2015 (November)
COMMERCE
(Speciality)
Course: 504
(Direct Tax – I)
Full Marks: 80
Pass Marks: 32
Time: 3 hours
The figures in the margin indicate full
marks for the questions
1. (a) Write True or False: 1x4=4
i.
A resident in India cannot become a resident in
any other country for the same assessment year.
ii.
An income under the head ‘Capital Gains’ to a
trade union is taxable.
iii.
If rent is paid for a house situated in New
Delhi, the house rent allowance shall be exempted to the maximum extent of 40%
of salary.
iv.
The circulars issued by the CBDT are binding on
the income-tax authorities.
(b) Choose the
correct answers to the following: 1x4=4
i.
Income which accrues or arises outside India and
also received outside India is taxable in case of
1)
Resident only.
2)
Not ordinarily resident.
3)
Both ordinarily resident and not ordinarily
resident.
ii.
Rent received from agricultural land is
1)
Fully exempted.
2)
Partially exempted.
3)
Not exempted.
iii.
Leave travel concession is a tax-free
perquisite.
1)
For one journey per year.
2)
For one journey in a block of 4 years.
3)
For two journeys in a block of 4 years.
iv.
An assessee has borrowed money for purchase of a
house, and interest is payable outside India. Such interest shall
1)
Be allowed as deduction.
2)
Not be allowed as deduction.
3)
Be allowed as deduction, if the tax is deducted
at source.
2. Write short
notes on any four of the following: 4x4=16
a)
Assessee.
b)
Person.
c)
Concept of Tax.
d)
Charge of Income-Tax.
e)
Return of Tax.
f)
Gross Total Income.
3. (a) Explain in
brief various incomes which are exempted u/s 10 of the Income-tax Act, 1961. 14
Or
(b) Write an
explanatory note on ‘Tax Holiday’ for newly established units in SEZ. 14
4. (a) From the
following information, compute the taxable income for the assessment year 2014
– 15 under the head ‘Salaries’ of Shri Krishna who is working at Guwahati: 14
(i) Basis salary – Rs. 20,000
p.m.
(ii) Dearness allowance – Rs.
6,000 p.m.
(iii) He gets house rent
allowance @ 3,000 p.m. He pays a rent of Rs. 4,000 p.m.
(iv) The employer provided him
the facility of a gardener and a cook, each of whom is being paid a salary of
Rs. 600 p.m.
(v) He is provided with a motor
car of 1.8 ltr. capacity engine with a driver which was used partly for
official purpose and partly for private.
(vi) Employer’s contribution to a
recognized provident fund is @ 15% of salary and interest credited to this
fund @ 13% amounted to Rs. 13,000.
(vii) Medical expenses paid by
employer is Rs. 20,000 for medical treatment in a private hospital.
(viii) He took an advance salary
for two months.
(ix) A lunch allowance @ Rs. 100
per day was given for 300 days during the previous year.
(x) He paid professional tax of
Rs. 3,500 per annum.
|
Or
(b) Name the
different kinds of provident fund, of which a salaried person may be a member,
and state the income-tax provisions regarding each. 7+7=14
5. (a) Define
annual value. How is it determined? What deductions are allowed from annual
value in computing taxable income from house property? 4+4+6=14
Or
(b) Sri Ram has
two house properties situated in Kolkata. House 1 is self-occupied from the
first 6 months, i.e., from 01-04-2013 to 30-09-2013 and w.e.f. 01-10-2013 it is
let out for Rs. 25,000 per month. House II is let out w.e.f 01-04-2013 at a
rent of Rs. 20,000 p.m. and w.e.f 01-10-2013 it was self-occupied as Sri Ram
shifted his residence from House I to House II.
The other details
of the above two house properties are as follows:
House – II
Rs.
|
House – II
Rs.
|
|
Municipal tax paid
Insurance premium paid
Interest on money borrowed for
purchase of house property
|
35,000
5,000
45,000
|
30,000
6,000
50,000
|
Compute the
income from house property of Sri Ram for the assessment year 2014 – 15. 14
6. (a) Write
short notes on the following: 5+5+4=14
i.
Central Board of Direct Taxes.
ii.
Commissioner of Income Tax.
iii.
Deputy Commissioner of Income Tax.
Or
(b) What are the
authorities provided by the Income-tax Act for the administration of tax?
Discuss briefly the powers of an Income-tax officer. 4+10=14