Tax Mid term question bank (Mod-1 and 2)

A (1 to 18)
a1. what do you understand by assessment year
a2. what do you understand by previous year
a3. who is a person

I-2

I-3

I-4

a4. who is an assesse

I-5

a5. Name the condition for a person to be resident of India

25

I-

a6. Name conditions for a person to be not ordinarily resident

of India I-27
a7. what is tax planning

I- 36

a8. what is the difference between tax exemption and

deduction
I-37
a9.Name the various heads of income
a10.what is the meaning of salary

II-2
II-2

a11. what is the Pension Scheme for an employee joining

Central Government on or after Jan 1, 2004
II-16
a12. write a note on different form of allowance
a13. list special allowances

II-17

II-20

a14. write a note on specified and non specified employee

II- 28
a15. write a note on Valuation provided at concessional rent
II-35
a16.write a note on Valuation of perquisite in respect of free
domestic servant II-35

a17. write a note on Valuation of perquisite in respect of gas,

electricity or water provided free of cost
II-36
a18. write a note on leave travel concession

II- 44

B (1 to 18)
b1. write a note charge of income tax
b2. write note on income

I-6,7
I-8,9

b3. write a note on capital receipt and revenue receipt

15,16
b4. write a note on method of accounting

I-

I-17,18

b5. Mr. O is a resident. During the previous year 01.04.2000 to

31.03.2001 relevant to the assessment year 2001-2002, he
received the following income under the head "salaries".
Pension from the U.K. Government received in U.K.,
subsequently converted into rupees at the rate of exchange for
conversion in accordance with Rule 115 of the I.T. Rules and
brought in India Rs. 1,05,000. Salary from M/s. company
situated in Delhi; Rs.65000
Mr O was not resident of India during the period 1.4.2000 to
31.3.2001. Compute tax liability of Mr.O. ( Standard deduction
is 33.1/3% of salary subject to maximum of Rs.20000. Tax slab,
income Rs.50000 to Rs. 1,50,000 at 10%, Rs. 1,50,001 to
Rs.3,00,000 at 20%, education cess 5%.)
I28,29
b6. write a note on tax evasion and avoidance of tax
30
b7. what do you understand by the term charitable and
religious trusts institution
I-45
b8. define salary under sec 17(1)

II-3

b9. what is the basis of charge as per sec 15

II-4

I-

b10. discuss leave salary and its tax treatment

II-5

b11. discuss Non government employee getting Leave

encashment at the time of retirement / leaving the job
II-6
b12. Mr. Pradeepkumar retires on 1st July 2007 after serving
18yrs of service and receives Rs. 80,000 as amount of leave
encashment for 15 months. His employer allows 45 days leaves
for every completed year of services. During service he has
encashed leave for a period of 12 months. Calculate the
taxable amount of leave encashment if his salary during 1/7/06
to 1/7/07 is Rs. 5000/- per month.
II-7
b13. write a note on house rent allowance and solve the
problem
Mr. X is employed in a company in Agra. He is getting a basic
salary of Rs. 5000/- pm, Dearness allowance @10% of basic
pay, commission based on fixed percentage of turnover Rs.
24,000/- pa. Actual rent paid by the assessee Rs. 2,500/- pm.
Compute the taxable amount of HRA.
II-18
b14. write a note on entertainment allowance and solve the
problem
X, a government employee gets Rs. 40,000 per annum as basic
pay. In addition, he receives Rs.8,500 as entertainment
allowance. His actual expenditure on entertainment for official
purpose however exceeds Rs. 9000/-. What would be the
amount of deduction?
II-19
b15. write a note on valuation of rent free furnished
accommodation
II-33
b16. write a note on Valuation in respect of free education
II-37,38
b17. write a note on Valuation in respect of providing use of
movable assets II-39,40

b18. write a note on inadmissible expenses under sec 58

II-68

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C (1 to 17)
c1. write a note on computation of gross total income and
charging of tax
I-10 to14
c2. write a note on residential status and incidence of tax
19 to 23
c3. write a note on residential status of an individual
to 27

I-

I-24

c4. write a note on agricultural income that is exempt from tax

I- 38 to 40
c5. write a note on special provisions in respect of newly
established undertaking under sec 10A (eligibility , amount of
deduction, period of deduction, and special provisions)
I- 41
to 44
c6. write a note on income of trust an application of income of
trust I-46,47
c7. write a note on rebate, exemption and deduction I-48,49
c8. discuss gratuity under sec (10)10 and its tax treatment and
solve the problem. II-8 to 10
X, an employee of PQ Co. Ltd, receives Rs. 78,000 as gratuity.
He is covered by the payment of gratuity Act, 1972. He retires
on December 12, 2006 after rendering services of 38 years and
8 months. At the time of retirement his monthly basic salary
and dearness allowance was Rs.2,400/- and Rs. 800
respectively. Calculate the amount of exemption. 2) In the
above example calculate the amount of exemption if X was not
covered by the Gratuity Act, 1972.

c9. discuss pension under sec 17(1)(ii) and solve the problem.
II-13 to 15
X retires from a private company on 30th April 2007. He gets a
pension of Rs. 24000/- per month, Upto 30th June 2007.
From 1st July 2007 onwards he gets two-third of his pension
commuted for Rs. 1,50,000/-. He was not in receipt of any
gratuity at the time of retirement. Compute the taxable
amount of pension for the assessment year 2008-09(108000).
2. Calculate the taxable pension of X for the AY 2008-09, in the
above ex. if X was in receipt of Gratuity as per gratuity Act
1972.(132000
c10. write a note on perquisites

II-23,24

c11. write a note on provident fund and its taxability

to 49
c12. write a note on income from other sources
c13. write a note on dividend income

II- 46

II- 52 to 54

II-55 to 58

c14. write a note on Section 115 BB (winning from lotteries

etc)
II-60 to 62
c15. write a note on Tax liability of any sum or property
(Moveable or immovable) to be treated as income sec 56(2)
(vii) (viia). II-63 to 65
c16. write a note admissible expenses under sec 57

II-66,67

c17.write a note on income from house property and

exemptions II-69,70
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