2021 Income-tax Law and Practice (DSC), Assam University B. Com 3rd Sem Question Paper CBCS Pattern

Assam University B. Com 3rd Sem Question Paper CBCS Pattern
TDC (CBCS) Odd Semester Exam., 2020 held in March, 2021
COMMERCE (3rd Semester)
Course No.: COMDSC-302T
(Income-tax Law and Practice)

Full Marks: 50

Pass Marks: 20

Time: 3 hours

The figures in the margin indicate full marks for the questions.

SECTION – A

Answer any fifteen of the following as directed:                             1x15=15

1.          What is previous year?

2.          What would be the Assessment Year for the Previous Year, 2019-20?

3.          Give one example of income as per the Income-tax Act, 1961.

4.          Total Income = Gross Total Income – Deductions under Section 80C to 80U. (Write True or False)

5.          What is the rounding off total income of Rs. 1,46,798.50?

6.          Residential status of an individual is dealt with under Section _______ of the Income-Tax Act, 1961. (Fill in the blanks)

7.          What are the full forms of URPF and PPF?

8.          Write two fully taxable allowances.

9.          Write two types of perquisites.

10.      In case of house rent allowance Salary = Pay + _______. (Fill in the blank)

11.      Whether allowance from UNO is fully exempted on fully taxable allowance?

12.      Salary in lieu of leave is _______ taxable. (Fill in the blank)

13.      Self-occupied but vacant house is fully taxable as per the Income-tax Act, 1961. (Write True or False)

14.      Write one difference between MRV and FRV.

15.      What is the rate of standard deduction of self-occupied house?

16.      Deemed to be let out is treated as _______ house property. (Fill in the blank)

17.      What would be the annual value of the house which is used for assessee’s own business in case income from house property?

18.      Loss from house property can be set-off from income under any other heads only up to Rs. _______. (Fill in the blank)

19.      Income of a minor child is always clubbed with the income of the parent. (Write True or False)

20.      Business/profession losses can be set-off against salary income. (Write True or False)

21.      No loss can be set off against _______ income. (Fill in the blank)

22.      What is the maximum limit of deduction u/s 80C?

23.      Deduction u/s 80C is available to _______ and _______ assessee only. (Fill in the blank)

24.      What is the maximum amount of total income to get rebate of tax u/s 87A?

25.      What is the income tax exemption limit for a non-senior individual for the Assessment Year, 2020-21?

26.      What is the rate of tax on long-term capital gain?

27.      Listed shares held for less than 12 months are short-term capital asset / long-term capital asset. (Choose the correct answer)

28.      Profits earned from an illegal business are not taxable. (Write True or False)

29.      What is the full form of GST?

30.      Write one example of income which is included in income from other sources.

SECTION – B

Answer any five of the following questions:                      2x5=10

31.      What is Assessment Year?

32.      Mention the heads of income as per the Income-tax Act, 1961.

33.      Define salary as per the Income-tax Act, 1961.

34.      Define profit in lieu of salary.

35.      Define annual value.

36.      What is unrealised rent?

37.      What do you mean by the term ‘business’ as per Section 28 of the Income-tax Act?

38.      Define short-term capital gain and long-term capital gain.

39.      Define capital income.

40.      Write two saving schemes which are allowed as deduction u/s 80C.

SECTION – C

Answer any five of the following questions:      5x5=25

41.      Explain the scope of total income on the basis of residential status of an assessee.

42.      Write a short note on any one of the following:

(a)       Income.

(b)       PAN.

43.      Explain the different types of salary as per the Income-tax Act, 1961.

44.      From the following particulars find out the taxable salary of Mrs. Babita working at Coimbatore [population 11 lakhs]:

(a)       Salary Rs. 12,000 p.m.

(b)       Employer’s contribution to employee’s RPF – 14% of basic salary.

(c)        DA @ 100% of salary.

(d)       Rent free accommodation (unfurnished) fair rental value is Rs. 80,000 p.a. Expenses on maintenance of garden met by employer Rs. 3,000.

(e)       Interest on provident fund balance @ 13% p.a. – Rs. 3,900.

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

(g)       She paid P. Tax of Rs. 1,200.

(h)       She received Rs. 500 p.m. as fixed medical allowance.

45.       Explain the different types of rental values as per the Income tax Act, 1961.

46.      Mr. Barman owns a house at Chennai. Compute his income from house property for the Assessment Year, 2020-21:

FRV

Actual rent

MRV

Standard rent

Municipal tax

Actual repairs expenses

Ground rent

Collection charges

Interest on loan

Vacancy period

Bonafide unrealised rent of current year

Rs. 1,20,000 p.a.

Rs. 12,000 p.m.

Rs. 1,30,000 p.a.

N.A.

10% of MRV + 2% of M. Taxes as sewerage cess.

Rs. 12,000

Rs. 2,500

Rs. 1,200

Rs. 48,000

NIL

Rs. 36,000

Construction of the house started on 1st November, 2015 and he borrowed Rs. 4,00,000 @ 12% on 1st July, 2016 for the completion of construction. The house was completed on 30th November, 2018 and since then it is let out.

47.      Give a brief account of incomes which are included in ‘income from other sources’.

48.      The following is the Profit & Loss A/c of a merchant for the years ending 31st March, 2020:

Profit& Loss A/c

 

Rs.

 

Rs.

To Office salary

To Bad debts written off

To Provision for bad debts

To Advertisement

To Fire Insurance premium [House property]

To General Expenses

To Depreciation

To Interest on Capital

To Interest on Bank Loan (due)

To Net Profit

2,06,500

1,700

3,000

53,800

550

52,750

1,200

2,000

1,300

1,22,500

By Gross Profit

By Commission

By Discounts

By Sundry Receipts

By Rent of Building

By Profit on sale of investments

4,36,750

1,250

500

200

3,600

3,000

 

4,45,300

 

4,45,300

Compute the taxable profits from business. The amount of depreciation is Rs. 1,000. Interest on Bank Loan was paid on 1-8-2020. Due date of filing of return is 31-7-2020.

49.      Discuss the procedure for computation of capital gains as prescribed by the Income-tax Act, 1961.

50.      From the following information, calculate total income and tax liability of Mr. Deb:

Gross Total Income

His contribution to RPF

Life insurance premium

Interest on savings bank A/c

Rs. 3,50,250

Rs. 19,800

Rs. 1,200

Rs. 12,000

***

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