Unique Paper Code 1234
Revised 0 of 16

Income Tax Law and PracticeNovember–December 2018

B.Com (Programme) · 5 questions · 4 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. 7 numerical parts and 13 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)Who is an assessee under the Income-tax Act, 1961 (as set, 1961 Act, AY 2018-19)Who is treated as an “Assessee” under the Income Tax Act, 1961 ? Paper note: The as-set version: set and answered under the Income-tax Act, 1961 for assessment year 2018-19 (previous year 2017-18), with the dates as…(3)
(b)Residential status of an individual and of a Hindu undivided family (as set, 1961 Act, AY 2018-19)Explain the provisions to determine the residential status of an Individual and of a Hindu undivided family. Paper note: The as-set version: set and answered under the Income-tax Act, 1961 for assessment year 2018-19…(5)
(c)Previous year and assessment year; the previous year of a new business (as set, 1961 Act, AY 2018-19)What is the relation between “Previous Year” and “Assessment Year”? What will be the PY that is relevant to AY 2018-19 if a new business is set up on : (i) 27.02.2017 and (ii) 31.03.2018 Paper note: The as-set version:…(3)
OR
(a)
Income of Mr. Neeraj as resident, not ordinarily resident and non-resident (as set, 1961 Act, AY 2018-19)Being checked
(6)
(b)Income of a previous year taxed in the same year: the exceptions (as set, 1961 Act, AY 2018-19)‘Income of the previous year is taxable in the assessment year immediately following it’. Does this rule have any exceptions ? If so, explain. Paper note: The as-set version: set and answered under the Income-tax Act,…(5)

2.

11 marks
· ~22 min
(a)Taxable value of an interest-free or concessional loan from the employer (as set, 1961 Act, AY 2018-19)In what way would you determine the taxable value of each of the following perquisites : 2×3=6 (i) Interest free or concessional loan provided by the employer Paper note: The as-set version: set and answered under the…(2)
(a)Taxable value when the employer sells a movable asset to the employee (as set, 1961 Act, AY 2018-19)In what way would you determine the taxable value of each of the following perquisites : 2×3=6 (ii) Sale by the employer of a movable asset Paper note: The as-set version: set and answered under the Income-tax Act, 1961…(2)
(a)Taxable value of free food and beverages provided by the employer (as set, 1961 Act, AY 2018-19)In what way would you determine the taxable value of each of the following perquisites : 2×3=6 (iii) Food and beverage provided free Paper note: The as-set version: set and answered under the Income-tax Act, 1961 for…(2)
(b)Exempt part of leave encashment on retirement from a private employer (as set, 1961 Act, AY 2018-19)Mr. X, who was an employee of PQR Ltd., retired from the service w.e.f. 1-01-2018 after a service of 16 years and 7 months. On retirement, he received an amount of ₹ 5,00,000 as leave encashment in respect of unvailed…(5)
OR
Income under the head Salaries of a general manager (as set, 1961 Act, AY 2018-19)Being checked
(11)

3.

11 marks
· ~22 min
Long-term capital gains on a house, silver, diamonds and debentures, with sections 50C and 54EC (as set, 1961 Act, AY 2018-19)Mr. Anand transfers the capital assets shown below : Calculate the amount of capital gains that is chargeable to tax for the assessment year 2018-19. The Cost Inflation Index is as follows : For 2002-03 = 105 For…(11)
OR
(a)Written down value, depreciation and capital gain or loss on two blocks of assets (as set, 1961 Act, AY 2018-19)Using the following information supplied by ABC Ltd., compute the written down value, depreciation as well as capital gains/loss (if there is any) for the assessment year 2018-19 : After 1st April, 2017, the company…(6)
(b)Exemption under section 54B on the transfer of agricultural land (as set, 1961 Act, AY 2018-19)Write a note on the exemption in respect of capital gain arising on the transfer of agriculture land u/s 54B of the Income Tax Act, 1961. Paper note: The as-set version: set and answered under the Income-tax Act, 1961…(5)

4.

11 marks
· ~22 min
(a)
House self-occupied for three months and let for nine, with pre-construction interest (as set, 1961 Act, AY 2018-19)Being checked
(6)
(b)Can the net annual value, or the income from house property, be negative? (as set, 1961 Act, AY 2018-19)‘The net annual value (NAV) can never be negative’. Is this statement correct ? Explain. Can there be negative income under the head ‘House Property’ ? Paper note: The as-set version: set and answered under the…(5)
OR
Income from three houses: one let, two self-occupied, with the choice of the house kept at nil (as set, 1961 Act, AY 2018-19)Being checked
(11)

5.

11 marks
· ~22 min
(a)Set off and carry forward of capital losses (as set, 1961 Act, AY 2018-19)Explain the provisions relating to set-off and carry forward of “Capital losses”. Paper note: The as-set version: set and answered under the Income-tax Act, 1961 for assessment year 2018-19 (previous year 2017-18), with…(5)
(b)Tax treatment of a sum of money received as a gift under section 56(2) (as set, 1961 Act, AY 2018-19)What is the tax treatment of a sum of money received as a gift under section 56 ? Paper note: The as-set version: set and answered under the Income-tax Act, 1961 for assessment year 2018-19 (previous year 2017-18), with…(6)
OR
(a)Clubbing of a minor child's income with the parent's income (as set, 1961 Act, AY 2018-19)Explain the provisions for clubbing the income of a minor child in the total income of the assessee. Paper note: The as-set version: set and answered under the Income-tax Act, 1961 for assessment year 2018-19 (previous…(6)
(b)Deduction under section 80U (as set, 1961 Act, AY 2018-19)Write a short note on the deduction under section 80U. Paper note: The as-set version: set and answered under the Income-tax Act, 1961 for assessment year 2018-19 (previous year 2017-18), with the dates as printed.(5)

— End of the paper —