AA-2946

(593) M.Com. (Third Semester)

EXAMINATION, DEC.-2021
Income Tax Law And Accounts
Time : Three hours] [Maximum Marks : 80

Note : Answer from both the Sections as directed. The figures in the right-hand margin
indicate marks.
Section-A

Answer the following Very Short answer type questions :– 1×10=10

Explain in brief “Deemed Assessee”.

Give any two examples of income exempted under Section 10 of Income Tax Act.

What are Perquisites ?

What is the annual value ?

Define unabsorbed depreciation.

What is a Capital Assets ?

Can Capital loss be set-off against business income ?

What is the tax holiday ?

Who can be a member of Appellate Tribunal ?

Who is an Assessing Officer ?

Answer the following short answer type questions :– 2×5=10

How to find out the residential status of a company ?

(P.T.O.)
AA-2946 ( 2 )

Explain the provisions of income tax regarding encashment of the earned leave.

Explain ‘Book Profit’ in the firm.

Mention the various kinds of securities.

To whom an appeal lies against the assessment order ?

Section-B

Answer the following long answer type questions :– 12×5=60

Unit-1

What do you mean by agricultural income ? What are its kinds ? State ten incomes
which are related to land but are not agricultural income ?
/OR

`
i

ii
iii
iv
v

i ii iii
Indian citizen Dr. Dinesh (Government Employee) has the following taxable income
for the previous year 2020-21 :–
`
(i) Income from Salary received in foregin country for services (computes) 50,000
rendered in that country
(ii) Agricultural income from agriculture land situated in Pakistan 20,000
(iii) Dividend (gross) by an Indian Company Payable outside India 10,000
(iv) Income from transfer of a long term capital asset situated in India 20,000
(v) Interest earned and received in England from bank deposits there 5,000
AA-2946 ( 3 )
Compute gross total income of Dr. Dinesh for Assessment Year 2021-22, if he is :–
(i) Resident. (ii) Not ordinarily resident,
(iii) Non-resident
Unit-II

` `
` ` `
`

Mr. Nahesh Kumar owns a big house (consisting of two units) construction completed
1st July 2015, One unit is let out for residential purpose on a monthly rent of ` 2,000
(however, this unit remained vacant for 3 months (Jan, Feb, March 2021) during the
Previous year, when it was used by Mr. Naresh Kumar for his own residential purpose.
The Second Unit’s half portion is used for his own residence for full year. His expenses
regarding the house were :–
Municipal taxes paid ` 10,000 @ 20% of Municipal value, Repairs ` 5,000, Interest
on Loan taken for renewal of the house ` 20,000, Ground rent ` 1,000, Annual charge
` 6,000 and fire Insurance Premium ` 2,500.
Find out his taxable income from house property for the Assessment Year 2021-22.
OR

How the value of rent-free house is calculated under the head income from Salaries ?
Unit-III

What do you understand by term ‘Capital Gains’ used in Income Tax Act ? What are the
rules regarding exemption of Capital Gains ?
/OR

(P.T.O.)
AA-2946 ( 4 )
`

@40%
Dr. Gupta is a Medical Practitioner of Ludhiana. From the following , calculate his
income from the Profession for the Assessment Year 2021-22:–
`
1. Gross receipts from dispensary 2,35,000
2. Gross receipts from consultation 1,65,000
3. Operation Fees 2,50,000
4. Visiting Fees 50,000
5. Gifts from Patients 30,000
6. Medicines Purchased 1,25,000
7. Closing Stock of Medicines 35,000
8. Salaries paid to Employee 1,50,000
9. Surgical equipment purchases 48,000
10. Dr. Gupta went to attend a medical Seminar in Germany to update the 25,000
knowledge and spent on it.
11. He owns a house whose Municipal value is ` 50,000. Half portion of the house is
used for the profession. Expenses paid on the house :–
Municipal Taxes 10% of M.V., Repairs ` 10,000
12. Medical books purchased (Allow depreciation @ 40%)
Unit-IV

Describe the method of computing Income under the head ‘Income From Other
Sources’.
AA-2946 ( 5 )
/OR

T.V.
`
` `

The particulars of Indian Income of a non-resident individual (aged 70 years) for the
previous year ended 31st March, 2021 are as under :–
`
(1) Income from Salary (Computed) 1,72,000
(2) Taxable Income from House property 47,000
(3) Short-term Capital Gains 72,000
(4) Long term Capital Gains in respect of Land and Building 1,20,000
(5) Long term Capital Loss in respect of jewellery 17,000
(6) Casual Income-Game on T.V. 20,000
He paid Life Insurance Premium ` 6,000 on a Policy on his own life, contribution to
Recognised Provident Fund ` 5000 and donated a sum of ` 20,000 by cheque to an
approved charitable institution.
Compute his net tax liability.
Unit-V

Describe briefly the Procedure for filing an appeal to the Appellate Tribunal against
the order of a Commissioner (Appeals).
/OR

Explain the general principles of imposing penalty.