Direct Tax Law - 1 Question Paper November' 2019

[Direct Tax I Question Paper 2019, Dibrugarh University, B.Com 5th Sem, Non CBCS Pattern]

2019 (November)

COMMERCE (Speciality)

Course: 504 (Direct Tax – I)

The figures in the margin indicate full marks for the questions

(New Course)

Full Marks: 80

Pass Marks: 24

Time: 3 hours

1. (a) Write True or False:         1x4=4

1)         HUF, is said to be resident in every case except where during that year the control and management of its affairs is situated partially outside India.

2)         Any amount received by a Government servant as commutation of pension is fully tax free.

3)         Perquisite can be only in monetary form.

4)         Municipal tax is a deduction from gross annual value.

(b) Choose the correct answer of the following:             1x4=4

1)         Under the Income-tax Act, the incidence of taxation depends on

a)         The citizenship of the tax payer.

b)         The age of the tax payer.

c)          The residential status of the tax payer.

2)         Income of newly set up business from 1st October to 31st March, 2019 is assessable in the assessment year

a)         2017 – 18.

b)         2018 – 19.

c)          2019 – 20.

3)         If domestic servants are engaged by the employee and their salary etc., is paid or reimbursed by the employer, the value of these perquisites are taxable in the hands of

a)         Specified employee only.

b)         Employee other than specified employee.

c)          All employee.

4)         Mr. Bikash is entitled to Hostel expenditure allowance @ Rs. 4,800 p.a. per child for 3 children. It will be exempted upto

a)         Rs. 7,200.

b)         Rs. 4,800.

c)          Rs. 2,400.

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

a)         Previous year.

b)         Agricultural Income.

c)          Gratuity.

d)         Leave Encashment.

e)         Assessing Officer.

3. (a) What are the circumstances under which appeals lie to the High Court and Supreme Court under the Income-tax Act, 1961?          14

Or

(b) What do you understand by the term residence of an assessee? How can you determine the residential status of an individual and HUF?               4+5+5=14

4. (a) Mr. Arnav Hazarika is a manager of an industrial unit at Guwahati. The particulars of his salary income are given below:

Basic salary – Rs. 35,000 p.m.

Dearness allowance (as per terms of employment) – Rs. 12,000 p.m.

Bonus – Rs. 14,000.

Entertainment allowances – Rs. 1,500 p.m.

Medical allowances – Rs. 600 p.m.

City compensatory allowance – Rs. 500 p.m.

House rent allowance – Rs. 8,000 p.m.

House rent paid for the house – Rs. 11,000 p.m.

Car of 1.4 lt. capacity provided by employer for private and official use, Employer meets expenses of car. He contributes 14% of salary to RPF. Employer also contributes same amount to RPF.

Mr. Arnav had taken interest-free loan of Rs. 19,000 to purchase a Television.

Compute income under the head salary for the Assessment Year, 2019-20.         14

Or

(b) What are the different types of Provident Fund? Discuss the income tax provisions dealing with each type of Provident Fund.                                               6+8=14

5. (a) Mr. Sidartha owns two houses, the particulars of which are given below for the Previous Year, 2018 – 19:

Particulars

House A

Rs.

House B

Rs.

Annual rent

Standard rent

Municipal valuation

Fair rent

Municipal taxes paid

Fire insurance (due)

Ground rent paid

Interest on money borrowing during 1998-99 for construction of house (50% paid)

Unrealized rent (pertaining to this year)

Nature of occupation

Nil

4,50,000

4,40,000

4,60,000

38,000

5,000

4,200

 

32,000

Nil

Self-occupied

1,82,000

1,60,000

1,70,000

1,85,000

18,000

4,000

3,700

 

52,000

6,000

Let out

 Compute income from house property for the Assessment Year, 2019-20 assuming that the Assessing Officer is satisfied with the non-recovery of rent.         14

Or

(b) Define ‘annual value’. How is it determined?          7+7=14

6. (a) What are the authorities provided by the income tax for administration of tax? Discuss the powers of Commissioner of Income Tax.               6+8=14

Or

(b) Discuss about the Constitution of Appellate Tribunal. Describe the procedure for filing an appeal to the Appellate Tribunal.               6+8=14

(Old Course)

Full Marks: 80

Pass Marks: 32

Time: 3 hours

1. (a) Write True or False:         1x4=4

1)         Voluntary contributions received by a trust are included in the definition of income.

2)         Any amount of withdrawn from the statutory provident fund is exempted from tax.

3)         Employer’s contribution to Recognized Provident Fund is exempted up to 15% of employees’ salary.

4)         In case of self-occupied house the standard deduction is allowed @ 30% of Net Annual value.

(b) Choose the correct answer of the following:            1x4=4

1)         In case treatment is taken from a private or unrecognized hospital the benefits is exempted up to

a)         Rs. 50,000.

b)         Rs. 25,000.

c)          Rs. 15,000.

2)         In case employer pays, at its option, tax on value of perks given by it to an employer (not provided by way of monetary payment) shall be

a)         Fully exempted in the hands of employee.

b)         Fully exempted in the hands of employer.

c)          Not fully exempted in the hands of employee.

3)         Examples of local taxes are

a)         Income tax, property tax.

b)         Sales tax, VAT.

c)          House tax, water tax, sewerage tax.

4)         The expenses on running and maintenance for private or personal use of a car are fully met by employee himself and where cubic capacity of engine does not exceed 1.6 litres is exempted up to

a)         Rs. 800 per month.

b)         Rs. 600 per month.

c)          Rs. 400 per month.

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

a)         Assessment year.

b)         Perquisites.

c)          Deemed owner.

d)         Annual rental value.

e)         Central Board of Direct Taxes.

3. (a) What do you mean by the terms ‘residential status’? Explain in detail, how to determine the residential status of a company.              4+8=12

Or

(b) Explain any twelve incomes which are exempted from tax under Section 10 of the Income-tax Act, 1961.   12

4. (a) What are the special provisions in respect of newly established undertakings in free trade zone? Explain in detail. 11

Or

(b) Write brief notes on the following:       5½ +5½=11

1)         Special Economic Zone.

2)         Incomes which are not included in the total incomes.

5. (a) From the following information, compute the taxable income from salary of Shri Binanda Baruah for the Assessment Year, 2019 – 20:               11

1)         Basic salary – Rs. 4,80,000 p.a.

2)         Dearness allowance (enters) – 20% of Rs. 4,80,000.

3)         Commission on turnover 1% on Rs. 1,00,00,000.

4)         He is provided with a rent free house by employer, lease rent paid by employer is Rs. 8,000 per month.

5)         City compensatory allowance is Rs. 5,800.

6)         Lunch allowance – Rs. 6,000.

7)         Company provided him a laptop for personal use, the cost of which is Rs. 60,000.

8)         He received Rs. 35,000 as leave travel concession but has not travelled anywhere.

9)         Education facility of one child provided in a institution owned by employer valued at Rs. 3,500 per month.

10)      He pays Rs. 3,000 as professional tax.

(b) Savings act as a society security of employees after retirement.

In the list of the above statements, explain the following:         5½ +5½=11

1)         Statutory Provident Fund.

2)         Recognized Provident Fund.

6. (a) From the information given below, find out the income under the head ‘Income from House Property’ for the Assessment Year, 2019 – 20:                                                                       11

Particulars

House I

Rs.

House II

Rs.

Municipal valuation (MV)

Fair rent (FR)

Standard rent (SR)

Annual rent

Unrealized rent for the previous year, 2018 – 19

Interest on borrowed capital (per annum)

2,00,000

1,95,000

1,80,000

2,26,000

40,000

46,000

2,00,000

2,05,000

1,80,000

1,85,000

40,000

46,000

 The above stated properties are let out throughout the previous year, 2018 – 19. Municipal tax (paid) is at the rate of 20%.

Or

(b) State the provisions relating to computation of income from house property.

7. (a) What is the role of assessing officer under the Income-tax Act, 1961? Explain the powers which are entrusted to him by Central Board of Direct Taxes.         11

Or

(b) Write notes on the following:           11

1)         Income tax authorities.

2)         Parties to an appeal.

***

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