Dibrugarh University B.Com 6th Sem: Income Tax Question Papers (May'2020)



(General / Speciality)

Course: 601

(Income Tax)

Time: 3 hours

The figures in the margin indicate full marks for the questions

(New Course)

Full Marks: 80

Pass Marks: 24

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

(i) A company cannot enjoy the status of ________.

(ii) Agricultural income from land situated in India is fully exempted under Section _____of the Income-tax Act.

(iii) Employer-employee relationship is necessary to term any receipt as ______.

(iv) The rent fixed under the Rent Control Act is called _______rent.

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

(i) The income tax was introduced in India for the first time in 1880 by the British rulers.

(ii) Section 10 (10) relates to payment of gratuity under the Income-tax Act.

(iii) Statutory Provident Fund was started in the year 1925.

(iv) Income from house property held by a local authority shall be exempted from tax.

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

(a) Features of income tax in India

(b) Residential status of a company

(c) Tax holiday

(d) Education allowance

(e) Annual value of house property

3. (a) What is ‘income tax’? Write a brief note on the history of income tax in India.      2+12=14


(b) What are the different categories of assesses according to their residential status? How would you determine the residential status of an individual and a firm?   2+6+6=14

4. (a) Explain in brief any fourteen incomes which are exempted u/s 10 of the Income-tax Act, 1961       14


(b) Discuss about the essential conditions that are to be fulfilled to avail deductions u/s 10AA in respect of newly established units in Special Economic Zones as per the Income-tax Act, 1961.     14

5. (a) Mrs. Binita is employed in Galaxy Ltd. as Marketing Officer at Vijaywara. She resigned from the job on 31.07.2019.

Basic Pay-Rs.50,000 p.m.

Dearness Allowance-Rs. 25,000 p.m.

City Compensatory Allowance-Rs. 1,000 p.m.

Conveyance Allowance-Rs. 2,000 p.m.

She claims to have spent 75% of this in the performance of her duties. From 01.08.2019, she joined Sunrise Ltd. at Hyderabad. Her salary particulars from her new employer are as follows:

Basic Pay-Rs. 54,000 p.m.

Dearness Allowance-Rs. 27,000 p.m.

City Compensatory Allowance-Rs. 1,400 p.m.

House Rent Allowance-Rs. 16,000 p.m. (She pays Rs. 24,000 p.m. as rent)

She and her both employers were contributing @ 14% of salary towards Recognized Provident Fund.

Compute her salary income for the Assessment Year, 2020-21, if her salary is due on the last date of the month.         14


(b) Explain in brief the following items as per the Income-tax Act, 1961:            3½ x4=14

(i) Unrecognized Provident Fund

(ii) Commuted value of pension

(iii) Leave encashment

(iv) Deduction out of gross salary (Section 16)

6. (a ) Mr. Jayanta Dutta is the owner of a big house consisting of three equal and independent units. Unit-I is let out at a rent of Rs. 8,000 p.m. Unit-II is being used in owner’s own business, whereas Unit-III is being used for his own residence. Other particulars of the house are as follows:


Amount (Rs.)

Municipal Valuation

Fair Rental Value

Standard Rent as per the Rent Control Act

Municipal Taxes


Interest on Borrowed Money







Unit-I remained vacant for two months and one month’s rent could not be realized from a tenant. Mr. Dutta’s income from his business without debiting any expenditure related to own house being used in his own business is Rs. 2,00,000.

Determine Mr. Jayanta Dutta’s income from house property for the Assessment Year, 2020-21         14

(b) State the provisions relating to computation of ‘Income from House Property’ under different categories of house property as per the Income-tax Act, 1961.       14

(Old Course)

Full Marks: 80

Pass Marks: 32

1. (a) Answer the following questions directly:    1x4=4

(i) Who is an assessee?

(ii) What is ‘tax holiday’?

(iii) What do you mean by ‘Provident Fund’?

(iv) What is ‘fair rental value’ of house property?

(b) Choose the correct answer from the given alternatives:        1x4=4

(i) Income-tax Rules are prepared by the

(1) Central Government

(2) Central Board of Direct Taxes

(3) Institute of Chartered Ac-countants of India

(ii) The full form of EPZ is

(1) Export Processing Zone

(2) Export Promoting Zone

(3) Export Protecting Zone

(iii)Unrecognized Provident Fund is not recognized by the

(1) Government of India

(2) Commissioner of Income Tax

(3) Inspector of Income Tax

(iv) Short-term capital loss can be set off from

(1) short-term capital gain only

(2) long-term capital gain only

(3) either short-term or long-term capital gain

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

(a) Pervious year

(b) Tax Exemption for 100% Export-oriented Units

(c) Standard Deduction u/s 16(ia)

(d) Deemed Ownership

(e) Cost of Improvement

3. (a) Explain the following relating to the Income-tax Act, 1961 (any two): 6x2=12

(i) Block of Assets

(ii) Assessment Year

(iii) Residential Status of HUF


(b) “The incidence of income tax depends upon the residential status of an assessee.” Explain this statement.        12

4. (a) Explain in brief various incomes which are exempt from tax u/s 10 of the Income-tax Act, 1961.         11


(b) Explain the following:              6+5=11

(i) Special provisions in respect of newly established unites in Special Economic Zones

(ii) Carry forward and set off of unabsorbed expenses related to Tax Holiday Period

5. (a) Explain in brief the following items as per the Income-tax Act, 1961 (any two):       5½x2=11

(i) Public Provident Fund

(ii) Deductions u/s 80C out of Gross Total Income

(iii) House Rent Allowance


(b) From the following particulars, find out the taxable salary of Mr. Jadav Khaund working at Coimbatore [Population 11 lakhs] for the Assessment Year, 2020-21:             11

(i) Salary-Rs. 12,000 p.m.

(ii) Dearness Allowance @ 100% of salary

(iii) Employer’s contribution to Employee’s Recognized Provident Fund-14% of basic salary

(iv) Rent-free accommodation (unfurnished)-Fair rental value is Rs. 80,000 p.a.

(v) Interest on Provident Fund balance @13% p.a.-Rs. 3,900

(vi) A car (1.4 lt capacity) is provided by employer. All expenses are borne by employer. All expenses are borne by employer. It is used both for performance of duties and private purposes. Car was used by employee for only 11 months during the year

(vii) He paid professional tax of Rs. 1,200

(viii) He received Rs. 500 p.m. as fixed medical allowance

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+4=5=11


(b) Mr. Nilutpal is the owner of two houses. The information regarding the houses are as under:


Date of completion


(01.06.2019) Rs.


(01.08.2019) Rs.

Standard rent (in Rs.)

Fair rental value (in Rs.)

Municipal rental value (in Rs.)

Ground rent (in Rs.)

Municipal tax (in Rs.)

Fire Insurance Premium (in Rs.)

Actual rent (in Rs.)


Bonafied unrealized rent (in Rs.)

30,000 (p.a.)

24,000 (p.a.)

24,000 (p.a.)

500 (p.m.)

2,400 (p.a.)

1,000 (p.a.)

30,000 (p.a.)

1 month



48,000 (p.a.)

40,000 (p.a.)

1,000 (p.m.)

2,200 (p.a.)

1,000 (p.a.)





Interest on loan for the construction of the house:


Date of completion

















Compute Income from House Property of Mr. Nilutpal for the Assessment Year, 2020-21.               11

7. (a) Define ‘capital gain’. Discuss the procedure for computation of capital gains as prescribed by the Income-tax Act, 1961.        3+8=11


(b) Mr. Anurag received the following gifts during the Previous Year, 2019-20:

(i) He received a gift in cash of Rs. 20,000 from his uncle on 30.06.2019

(ii) He received a cheque of Rs. 30,000 as a gift from his brother on 10.11.2019

(iii) He received a gift of Rs. 21,000 on his wedding from Mr. X on 01.12.2019

(iv) He received Rs. 25,000 as gift from his non-resident friend Mr. Y on 30.12.2018

(v) He received a gift of Rs. 51,000 from his brother-in-law on 31.01.2020

(vi) He received Rs. 5,000 from Mr. Z, his resident friend on 15.02.2020

Calculate the amount of taxable gifts chargeable under the head ‘Income from Other Sources’.              11



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