Bachelors in Business Administration

Income Tax

Max. Marks: 70 Time: 2 Hours

Section A
Choose the correct answer. Each question carries 1 mark. 1x10 = (10 Marks)

1. Conveyance allowance received for performance of duties will be exempted up to:

A. Rs. 3200 p.m.
B. 1600 p.m.
C. Up to conveyance allowance received
D. Nil
2. The exemption of tax on capital gained by transfer on agricultural land is granted under which section?
A. Section 54D
B. Section 54B
C. Section 54F
D. Section 54G
3. Under section 80U, the exemption provisioned to a severe disabled assessee is:
A. Rs. 1,25,000
B. Rs. 1,00,000
C. Rs. 75,000
D. Rs.50,000
4. Definition of previous year is in:
A. Sec 2(a)
B. Sec 2(7)
C. Sec 3
D. None of these
5. Every year residential status of an assessee:
A. Cannot change
B. can change
C. definitely changes
D. None of the above
6. On which income deduction u/s 80G is not allowed?
A. Salary Income
B. House Property
C. Long term capital gain
D. None of the above
7. Commissioner has got the right to cancel or waive-off penalty under:
A. Sec 272A
B. Sec 273A
C. Sec 276A
D. Sec 278A
8. Deduction U/s 80G on account of donation is allowed to
A. A business assessee only
B. Any assessee
C. Individual or HUF only
D. None of the above
 9. Mr. X has started has business from 1st Sept '16, and does not have any other source of income. His
first previous year will start from
A. 1st April '16
B. 1st Sept '16
C. Any of the above
D. None of the above
10. Receipt of amount on maturity of LIC Policy is......................
A. A revenue receipt
B. A capital receipt
C. A casual receipt
D. None of these.

Section B
Answer any 5 questions. Each question carries 6 marks. (6x5=30 marks)

11. Explain the cost of acquisition of rights issue

12. Write down 6 deductions allowed related to ‘income from other sources’
13. How do you compute Income from House Property?
14. What are deemed assets?
15. X and Y were equal partners in a firm carrying on cloth business. The firm sustained a loss of Rs. 40,000 during the year en
16. What are the provisions under Income Tax Act for income of minor child?
17. What is unrealized rent? What are the provisions related to such unrealized rent when recovered?
18. Discuss the basic conditions and additional conditions regarding residential status of an Individual.

Section C
Answer any 3 questions. Each question carries 10 marks. (3x10=30 marks)

19. Discuss the provisions under the Income Tax Act relating to set off and carry forward of losses
20. Describe the organization of the Income Tax Department.
21. Discuss the various provisions of Income Tax Act regarding penalties.
22. Explain the term ‘Agricultural Income’. What are its types? Is agricultural income fully exempted from Income tax?
23. Explain the following terms – (i) Income (ii) Previous Year (iii) Agricultural Income
24. Describe how the Income Tax Appellate Tribunal is constituted and discuss its function