KAMKUS COLLEGE OF LAW

LL.B.IIND SEMESTER
TAXATION
(K - 206)
IMPORTANT QUESTIONS

1. Explain about the History of Taxation of India. Why are Taxes Imposed? What
is TAX? Explain Different Kind of Tax? Discuss the nature and characteristics
of taxes.
2. What are the five heads of income under Income Tax Act?
3. What is Income? What are casual incomes? What is its tax treatment under the
income tax act?
4. What are the different categories into which the assessee are divided with
regard to residence? OR
“The incidence of Income tax depends upon the residential status of an
assessee.”Discuss in detail. What is Relationship between residential status and
incidence of tax as per Sec. 5 of Income tax Act?
5. What is Agriculture Income? Discuss the essential features and kinds of
agricultural income? Whether all the Agriculture Products come under the tax
exemption? How to file Agriculture Income Tax? How it is computed?
6. Write a short note on the following:
I. Assessment year
II. Previous year
III. Assessee
IV. Income
V. Person
VI. Business
VII. Encashment of earned Leave
VIII. Gratuity
IX. 9.Pension
X. Compensation on Retrenchment
7. What is meant by Salary? How to compute taxable salary? What is Perquisite?
State provisions of Income Tax Act relating to those perquisites which are
taxable in case of specified employee? How to calculate income tax on your
salary?
8. What is the meaning of “taxable Profits from Business or Profession? Which
incomes are taxable under this head? What are the expenses and payments
disallowed while computing income from business and profession?

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 9. What do you mean by the term Depreciation as per Sec 32? Which assests are
subjects to depreciation? What are the conditions which have to be fulfilled for
allowing deduction of depreciation?
10.As per Profit & Loss Account of M/s XYZ Limited as on 31.03.17, the amount
of net profit is Rs.5,50,560/=. Following information also available with profit
and loss account:-
1. Rs. 20000/= paid as Advance Income Tax had been debited to profit and loss
account.
2. Rs.10000/= spent for printing of brochures of a political party were also
shown in profit and loss account.
3. Amount or provident fund for Rs.55000/= did not deposit till the date of
filing of return.
Compute the taxable income of M/s XYZ Limited .
11. What is meant by the term “Capital Gain” under Income – Tax Act? How is
long- term capital and short term capital gain computed?
12. Write a short note on the followings.
i. Differentiate between Tax, Cess and fee.
ii. Unabsorbed depreciation
iii. Deemed income
iv. Tax deducted at source
v. compulsory audit of accounts
vi. Income from other sources
vii. Securities
viii. casual income
13. Compute the income from other sources of Mr. X as per the details given
below for Financial Year 2016-17:-

Interest received on debentures 15000/=

Interest received from taxable bonds 20000/=
Interest received from Public Provident Fund 30000/=
Dividend received from mutual funds 10000/=
Interest received on Fix Deposits With Bank 12000/=
Accrued Interest on Kisan Vikas Patra 8000/=
Accrued Interest on National Saving Certificates 5000/=

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Interest received on Income Tax refund 4000/=
Gift received from a friend 60000/=
Winning from Television Shows 100000/=

14. Mr. Raja purchased a piece of land in May, 2004 for Rs. 84,000 and sold the
same in April, 2017 for Rs. 10,10,000 (brokerage Rs. 10,000). What will be
the taxable capital gain in the hands of Mr. Raja?