Unique Paper Code 831
Revised 0 of 16

Income Tax Law and PracticeDecember 2024

B.Com (Hons) · 5 questions · 4 parts still being checked

Duration: 3 HoursMaximum Marks: 90

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. Most asked here. Residential status and scope of income (8 papers), Profits and gains of business or profession (8 papers), Income from salaries (8 papers). These come back almost every year, so learn them first. The asked N× note beside each part counts the DU papers that set its topic.
  2. Numbers and theory. 11 numerical parts and 9 theory parts. Numericals take longer to lay out, so give them your freshest time.
  3. Pace. Two minutes a mark: about 36 minutes for each 18-mark question, with nothing spare in 3 hours. Pick your side of each OR before you start writing.
  4. 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.

18 marks
· ~36 min
(a)Residential status of a foreign citizen of Indian origin, and his taxable incomeasked 8×Mr. Ranjan was born in India in 1983, and his father was also born in India, in 1953; his grandparents were born in the USA. Ranjan lived in India until 18.03.2023; on 18.03.2023 he left India for the first time, going…(12)
(b)Person and assessee distinguishedasked 7×What is meant by "Person" under section 2 of the Income Tax Act, 1961? In what way does the term "person" differ from the term "assessee"? Paper note: Set under the Income-tax Act, 1961 for assessment year 2024-25…(6)
OR
(a)Residential status of a citizen working in a tax-free country, in three casesasked 8×Mr. Ankit, an Indian citizen, carries on a profession in Singapore, where he has no liability to pay any income-tax. For the tax year 2026-27 his income is as below : (i) Interest from deposits in India Rs. 200000 (ii)…(12)
(b)Tax under the old regime with agricultural incomeasked 6×Mr. Vinod (aged 50 years, an ordinary resident) has, for the tax year 2026-27, a Gross Total Income of Rs. 620000 as computed under the Income-Tax Act. He put Rs. 120000 into a PPF account. If he has agricultural income…(6)

2.

18 marks
· ~36 min
(a)
Income from salariesBeing checked
(12)
(b)
Income from salariesBeing checked
(6)
OR
(a)Salary income in the year of retirement: gratuity, commuted pension, leave salary and provident fundasked 8×Mr. Ravi, Senior Manager at Global Solutions Ltd, retired on 31/10/2026 after 18 years and 7 months of service. He gave these details of his income for the tax year 2026-27 : (i) Basic salary Rs. 70000 per month when he…(12)
(b)
Income from salariesBeing checked
(6)

3.

18 marks
· ~36 min
(a)Business income from the profit and loss account, set-off and total incomeasked 8×Mr. A, who prepared his books of accounts on accrual basis, has given the Profit and Loss Account as on 31st March 2027. Other information is given below: (i) Included in purchases is Rs. 50000 spent on Mr. A's…(12)
(b)Presumptive income of professionalsasked 8×Explain the provisions to compute income on an estimated basis, under section 44ADA of the Income Tax Act, where the assessee is engaged in a profession. Paper note: Set under the Income-tax Act, 1961 for assessment…(6)
OR
(a)
Professional income on receipts basis, and total incomeBeing checked
(12)
(b)Deduction of certain liabilities only on actual paymentasked 8×Discuss the provisions of section 43B of the Act under which certain unpaid liabilities are not deductible. Paper note: Set under the Income-tax Act, 1961 for assessment year 2024-25 (previous year 2023-24); answered…(6)

4.

18 marks
· ~36 min
(a)Capital gains on land and building sold below stamp value, with exemptions, and forfeited advanceasked 8×Mr. Ramesh purchased a vacant plot of land, its cost being Rs.10 lakhs, in the tax year 2011-12 and built a residential building on it for Rs. 5 lakhs in the tax year 2014-15. In July 2026 he agreed to sell the land and…(12)
(b)Net annual value and the deductions for a let-out house under the new regimeasked 8×Explain what "Net Annual Value" means for income from house property u/s 23 of the Act. What deductions are allowed from the net annual value of a Let-Out property under the new tax regime? Paper note: Set under the…(6)
OR
(a)Income from three houses under the new tax regimeasked 8×Mr. X (Date of Birth: 30/12/1961) owns three independent houses, with these details : Mr. X borrowed to construct house-2 and house-3; the loan details are below. Under the new tax regime, compute under the head house…(12)
(b)Exemption for investing the sale proceeds of a long-term asset in a houseasked 8×Briefly explain the exemption under section 54F of the Act for capital gain on the transfer of a long-term capital asset other than house property. Paper note: Set under the Income-tax Act, 1961 for assessment year…(6)

5.

18 marks
· ~36 min
(a)Tax liability under the old regime with capital gains and deductionsasked 6×Mr. Lokesh, aged 46 years, gives his income for the tax year 2026-27 as below : Salary income (before standard deduction) Rs. 650000 House property income (computed) Rs. 225000 Gold: short-term capital gains Rs. 200000…(12)
(b)Set off and carry forward of house property and capital lossesasked 6×Explain the provisions of the Income Tax Act 1961 on set off and carry forward of house property, of short-term capital loss, and of long-term capital losses. Paper note: Set under the Income-tax Act, 1961 for…(6)
OR
(a)Total income and tax under the new regime with winnings, gifts and a property bought below stamp valueasked 6×Mr. Pankaj Singh, aged 64 years, a residential individual, has given the information below for the tax year 2026-27. Compute his taxable income and tax liability for tax year 2026-27, assuming that he has opted to be…(12)
(b)Clubbing of a minor child's income under section 64(1A)asked 6×Explain the provisions under section 64(1A) of Income Tax Act, 1961 on clubbing the income of a minor child. Paper note: Set under the Income-tax Act, 1961 for assessment year 2024-25 (previous year 2023-24); answered…(6)

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