Time: 3 hours
Full Marks: 80
Pass marks: 32
The figures in the margin indicate full marks for the questions
1. (a) Fill in the blanks: 1x5=5
(i) Income-tax Act, 1961 consists of _____ sections, sub-sections and rules.
(ii) _____ income is fully exempted from tax u/s 10 (1) and as such does not form part of total income.
(iii) For the assessment year 2015-16 as assessee can avail deduction u/s 80 © up to the extent of _____.
(iv) Housing property income of a local authority is _____ for taxation under income from house property.
(v) Distribution of assets in kind by a company to its shareholders on its liquidation is _____ as a transfer of capital assets.
(b) Write “True” of “False”: 1x3=3
(i) Tax liability of an assessee depends upon his residential status.
(ii) Daily allowance received by a Member of Parliament is not considered for income tax.
(iii) Income from subletting house will be chargeable under the head ‘income from other sources’.
2. Write short notes on the following: 4x4=16
(b) Gross total income under Income-tax Act, 1961.
(c) Income-tax rates for the assessment year 2015-16
(d) Exemptions in incomes from house property in income tax.
3. (a) Explain ten incomes which are exempted u/s 10 of the Indian Income-tax Act. 14
(b) What do you mean by “Tax Holiday”? Explain with examples “Tax Holiday” for industrial units established in Special Economic Zones and export-oriented undertakings. 4+10=14
4. (a) Sri Pradip Saikia is a manager. He has furnished the following income and investment up to 31st March, 2014:
(i) Life insurance premium on the life of his married daughter – Rs. 6,000 (sum assured – Rs. 20,000)
(ii) Life insurance premium on his own life – Rs. 2,700 (sum assured – Rs. 60,000)
(iii) Life insurance premium on the life of his dependent sister – Rs. 10,000
(iv) Contribution towards recognized Provident Fund – Rs. 9,000.
(v) Contribution towards Public Provident Fund – Rs. 30,000
(vi) Repayment of Loan taken from LIC for purchase of residential house property – Rs. 30,000
(vii) Contribution towards notified equity-linked savings scheme of UTI 2011 – Rs. 14,000
(viii) His monthly salary – Rs. 40,000
(ix) Income from house property – Rs. 18,600
Find out the tax liability of Sri Pradip Saikia for the assessment year 2014 – 15. 14
(b) Explain the treatment of the following items in computing taxable income in case of Income from salary:
(i) House rent allowance. 5+5+4=14
(ii) Section 80 (c)
(iii) Recognized Provident Fund (RPF)
5. (a) Mr. Gautom Bordoloi has given his premises on hire from 01/04/2010 to a company for its office. He submits the following particulars: 14
Municipal rental value
Municipal taxes (p.a.)
Interest on loan for purchase of house
As per agreement, rent increases to Rs. 14,000 p.m. from 01.10.2013. But amount of increased rent is paid in May, 2014. Compute his income from premises for the previous year 2014-15.
(b) Define ‘annual value’ in the context of income from house property. What deductions are allowed from the annual value of computing taxable income from the house property? Explain also exempted income from house property. 4+5+5=14
6. (a) Define ‘capital gain’ and ‘transfer’ Enumerate ten transactions which are not regarded as transfer under Section 47 of the Indian Income-tax Act, 1961.
(b) What do you mean by ‘income from other sources’? State at least ten such incomes included under the head income from other sources’. Mention four ‘deemed incomes’ chargeable to tax under the Income-Tax Act. 4+6+4=14