This document appears to be an exam for a B.Com degree course. It contains 20 multiple choice questions testing knowledge of income tax law and practice in India. Topics covered include the Central Board of Direct Taxes, types of tax assessments, interest charges for late filing, definitions of key terms like gross total income, exemptions, partnership taxation, foreign company taxation, advance tax payments, and capital gains taxation requirements. The document also contains 5 essay questions requiring calculations and explanations of topics like the tax assessment procedure, house property taxation, deductions from gross total income, partnership profit allocation, company taxation, tax recovery procedures, and advance tax provisions.

1. Reg No ……………….
[15CMU602]
KARPAGAMACADEMY OF HIGHER EDUCATION
(Deemed to be University)
(Established Under Section 3 of UGC Act 1956)
Coimbatore- 641 021
(For the candidates admitted from 2015 onwards)
B.Com ., DEGREE EXAMINATION, APRIL -2018
Sixth Semester
COMMERCE
INCOME TAX LAW AND PRACTICE - II
Time: 3 Hours Maximum : 60 Marks
PART - A (20X 1 = 20 Marks)
Choose the Best Answer
(Q. No. 1- 20 Online Examination)
1. The ----------- is empowerd to appoint the members of CBDT
a.State Government b.central Govt c. Union territory d.Local authority
2.A ------------------- means assessment on his total income and tax liability is calculated
by the assessee on his own
a.self assessment b.enquiry before assessment c.summary assessment d.BJA
3.In case assessee has failed to fule the return or has filed the return lare , intrest --------
% per month is to be charged
a.1% b.2% c.3% d.4%
4.In case as assessee has not furnished a return with in the time allowed to him is called --
--------a. return b.belated return c.revised return d.proforma
5. Gross total income means---------
a.Sum of heads of income b.Total income after deducting deductions
c.Income on which tax calculated d. Total Income
6. Rebate u/s 87A shall be ------
a. Rs.3,000 b.Rs.2,000 c.Rs.1,000 d. Rs.500
7. Interest credited to Recognized Provident fund shall be -----------
a. Fully exempt b. fully taxable c. exempt upto 9.5% p.a d.Exempted
upto 14% of salary

2. 8. Children education allowance is exempted upto ---------- per child upto the maximum
of two children.
a. Rs.100p.m b.Rs.200 p.m c. Rs.300 p.m d.RS. 400 pm
9. An instrument of partnership is called ---------------
a. Prospectus b.MoA c.AoA d. partnership deed
10.A------------------ means the net profit of the fimr calculated after taking into account
all provisions provided in the sec 28to 44D
a.Net Profit b.gross profit c. book profit d. notional profit
11. Deduction u/s 80IA is meant for -----------------
a.Infrastructural projects b.Donations c.Political parties d.Bio – waste
12. When a partnership firm has not submitted a copy of its partnership deed duly signed
by all partners it is assessed u/s ----------
a.183 b.184 c.185 d.186
13. A company which is not a domestic company is called________.
a.BOI b. Indian company c.Company d.foreign Company
14. On the basics of Residential status,companies can be classified into______ categories.
a. 1 b.2 c.3 d.4
15. A Deduction of Rs.-------------- shall be allowed in case of all cooperative societies.
a.Rs.20,000 b.Rs.30,000 c.Rs.40,000 d.Rs.50,000
16. In cooperative housing society, tax liability under AMT is-------
a.16.50% b.20.50% c.18.50% d.30.50%
17. Advance tax arises only where the amout of tax payable by the assessee during the
year exceeds Rs.
a. 10,000 b.20,000 c.30,000 d.40,000
18. Amount not less tah 30% of advance tax is to be paid on or before ------------ for all
assessee except company assessee
a. 15th August b.15th september c.15th October d.15th November
19. Transaction in shares exceeding Rs.50,000. ------------ is necessary
a. PAN b.WAN c.LAN d.TAN
20. Dividend from foreign company is taxable under the head -------------
a.Income from other sources b. House property c.business income d.
capital gain

3. PART - B (5X8=40 Marks)
ANSWER ALL THE QUESTIONS
21.a. Explain the assessment procedure as per Income Tax Act.
(Or)
b. Discuss the powers and functions of Central Board of Direct Taxes
22.a. Arul started construction of 3 equal and independent units of house property on
01.04.15 and completed them on 28.03.2016. These were let out from 01.04.2016. The
particulars are given below:
I II III
Nature of occupation self occupied let out for residence used for own
Business
Rs. Rs Rs.
Actual rent received nil 84,000p.a nil
Fair rental value 72,000 72,000 72,000
Municipal taxes
a. Paid by owner 7,200 p.a 4,200p.a 9,000p.a
b. Paid by tenant -- 4,200 p.a ----
Ground rent Due 3,000 p.a 3,000 p.a 3,000 p.a
Land revenue due 3,600 p.a 4,200 p.a 4,500p.a
Land revenue was paid on 13.07.2017 (date of filing of return is 31.07.2017)
For construction of these units he took a loan of Rs.10,00,000 on 01.04.2015.
Rate of interest is 12%. The total cost of construction of all these units is Rs.24,00,000.
His business profit without debiting the expenses of unit III is Rs.1,80,500. Compute his
total income in relation to assessment year 2017-18.
(Or)
b. The following details of income have been supplied by Karta of HUF. You are
required to compute the total income and tax of HUF. It has deposited Rs.10,000 in PPF.
I) Profit from business Rs, 1,92,000
ii) Salary received by a member of HUF Rs.8,000
iii) Directors fee received by Karta Rs. 6,000
iv) Rental value of the property let Rs. 12,000
v) Municipal Taxes Rs. 600
vi)Short term capital gain Rs.500

4. vii) Long term capital gain Rs.5,000
viii)Bank interest Rs. 450
23. a. Discuss the deductions u/s 80 allowable from gross total income in respect of total
income.
(Or)
b. A, J and R are partners in a firm covered u/s 185 sharing profits and losses in the ratio
of 5:3:2 profit and loss account for the year ending on 31.3.2017 was as follows
Profit and loss account
Particulars RS Particulars Rs
To rent and taxes
To salaries
To electric charges
To interest on capital
A
J
R
To depreciation
To reserve for bad debt
To interest on loan from
john
To commission to
Rahim
To balance
A
J
R
6,000
9,000
1,200
2,000
1,500
1,000
2,500
500
300
1,000
9,000
5,400
3,600
43,000
By Gross profit
By interest on securities
40,000
3,000
--------------
43,000
a. Salary includes Rs.2,000 paid to R.
b. Depreciation allowance amounts to Rs.2,400.
Compute the business income of firm.

5. 24.a. Rao ltd .a domestic ltd.company,provides you following prifit loss Account for
computation of tax liability for Assessment Year2017-18.
Rs. Rs.
To purchases 18,75,000 By Sales 75,25,000
To Direct wages 8,45,000 By Closing stock A/c 1,10,000
To Freight 12,500
To G.P c/d 49,02,500
_________ _________
76,35,000 76,35,000
_________ __________
To Salaries 8,50,000 By G.P b/d 49,02,500
To General exp. 4,35,000 By Dividends from Indian
domestic co. 17,500
To sales expenses 2,15,000
To Director’s remn. 8,22,000
To Income Tax 1,80,000
To penalty(excise) 10,000
To proposed dividend 3,20,000
To provision for losses of
Subsidiary company 2,00,000
To Net profits 18,88,000
________ _________
49,20,000 49,20,000
________ _________
Additional Information:
1. Purchases include one bill of Rs. 60,000 against which payment was made in
cash.
2. General expenses include Rs.15,000 as interest on loan taken from scheduled
Bank.This is interest has not been paid so far.
3. As per I.T. Act As per Books of A/c
Brought forward losses 2,80,000 1,40,000
Unabsorbed depreciation 1,70,000 50,000
Calculate tax Liability.
(Or)
b. Describe in details the provisions of income tax act regarding the assessment of co-
operative societies.
25. a. Describe the modes of recovery of taxes.
(Or)
b. Explain the provisions regarding advance payment of tax.