1. Total Questions Asked: 8 or 9 Questions

2. Questions to be Attempted: 5 Questions

3. Marks Distribution: All questions carry equal marks (20 Marks each, Total: 100 Marks)

4. Exam Duration: 3 Hours

5. Theory vs. Practical Balance: The paper is highly balanced, generally containing 4 to 5 theoretical questions and 3 to 4 comprehensive practical/numerical problems.

1. Determination of Residential Status: Step-by-step mathematical evaluation of core residential criteria. (Dec 2025)

2. Income from Salaries (HRA, Gratuity & Provident Fund): Standalone or integrated problems computing the exempt and taxable portions of HRA across different cities, alongside Recognized Provident Fund (RPF) treatments. (Dec 2021, Dec 2022, June 2024, Dec 2024, June 2025, Dec 2025)

3. Income from House Property: Computation of Gross Annual Value (GAV), Net Annual Value (NAV), and final taxable income after standard interest deductions under Section 24. (Asked Almost Every Year)

4. Profits & Gains of Business/Profession, Capital Gains, and Other Sources: Practical deductions adjustments and scheduling income streams. (June 2022, Dec 2022, Dec 2023, Dec 2024, June 2025)

5. Total Taxable Income & Deductions: Comprehensive numerical combinations bringing together business profits, salary, house property, capital gains, and other sources, followed by Chapter VI-A deductions (Section 80C, 80G, etc.). (Dec 2021, Dec 2022, Dec 2023, Dec 2024, June 2025, Dec 2025)

Unit/Block 1: Basic Concepts & Residential Status

(a) Define Assessment Year and Previous Year. "The income of the previous year is taxed in the current/assessment year." Explain this rule along with its critical exceptions. (Dec 2021, Dec 2023, June 2024, June 2025, Dec 2025)

(b) Explain the rules for determining the residential status of an individual. Discuss how an individual's tax liability changes if they are an Ordinary Resident, Not Ordinarily Resident, or Non-Resident. (Dec 2022, Dec 2024, June 2025, Dec 2025)

(c) Distinguish between Gross Total Income and Total Income. (Dec 2023, June 2023)

(d) What do you understand by Casual Income? Give examples and explain its treatment under the Income Tax Act. (June 2022, Dec 2023, June 2024, Dec 2025)

(e) Define Agricultural Income and its types. Distinguish between agricultural income and partly agricultural income with relevant examples. (Dec 2021, June 2023, Dec 2024)

(f) Explain the concept of income deemed to accrue or arise in India. (Dec 2025)

(g) State any ten exempted incomes under Section 10 of the Income Tax Act. (Dec 2023)

Unit/Block 2: Income from Salaries

(a) What are the provisions of the Income Tax Act regarding the commutation of pension? (Dec 2021, June 2024, Dec 2025)

(b) Discuss the provisions and tax rules relating to Recognized Provident Fund (RPF) and Public Provident Fund (PPF). (Dec 2021, Dec 2023, June 2024, Dec 2025)

(c) Explain the statutory provisions for calculating the exemption of House Rent Allowance (HRA). (Dec 2021, Dec 2024, June 2025)

(d) Explain the provisions regarding Gratuity under Section 10(10) for employees covered and not covered under the Payment of Gratuity Act. (June 2023, June 2024)

(e) Discuss the tax provisions regarding the encashment of earned leave and compensation on retrenchment at the time of retirement or death. (Dec 2021, June 2023, Dec 2024)

(f) Define Perquisites under Section 17(2). Explain general perquisites that are taxable for all categories of employees. (Dec 2021)

(g) What do you understand by Allowances? Distinguish between fully taxable, partially exempted, and fully exempted allowances. (Dec 2021, June 2024, Dec 2024)

Unit/Block 3: Income from House Property and PGBP

(a) Define Income from House Property under Section 22. How is the Annual Value of a house property defined and determined? (Dec 2022, Dec 2024)

(b) State the various deductions allowed from the annual value under Section 24 when computing income from house property. (Dec 2021, June 2025)

(c) Explain the necessary conditions for an income to be chargeable under the head "Profits and Gains of Business or Profession". (June 2025)

(d) State the specific rules for computing depreciation allowance in the case of business assets. (June 2022)

(e) Explain the provisions of Section 43B regarding deductions that are allowed strictly on an actual payment basis. (June 2022)

(f) List five expenditures that are allowed as deductions under Section 37(1) and five that are explicitly not allowed. (June 2024)

(g) Mention eight types of business losses which are non-deductible from business income. (Dec 2021, Dec 2023)

Unit/Block 4: Capital Gains & Income from Other Sources

(a) What is a Capital Gain? Differentiate clearly between Short-Term Capital Gains (STCG) and Long-Term Capital Gains (LTCG). (June 2023, June 2024)

(b) Explain the Capital Gain Account Scheme, 1988 and discuss the exemptions available under Section 54 and Section 54F. (June 2022, Dec 2022, June 2025)

(c) Explain clearly the meaning of the term 'Dividend' as defined under the Income Tax Act. What are its different types and the current laws governing the taxation of dividends? (Dec 2024, Dec 2025)

Unit/Block 5: Clubbing, Set-Off, Deductions, and Assessment

(a) What do you mean by Clubbing of Income? Under what circumstances is the income of one person treated as the income of another? Highlight provisions for a minor child. (Dec 2021, June 2022, June 2023, June 2025)

(b) What do you mean by Set-off and Carry Forward of Losses? Explain the specific provisions regarding the set-off of business losses, speculative losses, short-term capital losses, and long-term capital losses. (Dec 2022, June 2023)

(c) Explain the statutory provisions regarding Assessment of Firms under Section 184 and state the essential features of a partnership deed. (Dec 2022, Dec 2024)

(d) Detail the functions and powers of various Income Tax Authorities. (June 2022, June 2024)

(e) Explain the concept and major steps involved in the e-Filing of Income Tax Returns (ITR) in India, highlighting its core benefits. (June 2023, Dec 2024)

• Marginal Relief (Dec 2025)
• Deduction under Section 80D (Medical Insurance Premium) (Dec 2022, June 2024, Dec 2025)
• Deduction under Section 80G (Donations to Charitable Institutions) (Dec 2021, June 2022, Dec 2023, June 2025)
• Permanent Account Number (PAN) (Dec 2022, Dec 2023)
• Best Judgement Assessment (Section 144) (Dec 2022, Dec 2023)
• Bondwashing Transactions (June 2022, June 2024, June 2025)
• ITR-1 Form (Sahaj) (Dec 2024, June 2025)
• Person and Assessee in Default (Dec 2023)
• Compulsory Audit of Accounts (Dec 2021)

BCOC-136: Income Tax Law and Practice Question Papers [IGNOU BCOMG NEP Syllabus]