Income Tax Law and Practice Question Paper ' 2020 | B.Com 3rd Sem (Non Hons) | CBCS Pattern

 Dibrugarh University Question Papers
B.Com 3rd Sem Non Hons (CBCS Pattern)


2 0 2 0 (Held in April–May, 2021)


Paper: CC–303 (Income Tax Law and Practice)


Full Marks: 80:  Pass Marks: 32

Time: 3 hours

dibrugarh university 3rd sem question paper cbcs

The figures in the margin indicate full marks for the questions

1. (a) Fill in the blanks:     1×3=3

1)         Dividend received from Indian company is ________.

2)         Winning from lotteries is ________.

3)         Loss from house property can be carried forward for ________ years.

(b)  State whether the following statements are ‘True’ or ‘False’:       1x3=3

1)         Deduction under Section 80C to 80U shall be allowed from gross total income.

2)         Unabsorbed depreciation is deducted from profit.

3)         Long-term capital losses can be set off only against short-term capital profit.

2. Answer the following questions in short:      2x5=10

a)         Determine the status of the following persons:

1)      Local authority.

2)      Dibrugarh University.

b)         What is dual residential status?

c)          What is house rent allowance?

d)         Write the tax treatment of loss due to vacant.

e)         What is ‘tax incidence’ under income tax?

3. Explain in brief any three incomes which are exempted u/S 10 of the Income-tax Act, 1961.   3

4. What do you mean by casual income? Give example.       3

Also Read: Income Tax Law and Practice Solved Question Paper' 2020 Held in 2021

5. Write short notes on (any four):

a)    Agricultural income.

b)   Rent-free accommodation.

c)    Net annual value of house property.

d)   Short-term capital assets.

e)   General income under Section 56(1).

6. (a) Mr. Chandan is an employee of an industrial unit at Guwahati. The particulars of his income from salary are as under:

(1) Basic Salary

(2) Dearness allowance

(3) Bonus

(4) Entertainment allowance

(5) House rent allowance

(6) He contribute 15% per month of his basic salary towards recognized provident fund

(7) His employer also contributes 15% of basic salary towards recognized provident fund

(8) Interest credited to recognized provident fund @ 12% p.a.

(9) A car of 1.8 litre capacity was provided by the employer for office and private use.

All expenses of the car are borne by the employer.

(10) He paid professional tax—

Rs. 40,000 pm

Rs. 30,000 pm

Rs. 30,000

Rs. 6,000 pm

Rs. 30,000 pm



Rs. 12,000



Rs. 1,300

Compute income under the head salary for the Assessment Year 2020–21.          14


(b) Define ‘income from house property’. Explain the various deductions allowable under Section 24 while determining income from house property.      2+12=14

7. (a) Mr. Rajesh, an advocate, furnishes the following Receipts & Payments A/c for the Previous Year 2019–20 :

Receipts & Payments A/c





To Opening Balances

To Legal Fees

To Interest on Debentures

To Rent from Property

To Gifts from Clients

To Examiner’s Fees

To Special Commission Fees








By Rent

By Stationery

By Books (annual publications)

By Travelling Expenses

By Telephone

By Income Tax

By Office Expenses

By LIC Premium

By Donations

By Motor Car Expenses

By Purchase of Court Fees Stamps

By Balance c/d

















Additional Information:

1)    Closing stock of stationery—Rs. 600.

2)    Closing stock of court stamps—Rs. 1,800.

3)    Gifts from clients include—Rs. 6,000 received from his mother.

4)    Donation is given to National Children Fund.

5)    1/4th of motor car expenses are for personal use.

Compute the professional income of Mr. Rajesh.             14


(b) What do you mean by capital assets? What are its different types? What rules are given for the determination of cost of acquisition of capital assets?       3+4+7=14


8. (a) Mr. D is employed as an accountant in an office in Guwahati. He furnishes the following particulars related to the Previous Year 2019–20:                                

(1) Salary

(2) Income from let-out house

(3) Income from cloth business

(4) Interest on savings Bank Account

(5) Dividend from Indian Company

(6) Dividend from foreign company

(7) Short-term capital gain

(8) Long-term capital gain

(9) Winning from lottery (net) 

Rs. 41,000 p.m.

Rs. 9,000 p.m.

Rs. 55,000

Rs. 18,000

Rs. 10,000

Rs. 70,000

Rs. 9,000

Rs. 15,000

Rs. 35,000

During the previous year, Mr. D had contributed Rs. 12,000 towards recognized provident fund. He has also made donations to a political party (by cheque) Rs. 5,000; Assam Govt. CM Relief Fund Rs. 15,000 and PM’s National Relief Fund Rs. 10,000. Compute total taxable income of Mr. D for the Assessment Year 2020–21.     14


(b) What is gross total income? Write down the rules that govern deductions u/S 80 of the Income-tax Act.    4+10=14

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