Dr.

Sugandh Rawal
Name of subject-in-charge(s):

Paper (Subject Name): Income Tax Law and Practice

Paper Code: BBA 301/ B. Com (H) 301

Dr. Sugandh Rawal

Signature(s) of Subject-in-charge(s):

ANSWER KEY

1. b 2. b 3. b 4. c 5. c 6. d 7. d 8. d 9. a 10. d
11. a 12. c 13. c 14. a 15. a 16. c 17. d 18. a 19. b 20. d
21. c 22. b 23. b 24. c 25. a 26. a 27. a 28. a 29. a 30. c

Terminal Test November 2022

BBA and B.com (H) Semester-V

Paper Title: Income Tax Law and Practice

Paper ID : 888301 / 017301 Time: 1 ½ Hour
Paper Code: BBA 308/ B. Com (H) 301 Max. Marks: 25

(NOTE: INFLUENCING EVALUATOR BY GIVING NAMES, SYMBOLS ETC. IN ANSWER

BOOK WOULD BE TREATED AS UFMS)

PART A
MCQ’S: SELECT THE MOST APPROPRIATE ANSWER (15 X 1)

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1. The year in which income is earned is known
a. Assessment Year
b. Financial Year
c. Previous Year
d. Calendar Year

2. The basic exemption limit in case of a resident individual being a senior citizen for the assessment
year 2021-22.
a. Rs. 2, 00,000
b. Rs.3, 00,000
c. Rs.2, 50,000
d. Rs.5, 00,000

3. The amount of educations cess and secondary and higher education cess to be collected along with
Income tax for assessment year 2021-22 shall be
a. 1% & 2%
b. 2% & 1%
c. 3% & 1%
d. 2% & 3%

4 . Income tax in India is charged at the rate prescribed by :

a. The Finance Act
b. The Income Tax Act
c. The Central Board of Direct Taxes
d. the Ministry of Finance

5. The term ‘income’ includes the following types of incomes:

a. Legal
b. Illegal
c. Legal and illegal both
d. None of the above

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6.. Residents includes-
a. NRI
b. Ordinarily resident
c. Not ordinarily resident
d. B & C both

7. Assessee includes-
a. Individual
b. HUF
c. Company
d. All of the above

8. Income accruing in India in previous year is taxable for –

a. Resident
b. Not ordinarily resident
c. Non-resident
d. All of the above

9. Income accruing from agriculture in a foreign country is taxable in the case of an assessee who is –
a. Ordinarily Resident
b. Not-ordinarily resident
c. Non-resident
d. None of the above

10. Foreign income received in India during the previous year is taxable in the case of –
a. Resident
b. Not-ordinarily resident
c. Non-resident
d. All of the above

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11. Every year, the residential status of an assessee —
a. May change
b. Will certainly change
c. Will not change
d. None of the above.

12. The residential status of an assessee is determined for the relevant __________.
a. Assessment Year
b. Financial Year
c. Previous Year
d. Calendar Year

13. If control and management of the affairs HUF is situated wholly outside India it would become a
________.
a. Ordinary Resident
b. Non Ordinary Resident
c. Non Resident
d. None of the above

14. Which of the following income is agricultural income –

a. Rent received from agricultural land
b. Income from dairy farm
c. Income from poultry farm
d. Dividend from a company engaged in agriculture.

15. Income accruing from agriculture in a foreign country is taxable in the case of an assessee who is –
a. Ordinarily Resident
b. Not-ordinarily resident
c. Non-resident
d . None of the above.

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16. Which of the following income is an agriculture income-
a. Income from brick making
b.Income from agriculture land situated in Pakistan
c. Prize from government on account of higher crop yield
d. Compensation received from insurance company on account of loss of crop.

17. Non-agricultural income is-

a. Dairy income
b. Mining
c. Fishery
d. All of above

18. Agriculture income received by a govt. employee is-

(A) Fully exempted
(B) Partly exempted
(C) Fully taxable
(D) Exempted up to Rs. 200000

19. Pension to gallantry award winners

a. sec 10(19)
b. sec 10(18)
c. sec 10(17)
d. sec 10(16)

20. The income of minor child shall be taxable in excess of _________ in the hands of parents.
a. Rs. 5,000
b. Rs. 10,000
c. Rs. 1,000
d. Rs. 1,500

21. An income derived from land situated in India is agricultural income

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a. True
b. False
c. Don’t know

22. Allowances payable to Central Government employees for serving outside India is fully taxable as
salary.
a. True
b. False
c. Don’t know

23. Income of minor

a. 10(31)
b. 10(32)
c. Don’t know

24. Which of the following income is taxable under the head ‘income from salary’
a. Salary received by a partner from firm
b. Salary received by a Member of Parliament
c. Salary of a Government Officer
d. None of the above.

25. In the case of an individual surcharge @ 10% is levied on the amount of income-tax if the net
income exceeds Rs. _________
a. 50 lakhs
b. 1 crore
c. 5 crore
d. 10 crore

26. Receipt of HUF

a. Wholly exempted
b. Partially exempted

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c. nil

27. Agricultural income is considered when calculating tax if it is-

a. More than Rs. 5000
b. More than Rs. 10000
c. More than Rs. 5000 & total income is exceeding exemption limit
d. Huge amount

28. Basic condition will be for a person who leaves India for employment-
a. At least 182 days in India
b. At least 60 days in previous year & 365 days in preceding 4 years
c. At least 730 days in preceding 7 years
d. All of above

29. Standard deduction in case of house property

a. 30% of GAV
b. 30% of MV
c. 20% of GAV
d. 20% of GAV

30. The maximum deduction of interest on loan:

a. Rs. 30000
b. Rs. 2,00,000
c. Cant say

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 PART B
SHORT QUESTIONS: WRITE SHORT NOTES ON ANY TWO OF THE FOLLOWING (2 X 5)

1. Exceptions to the rule of previous year.

2. Fully Exempted Incomes under sec (10).
3. Define the concept of GAV and NAV
4. Allowances and perquisites.
5. Basic condition of residential status and exceptions to the basic condition (2)
6. Rent free accommodation: Value of perquisite

Or
PART C
LONG QUESTIONS: ANSWER ANY FOUR OUT OF THE FOLLOWING QUESTIONS (4x10)

1. Define income. Distinguish between gross total income and total income.
2. Define 'Assessee' according to Sec 2(7) of Income Tax Act, 1961. How does tax liability of a
not ordinarily resident person differ from that of a resident and ordinary resident person under
Income Tax Act, 1961? Explain.
3. Mr. Atin Kumar has the following receipts from his employer: (1) Basic pay Rs. 3,000 p.m. (2)
Dearness allowance (D.A.) Rs. 600 p.m. (3) Commission Rs. 6,000 p.a. (4) Motor car for
personal use (expenditure met by the employer) Rs. 500 p.m (5) House rent allowance Rs. 900
p.m. Find out the amount of HRA eligible for exemption to Mr. Atin Kumar assuming that he
paid a rent of Rs. 1,000 p.m. for his accommodation at Indore. DA forms part of salary for
retirement benefits.
4. R has a house property in Delhi. Compute the income from house property for assessment year
2022-23:
Municipal value: Rs. 90000
Fair rent: 1,10,000
Standard rent 1,00,000
Municipal taxes paid : 20% of municipal value

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 Insurance premium paid: Rs. 3000
Interest on loan for the purchase of property: Rs. 30000

The house property was let out w.e.f 1.4.2021 for Rs. 8000 p.m. which was vacated by the
tenant on 30.09.2021. It remained vacant for 2 months. Then w.e.f 1.12.2021, it was let out
at Rs. 11000 p.m.

5. During the financial year 2021-22, Anil Kumar had the following income:
Salary income received in India for services rendered in Hong Kong. Rs. 3,90,000

Income from profession in India, but received in Germany. Rs. 3, 60, 000

Property income in Uganda (out of which Rs. 2, 40,000 was remitted to India). Rs. 5, 00,000

Profits earned from business in Bangalore. Rs. 1, 50,000

Agricultural income in Kenya. Rs. 1, 60,000

Profits from a business carried on at Nepal but controlled from India. Rs. 2, 20,000

Compute the income of Anil Kumar for the assessment year 2022-23 if he is:

Resident but Ordinarily Resident in India

Not Ordinarily Resident in India

Non Resident in India

6. The total income of Mr. X (Age 44 years) for the assessment year 2021 – 22 is Rs. 8, 00,000.

Compute the total tax payable by Mr. X under both old as well as new Regime for the

Assessment year 2022 - 23. Which option will you recommend to Mr. X to opt for payment of

tax?

7. How to compute gross annual value of a property which is let-out throughout the year? Explain
with illustrative examples.

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