      Stock-in-trade, raw materials, consumable stores held by the assessee for his business and profession is capital asset.
3)      Short-term capital loss can be set off from either short-term capital gain or long-term capital gain.
4)      Income from card game, horse race, gambling is taxable under the head of income from other sources.
(b) Fill in the blanks:                                        1x4=4
1)      The maximum qualifying amount of deduction u/s 80C is _____.
2)      Deduction under Section 80D for health insurance premium paid can be claimed by an individual and _____.
3)      Long-term capital gain = Net transfer price – _____.
4)      For computing depreciation under the Income-tax Act, 1961intangible assets are included under _____ block.
2. Write short notes on any four of the following:                             4x4=16
a)      Admissible deduction.
b)      Deemed income chargeable to tax.
c)       Unabsorbed depreciation.
d)      Exempted wealth.
e)      Tax planning for salaried assessee.
3. Mr. Rajang Raje proprietor of RR & Co. provides you the following information for the year ended 31.03.2015:
Profit & Loss A/c
For the year ended 31.03.2015

Rs.

Rs.
To Salaries
To Bad debts written off
To Printing Expenses
To Conveyance
To General Expenses
To Sales and Tax Penalty
To Fire Insurance Premium
To Wealth Tax
To Depreciation
To Repair and Maintenance
To Net Profit
1,50,000
10,000
11,000
30,000
43,000
9,000
4,000
6,000
20,000
8,000
2,84,000
By Gross Profit
By Income-tax refund (including interest of Rs. 2,000)
By UTI Dividend
By Gift from Friend
5,07,000

18,000
40,000
10,000


5,75,000

5,75,000
Additional Information:
1)      Depreciation as per the Income-tax Rule Rs. 22,000.
2)      General expenses include payment of labour charges for business Rs. 23,000 paid in cash on 16.08.14.
3)      Salaries include salary to proprietor Rs. 48,000.
4)      Printing expenses include Rs. 8,000 for printing of marriage invitation cards for his son.
5)      He paid tuition fees in a school of Rs. 15,000 for his school going daughter.
6)      He paid interest of Rs. 45,000 on educational loan taken from Bank of India for his son, pursuing postgraduate degree in medicine from the University of Calcutta.
You are required to compute his total taxable income for the Assessment Year, 2015-16.                                                              11
Or
What do you mean by the term ‘depreciation’? What are the rules regarding grant of deduction for depreciation? 3+8=11
4. How would you determine cost of acquisition and cost of improvement u/s 49? Describe the procedure of ascertaining short-term capital gains and long-term capital gains.                                        3+3+3+3=12
Or
Explain the concept of Transfer under the head capital gains. Mention the transactions which are not regarded as transfer.                                 8+4=14
5. Explain the provisions of the Income-tax Act, 1961 regarding carry forward and set-off of losses.                          11
Or
Explain the process of setting off and carry forward of losses in computing gross total income with exception.    11
6. What are the assets mentioned in Section 2(ea) of the Wealth-tax Act, 1957? Explain.                                11
Or
What are the deemed assets and exempted assets as per the provisions of the Wealth-tax Act, 1954? Discuss in detail.
7. How are deductions made in respect of the following Sections of the Income-tax Act, 1961?                   6+5=11
a)      Deduction under Section 80C and 80D.
b)      Deduction in respect of certain undertakings of North-Eastern States (Section 801 E)
Or
How is tax liability computed for a salaried person? Explain.                         11

No comments:

Post a Comment

Kindly give your valuable feedback to improve this website.

Popular Posts for the Day