Income Tax Law and Practice Question Paper 2022
[Gauhati University BCOM 3rd SEM Question Papers]
(Income Tax Law and Practice)
Full Marks: 60
Time: Three hours
The figures in the margin indicate full marks for the questions.
Answer either in English or in Assamese.
In this post you wil get Income Tax Law and Practice Question Paper 2022 for Gauhati University BCOM 3rd SEM.
1. Answer any seven of the following questions as directed: 1 x 7=7
(a) As per section 2(7), a person by whom any tax or other sum of money is payable under the Income Tax Act is known as _______. (Fill in the blank)
(b) “Assessment Year” means the period starting from 1st April and ending on _______ of the next year. (Fill in the blank)
(c) Perquisites cannot be given in monetary form. (State whether the statement is true or false)
(d) Income-tax is an annual tax on _______. (Fill in the blank)
(e) Residential status is determined with reference to the individual’s physical presence in India. (State whether the statement is true or false)
(f) Agricultural land in a rural area in India in excluded from the definition of “Capital Assets”. (State whether the statement is true or false)
(g) Section 10 of the Income Tax Act deals with _______ income. (Fill in the blank)
(h) Income from the sale of a portion of fixed assets is taxable under the head _______. (Fill in the blank)
(i) The year in which income is earned is known as Assessment year and the year in which it is taxable is known as previous year. (State whether the statement is true or false)
(j) Under the Income Tax Act, 1961, what is the status of Gauhati University as a ‘Person’?
(k) Tax Liability of an Assessee depends upon his/her Residential status. (State whether the statement is true or false)
(l) Agricultural income is taxable under section 10 (1) of the Income Tax Act, 1961. (State whether the statement is true or false)
2. Answer any four of the following questions: 2 x 4=8
(a) Explain the term ‘short term capital gain’.
(b) State the meaning of Assessment Year as per the Income Tax Act, 1961.
(c) Explain the meaning of long-term capital gain.
(d) State the meaning of ‘Uniform Previous year’ as per the Income Tax Act, 1961.
(e) State the meaning of income.
(f) Define “Person” as per Income Tax Act, 1961.
(g) State the meaning of agricultural income.
(h) Define ‘Assessee’ as per Income Tax Act, 1961.
3. Answer any three questions: 5 x 3=15
(a) Explain the steps involved in the determination of Gross Annual Value of a House Property.
(b) From the following information of Umacharan Pandey for the financial year ended on 31st March, 2022, compute his taxable income for the Assessment Year 2022-23:
(1) Umacharan Pandey is a resident and ordinarily resident in India.
(2) He is a partner in a limited liability partnership. His share of profit from the firm is Rs. 14,00,000.
(3) he is a member of a Hindu Undivided Family. His share of profit from the HUF is Rs. 7,00,000.
(4) During the previous year, Umacharan Pandey received a scholarship of Rs. 80,000 from Taxmann Education Society.
(5) He is employed by a company on part time basis. Annual salary (after standard deduction) is Rs. 6,00,000.
(6) Interest on Government securities is Rs. 90,000.
(7) He is eligible for a deduction of Rs. 30,000 under section 80C.
(c) Briefly explain various heads of income.
(d) Explain the meaning of “Capital Asset” as per Section 2 (14) of the Income Tax Act, 1961.
(e) Satish Kumar owns a residential house property in Mumbai. It is let out to Anand Ltd. at a monthly rent of Rs. 40,000. Municipal value of the property is Rs. 2,20,000 and Fair rent is Rs. 4,80,000. Anand Ltd. pays municipal tax. On April 7, 2021, rent is increased from Rs. 40,000 per month to Rs. 50,000 per month with retrospective effect from April 1, 2020. Satish Kumar gets Rs. 1,20,000 (being arrears of rent for the financial year 2020-21) on April 20, 2021.
Find out the net income of Satish Kumar for the Assessment Year 2022-23 on the assumption that his income from other sources is Rs. 8,00,000.
(f) Ramesh Takalkar, who resides in Mumbai, gets Rs. 6,00,000 per annum as basic salary. He receives Rs. 1,20,000 per annum as house rent allowance. Rent paid by him is Rs. 1,00,000 per annum. Find out the amount of taxable house rent allowance for the Assessment Year 2022-23.
(g) Abhinandan Sukla is a Government employee. He gets Rs. 6,00,000 per annum as basic pay. In addition, he receives Rs. 72,000 as entertainment allowance. His actual expenditure on entertainment for official purposes, however, exceeds Rs. 75,000. Find the amount of entertainment allowance that he can claim for deduction.
(h) Write a note on the Deductions available under section 24 in connection with income from house property.
4. Answer any three questions: 10 x 3=30
(a) Describe the procedure of computation of short term and long term capital gains as per the provisions of the Act.
(b) The following are the particulars of income of Mr. Narendra Singh, employed in a private limited company in Kolkata, for the year ended on 31st March, 2022:
(1) Basic salary: Rs. 90,000 per month.
(2) Dearness allowance: Rs. 40,000 per month.
(3) Entertainment Allowance: Rs. 10,000 per month.
(4) Children Education Allowance including hostel expenditure: Rs. 500 per month per child for 2 children.
(5) Medical Allowance: Rs. 1,000 per month.
(6) Transport Allowance: Rs. 2,000 per month.
(7) City Compensatory Allowance: Rs. 6,000 per month.
(8) Tiffin Allowance: Rs. 5,000 per month.
Compute his income from salary for the Assessment Year 2022-23.
(c) From the following Profit & Loss A/c of Joy Prakash (Age: 45 years; resident) for the year ended on 31st
March, 2022, ascertain his Gross Total Income for the Assessment Year 2022-23:
Outstanding Income Tax
Salary to Staff
Salary to Joy Prakash
Interest on Overdraft
Medical expenses of Joy Prakash’s ailing mother
Interest on Capital of Joy Prakash
Contribution to Employees’ Recognised Provident Fund
Dividend received on shares
Interest on Debentures
(1) The amount of depreciation allowable is Rs. 74,300 as per Income Tax Rules.
(2) General expenses includes Rs. 6,800 being the cost of permanent entrance gate of the residence of Joy Prakash.
(3) Joy Prakash pays Rs. 9,000 as premium on own life insurance policy of Rs. 1,00,000.
(d) State any five items of deductions available from Gross Total Income under section 80C of the Income Tax Act and the salient features of this section. 5+5=10
(e) Explain the mode of set off and carry forward of losses.
(f) Write short notes on the following: 5+5=10
(1) On-line filing of returns of income.
(2) Permanent Account Number.
(g) Ramesh is a citizen of India. From the information given below, find out the net income of Ramesh for the assessment year 2022-23 on the assumption that (1) Ramesh is resident and ordinarily resident in India, (2) he is resident but not ordinarily resident in India, (3) he is non-resident in India:
Interest on fixed bank deposit in Punjab National Bank, Guwahati Rs. 6,00,000.
Income from agricultural operations in Nepal (the entire amount is directly received in Nepal and later on remitted to Iran for investment purposes, however, no income is generated during the year out of this investment.
(Agricultural operations are controlled from India by a team of professionals) Rs. 12,00,000.
Salary from UNO Rs. 18,00,000.
Income from house property situated in Chennai (rent received in Sri Lanka but on the next day, it is remitted to India) Rs. 9,10,000.
Pension received in London (service was rendered in India with a foreign country) Rs. 80,000.
(h) Briefly explain any five forms of Return of Income.
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