MBA IV (Fourth) Semester Examination 2014-15

Course Code:MBF402 Paper ID:0524405

Income Tax Law and Practice

Time: 3 Hours Max. Marks: 70 Max Marks: 75

Note: Attempt six questions in all. Q. No. 1 is compulsory.

1. Answer any five of the following (limit your answer to 50 words): (4x5=20)

a) Differentiate between capital and revenue expenditure.

b) Explain basic features of Special Economic Zone.

c) Explain the term “Assesse”.

d) Explain the term residential status of an individual.

e) What do you mean by set off and carry forward of losses?

f) Explain the term Gross Total Income.

g) Discuss important provision of tax collected at source.

h) Write a note on payment of self assessment tax.

2. Discuss important provisions of Income Tax Act for Free Trade Zones and Special Economic Zones. (10)

3. Explain important provisions relating to residential status of a person other than an individual. (10)

4. Write a comprehensive note on Tax Deducted at source as per Income Tax Act, 1961. (10)

5. State provisions relating to different items which are allowable expenditures while calculating income from business or profession. (10)

6. Explain provisions of Income Tax Act relating to carry forward of losses. (10)

7. Mr. X (32 years ) a part time college lecturer at Bombay, furnishes the following particular for the assessment year 2014-15:

Basic salary: `40,000 per month, Dearness pay: `2000 per month, Wardenship allowance: `2,600 per month, Special allowance: `200 per month, Examinership remuneration from the Madras University: `84,000, Royalty on books for university students: `1,92.000, Income from house property: `2,10,000, long term capital gain `2,15,000, Short term capital gain: `1,10,000, Interest on Govt. securities: `48,000, Bank interest: `20,000, Income from tuition: `1,16,000, Contribution of Mr. X to statutory provident fund: `46,000, Contribution to public provident fund: `41,000, Expenditure on mediclaim insurance premium of dependent grand mother who is resident (age 67 years): `26,000 and donation to Govt. for the purpose of promoting family planning:`1,24,000.

Determine the net income and tax liability of Mr. X for the assessment year 2014-15. (10)

8. Explain the income which does not form part of total income as per Income Tax Act. (10)