END TERM EXAMINATION
FOURTH SEMESTER [BBA]
Paper Code:BBA-212/ BBA (T&M)-212
Subject: Taxation Law
Time: 3Hrs Maximum Marks: 75
Note: Attempt any five questions including Q No. 1 which is compulsory.
Q1: Write, whether the following statements are true or false. (1×15 = 15)
(a) Income tax is an indirect tax.
(b) Income tax is charged on taxable income.
(c) Income tax is paid annually.
(d) Assessment year begins on 2nd April.
(e) Only income received in cash is taxable.
(f) Agricultural income is exempt from income tax.
(g) Dividend received by an assessee from a domestic company is exempt.
(h) A company cannot be Not Ordinary Resident in the previous year.
(i) A Sum received from a statutory provident fund is taxable.
(j) The Annual value of an own residential house is zero.
(k) Municipal taxes are deducted if paid by the landlord.
(l) Household expenses are allowable expenses.
(m) Goods of personal use are not considered as a capital asset.
(n) Capital Gain Account Scheme, 1988 is related to an exemption.
(o) Maximum deduction on Family Pension is ₹20,000
Q2: Explain the following (3×5 = 15)
(a) Previous Year
(b) Assessment Year
(c) Gross Total Income
Q3: How is a residential status of assessee determined? Explain the tax liability on the basis of residential status. (15).
Q4: State the main provisions of income tax in respect of following. (3×5 = 15)
(b) Rent Free House
(c) Entertainment Allowance
Q5: (a) Dr Hari sold some ornaments on 1.10.2012 for ₹ 9,50,000. Transfer expenses were ₹50,000. He purchased the ornaments in 1987-88 for ₹1,50,000. He purchased a residential house on 1.12.2012 for ₹ 3,00,000. He does not have any other residential house. Calculate the capital gains of Mr Hari for the assessment year 2013-14. The Index value for the year 2012-13 is 852 and for the year 1987-88 is 150. (7.5)
(b) Make a distinction between Long Term and Short term capital gains. State the tax provisions with regard to both types of capital gains. (7.5)
Q6: What do you mean by set off losses? Discuss the provisions of set off of losses given in the income tax act. (15)
Q7: (a) What is a deduction of tax at source? Discuss the provision of tax deduction at source from income from the dividend. (7.5)
(b) What is an advance payment of tax? How is it computed? Explain in brief the provisions regarding its payment. (7.5)
Q8: Define the following:
(a) Declared goods, (7.5)
(i) Registered Dealer and
(ii) Appropriate state
(b) Give 10 services which are covered under the Service Tax Act. (7.5)