BACHELOR OF COMMERCE (GENERAL) [B.COM. (G)]

BCOC-136: INCOME TAX LAW AND PRACTICE Question Paper

Term-End Examination December, 2025

Maximum Marks: 100

Time: 3 Hours

Note:

a) Attempt any five questions.

b) All questions carry equal marks.

1. (a) What do you understand by casual income? How are they treated under the Income Tax Act? (10 Marks)

(b) Explain the provisions of Income Tax Act for an individual, if he is: (10 Marks)

(i) An Ordinary Resident

(ii) A Not Ordinary Resident

2. (a) What are the provisions of Income Tax Act regarding commutation of pension? (10 Marks)

(b) What is Provident Fund? Explain the treatment of recognized provident fund under Income Tax Act. (10 Marks)

3. (a) (i) What does the term 'Capital Gains' signify under the Income Tax Act? (3 Marks)

(a) (ii) Mr. Anil, a citizen of Spain has been staying in India since 1987. He leaves India on 16-7-2023 on a visit to U.S.A. and returns on 4-1-2024. Determine his residential status for the previous year 2023-24. (7 Marks)

(b) Explain income that deemed to accrue or arise in India. (10 Marks)

4. Prof. Vijeta Aggarwal declares following particulars of income for the A.Y. 2024-25: (20 Marks)

(i) Salary: ₹5,000 per month

(ii) Servant allowance: ₹200 per month

(iii) Royalty from books: ₹18,000

(iv) Net amount from lottery: ₹28,000

(v) Expenses on lottery tickets: ₹10,000

(vi) Winning from card games: ₹6,000

Calculate her total taxable income for the assessment year 2024-25.

5. Aliya is the owner of a house property in Pune. It is let out for ₹90,000 p.a. The municipal tax payable by the owner comes to ₹10,000, but the landlord has taken an agreement from the tenant stating that the tenant would pay the tax direct to the municipality. The landlord, however, bears the following expenses on tenant's amenities under an agreement: (20 Marks)

Particulars	Amount (₹)
Water charges	1,500
Lift maintenance	1,000
Lighting of stairs	800
Gardener's salary	700

The landlord claims the following deductions:

Repairs: ₹20,000

Land Revenue: ₹2,000

Collection charges: ₹6,000

Legal expenses incurred in connection with the purchase of land on which the house is built: ₹24,000. Compute the taxable income from house property for the A.Y. 2024-25.

6. Explain clearly the meaning of the term 'Dividend' as defined in the Indian Income Tax Act. What are its different types? Point out the law relating to taxation of dividends. (5 + 7 + 8 = 20 Marks)

7. Mr. Rahul is employed in a company. He gets the following from the company: (20 Marks)

(i) Salary @ ₹20,000 p.m.

(ii) Dearness Allowance @ ₹2,000 p.m.

(iii) Medical Allowance @ ₹5,000 p.m.

(iv) Bonus equal to 2 months' salary

(v) Commission @ ₹20,000 per year

The following perquisites are provided by the employer:

(i) A sweeper and a cook getting salary of ₹1,500 p.m. each.

(ii) A car of 1400 CC for his personal use for which the employer pays.

(iii) Rent-free unfurnished house in Etawah (Population less than 10 lakhs) owned by employer, annual rental value of which is ₹1,00,000.

(iv) A gardener whose salary is ₹2,000 p.m.

(v) Free gas, electricity and water facility for private use, employer actually paid for this facility ₹20,000 for previous year.

Compute taxable salary of Mr. Rahul for the A.Y. 2024-25.

8. Write short notes on any four of the following: (4 × 5 = 20 Marks)

(a) Marginal Relief

(b) Deduction under Section 80D

(c) Clubbing of income

(d) Gratuity

(e) e-Filing of Income Tax Return

(f) Previous Year and Assessment Year

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BACHELOR OF COMMERCE (GENERAL) [B.COM. (G)]

BCOC-136: INCOME TAX LAW AND PRACTICE Question Paper

Term-End Examination June, 2025

Maximum Marks: 100

Time: 3 Hours

Note: Attempt any five questions. All questions carry equal marks.

1. (a) What are the different categories into which the assessee is divided on the basis of residence? How are they taxed under Income Tax Act? (10 Marks)

(b) "The income of the previous year is taxed in the current year." Explain. Also discuss its exemption. (10 Marks)

2. (a) What are the provisions of income tax related to house rent allowance? (10 Marks)

(b) Define annual value and state the deductions that are allowed from the annual value in computing the income from house property. (10 Marks)

3. (a) What do you mean by Clubbing of Income? In what circumstances is the income of one person treated as income of another? (10 Marks)

(b) Mr. Vishesh, who is not covered by the Payment of Gratuity Act, 1972, receives a gratuity of ₹5,76,000, when he retires on 23rd June, 2023 after a service of 34 years 9 months and 23 days. His last drawn emoluments are as follows:

Basic salary: ₹30,000 p.m.

Dearness allowance: ₹7,200 p.m. (Fixed).

Annual increment in basic salary of ₹1,200 p.m. falls due on 1st January every year.  What amount of gratuity is exempt from tax in the assessment year 2024-25? (10 Marks)

4. The following are the particulars of Shri Apoorva for the A.Y. 2024-25. Compute the taxable income: (20 Marks)

(i) Income from house property (computed): ₹25,000

(ii) LTCG on building: ₹30,000

(iii) Winning from lottery: ₹80,000

(iv) Life insurance premium paid: ₹1,000

(v) Interest on Govt. securities: ₹12,000

(vi) Income from cloth business: ₹1,25,000

(vii) Profit from business of growing mushrooms: ₹40,000

(viii) Profit from business of dairy farming: ₹15,000

5. CA Pawan owns a house of which 50% portion is let out for the purpose of residence at ₹4,400 per month. 25% portion is used by him for his profession and remaining 25% portion is used for his residence. From the following particulars, find out annual value of the house property: (20 Marks)

(i) Municipal valuation: ₹60,000

(ii) Fair rent: ₹70,000

(iii) Municipal taxes: 10%

6. (a) Explain necessary conditions for income to be chargeable under the head 'Profit and gains of Business or Profession.' (10 Marks)

(b) Discuss the provisions of the Income Tax Act regarding exemption of capital gains u/s 54F. (10 Marks)

7. Mr. Shankar Lal's income particulars are as under: (20 Marks)

(i) He took a house on the rent of ₹1,000 per month and let it out again for ₹1,600 per month. Besides, he received ₹5,000 rent from his ownership house.

(ii) Dividend from an Indian Company: ₹4,000 (Gross).

(iii) Speculation business profit: ₹6,000 and ₹500 from cricket gambling.

(iv) Agricultural income in Sri Lanka: ₹10,000 (was not brought in India). ₹18,000 income from agricultural land situated at Kanpur.

(v) Salary as an M.L.A.: ₹30,000 and Daily Allowances: ₹4,000.

(vi) Share in HUF income: ₹8,500.

(vii) Dividend received: ₹6,000 from Co-operative Society.

Compute Income from Other Sources.

8. Write short notes on any four of the following: (4 × 5 = 20 Marks)

(a) Deduction under Section 80G

(b) Agricultural income and Partly Agricultural income

(c) Bondwashing transactions

(d) Transfer of capital asset

(e) ITR 1 Form

(f) Rent free accommodation

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BACHELOR OF COMMERCE (GENERAL) [B. COM. (G)]

BCOC-136: INCOME TAX LAW AND PRACTICE Question Paper

Term-End Examination December, 2024

Maximum Marks: 100

Time: 3 Hours

Note: Attempt any five questions. All questions carry equal marks.

1. (a) Distinguish between agricultural income and partly agricultural income with examples. (8 Marks)

(b) Explain the provisions of Income Tax Act for an individual, if he is: (12 Marks)

(i) Resident

(ii) Not Ordinarily Resident

(iii) Non-Resident

2. (a) Explain the provisions of encashment of earned leave on retirement. (12 Marks)

(b) Explain the provisions of compensation on retrenchment as per Income Tax Act. (8 Marks)

3. (a) Mr. Sanjay is employed in Reserve Bank of India as Manager. He gives the following details for the previous year 2022-23. Compute gross and taxable salary income for the assessment year 2023-24: (12 Marks)

(i) Basic Pay: ₹48,000 p.m.

(ii) Dearness allowance: ₹18,000 p.m. (20% is used for benefits of retirements).

(iii) Received House Rent Allowance (HRA): ₹15,000 p.m. He pays ₹18,000 p.m. as rent for his accommodation in Chennai.

(b) What are the provisions for calculating House Rent Allowance? (8 Marks)

4. (a) Agricultural land situated at Pune is purchased in 2004-05 for ₹32,200 and sold for ₹4,00,000 on 2-09-2022. The assessee purchased another piece of agricultural land on 21-10-2022 for ₹60,000 and deposited ₹40,000 on 15-02-2023 in Capital Gain Account Scheme, 1988. Calculate the amount of capital gain taxable for assessment year 2023-24. The cost inflation index in 2004-05 was 113 and in 2022-23 it was 331. (12 Marks)

(b) Explain Capital Gain Account Scheme, 1988. (8 Marks)

5. What do you mean by clubbing of income? What are the circumstances when the income of one person treated as income of another? Explain. (20 Marks)

6. The following particulars of income are submitted by Smt. Suman Garg for assessment year 2023-24. She lives in Delhi: (20 Marks)

(i) Basic Pay: ₹10,000 p.m.

(ii) Dearness allowance @ 10% of salary.

(iii) HRA: 30% of basic salary.

(iv) Medical allowance: ₹200 p.m. (amount actually spent on her own treatment is ₹2,000).

(v) Wardenship allowance: ₹400 p.m.

(vi) Rent from house property: ₹3,000 p.m.

(vii) Contribution to RPF: 10% of basic salary.

(viii) House rent paid: ₹6,000 p.m.

(ix) Donation to approved charitable institution: ₹20,000

Compute her total income for assessment year 2023-24.

7. Explain the five major steps of e-Filing of ITR in India. What are the various benefits of filing income tax return? (10 + 10 = 20 Marks)

8. Write short notes on any four of the following: (4 × 5 = 20 Marks)

(a) Annual value of house property

(b) Allowances

(c) Capital Gain Exempt from Tax

(d) Dividend

(e) Provision of Section 184 regarding assessment of firm

(f) Features of a partnership firm

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BACHELOR OF COMMERCE (GENERAL) [B. COM. (G)]

BCOC-136: INCOME TAX LAW AND PRACTICE

Term-End Examination June, 2024

Maximum Marks: 100

Time: 3 Hours

Note: Attempt any five questions. All questions carry equal marks.

1. (a) "The income of the previous year is taxed in the current year." Explain. What are the exceptions to this rule? (10 Marks)

(b) What do you understand by Casual Income? How are they treated under the Income Tax Act? (10 Marks)

2. (a) Explain the provisions regarding Gratuity U/S 10(10) of Income Tax Act. (10 Marks)

(b) What do you understand by Allowances? What are the fully taxable and partially exempted allowances? (2 + 4 + 4 = 10 Marks)

3. (a) (i) What do you mean by annuity? (2 Marks)

(ii) Mr. Madhur is getting a pension ₹4,000 per month from a company. During the previous year, he got two-third pension commuted and received ₹1,86,000. Compute the exempted amount, if:

- He also received gratuity.

- He did not receive gratuity, for the assessment year 2023-24. (5 + 5 = 10 Marks)

(b) What is entertainment allowance? What are the provisions of Section 16 (ii) regarding entertainment allowance for a government employee? (8 Marks)

4. Mr. Radheyshyam is employed in a company. He gets the following from the company: (20 Marks)

(i) Salary: ₹20,000 p.m.

(ii) Dearness allowance: ₹2,000 p.m.

(iii) Medical allowance: ₹5,000 p.m.

(iv) Bonus equal to 2 month's salary.

(v) Commission: ₹20,000 p.a.

The following perquisites are provided by the employer:

(i) A sweeper and a cook getting salary of ₹1,500 p.m. each.

(ii) A car of 1400 CC for his personal use for which the employer pays.

(iii) Rent-free unfurnished house in Etawah (population less than 10 lakhs) owned by employer, annual rental value of which is ₹1,00,000.

(iv) A gardener whose salary is ₹2,000 p.m.

(v) For personal use free gas, electricity and water facility worth ₹20,000 for previous year which employer has paid.

Compute taxable salary of Mr. Radhey shyam for assessment year 2023-24.

5. Pawan owns a house of which 50% portion is let out for the purpose of residence at ₹4,400 per month. 25% portion is used by him for his office and remaining 25% portion is used for his residence. From the following particulars, find out annual value of the house property: (20 Marks)

S.No.	Particulars	Amount (₹)
(i)	Municipal valuation of house property	60,000
(ii)	Fair rent of house property	70,000
(iii)	Municipal taxes	10%

6. (a) List five expenditures as deductions which are allowed and five deductions which are not allowed under Section 37 (1). (5 Marks)

(b) What are the differences between short-term capital gains and long-term capital gains? Explain Capital Gain Account Scheme, 1988. (10 + 5 = 15 Marks)

7. Mr. K, who is an Indian citizen and is a resident for income tax purposes submits the following information for the assessment year 2023-24: (20 Marks)

S.No.	Particulars	Amount (₹)
(a)	Gross salary	3,90,000
(b)	Profession tax paid	1,000
(c)	Own contribution to recognized provident fund	10,000
(d)	Employer's contribution to provident fund	10,000
(e)	Dividend from an Indian company	2,000
(f)	Income on deposits with a company (gross)	40,000
(g)	Long-term capital gains from house property	50,000
(h)	Short-term capital gain from shares covered under Section 111A	40,000

Compute the total income.

8. Write short notes on any four of the following: (4 × 5 = 20 Marks)

(a) Previous year and Assessment year

(b) Public provident fund

(c) Bondwashing transactions

(d) Deduction u/S 80D

(e) Income Tax Authorities

(f) Agricultural income

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BACHELOR OF COMMERCE (B.Com. G) (CBCS)

BCOC-136: INCOME TAX LAW AND PRACTICE Question Paper

Term-End Examination December, 2023

Time: 3 hours

Maximum Marks: 100

Note: Answer any five questions. All questions carry equal marks.

1. (a) “The income of the previous year is taxed in the current year.” Explain. 10

(b) Distinguish between the following:    5+5

(i) Gross Total Income and Total Income.

(ii) Previous year and Assessment year.

2. (a) What do you understand by Casual Income? How are they treated under the Income Tax Act?           10

(b) Write ten exempted incomes U/S 10 of Income Tax Act. 10

3. (a) After serving for 33 years and 9 months in Reliance Petrochemicals Ltd. Mr. A, who is covered by Payment of Gratuity Act, retires from service on 30th April, 2021. The company pays him a gratuity of Rs. 85,000. His monthly basic salary at the time of retirement was Rs. 4,500. You are required to determine the amount of exempted gratuity under Section 10 (10) of the Income Tax Act.    10

(b) Mr. Sanjeev Kant is manager in Roadways. He gets salary Rs. 25,000 p.m. Compute value of the perquisites of car under the following different circumstances:       10

(i) The employer has provided him a car of 1.6 liter capacity. Total expenses and driver’s salary incurred by employer i.e. Rs. 18,000. Car is used for both private and official purpose.

(ii) The employer has provided him a 1.4 liter capacity car with driver only for private use. Expenses of car are Rs. 18,000. The cost of car is Rs. 5,00,000.

(iii) The employer has provided with a facility of bus (50 horse powers) which carries him along with other employees from home to office and back from office to home.

4. (a) Discuss the provisions of Recognized Provident Fund in detail. 10

(b) State any five business losses which are not deductible from business income. 10

5. (a) Mohit sells his only residential house in Bangalore on 26th September, 2021 for Rs. 26,00,000 and incurs an expenditure of Rs. 30,000 in connection with the transfer. Cost of this house for Mohit in 1979 was Rs. 2,00,000 and on 1st April, 2001 the fair market value was Rs. 3,00,000. On 15th January, 2022, he purchased a residential flat in Bangalore for Rs. 4,00,000 and deposited Rs. 2,00,000 in Capital Gain Account Scheme. Calculate the capital gain chargeable to tax for assessment year 2022-23. The cost inflation index for 2001-02 was 100 and for 2021-22 it is 317. 15

(b) Explain the benefits of e-filing. 5

6. (a) Explain the following terms in the context of Income Tax Act: 5+5

(i) Capital Assets and cost of improvement.

(ii) Partnership Deed.

(b) Who can be a partner of a firm? Distinguish between a working partner and a non-working partner.   10

7. Income of Shri Hemendra for the year ended 31st March, 2022 consists of the following: 20

(a) Business profit (after setting off Rs. 20,000 paid as donation to an educational institution and Rs. 7,000 as deposit in National Saving Certificate)	Rs. 50,000
(b) (20%) 1/5th share of profit from a registered firm (which has paid income tax)	Rs. 8,000
(c) Interest on government securities (gross)	Rs. 10,000
(d) Dividend on shares of foreign company (gross)	Rs. 5,000

Compute the total income of Shri Hemendra for the assessment year 2022-23.

8. Write short notes on any four of the following: 4×5=20

(a) Deduction U/S 80 G.

(b) Best Judgement Assessment (U/S 144).

(c) Permanent Account Number.

(d) Person.

(e) Assessee in default.

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BACHELOR OF COMMERCE (B.Com. G) (CBCS)

BCOC-136: INCOME TAX LAW AND PRACTICE Question Paper

Term-End Examination June, 2023

Time: 3 hours

Maximum Marks: 100

Note: Answer any five questions. All questions carry equal marks.

1. (a) Distinguish between agricultural income and partly agricultural income with example.         10

(b) Mr. Ashutosh retired from an Indian company after serving for 34 years 4 months on 31st December, 2021. The company paid him Rs. 8,00,000 as gratuity under the Payment of Gratuity Act, 1972. His monthly salary and D. A. at the time of retirement was Rs. 58,000 and Rs. 5,800 respectively. Compute the exempted gratuity U/S 10 (10) (ii) of Income Tax Act. 10

2. (a) Discuss the provision regarding encashment of leave at the time of retirement/death. 10

(b) State the conditions which a Hindu Undivided Family and Indian company have to fulfill in order to be called as resident in India. 10

3. (a) Mr. Sanjay is employed in ABC Ltd. Company. He gives the following details for the previous year 2021-22. Compute gross and taxable salary for assessment year 2022-23:     10

(i) Basic pay Rs. 48,000 p.m.

(ii) Dearness allowance Rs. 18,000 p.m. (20% is used for benefits of retirement)

(iii) House Rent Allowance (HRA) Rs. 15,000 p.m. He pays Rs. 18,000 p.m. as rent for his accommodation in Chennai.

(b) Explain any five deductions deductible under the head ‘profits or gains from business and profession’. 10

4. (a) What is Capital Gain? Discuss the concept of Capital Gain and also differentiate between short-term gain and long-term gain.  2+4+4

(b) What are the various benefits of filing income tax return? Explain the procedure for E-filing of ITR in India. 10

5. What do you mean by clubbing of income? In what circumstance is the income of one person treated as income of another? Also write the provision relating to the clubbing of income of a minor child.       7+7+6

6. What are the provisions regarding set-off the following losses?              5×4=20

(a) Short-term capital losses.

(b) Long-term capital losses.

(c) Losses of lottery and card game.

(d) Speculative business losses.

7. (a) What is Gross Total Income? How is it different from Total Income? 6

(b) Gross total income of Mrs. Neha is Rs. 6,75,000. She deposited in RPF Rs. 50,000. She paid donation to a political party Rs. 10,000 by cheque and Prime Minister National Relief Fund Rs. 15,000 by cheque. She paid medical insurance premium on the health of her spouse Rs. 27,000 by cheque. Compute her total taxable income for assessment year 2022-23.  14

8. (a) What are the consequences of delay in filing return? 10

(b) Explain the following in the context of the Income Tax Act:     5+5

(i) Capital Assets.

(ii) Residential status of a company.

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BACHELOR OF COMMERCE (GENERAL) (BCOMG) (CBCS)

BCOC-136: INCOME TAX LAW AND PRACTICE Question Paper

Term-End Examination December, 2022

Time: 3 hours

Maximum Marks: 100

Note: Answer any five questions. All questions carry equal marks.

1. (a) Explain the rules for determing the residential status of an individual.  10

(b) Mr. Rakesh received the following emoluments from a private company during previous year 2020-21: 5+5

i) Salary @ Rs. 8,000 p.m.

ii) Dearness allowance @ 20% of salary (1/2 of it is under the terms of employment)

iii) Bonus Rs. 20,000.

iv) Commission on sale @ 5% (Sales Rs. 2,50,000).

v) House rent allowance @ Rs. 2,000 p.m.

Compute the taxable house rent allowance when he:

(a) resides in a rented house @ Rs. 2,200 p.m. in Agra.

(b) resides in a rented house @ Rs. 3,000 p.m. in Delhi.

2. Define Income from House Property as per Section 22 of Income Tax Act, 1961. 20

3. (a) What do you mean by Capital Gains ? Differentiate between long-term and short- term capital gains. 10

(b) Income of Shri Hemendra for the year ended 31st March, 2021 consists of the following:       10

(i) Business profit (after setting off Rs. 20,000 paid as donation to an educational institution and Rs. 7,000 as deposit in National Savings Certificate) Rs. 50,000.

(ii) (20%) 1/5^th share of profit from a registered firm (which has paid income tax) Rs. 8,000.

(iii) Interest on Govt. Securities (gross) Rs. 10,000.

(iv) Dividend on shares of foreign company (gross) Rs. 5,000.

Compute the total income of Shri Hemendra for A. Y. 2021-22.

4. Define the term partnership and give essential features of partnership firm and also discuss in detail of partnership deed.  2+8+10

5. M/s. Preeti gives the following particulars of her income for the previous year 2020-21. Compute her income from other sources:    20

	Rs.
(i) Dividend on equity shares (ii) Dividend on preference shares (Gross) (iii) Income from letting on hire of building and machinery under one composite lease (iv) Interest from Bank Deposit (Savings A/c) (v) Director’s sitting fees received (vi) Ground rent (vii) Income from Undisclosed Sources (viii) Winning from lotteries (Gross)	600 3,000 25,000 14,000 2,000 1,000 15,000 10,000

The following deductions are claimed by her:

(a) Collection charges of dividend Rs. 50.

(b) Allowable depreciation on building and machinery Rs. 5,000.

(c) Fire Insurance on building and machinery Rs. 500.

6. (a) Explain the features of ‘Bharat vs. Patel’ Judgement 2018.     10

(b) Explain the exemption u/s 54 of the Income Tax Act regarding capital gain in transfer of property used for residential purposes. 10

7. What do you mean by set off of losses? Explain the provisions regarding set off of business and capital losses.  20

8. Write short notes on any four of the following: 4×5=20

(a) Pension.

 (b) Capital Gains Account Scheme, 1988.

(c) Deduction in respect of Medical Insurance Premium (Section 80 D).

(d) Best Judgement Assessment (Section 144).

(e) Permanent Account Number (PAN).

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BACHELOR OF COMMERCE (B.Com. G) (CBCS)

BCOC-136: INCOME TAX LAW AND PRACTICE Question Paper

Term-End Examination June, 2022

Time: 3 hours

Maximum Marks: 100

Note: Answer any five questions. All questions carry equal marks.

1. (a) What do you mean by Casual Income? Give three examples. Explain when partial integration is done in case of agricultural income. 3+3+4

(b) Compute agricultural income from cultivation of land: 10

	Rs.
(i) Sale proceeds of agricultural produce (ii) Depreciation of equipments (iii) Labour charges (iv) Cost of seeds (v) Cost of fertilizers (vi) Electricity charges	1,70,000 7,000 25,000 5,000 3,000 13,000

2. Mr. Radhey Shyam is employed in a company during the previous year 2020 – 21. Details of his income are as follows: 20

(a) Salary @ Rs. 20,000 p.m.

(b) Dearness allowance @ Rs. 2,000 p.m.

(c) Medical allowances @ Rs. 5,000 p.m.

(d) Bonus equal to 2 months’ salary

(e) Commission @ Rs. 20,000 p.a.

The following perquisites are provided by the employer:

(i) A sweeper and a cook getting salary of Rs. 1,500 p.m. each.

(ii) A car of 1400 cc for commuting from residence to office for which the employer pays the expenses.

(iii) Rent-free unfurnished house in Etawah (population less than 10 lakhs) owned by employer, annual rental value of which is Rs. 1,00,000.

(iv) A gardener whose salary is Rs. 2,000 per month.

(v) Free gas, electricity and water facility Rs. 20,000 for previous year.

Compute taxable salary of Mr. Radhey Shyam for the assessment year 2021 – 22.

3. (a) Explain the rule for computing depreciation allowance in case of income from Business and Profession. 10

(b) Explain the provision of Section 43 B with regards to deductions to be allowed only on payment basis. 10

4. (a) Discuss the provision of Section 54 regarding capital gains on transfer of house property used for residential purposes. 10

(b) Compute income from the other sources of Mr. Anupam for assessment year 2021 – 22: 10

	Rs.
(i) Winning from Horse Race (ii) Loss in card games (iii) Winning from wager (iv) Amount received from winnings of lottery (v) Winning from T.V. show (Gross)	10,000 3,000 25,000 66,500 50,000

5. What do you mean by Clubbing of Income? Discuss the provisions regarding clubbing of income. 20

6. The following are the particulars of Shri Apoorva for the Assessment Year 2021 – 22. Compute his taxable income.  20

	Rs.
(i) Income from house property (computed) (ii) LTCG on building (iii) Life insurance premium paid (iv) Winning from lottery (v) Interest on Govt. Securities (vi) Income from cloth business (vii) Profit from business of growing mushrooms (viii) Profit from business of dairy farming	25,000 30,000 1,000 80,000 12,000 1,25,000 40,000 15,000

7. Discuss the different Tax Authorities and their functions in detail.          20

8. Write short notes on any four of the following: 4x5=20

(i) Residential status of a company.

(ii) House Rent Allowances.

(iii) Bond washing transactions.

(iv) Deduction in respect of donations to certain Charitable Institutions (80G).

(v) Online filing of Return.

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BACHELOR OF COMMERCE (GENERAL) (BCOMG) (CBCS)

BCOC-136: INCOME TAX LAW AND PRACTICE Question Paper

Term-End Examination December, 2021

Time: 3 hours

Maximum Marks: 100

Note: Answer any five questions. All questions carry equal marks.

1. Discuss agricultural income and its types. Distinguish between agricultural income and partly agricultural income with examples.  10+10

2. (a) What are the provisions of Income Tax Act regarding commutation of pension?

(b) Mr. X is the general manager of a steel company. He draws a salary of Rs. 5,500 per month. He retires on 31st December 2019, after completing 26 years and 11 months of service. He is entitled to one month earned leave for every year of completed service. He received Rs. 1,00,000 for encashment of earned leave on retirement. He has availed of 20 months earned leave while in service. He has encashed the unutilized earned leave standing to his credit on the basis of last drawn salary. Compute the taxable amount of leave encashment of Mr. X for the assessment year 2020 – 21.   10+10

3. (a) What do you understand by allowances? What are fully taxable and fully exempted allowances? Explain.

(b) What are the provisions for calculating House Rent Allowance? 10+10

4. Explain the meaning and definition of Perquisites as per Section 17(2) of the Income Tax Act. Explain the perquisites taxable for all employees (General perquisites).             10+10

5. The following particulars are given by Mr. S. Rajan, Chennai in respect of his annual income for the year ended 31.03.2020. Calculate his taxable salary.        20

(i) Salary (p.a.) (ii) HRA (iii) Actual house rent paid (He lives in Chennai) (iv) Contribution to recognized provident fund (v) LIP on his own life (Sum assured Rs. 20,000) (vi) Amount deposited in PPF A/c

Rs. 1,70,000 20% of salary Rs. 1,200 p.m. Rs. 20,000 p.m. Rs. 6,000 Rs. 15,000

6. Define annual value and state the deductions that are allowed from the annual value in computing the income from house property. 5+15

7. (a) Explain special cases where income from business is not taxable under ‘Profit and Gains of Business or Profession.’

(b) State any eight business losses which are not deductible from business income. 10+10

8. The following particulars of income are submitted by Smt. Suman Garg for assessment year 2020 – 21. She lives in Delhi.

(i) Basic pay Rs. 10,000 p.m.

(ii) Dearness allowance @ 10% of salary

(iii) HRA 30% of basic salary

(iv) Medical allowance Rs. 200 p.m. (amount actually spent on her own treatment is Rs. 2,000)

(v) Warden ship allowance Rs. 400 p.m.

(vi) Rent from house property Rs. 3,000 p.m.

(vii) Contribution to RPF 10% of basic salary

(viii) House rent paid Rs. 600 p.m.

(ix) Donation to approved charitable institution Rs. 20,000

Compute her total income for assessment year 2020 – 21. 20

9. Write short notes on any four of the following: 4x5=20

(a) Taxation of previous year income during the same year.

(b) Provident Fund.

(c) Compulsory Audit of Accounts.

(d) Capital Gain Exempt from Tax.

(e) Clubbing of Incomes.

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