Unique Paper Code 1858
Revised 0 of 11

Income Tax Law and PracticeNovember–December 2016

B.Com (Programme) · 5 questions · 5 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 8 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)
Residential status of an individual and of a company (as set, 1961 Act, AY 2016-17)Being checked
(5)
(b)Gross total income under each residential status (as set, 1961 Act, AY 2016-17)Mr. Aman had the following incomes in the previous year 2015-16: Compute the Gross Total Income of Mr. Aman if he is (a) a Resident and ordinarily resident, (b) a Resident but not ordinarily resident and (c) a…(6)
OR
(a)Partial integration of agricultural income with non-agricultural income (as set, 1961 Act, AY 2016-17)What is the scheme of partially integrating Non-Agricultural Income with Agricultural Income? Paper note: The as-set version: set and answered under the Income-tax Act, 1961 for assessment year 2016-17 (previous year…(6)
(b)Residential status of a person of Indian origin (as set, 1961 Act, AY 2016-17)Mr. X, a citizen of Australia, had a maternal grandfather who was born in a village near Lahore in 1932. On April 7, 2015 he came to India to complete a foreign assignment given by his employer company, and he goes back…(5)

2.

11 marks
· ~22 min
Taxable income and tax liability of a salaried employee (as set, 1961 Act, AY 2016-17)Being checked
(11)
OR
Total income and tax liability of a senior-citizen employee (as set, 1961 Act, AY 2016-17)Being checked
(11)

3.

11 marks
· ~22 min
(a)
Computing taxable income of a let-out house property (as set, 1961 Act, AY 2016-17)Being checked
(5)
(b)Interest on borrowed capital under section 24(b): let-out and self-occupied houses (as set, 1961 Act, AY 2016-17)Discuss the provisions relating to the deduction available in respect of interest on borrowed capital (a loan taken for the purpose of acquiring a property) under section 24, if the property is: (i) a let out house…(6)
OR
House partly used for own business and partly let out: total income and tax (as set, 1961 Act, AY 2016-17)Being checked
(11)

4.

11 marks
· ~22 min
(a)Long-term capital gain on a residential house with sections 50C, 54 and 54EC (as set, 1961 Act, AY 2016-17)In March 2006 Mr. Albert acquired a residential house for Rs. 8,00,000, Expenditure on improvement (being construction of an additional floor) incurred during 2011-12 is Rs. 6,00,000. In September 2015 he sold the house…(6)
(b)Taxation of a gift of money received by an individual (as set, 1961 Act, AY 2016-17)Briefly discuss the provisions relating to the taxation of a gift received in cash/cheque by an individual. Paper note: The as-set version: set and answered under the Income-tax Act, 1961 for assessment year 2016-17…(5)
OR
(a)Meaning of capital asset (as set, 1961 Act, AY 2016-17)Define the expression "capital asset". Paper note: The as-set version: set and answered under the Income-tax Act, 1961 for assessment year 2016-17 (previous year 2015-16), with the dates as printed. Marks printed: 5.(5)
(b)Long-term capital gain on gold with section 54F, and its withdrawal (as set, 1961 Act, AY 2016-17 and 2018-19)On October 1, 2015 Mr. X transfers gold for Rs. 40,00,500, incurring Rs. 500 as expenses on the transfer. The gold had been purchased on May 1, 1985 for Rs. 1,00,000. On June 10, 2015 he purchased a new house in Mumbai…(6)

5.

11 marks
· ~22 min
Net income and tax liability with gifts, long-term capital gains and deductions (as set, 1961 Act, AY 2016-17)Mr. X (30 years), a salaried employee, gives the following information for the previous year ending March 31, 2016: Determine (i) the Net Income and (ii) the Tax Liability of Mr. X for the assessment year 2016-17. Paper…(11)
OR
(a)Short note: set off and carry forward of business losses (as set, 1961 Act, AY 2016-17)Write short notes on each of the following: (a) Set off and carry forward or business losses Paper note: The as-set version: set and answered under the Income-tax Act, 1961 for assessment year 2016-17 (previous year…(5.5)
(b)Short note: deduction under section 80C (as set, 1961 Act, AY 2016-17)Write short notes on each of the following: (b) Deduction under section 80C. Paper note: The as-set version: set and answered under the Income-tax Act, 1961 for assessment year 2016-17 (previous year 2015-16), with the…(5.5)

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