M.Com. DEGREE EXAMINATION, NOVEMBER 2017
Third Semester
Commerce
DIRECT TAXES
(CBCS 2011 onwards)
Time 3 Hours Maximum 75 Marks
Part A (10 x 2 20)
Answer all questions.
1. What is assessment year?
2. What is Dearness allowance?
3. What is rent free accommodation?
4. What is Tax planning?
5. What is capital asset?
6. What do you mean by income tax authorities?
7. What do you mean by Refund of Tax?
8. What is carry forward of losses?
9. What is Best judgement assessment?
10. Who is Assessing officer?
Sub. Code
1MCO3C1
AFC-10563
2
WS3
Part B 5 25)
Answer all questions, choosing either or
11. What do you mean by residential status of the
individuals and HUF? How it is determined?
Or
Explain the term tax evasion.
12. What do you mean by the term depereciatin? What
are the rules regarding grant of deduction for
depreciation?
Or
Explain the procedure for calculation the exemption
on HRA.
13. Explain the provision related with carry forward of
losses.
Or
How deduction on mode in respect of the following
section of IT Act 1961?
Deduction under Section 80C and 80D.
Deduction under Section 801E.
14. Discuss the provisions of the advance tax in the
income tax act.
Or
Explain the specific points applicable to companies.
15. When the assesse can be penalized by fines?
Or
Explain the procedure of getting the refund of tax.
AFC-10563
3
WS3
Part C x 10 30)
Answer any three questions.
16. What are the procedure for filling of return of income and
what is the time limit under the IT Act, 1961?
17. "The incidence of tax depends upon the residential status
of an assesse". Discuss.
18. From the following particulars of salary of Mr. X and
employee of ONGC of Ahmedabad (population exceeding
25 lakhs).
Basic salary 60,000 p.m.
DA 10,000 p.m parts of salary)
Transport allowance 4,000 p.m.
Bonus 20,000
Commission 80,000 on turnover
Telephone bill of his residence paid by employer
20,000
Free supply of gas and electricity at residence is
36,000
Leave travel concession 40,000
Free lunch worth 100 per day.
Both he and his employer are contributing
10,000 p.m . each towards RPF.
HRA is 10,000 p.m.
Find out the salary income.
19. From the following statement, compute the income from
profession of Mr. Anil.
Particulars Rs. Particulars Rs.
To dispensary rent 36,000 By Visiting fees 45,000
To electricity 6,000 By consultation
fees
1,25,000
AFC-10563
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Particulars Rs. Particulars Rs.
To telephone exp. 6,000 By sale of
medicine
72,000
To nurse salary 36,000 By dividends 5,000
To medicine purchased 36,000
To depreciation on
surgical equipment
6,000
To depreciation on x-ray
machine
4,000
To Income tax 5,500
To Donation 4,000
To Motor car exp. 9,600
To depreciation on car 4,800
To net income 93,100
2,47,000 2,47,000
20. Determine the residential status in the following cases
for the assessment year 2016-17
A company whose registered office in USA, is partly
controlled and managed from its branch established
in India.
The control and management of an HUF is situated
in India. The manager of the HUF visited England
with his wife from 15-08-2012 to 30-6-2015. Earlier
to this he way always in India.
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