Question Paper Code : 3528

B.Com. (Hons.) (Semester-IV) Examination, 2018

COMMERCE
[ BCH-402 ]

( Direct Tax Laws & Accounts )

Time : Three Hours] [Maximum Marks : 70

Note : Answer five questions in all. Question No. 1 is

compulsory which carries 30 marks. Besides this,
attempt one question from each unit which are of 10
marks each.

1. Answer the following questions in brief : [3x10=30]

(a) Explain the concept of 'Gross Taxable Income'

and Txable Income.

(b) Give the names of ten incomes fully exempt from

tax.

(c) Make a distinction between long-term and short-

term Capital Gains.

(d) How is expenditure on Scientific Research treated

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 under the head Business and Profession ?

(e) What are the exempted incomes under the head

income from House Property ?

(f) What do you understand by 'Return of Income

Tax' ?

(g) What do you understand by 'Bond Washing

Transactions' ?

(h) Explain the deductiion available Under Section 80

GG of the Income Tax Act, 1961.

(i) Mr. Gaurav retired from Sunlight Company Ltd.

on 31st December, 2016. He commuted his 70%
of the pension and received Rs. 2,50,000 as
commuted value of pension. Calculate taxable
amount of commuted value of pension if (i) he
receives gratuity, (ii) he does not receive gratuity.

(j) Mr. Mukesh owns a house property. Its Municipal

valuation is Rs.80,000 per annum. During the
previous year it was letout to a tenant on monthly
rent of Rs.7,000. He claimed the following
expenses actually incurred by him .

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 (i) Municipal taxes Rs.8,000
(ii) Repairs Rs.10,000
(iii) Interest on loan taken for the construction of
house property Rs.5,000
The house remained vacant for one month.
Compute the income from house property for the
A.Y. 2017-18.
UNIT-I

2. How is residential status of an individual dertermined for

income-tax purposes ? What will be the impact of
residential status on tax liability ? [10]

3. Explain the provisions of Income Tax Act, 1961 regading

the following : [5+5]

(a) Facility of Motor Car

(b) Encashment of Earned leave

UNIT-II

4. Dr. Prakash is a renowned medical practitioner, maintains

his books of accounts on 'Cash Basis', furnishes the
following Receipts and Payments Account for the year
2016-17 :

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 Amount Amount
Receipts Payments
Rs. Rs.
Balance B/D 30,000 Rent of Clinic:
Consultation fees: 2014-15 1,800
2014-15 9000 2015-16 4,500
2015-16 18,000 2016-17 21,600
2016-17 36,000 63,000 27,900
Electricity Bills 3,600
Purchase of
professional
Visiting fees 45,000 books 9,000
Surgical
Sale of medicines 30,000 equipments 45,000
Cash gifts from
patients 12,000 Motor Car 81,000
Dividend from
Indian Company 9,000 Income Tax 18,000
Salary to staff 18,000
interest on Fixed
deposits 18,000 Gift to son 4,500
2,07,000 2,07,000

Compute his taxable income from profession for the

Assessment year 2017-18 after taking into consideration
the following additional information :

(i) Depreciation on books 100%, Motor Car 20% and

surgical equipments 15%

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 (ii) 1/3rd of the use of Car relates to his personal use.
[10]

5. Discuss the Capital Gains which are exempted from

income-tax. [10]

UNIT-III

6. Explain the provision of Income-Tax Act,1961 regarding

set-off and carry-forward of losses. [10]

7. Mr. Mukesh Gupta, working in Eastern India Ltd; Delhi,

has furnished the following details of his income for the
year ended March 31, 2017 : [10]
(a) Salary Rs. 24,000 per month.
(b) Bonus equal to six months' salary.
(c) Transport Allowance (For coming office and going
back to his home) Rs.1500 per month.
(d) Entertainment Allowance Rs.1,000 per month.

(e) Received House Rent Allowance of Rs.6,000 per

month from employer but he paid a rent of
Rs.8,000 per month.

(f) Personal medical bills of Rs.10,000 were

reimbursed by the employer.

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 (g) His contribution to the Recognised Provident Fund
is Rs.36,000 and the employer contributes an
equal amount.

(h) Interest on Government Securities Rs.6000.

(i) Dividend from an Indian Company Rs.17,500.

(j) Interest on Post Office Savings bank (Single)

Rs.13,000.

(k) Donation to Prime Minister's Drought Relief Fund

Rs.5,000.

(l) Donation to Government for promotion of family

palnning Rs. 4,000.

(m) Life Insurance Premium paid during the year

Rs.8,400.

Compute the taxable income for the Assessment

year 2017-18.

UNIT-IV

8. What is meant by the expression 'Best Judgement

Assessment' ? Under What circumstances can recourse

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 be had to this method of assessment ? Are there any
remedies open to the assessee against such
assessment ? [10]

9. Write notes on any two of the following : [5+5=10]

(a) Deduction Under Section 80 G

(b) Assessment of Partnership Firm

(c) Central Board of Direct Taxes

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