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Tuesday, October 08, 2013

Dibrugarh University - Income Tax Question Paper from 2009 to 2012

Direct Tax Law’2009 (General)
Or
(b) Write short notes on the following: a. Assessee b. Method of accounting c. Agricultural income d. Tax deduction at source from salary

Or

3. (a) Mr. X, Corporate manager (Sales) in Vodafone ltd. Receives the following income during the year ending march, 31st, 2008:
a)      Basic Salary 300000
b)      Leave travel concession for proceeding on leave (actual expenditure on rail fare Rs. 11000) 10000
c)       Tiffin allowance 4000
d)      Re – imbursement of medical expenses incurred for his own treatment 31300
e)      Besides, he enjoys the following perks:
f)       Free unfurnished flat in Delhi (Rent paid by the company Rs. 86000)
g)      The company provides two watchman (Salary Rs. 700 pm per person)
h)      Free use of Maruti 800 car for official as well as personal purposes (log book was not maintained by the employer)
i)        Free meal at the work place Rs 14700 (@ Rs. 70 per day for 210 days, amount is directly paid to the canteen by the company)
j)        Interest free loan for purchasing home appliances (Amount Rs. 120000, date of taking loan march 1st, 2004. Amount outstanding between April 1st, 2007 to November 30th, 2007 Rs. 76000 and after November 30th, 2007: Rs. 50000). The SBI lending rate for similar loan on 1st April, 2007 was 15.25%.
Compute his taxable income from salary for the assessment year 2008 – 2009 from the above information.
Or
(b) Explain in detail the treatment of the following as per provisions of the income tax act, 1961:
                     i.      Gratuity
                   ii.      Encashment of earned leave

Or
(b) Sri abhijit saikia is the owner of a house property. From the following particulars, compute the incomes from house property for the assessment year 2008 – 2009:
Ø  Municipal valuation : 90000, Fair Rent : 110000, Standard rent fixed by the court : 100000
Ø  The house was let our w.e.f. 1-4-2007 for Rs. 8000 p.m. which was vacated by the tenant on 30-9-2007. Since then it remained vacant for two months. From 1-12-2007, it was again let-out for a rent of Rs. 11000 p.m.
Ø  Municipal tax paid: 20% of municipal valuation.
Ø  Insurance premium paid Rs. 3000
Ø  Interest on money borrowed for Construction of house property Rs. 30000.

Or


Direct Tax Law 2010 (General)
1. a) Write short notes on the following:
i)        Assessment year
ii)       Charge of income tax
iii)     Capital asset
Or

b) Explain the provisions of the Indian income tax act relating to deduction of tax from salary at source.

Or
b) The following are the particulars of income of Mr. R for the previous year 2008-09:
i)        i) Rent from a property in Delhi received in USA                : 80,000
ii)       Income from a business in USA controlled from Delhi :1, 20,000 
iii)     Income from a business in Bangalore controlled from USA: 1, 80,000 
iv)     Rent from property in USA received there but subsequently remitted to India : 60,000
v)      Interest on deposits from an Indian company received in USA : 20,000
vi)     Profits for the year 2007-08 of a business in USA remitted to India during the previous year 2008 (not taxed earlier)
vii)   Gifts received from his parents
 Compute his income for the assessment year 2009-10 if his residential position is as under:
(i)Resident and ordinarily resident in India
(ii)Resident but not ordinarily resident
(iii)Non-resident Indian

3. (a) Mr. X has the following income during the previous year 2008-09:
Basic salary --- Rs.1, 20,000.
Dearness allowance (forming part of salary)—Rs 24,000
Medical allowance (actual expenditure Rs 4,000)—Rs, 6,000
Educational allowance (for three children)—Rs 6,000  
Rent free house in Delhi for which the employer company paid Rs 5,000 p.m. as rent. The house was furnished with rented furniture. The rent of the furniture is Rs 300 p.m.
The company provided two servants and one watchman. The company paid Rs 300 to each of them per month.
The company paid Rs 2,500 on his training programme.
Mr. X paid his professional tax of Rs 2,400 and deposited Rs 20,000 as LIP on his own life and Rs 15,000 for NSC.
Compute his taxable income for the assessment year 2009-10.

Or
b) Explain in detail as to how the following items are treated in computing taxable income:

4. a) Discuss in detail the general principles governing determination of business income.

OR

b) Following are the particulars of house properties of Mr. X for the previous year 2008-09:
Particulars
House A
House B
Construction started on
Construction completed on
Annual rental value
Municipal valuation
Municipal tax
Annual repairing expenses
Interest on money borrowed for Renovation of the building
Insurance premium               
Ground rent
House property was vacant for (months)
Rent collection charges
31.3.1992
31.3.1993
30,000
25,000
2,500
2,000
1,200
200
150
3
1,000
10.2.1988
1.6.1992
12,000
12,000
1,200
2,000
-
175
100
-
600
Both the above houses were let out for residential purposes. Insurance premium of house A and ground rent of house B are still outstanding. Repair expenses of house A And municipal tax of house B was paid by the tenants.
Compute the income from house property.

5. a) Write short notes on the following:
i)        Valuation date
ii)       Debts owed

Or
b) Explain the provisions of the wealth tax act, 1957 with regard to the following:
ii) Gift by means of book entries where money has not been actually delivered to the other person.

Direct Tax Law 2011 (General)
Or
(b) Write short notes on the following:
i)        Agricultural income 
ii)       Person  
iii)     Capital receipts 
iv)     Assessee

Or
(b) Ascertain the residential status of the assessee in the following cases for the assessment year 2010-2011:
i)        Mr. A is a citizen of India. He left for Iran on 18th April, 2009 and could not return to India till the end of the financial year 2009-2010.
ii)       Mr. P left for USA on 10th mar, 2007 after having lived in India for 20 years. He returned to India on 10th September 2009.
iii)     Mr.S is a citizen of India. He left on 15th may, 2009 for London for higher studies. He came back to India on 25th may, 2009. He maintained a dwelling place in India during his absence.
iv)     Mr. K, a senior scientist goes to Nigeria on a job approved by central government for a period of 3 years on 15th September, 2009. He has never been out of India before.

3. (a) From the following information, compute the taxable income for assessment year 2010-2011 under the head “Salaries” of Mr. X who is an employee of a transport company:
Salary @ Rs. 10000 p.m.
Arrears of salary Rs. 5000
DA @ Rs. 4000 p.m.
Employer is paying insurance premium of Rs. 1000 pa on his life.
Bonus Rs. 15000
Education allowance for his two children @ Rs. 300 p.m.
Cash gift Rs. 20000
City compensatory allowance @ Rs. 1000 p.m.
Medical expenses paid by employer Rs. 18000
He contributes 15% of his salary to a recognised provident fund and his employer also contribute the same.
He is given lunch allowance @ Rs. 100 for 250 days during the previous year.
He is provided with a mobile phone, the bill of which is paid by the company Rs. 6000.
Or
(b) Explain the provisions of the Indian income tax act, 1961 with regard to the following:
i)        House rent allowance
ii)       Gratuity

4. (a) For the assessment year 2010 – 2011
Particulars
House – I
House - II
Fair rent
Municipal Valuation
Standard Rent
Annual Rent
Unrealised rent of the previous year 2009 – 2010
Vacant period
Loss of account of vacancy
Municipal taxes paid
Repairs
Insurance
Land Revenue
Ground rent
Interest on capital borrowed
350000
360000
300000
600000
10000
2 months
100000
40000
5000
20000
25000
66000
-------
320000
350000
500000
420000
80000
4 months
140000
50000
7000
30000
40000
82000
140000
Determine the taxable income of Mr. X for the assessment year 2010 – 2011 assuming that he pays Rs. 70000 in the public provident fund.
Or

Or


Direct Tax Law 2012 (General)
1. Write short notes on:
(a) Method of accounting
(b) Income tax authorities
(c) Capital expenditure
(d) Charge of income tax
Or

“Income tax is charged on the income of the previous year.” Do you fully agree with this statement? If not, what are the exceptions?

2. During the financial year 2010 – 2011, Mr. X had the following incomes: 
i)        Salary income received in India for services rendered in Hong Kong  390000
ii)       Income from profession in India but received in Germany 360000
iii)     Property income in Uganda (Out of which 240000 was remitted to India) 500000
iv)     Profit earned form a business in Bangalore 150000
v)      Agricultural income in Kenya 160000
vi)     Profits from a business carried on in Nepal but controlled from India 230000
Compute the income of Mr. X for the assessment year 2011 – 2012, if he is –
a)      Resident and ordinarily resident
b)      Resident but not ordinarily Indian resident
c)       Non – resident in India

Or

State briefly the provisions of section 10 of the income tax Act, 1961 with regard to incomes which are exempted from tax.

3. Explain the provisions of the income – tax Act, 1961 with regard to the following:
(a) Payment of unrecognised provident fund
(b) Gratuity

Or

Mr. X is a manager of a textile company at japer since 1986. He submits the following particulars of his income for the financial year 2010 – 2011:
a)      Basic salary 240000per
b)      Dearness allowance  5000 p.m. (200 p.m. enters into retirement benefit)
c)       Education allowance for two children @ 150 p.m. per child
d)      Commission on sales @1% of turnover of 1000000
e)      Travelling allowance 30000. The entire amount was spent by him for official purpose
f)       He was given cloth worth 1000 by his employer free of cost
g)      He resides in the flat of the company at Jaipur (26 Lacs population)
h)      A cook and a watchman have been provided by the company at the bunglow who are paid @ 400 each p.m.
i)        He has been provided with a motor car of 1.8 ltrs engine capacity for his official and personal use. All expenses are borne by employer of the car.
j)        Emplyer’s contribution to RPF is 40000 and interest credited to RPF @ 13% amounted to 16250.
k)      His own contribution to RPF 40000
l)        Rent of house recovered from his salary 1500 p.m.
Compute the income from salary for the assessment year 2011 – 2012.

4. Discuss in detail the general principles governing determination of business income.

Or

Mr. R has two house properties situated in Delhi. Property A is self-occupied for the first 6 months from 1 – 4 – 2010 to 30 – 9 – 2010 and w.e.f. 1-10-2010 it was let out for 10000 p.m. Property B is let out w.e.f.1-4-2010 at a rent of 12000 p.m. and w.e.f. 1-10-2010 it was self occupied as R shifted his residence from property A to B. The other details of the above two house properties are as under:
Property A
Property B
Municipal tax paid
Insurance premium paid
Interest on money borrowed for purchase of house property 
30000
3000
35000
24000
4000
4000
Compute the income from house property for the assessment year 2011 – 2012.

5. Write short notes on the following:
(a) Tax incidence
(b) Computation of net wealth
(c) Deemed assets
(d) Exempted assets

Or

Explain the provisions of the wealth tax act, 1957 with regard to the following:
(a)    Property held by a member of a housing society
(b)   Assets held by a minor

Income Tax 2009 (Speciality)
Or

(ii) Mr. Pratap Singh is a production Manager of an Industrial unit at Mumbai. The particulars of his salary income areas under:
Particulars
Amount
Basic salary
Dearness allowance(given under the terms of employment)
Entertainment allowance
Medical  allowance
House   Rent allowance
Rent  paid  for the house  
15,000 p.m
5000p.m
1000 p.m
500 p.m.
4000 p.m.
5000 p.m.
Car of 1.2 Lt. capacities provided by employer meets expenses of car. He and his employer (each) contribute 15% of salary to R.P.F.
Mr. Singh had taken interest free loan of Rs. 15,000 to purchase Washing Machine. Compute income under the head salary for the assessment year 2008—2009.

Or

(b)(i) Mr.S. Saikia had taken a shop on rent at monthly rent of Rs.3000.He has sublet 25% of the area to Mr. A. Das @Rs. 1,500 p.m. He incurred Rs. 8000 on repairs of the shop. Calculate his income from subletting.

(ii) From the following statement, compute the income from profession of Dr.Sanjib Phukan of dibrugarh, if accounts are maintained on mercantile system.
Particulars
Amount
Particulars
Amount
To Nursing  Home Rent                 
To Electricity & water charges 
To Telephone
To  salary to staff
To Dep. On Surgical Equipment
To purchase of Medicines
To Dep. Of X- ray Machine
To  Income Tax
To Donation to lion club
To Motor  car Expenses
To Dep. On car
To  Net income
39000
6000
6000
35000
6000
36000
4000
5500
4000
9600
4800
94100
By  Visiting fees                 
By Consultation  fees     
By Sales of medicines      
By Dividends                         
48000
125000
72000
5000
250000
250000
Additional information:
(i)Electricity and Water charges include domestic bill of Rs. 2500.
(ii)Half of motor car Expenses are for professional use.
(iii)Telephone Expenses include 30% for personal use.
(iv) Opening stock of medicine was Rs.5000 and closing stock was Rs.3000.

Or

(ii)Describe the procedure of ascertaining Short Term capital Gains and long term capital Gains.

4 (a) (i) The following are particulars of the income of a Gauhati University teacher for the year ending 31st March 2008.
a)      Salary Rs. 14,200 p.m. from which 10% is deducted for statutory provident fund to which university contributes 12%.
b)      Rent free bungalow of the annual Letting value of Rs. 18000.
c)       Warden ship allowance Rs.7200 p.a.
d)      12% interest on Govt. Loan of Rs.65000
e)      Income from  house property (computed) Rs.29,560
f)       He received Rs.3, 500 for writing articles in a journal.
g)      He paid Rs.2000 to G.I.C under mediclaim.
h)      Interest on postal Saving  Bank deposit Rs.300
i)        Interest Gross Rs.2500.
j)        Examination remuneration Rs. 3500. During the year he paid Rs.2400 as life insurance premium on his own policies and spent Rs.600 on books purchased for his own purpose. Find out his total income, tax and exempted income.
Or


5 (a) (i). What do you mean by tax deduction at source?
(ii) State the consequences for failure to deduct tax at source.
(iii) State the procedure of deduction of tax at source from salary.

Or

(b) (i) who can appoint Income Tax authorities?
(ii) mention five penalties which can be imposed under the provision of Income Tax Act, 1961?
(iii) State the procedure of filing an appeal under the Income Tax Act, 1961.

Income Tax 2010 (Speciality)
1.  a) State whether the following statements are true or false:
(i)      An assessee is always a person but a person may or may not be an assessee. - TRUE
(ii)    According to income tax act, 1961, the previous year is that year in which income is earned to be taxable in the next year. - TRUE
(iii)   Gross total income of an assessee consists of income from salaries, house property, profit and gains of business or professions, capital gains and from other sources. - TRUE
(iv)  As per sec. 2(1A) of income tax act, 1961, agriculture income in India is not chargeable to tax. - FALSE (UNDER SEC 10[1])
(v)    Incidence of tax of a taxpayer depends on his residential status, the place and time of receipt of income. - TRUE(SEC. 5)

b) Fill in the blanks with appropriate word/words:
(i)      Foreign income is not taxable in the hand of NON RESIDENT Indian.
(ii)    Compensation received from a public sector company at the time of voluntary retirement is EXEMPTED UPTO RS. 5LACS from tax.
(iii)   An educational scholarship received by Mr. Prada college lecturer finance by Government of India is EXEMPTED income.
(iv)  Income from lottery and horseracing is a CASUAL income as per Income tax Act.
(v)    Income tax rates are fixed by the FINANCE ACT and not by income tax act.

c) Determine the residential status in the following cases for the assessment year 2008-09:
(i)      The control and management of an HUF is situated in India. The manager of the HUF visited England with his wife from 15-08-2007 to 30-06-2008. Earlier to that he was always in India.
(ii)    A company whose registered office is in USA, is party controlled and managed from its branch established in India.

OR

2. Mr. Pranjal working as a Manager (sales) with HL Ltd. provides the following information for the year ending March 31, 2009:
Basic Salary—Rs 1, 44,000
DA (50% of it is meant for retirement benefit Rs 1, 44,000)
Commission as a percentage of turnover of the employer company—0.5%
Turnover of the company—Rs 50, 00,000
Bonus—Rs 30,000
Gratuity (received in service)—Rs 30,000
Own contribution towards RPF—Rs 25,000
Employers contribution towards RPF—20% of basic
Interest contribution in the RPF @ 15%--Rs 15,000
Gold ring worth Rs 10,000 was given by employer on his 20th wedding anniversary
He received interest Rs 5,860 on bank fixed deposit, dividend of Rs 1,260 from shares of Indian companies and interest of Rs 7,540 from the debenture of Indian companies. Made payment by cheques of Rs 15,370 towards premium on LIP and Rs 12,500 for Mediclaim insurance policy. He invested in 6 years NSC Rs 30,000, FDR of SBI for 7 years Rs 50,000. He has donated Rs 11,000 to an institution approved under section 80G and of Rs 5,100 to Prime Minister’s national relief fund during the year.
Compute his total income and tax payable thereon for the assessment year 2009-10.
OR
a)      Define ‘perquisite’ as per income tax act. Explain how perquisites are taxable in the hand of employee.
b)      Find out the income from house property chargeable to tax for the Assessment year 2009-10 in the following cases:
Particulars
X (Rs)
Y (Rs)
Municipal Value (MV)
Fair rent (FR)
Standard rent (SR) under the rent control act
Actual rent if property is let out throughout
The previous year
Unrealized rent of previous year 2008-09
Period when the property remains vacant(In number of month
Loss due to vacancy                       
Tax of the year 2008-09
Paid by X and Y during 2008-09
Paid by X and Y after March 31, 2009 Paid by tenants during 2008-09
1, 20,000
1, 30,000
1, 10,000
1, 26,000
10,500
(1) 
10,500
18,000
17,000
1,000
-     
1, 20,000
1, 30,000
1, 10,000
1, 26,000
     Nil
     Nil
     Nil
    18,000
      8,000
     1,000
     9,000
Apart from paying municipal tax, no other expenditure is incurred by X in respect of the house property for generating income from property.

3.  a) B. Boruah and Associates are chartered accountants in Jorhat. They have submitted the following income and expenditure account for the year ending 31-03-2009. Compute the income from profession:
Expenses
Amount (Rs.)
Incomes
Amount (Rs.)
To drawings
To office rent
To telephone installation
Charges (OYT)
To electricity bill
To salary of staff
To charities
To gifts given to relatives
To car expenses
To subscription for journal
To institute fee
To stipend given to trainees
To net income
72000
48000

15000
6000
75000
800
10000
25000
3000
1300
24000
395900
676000
by audit fee
by financial consultancy service
by dividend from company
by dividend on units of UTI
by accountancy work
460000
140000
15000
11000
50000








676000
Additional information:
(i)      Depreciation of car during the year amount to Rs 15000
(ii)    25% of the time car is used for personal purpose
b). What are income chargeable to tax under the head profit and gain of business or profession?
OR

4. Mr. Talukdar, a resident individual, furnishes the following information for the assessment year 2009-10:      
Particulars
Amount (Rs.)
Basic pay
Project allowance
Education allowance (Rs 200 per month for two sons and Rs 150Per month for a daughter)
Hostel allowance (Rs 650 per month for one child)           
Transport allowance (for journey between office and residence)
Free car (1150 c.c) facility for Mr. Talukdar for official and private Purposes
Cost of employers free meals in office
Employers contribution towards URF
Share of profit from a firm
Share of profit from an association of person
Share of profit from an HUF
Income from betting
Income from business
Payments and investments:
Contribution towards UPF
Payment of premium on mediclaim insurance on Talukdar’s father who is resident in India
Payment of premium on own medical policy
Investment in NSC VIII issue
Donation to an approved public charitable institution
130000
39400
6600
7800
9600
27000
12700
3000
36000
34000
18000
2400
481600

6700
500
16000
5000
3000
Determine the net taxable income of Mr. Talukdar for the assessment year 2009-10.

OR
b)      How deductions are made in respect of the following section of the income tax act 1961?
a.       Deduction under section 80C and 80D

5.    Write short notes on:
a)  Tax deduction at source
b) Advance payment of tax
c) Procedure for filing an income tax return of an individual
d) CBDT

OR

a)      Explain the procedure of filing an appeal under the income tax act, 1961
b)      Mention the power and function of income tax authorities in respect of appointment and penalties.

Income Tax 2011 (Speciality)
1.  (a) State whether the following statements are true or False:
(i) Agricultural income is fully exempted from tax U\S 10(1) and does not from part of total income. TRUE
(ii)Education cess is to be levied @ 2% of tax plus secondary and higher education cess @ 1% of tax. TRUE
(iii) Surcharge has been abolished for individuals w.e.f. assessment year 2010—11 TRUE
(iv)A person deducts tax at source but does not deposit it in the treasury is known as assessee---in—default.  TRUE
(v)Assessment year is that year for which tax on income is calculated. TRUE

(b) Fill in the blanks with appropriate word \words \ figures:
(i)Income from lottery is a CASUAL INCOME.
(ii)U/S 14 the term ‘gross total income’ consists of salaries, house property, profits and gains of business or profession, capital gains and INCOME FROM OTHER SOURCES.
(iii)An individual must stay in India during the relevant previous year for a period of 182 days (1st basic condition) to become a resident of India.
(iv) Daily allowance received by an MP is FULLY EXEMPTED (ALL ALLOWANCES).
(v) Interest received on investments is assessable under the head INCOME FROM OTHER SOURCES.

(c) Explain the incomes which do not from a part of   total income of an individual under the Income---tax   Act, 1961.

2. (a)Mr. Robin is appointed as a Manager of  power grid  Ltd., Guwahati, on 1st  february,2007 in the scale of Rs. 23,600—800—47,600.His annual Increment of Rs 800 falls due on 1st  February of every year. Dearness allowance is 20% of salary. Salary falls due on the 1st day of every month. Bonus during the year is Rs.10, 000 and CCA is Rs 800 p.m. Robin’s contribution to RPF is at 12% of the basic pay and DA equal to his contribution is made by his employer.
He is in possession of a company car for his official duties and personal use with 1.4 lt. capacity. All expenses including the driver’s salary are met by the company.
A free accommodation has been provided Rent paid by the company is Rs 4,800 p.m. cost of furnishing the home is Rs 48,000. He receives Rs 500 p.m as entertainment allowance. The company has reimbursed Rs 24,000 being the actual air fare to and from Guwahati and Delhi to attend the company’s meeting.
He has insured his life for Rs1, 00,000 and his wife’s life for Rs 40,000 for which the monthly premium are Rs 500 and Rs 600 respectively.
He paid Rs 19,200 p.p. as installment of his flat purchased. He received Rs 680 as interest on fixed deposit.
Compute his taxable income under the head ‘salaries’ for the assessment year 2010—11

Or

(b) what deductions are allowed from the annual value in computing taxable income from house property? How does annual value differ from annual rental value?

3. (a) From the following statement, compute the income from profession of Dr.A.M. Saikia:
Particulars
Amount
Particulars
Amount
To Dispensary rent
To Electricity and water charges
To Telephone expenses
To  Salary to nurse and Compounder
To purchase of medicines
To Depreciation on Surgical equipment
To Depreciation on X—ray machine
To income tax
To Donation to Ramakrishna Mission
To Motor car expenses
To Depreciation on car 
To Net income 
36000
6000
6000
36000
36000
6000
4000
5500
4000
9600
4800
93100
By    Visiting fees
By   consultation fees
By sale of medicines
By Dividends
45000
125000
72000
5000
247000
247000
Additional information:
(i)Electricity and water charges include domestic bill of Rs 2,500
(ii)Half of motor car expenses are for professional use
(iii) telephone expenses include 40% for personal use
(iv) Opening stock of medicines was Rs 6,000 and closing stock was Rs 4,000.

Or

(b) Describe the procedure for computation of capital gains as prescribed by the Income –tax Act, 1961. How will you distinguish between capital gain’ and income?

4. (a) Mr.p.k. Dutta is in service in Mumbai (population above 25 lakhs), drawing a monthly salary of Rs 30,000. He is also provided with a rent –free unfurnished flat, for which employer pays a rent of Rs 5,000 p.m. He contributes 10 percent of his salary to a recognised provident fund. The interest @8% on his provident Fund Account for the year ended 31st March, 2010 amounted to Rs 5,000.He is also the owner of a house which is let out at a monthly rent of Rs 5,000. His expenses for the house were:
(i)Municipal taxes: 6,000
(ii) Interest on loan for construction of the house: 13,200
(iii) Repairs: 1,000
He has interest on government securities amounting to Rs 28,000 (gross).
He has also received a share of Rs 1,200 from profit of the firm.
He has paid Rs 1,400 as life insurance premium for a policy on his own life. He paid Rs 400 to   prime Minister’s National Relief Fund.
Compute the total income of Mr.p.k. Dutta.

Or

(b) Explain the following:
(i) Setoff and carry forward of losses
(ii) Deduction U/S 80(c)
(iii) Rebate U/S 86 on share from AOP
(iv) computation of total income and tax liability of HUF

5. What are the authorities provided by the Income—tax Act for the administration of tax? what are the powers of an Income—tax Officer?
Or
Write short notes on the following: 
(i) self—assessment
(ii)PAN Card  

Income Tax 2012 (Speciality)
1. (a) Define the term “assessee” and “person” under the income tax act. What is regarded as income under the income tax act?

Or

(b) “The incidence of tax depends upon the residential status of an assessee.” Discuss. Write four distinctions between avoidance of tax and tax evasion.

2. (a) Following are the particulars of salary of Mr. Borkakoty, an employee of ONGCL of Ahmedabad (Population exceeding 25 lakhs):
a.       Basic salary 60000 p.m.
b.      DA 10000 p.m. (50% forms part of salary)
c.       Transport allowance 4000 p.m.
d.      Bonus 20000
e.      Commission 80000 on turnover
f.        Telephone bill of his residence paid by employer 20000
g.       Amount paid by employee for free supply of gas and electricity at residence 36000
h.      He got a loan of 1000000 from his employer at a nominal rate of interest of 3.25% for the construction of his house. SBI lending rate as on 1-4-2010 at 8%.
i.         He is paid house rent allowance of 10000 p.m. till 31st July, 2010 and thereafter he is given a rent-free house got by his company on a monthly rent of 20000. Cost of furniture 100000. Before shifting to rent free house he was paying a rent of 8000 p.m.
j.        Leave travel concession 40000
k.       He is given a free lunch worth 100 per day
l.         Both he and his employer are contributing 10000 p.m. each towards recognised provident fund (RPF)
Find out Mr. Borkakoty’s salary income for the assessment year 2011 – 2012.

Or

(b) (i) Define annul value. How does it differ from annual rental value?
(ii) How would you determine the annual value of the house used by assessee as let-out and self occupied residence in computing taxable income from house property?

3. (a) From the following particulars, compute the business income of Mr. k.k. Boruah to be taxable for the assessment year 2011 – 2012:
Particulars
Amount
Particulars
Amount
To salaries
To rent and taxes
To service charges
To legal expenses
To reserve for tax
To depreciation
To exp. On acquisition of patent
To office expenses
To contribution RPF
To bad debts
To Donation to NDF
To net profit
180000
40000
8000
10000
12000
24000
112000
84000
24000
9000
5000
211200
By gross profit
By dividend
By bad debts recovered (allowed earlier)
By Interest from post office savings bank
700000
8000
8800
2400
719200
719200
Other information:
a)      Legal expenses include 4000 incurred by assessee for defending a case for damages for breach of contract which was decided in favour of assessee
b)      Depreciation of the year on assets other than patent rights is 33800
c)       Contribution to RPF due on 31-3-2011 – 4000

Or

(b)  (i) How is cost of acquisition determined under capital gains tax?
(ii) Explain, in detail, capital gain exempted from tax.

4.  (a) Following are the particulars of income of Mrs. A Borgohain for the year ending 31 – 3 – 2011:
(i) salary received from an office working for 10 months – 600000
(ii) Interest on government securities – 6600
(iii) Interest from bank deposits – 7000
(iv) Rental value of house property (Municipal tax being 1500) – 8000
(v) Profits of retail cloth business – 294600
(vi) Dividends from cooperative societies – 6400
(vii) Dividends from Indian companies – 5400
(viii) Interest on debenture of a company – 6000
He is insured for 100000 and paid an insurance premium of 15000. He donated – 4000 to a school (recognised) in which his son is studying.
Compute her taxable income and tax payable for the assessment year 2011 – 12.

Or

(b)   (i) Explain the provisions of the income tax Act, 1961 regarding carry forward and setoff of losses.
(ii) Explain the provisions of sec. 80c and 80ccc of the income tax act for claiming deduction in computing income of an individual.

5. (a)(i) What is the procedure for filling of return of income and what is the time limit under the income tax act, 1961?
(ii) What are the provisions relating to deduction of tax at source from income chargeable under the head “Salaries”?

Or

(b) (i) Draw a list of authorities of administrative wing under section 116of the income tax act, 1961. What are the powers of income tax officer?
(ii) What are various appellate authorities under the income tax act? Give the procedure for filling appeal to the appellate tribunal.