Income Tax Law and Practice Non Hons Question Paper' 2021 (Held in 2022), Dibrugarh University B.Com 3rd Sem Question Paper

 Dibrugarh University B.Com 3rd Sem Question Paper
Income Tax Law and Practice’ 2021
(Held in January/February, 2022)
Full Marks: 80
Pass Marks: 32
Time: 3 hours
The figures in the margin indicate full marks for the questions

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

(1)       ______ means a person by whom any tax or any other sum of money is payable under the Income-tax Act.

(2)       Unrecognised provident fund is that fund which is not recognized by the ______ of income tax.

(3)       The value of perquisites is chargeable to tax under the head ______.

(4)       The rent fixed under the Rent Control Act whereas over applicable is called ______ rent.

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

(1)       The Income-tax Act, 1961 came into force from April 1, 1962 in whole of the country.

(2)       Any amount withdrawn from the statutory provident fund is exempted from tax.

(3)       House rent allowance is a fully taxable allowance.

(4)       Bank interest is an example of taxable interest u/s 56(1) of the Income-tax Act, 1961.

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

(a)       Assessee.

(b)       Ordinary resident.

(c)        Profits in lieu of salary [Section 17(3)].

(d)       Income from other sources.

(e)       Tax liability of an individual.

3. (a) Define the terms ‘Previous Year’ and ‘Assessment Year’. What are the exceptions to the rule that income of a Previous Year is assessed to tax in the Assessment Year?                 4+4+4=12


(b) Explain in brief at least twelve incomes which are exempted u/s 10 of the Income-tax Act, 1961.  12

4. (a) Explain in brief the following items as per the Income-tax Act, 1961 (any two):        5½ x 2 = 11

(1)       House rent allowance.

(2)       Statutory provident fund.

(3)       Entertainment allowance to government employees.


(b) Mrs. Shilpa is a production manager of an industrial unit at Delhi. The particulars of her salary incomes are as under:



(1)       Basic salary

(2)       Dearness allowance (given under the terms of employment)

(3)       Entertainment allowance

(4)       Medical allowance

(5)       House rent allowance

(6)       Rent paid for the house

(7)       Car of 1.2 litres capacity provided by employer for private and official use. Employer meets expenses of the car.

(8)       She and her employer (each) contribute 10% of salary to recognized provident fund.

(9)       Mrs. Shilpa had taken interest-free loan of Rs. 15,000 to purchase a refrigerator.

80,000 p.m.

30,000 p.m.

2,000 p.m.

1,000 p.m.

20,000 p.m.

25,000 p.m.


Compute income under the head Salary for the Assessment Year 2021-22.          11

5. (a) A house was completed on April 1, 2019 and following information is available about this house:

Municipal value of the house

Fair rental value of the house

Actual rent

Municipal taxes

Rs. 30,000 p.a.

Rs. 32,000 p.a.

Rs. 4,000 p.m.

Rs. 6,000 p.a.

Let out for the period 01.04.2019 to 31.12.2019 and self-occupied from 01.01.2020 onwards:



Fire Insurance Premium

Land Revenue



Interest on Loan for the period:

(1)       01.04.2016 to 31.03.2019 Rs. 45,000.

(2)       01.04.2019 to 31.03.2020 Rs. 15,000.

Calculate Income from House Property for the Assessment Year 2020-21.             11


(b) Define annual value. How is it determined? What deductions are allowed from the annual value in computing taxable income from house property?    3+5+3=11

6. (a) Mr. Mohan furnishes the following particulars for the Previous Year ending on 31.03.2020 and requests you to compute the Taxable Capital Gain:           11

(1)       He had a residential house inherited from father in December 2016, which was acquired by father in 1998 and the fair market value of which as on 01.04.2001 is Rs. 4,00,000.

(2)       In the year 2006-07, further construction and improvement cost came to Rs. 1,80,000.

(3)       On 18.09.2019, the house was sold for Rs. 35,00,000. Expenditure in connection with transfer was Rs. 90,000.

(4)       On 20.12.2019, he purchased a residential house for Rs. 18,00,000.

Cost of inflation index:










(b) Discuss in detail the provisions of the Income-tax Act, 1961 for determination of income from other sources.     11

7. (a) Explain the following in brief:           5½ x 2 = 11

(1)       Deductions from gross total income.

(2)       Income of other persons included in assessee’s total income.


(b) What do you mean by the term ‘depreciation’? What are the conditions regarding the claim of deduction of depreciation?    4+7=11


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