COM/V/14 Student's Copy
2 0 1 8
Pre-CBCS
5th Semester
COMMERCE
Taxation
Full Marks 75
Time 3 hours
Simple calculator can be used in this paper
PART A—OBJECTIVE
Marks 25
The figures in the margin indicate full marks for the questions
SECTION—A
Marks 10
Choose the correct answer and place its code in the brackets provided 1×10=10
1. Tax, incidence and impact of which fall on the same person, is known as
direct tax such as
Central Excise Act Customs Act
Service Tax Income Tax
2. Income from growing trade or commercial products like jute and cotton is
an agricultural income
non-agricultural income
Both and
None of the above
/302 1 Contd.
3. A lump sum payment made by an employer to an employee in
consideration of his past services when the employment is terminated
annuity gratuity
commission bonus
4. Tax on Employment or Professional Tax is
u/s 16(ii) u/s 16(iii)
u/s u/s
5. Only of the house property is chargeable under income from house
property.
owner deemed owner
owner or deemed owner None of the above
6. Income from other sources includes
dividends winning from lotteries
gift in certain circumstances All of the above
7. If an assessee transfers an asset under a revocable transfer, then income
generated from such asset shall be clubbed in the hands of the
transferor transferee
spouse None of the above
8. Deductions u/s 80C in respect of life insurance premium, contributions to
Provident Fund, etc. is applicable to
an individual
a Hindu undivided family
both an individual and a Hindu undivided family
all persons
9. The due date of instalment of an eligible assessee in respect of an eligible
business referred to in Section 44AD on or before
March 15 June 15
September 15 December 15
10. The scheme of advance tax is based on the concept
pay as you earn pay before you earn
pay after you earn None of the above
COM/V/14/302 2 Contd.
SECTION—B
Marks 15
Write notes on the following 3×5=15
1. Assessment Year
2. Provident Fund
3. Chargeability of Income from Other Sources
4. Liability of the Transferee (Section 65)
5. Determination of Advanced Tax by Assessing Officer
PART B—DESCRIPTIVE
Marks 50
The figures in the margin indicate full marks for the questions
1. Write a short note on financial year. Explain in brief the different categories
of person under the Income-tax Act, 1961. 2+8=10
OR
2. Mr. Sanga is an Indian Citizen, left India for the first time on 1st January,
2012. He came back to India on 1st October, 2013 for 65 days. On
1st April, 2014, he came back to India and started living permanently. On
21st June, 2018 he went to Russia to watch 2018 FIFA World Cup. He
came back to India on 17th July, 2018.
Determine his residential status for the Assessment Year, 2018-19. 10
3. Write short notes on the following 5+5=10
Perquisite
Specified employees
OR
4. Following are the particulars of salary income of R who is employed in a
company at Lucknow
Salary R 12,000 p.m.
Dearness allowance 50% of salary (in terms of employment)
City compensatory allowance R 400 p.m.
House rent allowance R 8,000 p.m. and he pays rent of R 10,000 p.m.
COM/V/14/302 3 Contd.
He is contributing R 1,500 p.m. towards Recognized Provident Fund
(RPF). The employer is also contributing the same amount
During the year, he paid R 1,200 as professional tax
He is provided with a free use of 1·8 cc motor car which he is using
both for official and personal use
Calculate the taxable income of R for the Assessment Year, 2018-19 under
the head salary. 10
5. Write the meaning of business and profession. State the incomes which are
not taxable under the head profits and gains of business or profession.
4+6=10
OR
6. From the following information, compute gross annual value of the houses
owned by Mr. S 10
Particulars House—I House—II
Where situated Kolkata Delhi
How used Let out Let out
Net municipal values 72,000 81,000
Fair rent 1,05,000 1,05,000
Standard rent 1,00,000 1,00,000
Rent received 90,000 90,000
Vacancy period (in month) 1 2
7. Discuss the provisions under IT Act in respect of clubbing of remuneration
of spouse. 10
OR
8. What are the conditions to be satisfied in respect of deductions of—
interest on loan taken for residential house property u/s 80EE;
repayment of loan taken for higher education u/s 80E? 5+5=10
9. Who is liable to pay advance tax? State the due dates for payment of
advance tax in respect of an individual assessee. 3+7=10
OR
10. What do you mean by tax deducted at source? What are the objectives
of TDS? Discuss the provisions relating to deduction of tax at source
from 'salary'.