INCOME TAX – IMPORTANT QUESTIONS – B.Com – Dibrugarh University Exams 2020 – 6thSemester

Unit 1: INCOME TAX LAW-Introduction

1.     Write a brief note on the history of income tax in India. 2019
2. Define the term “Previous year”. And “Assessment year? “Income tax is charged on the income of the previous year.” Do you fully agree with this statement? If not, what are the exceptions?                               2017
3. “The incidence of tax depends upon the residential status of an assessee.” Discuss. How Residential Status of the following is Determined:
   1. Individual
   2. HUF
   3. Company
   4. Firm
   5. AOP and BOI 
4. Also state the scope of income depending on residential status.
5. Define the term “assessee” and “person” under the income tax act. What is regarded as income under the income tax act?
6. What are the different categories of assessee according to their residential status? How would you determine the status of an individual and a firm?           2019         
7. Define the terms ‘previous year’ and ‘assessment year’. What are the exceptions to the rule that income of a previous year is assessed to tax in the assessment year?         2019
8. “The incidence of income tax depends upon the residential status of an assessee.” Explain this statement in detail.  2019
9. Write short notes on:
   1. Assessment year
   2. Previous Year
   3. Charge of income tax
   4. Capital asset
   5. Agricultural income
   6. Person 2019
   7. Assessee
   8. Revenue Vs Capital expenditure
   9. Gross Total Income
   10. Capital receipts
   11. Revenue Receipts Vs Capital Receipts
   12. Tax Return
   13. Method of accounting
   14. Tax evasion vs. Tax avoidance (o) NRI,
   15. Ordinarily resident and Not-ordinarily resident
   16. Income tax authorities
   17. Income tax rate for the Assessment year 2019 – 2020
   18. CBDT

Unit 2: EXEMPTED INCOMES

1. Explain in brief various incomes which are exempted u/s 10 of the Indian income Tax Act.                    2015, 2018
2. What do you mean by tax-free income? Discuss any twelve incomes which are neither included in total income nor income tax is payable on them.                        2019
3. What are the tax benefits for industrial unit established in:
   1. SEZ  2014, 2015, 2016, 2018,2019
   2. EOU  (Export Oriented Undertakings) 2015
   3. FTZ (Free Trade Zone)
4. Explain the following:    2019 
   1. Tax exemption for 100% export-oriented units.
   2. Tax holiday in respect of free trade zones.

Unit – 3: Computation of Income from Salary

1. What Constitutes Salary Under sec. 17 of Income tax act, 1961? Explain the basis of charge of salary.
2. What is allowance? Explain its various types including Dearness allowance  and HRA 2015,2018
3. Define ‘perquisite’ as per income tax act. Explain how perquisites are taxable in the hand of employees. 2017
4. Explain the various types of Provident fund with their respective treatment as per Income Tax Act, 1961.     2014, 2017
5. What are the essential characteristics of Salary?
6. Explain the provisions of the income – tax Act, 1961 with regard to the following:
   1. Gratuity
   2. Value of rent-free house
   3. Commuted and Uncommuted Pension             2014
   4. Voluntary Retirement Compensation
   5. Approved Super Annuation fund
   6. Deduction u/s 80C
   7. Recognised provident fund
   8. Encashment of earned leave                  2018
   9. Relief u/s 89(1) of the Income tax Act.              2014
   10. Profit in lieu of salary                 2018,2019
   11. Statutory Provident Fund.   2019
   12. House Rent Allowance. 2019
   13. Perquisites. 2019
   14. Leave Travel concession. 2019

Unit – 4: Income under the Head House Property

1. Explain the Basis of Charge of Income under the head Income from House Property.
2. Define annul value. How does it differ from annual rental value? How would you determine the annual value of the house used by assessee as let-out and self occupied residence in computing taxable income from house property? 2015, 2016, 2017, 2018
3. What deductions are allowed from the annual value in computing taxable income from house property?
4. Who are the persons liable to pay tax on income from house property? Explain briefly the different types of incomes from house property not chargeable to tax.    2019
5. Write Short Notes on:
   1. Exempted House Property Income        2015
   2. MRV, FRV, SRV and ERV             2018
   3. Deemed Ownership
   4. Annual value
   5. Income From Co-owned Property
   6. Unrealized rent and its Treatment
   7. Different categories of house property (Self, Let-out and used for own business)
   8. Deemed Owner of House Property.
   9. Self-occupied Property.