Unique Paper Code 7764
Revised 0 of 14

Income Tax Law and PracticeNovember–December 2017

B.Com (Hons) · 5 questions · 3 parts still being checked

Duration: 2.5 HoursMaximum Marks: 55

From an older CBCS paper

Reworded by Kunji from the printed paper. The original paper belongs to the University of Delhi. See DU's question bank.

Before you start

  1. Numbers and theory. 8 numerical parts and 9 theory parts. Numericals take longer to lay out, so give them your freshest time.
  2. Pace. Two minutes a mark: about 22 minutes for each 11-mark question, with nothing spare in 2.5 hours. Pick your side of each OR before you start writing.
  3. Keep score. Every part opens a worked answer checked against the books. Turn the key when you have revised it; the boxes at the top fill in, on this device.

1.

11 marks
· ~22 min
(a)Permanent Account Number and who must obtain one (as set, 1961 Act, AY 2017-18)What do you understand by Permanent Account Number (PAN) ? Must every person obtain a PAN ? Paper note: The as-set version: set and answered under the Income-tax Act, 1961 for assessment year 2017-18 (previous year…(4)
(b)Residential status and gross total income of a surgeon (as set, 1961 Act, AY 2017-18)Rohit Verma is an Indian citizen and a well-known medical surgeon. In 1996 he received his professional degree from the All India Institute of Medical Sciences (AIIMS) Delhi, and in 1999 he set up his nursing home in…(7)
OR
(a)Whether a previous year is always twelve months; income assessed in the same year (as set, 1961 Act, AY 2017-18)Does a previous year always run for a 12 month period ? Mention any two cases in which the income of a previous year is assessed in that same previous year. Paper note: The as-set version: set and answered under the…(4)
(b)Residential status and tax liability with agricultural income and a disabled dependant (as set, 1961 Act, AY 2017-18)Harmeet Kaur is a person of Indian origin, who has settled in Canada. In the financial year 2016-17 she visited India, arriving on 30th September and returning to Canada on 30th March, 2017. Her stay in India during the…(7)

2.

11 marks
· ~22 min
Salary with house rent allowance, NPS and a car; deductions and tax liability (as set, 1961 Act, AY 2017-18)Being checked
(11)
OR
(a)Valuing furnished rent-free accommodation of a non-government employee (as set, 1961 Act, AY 2017-18)Discuss the rules of valuation applicable to furnished rent free accommodation in the case of non-government employees. Paper note: The as-set version: set and answered under the Income-tax Act, 1961 for assessment year…(4)
(b)Taxable leave encashment and gratuity on retirement (as set, 1961 Act, AY 2017-18)X retired on 1st October 2016, having completed 26 years and 9 months of service, and received the following retirement benefits : (i) Encashment of leave salary of Rs. 4,69,200 for 306 days of unavailed leave (He was…(7)

3.

11 marks
· ~22 min
(a)
Exemption for leave travel concession under section 10(5) (as set, 1961 Act, AY 2017-18)Being checked
(4)
(b)Two house properties, pre-construction interest and set off against capital gains (as set, 1961 Act, AY 2017-18)X owns 2 houses. The first house, a commercial property, was built on 15-10-2015 with a loan amounting to Rs. 10,00,000 taken on 1-4-2013 @ 12% p.a. The whole loan was repaid on 31-3-2016. The house was let out from the…(7)
OR
Tax liability of a law firm on cash basis, with partners' remuneration and dividends (as set, 1961 Act, AY 2017-18)X and Y are partners in a law firm sharing profit equally. They keep their accounts on cash basis and have drawn up the account given below for previous year 2016-17 : The other information is given below : (i)…(11)

4.

11 marks
· ~22 min
Long-term capital gain on a commercial property with section 50C, 54F and 54EC (as set, 1961 Act, AY 2017-18)X sells his commercial property, located in Delhi, on 1-6-2016 for Rs. 50,00,000. The stamp duty value of the property is Rs. 54,00,000. In connection with its transfer he spent Rs. 1,00,000. He had acquired the…(11)
OR
(a)What is not a capital asset (as set, 1961 Act, AY 2017-18)What is not a capital asset ? Paper note: The as-set version: set and answered under the Income-tax Act, 1961 for assessment year 2017-18 (previous year 2016-17), with the dates as printed.(4)
(b)Depreciation on a block of plant and machinery with sales and a new machine (as set, 1961 Act, AY 2017-18)X Ltd. owns a block of plant and machinery that consists of three machines M1, M2 and M3. The following details are available regarding this block : (i) Rate of depreciation is 15% (ii) Written down value of the block…(7)

5.

11 marks
· ~22 min
(a)Set off and carry forward of loss from a non-speculative business (as set, 1961 Act, AY 2017-18)Discuss the provisions relating to set off and carry forward of loss from non-speculative business. Paper note: The as-set version: set and answered under the Income-tax Act, 1961 for assessment year 2017-18 (previous…(6)
(b)Clubbing of a minor child's income under section 64(1A) (as set, 1961 Act, AY 2017-18)Explain the provisions on clubbing of the income of a minor child under section 64(1A). Paper note: The as-set version: set and answered under the Income-tax Act, 1961 for assessment year 2017-18 (previous year…(5)
OR
(a)Deduction for rent paid under section 80GG (as set, 1961 Act, AY 2017-18)Write a brief note on the deduction allowed in respect of rent paid under section 80 GG. Paper note: The as-set version: set and answered under the Income-tax Act, 1961 for assessment year 2017-18 (previous year…(6)
(b)
Meaning of agriculture: the Raja Benoy Kumar Sahas Roy case (as set, 1961 Act, AY 2017-18)Being checked
(5)

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