Income Tax Law & Practice Question Paper 2022
Dibrugarh University BCOM 3rd SEM Hons
3 SEM TDC ITLP (CBCS) C 306
Paper: C – 306
(Income Tax Law and Practice)
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 of the following: 1 x 4=4
(1) A person who is liable to pay tax not only on his own income but on the income of another person is called _______.
(2) Gratuity received by a government employee is _______.
(3) Long-term capital loss can be carried forward for _______ succeeding previous years to be set-off only from long-term capital gain.
(4) Income received as rent from subletting would be taxable under the head _______.
(b) Write True or False of the following: 1 x 4=4
(1) An individual who wants to be resident of India u/s 6 (1) (a) must stay in India for at least 730 days in 7 previous years.
(2) Tax is levied on total income of an assessee.
(3) Income from sale of household furniture is short-term capital gain.
(4) Deduction u/s 80C is available to industrial only.
2. (a) Write short notes on any two of the following: 4 x 2=8
(1) Assessment year.
(2) Maximum marginal rate.
(b) How will you determine the residential status of an individual? Explain. 8
3. Explain any three of the following: 4 x 3=12
(b) Tax deducted at source.
(c) Capital gain exempted from tax.
(d) Relief u/s 89 (1).
4. (a) What is Provident Fund? Explain the tax treatment of different types of Provident Fund. 3+7=10
(b) Mr. X is employed at Dibrugarh at a basis salary Rs. 25,000 p.m. and he also getting the following allowances:
Education allowance @ Rs. 200 per month for three children
Hostel allowance to one child
House rent allowance
He paid professional tax Rs. 250 per month. He was in a rented house and paying a rent of Rs. 7,000 p.m. His employer contribution in RPF @ 10% of his salary. Interest on RPF balance @ 12% Rs. 9,000.
Find out his salary income for the Assessment Year 2022-23. 10
5. (a) (1) Write a note on annual value of house property. 4
(2) Explain briefly the different types of income from house property which are not chargeable to tax. 6
(b) Mr. Sanjoy Das owns a house property in Delhi. From the particulars given below, compute the income from house property for the Assessment Year 2022-23: 10
Actual rent (per month)
Municipal tax – 20% of municipal value, municipal tax paid during the year 50% of tax levied
Expenses on repairs
Mr. Sanjoy Das borrowed a sum of Rs. 12,00,000 @ 10% p.a. on 01-07-2018 and the construction of the property was completed on 28-02-2020.
6. (a) Define capital gain. Discuss the procedure for computation of capital gain. 4+6=10
(b) Mr. Dilip submits the following particulars about sale of assets during the year 2021-22:
Sale price (in Rs.)
Expenses on sale (in Rs.)
Cost of acquisition (in Rs.)
Year of acquisition
He has purchased a house for Rs. 12,00,000 on 01-03-22.
Calculate the amount of taxable capital gain if CII for 2021-22 is 317. 10
7. (a) What are the provisions of the Income Tax Act, 1961 regarding set-off of losses? Discuss briefly the provisions of the Income-tax Act regarding the carry forward of losses from business income and capital gain. 4+8=12
(b) Mr. Z submits the following particulars for the year ending 31-03-22. Calculate his taxable income for the Assessment Year 2022-23: 12
Income from salary
Income from house property:
House – A
House – B (self-occupied)
Profits and gains of business or profession:
Business III (discontinued)
Unabsorbed carried forward loss from Assessment Year 2015-16
Short-term capital loss
Short-term capital gain
Loss from card games
Winning from lotteries
Interest on fixed deposit
Mr. Z invested in PPF Rs. 1,00,000 and tuition fee paid for his son Rs. 65,000 p.a.
8. (a) How will you compute the total income of a firm? Explain. 10
(b) Explain the tax rate applicable to a firm for the Assessment Year 2022-23. 10