Unit : TAXATION 2 (CL – 3 MU)

Assessment : AUGUST 2021 MODE : FINAL EXAMINATION

Marks : 50 TIME : 3 HOURS

ANSWER ANY FOUR QUESTIONS

ALL QUESTIONS CARRY EQUAL MARKS
(4*12.5 = 50 Marks)

QUESTION NO: 1
a. List 3 tax provisions that can be justified by social consideration. (6.5 Marks)
b. What purpose is served by refundable earned income credit? (06 Marks)

QUESTION NO: 2
a. What is the purpose served by allowing a deduction for charitable contribution? (6.5 Marks)
b. What is the reason for the disallowance of certain fines and penalties? (06 Marks)

QUESTION NO: 3
a. What is the justification for the favourable treatment of home ownership? (6.5 Marks)
b. What is the justification for the various credits, deductions and exclusions that are designed to
encourage taxpayers to obtain additional education? (06 Marks)

QUESTION NO: 4
a. Write a note on M-1 schedule. (6.5 Marks)
b. Write a note on Qualified Production Activities Income. (06 Marks)

QUESTION NO: 5
a. Define GSTT. How Much Is the Generation-Skipping Transfer Tax? (6.5 Marks)
b. Write a note on Wherewithal to Pay Concept. (06 Marks)

QUESTION NO: 6

a. Explain tax research. (6.5 Marks)

b. Define tax planning and the concept of tax planning. (06 Marks)