UG/CBCS/BBA/Hons./3rd Sem.
/BBACC5/2023
UNIVERSITY OF NORTH BENGAL
BBA Honours 3rd Semester Examination, 2023
CC5-BBA (301)
INCOME TAX LAW AND PRACTICE
Time Allotted: 2 Hours Full Marks: 60
The figures in the margin indicate full marks.
GROUP-A
Answer any two questions 12×2 = 24
1. (a) Explain the cases in which Income is assessed in the same year in which it is 4
earned.
(b) Compute the total income of Shri Mani Ratnam for the AY 2023-24 if he is 8
(A) Resident (B) Not ordinarily resident or (C) Non-Resident
(i) Profit from business in Chennai Rs. 20,000
(ii) Income accrued in India but received in Canada Rs. 8,000
(iii) Profit from business in Canada but received in India Rs. 10,000
(iv) Income from house property in Lahore received in Mumbai Rs. 8,000
(v) Profit from business established in England and deposited
there, the business being controlled from India Rs. 30,000
(vi) Income from house property in America accrued and received
outside India Rs. 5,000
(vii) Past untaxed income brought into India during the previous year Rs. 20,000
2. Mr. Abhishek Mishra is employed in a private company at Kolkata and he furnishes 12
the following particulars of his income for the assessment year 2023-24:
(a)Basic Salary 20,000 p.m.
(b)D.A (100% of Basic Salary)
(c)Commission 10,000 p.m.
(d)Bonus 50,000
(e)City compensatory allowance 2,000 p.m.
(f)Conveyance allowance (60% for official use and 5,000 p.m.
remaining for personal use)
(g) Free use of a car of more than 1.6 lt. capacity for
both personal and employment purposes:
expenses are met by the employer
(h) He and his employer both contributed 15% of
salary each towards RPF
(i) Interest credited on RPF balance @ 12%
amounts to Rs. 8.000.
Compute income under the head Salary for the AY 2023-24.
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UG/CBCS/BBA/Hons./3rd Sem./BBACC5/2023
3. Mr. Dharmendra Kumar is the owner of three houses, House A, House B and 12
House C. The detail information with respect to these houses is shown below:
Particulars House A House B House C
Annual Fair Rent (Rs.) 18,000 15,000 12,000
Municipal Valuation (Rs.) 15,000 20,000 10,000
Let out (per month) (Rs.) 2,000 1,500 1,250
Use by tenant Residential Office Residential
Construction started 30.5.2017 1.1.2017 2.3.2014
Construction completed 1.4.2020 1.6.2020 31.3.2015
Repair expenses 1,000 - 4,000
Collection charges 2,000 500 -
Interest on Loan:
(1) For Construction 10,000 - -
(2) For marriage of daughter - 6,000 -
(3) For Repair - - 1,000
Municipal tax is 10% of Municipal Valuation. Municipal tax of House ‘A’ was
paid by owner but Municipal Tax of House ‘B’ was not paid up to 31st March,
2023. Municipal tax of House ‘C’ was paid by the tenant. House C remained
vacant for 4 months.
Compute income from house property for the Assessment Year 2023-24.
4. From the following particulars compute the Business Income of Mr. Shivam: 12
Income Statement of Mr. Shivam
For the year ending on 31st March, 2023
Particulars Rs. Particulars Rs.
To Salaries 90,000 By Gross profit 4,50,000
To Rent 20,000 By Dividend 4,000
To Service Charges 4,000 By Bad debts recovered 4,400
To Legal Expenses 5,000 (allowed earlier)
To Reserve for Income Tax 6,000 By Interest on Post 1,200
To Depreciation 12,000 Office Saving Bank
To Expenses on Patent 56,000
To Office Expenses 42,000
To Contribution to RPF 12,000
To Bad debts 4,500
To Donation by cheque 2,500
To Net profit 2,05,600
4,59,600 4,59,600
Other information:
(i) Legal expenses include Rs. 2,000 incurred by Mr. Shivam for defending a
criminal case against him.
(ii) Depreciation of the year on the assets other than patent rights is Rs. 16,900.
(iii) Contribution to RPF includes Rs. 2,000 not paid till the due date of filing the
return of income.
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UG/CBCS/BBA/Hons./3rd Sem./BBACC5/2023
GROUP-B
5. Answer any four questions: 6×4 = 24
(a) Discuss the provisions of the Income Tax Act regarding carry forward and set-off 6
of loss.
(b) Discuss the process of determining Indian Income and Foreign Income. 6
(c) Write a note on (i) Profit in lieu of salary and (ii) Leave Encashment. 6
(d) What is the difference between the Cost of Acquisition and Cost of Improvement? 6
What are the provisions of section 54F in relation to capital gains?
(e) Mr. John, a foreigner, came to India from Poland for the first time on 1st April 6
2016. He stayed here continuously for 3 years and went to France on 1st April
2019. He, however, returned to India on 1st July 2019 and went to Poland on 1st
December 2020. He again came back to India on 25th January 2023 on a service in
India. Determine his residential status.
(f) Mr. V. Singh retired on 31st December 2022 and his pension was fixed at Rs. 3,600 3+3
p.m. He got 3/4th of the pension commuted for which he received Rs. 1,80,000
from his employer, ABC Limited. Find out the taxable amount of commuted value
of pension if:
(i) he gets gratuity: and (ii) he does not get gratuity.
GROUP-C
6. Answer any four questions: 3×4 = 12
(a) Write a short note on deduction u/s 80D.
(b) Mention any three-income chargeable under the head ‘income from other sources’.
(c) Mention any three deductions available to an assessee u/s 80C.
(d) What is the Annual Value of a house property?
(e) What do you mean by Perquisites? Give examples.
(f) Explain the deduction available u/s 24 to an individual assessee.
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