1. The document appears to be an exam for a course on Income Tax Law and Practice-II. It contains questions in three parts - multiple choice questions, short answer questions and long answer questions. 2. The multiple choice questions cover topics like the year the Income Tax Act was passed, authorities under the Income Tax Act like CBDT and their powers. 3. The short answer questions ask for definitions of CBDT and best judgement assessment and listing taxable allowances. 4. The long answer questions require explanation of assessment procedures, powers of authorities like ITO and CBDT, and solving a numerical on computation of total income and tax liability of an individual.

1. Reg No ……………….
[20CMU402]
KARPAGAMACADEMY OF HIGHER EDUCATION
(Deemed to be University)
(Established Under Section 3 of UGC Act 1956)
Coimbatore- 641 021
B.COM., INTERNAL EXAMINATION, FEBRUARY 2022
Fourth Semester
COMMERCE
INCOME TAX LAW AND PRACTICE - II
Time: 2 Hours Maximum: 50 Marks
PART - A (20X 1 = 20 Marks)
Choose the Best Answer
1.Income tax act passed in the year
a.1956 b.1959 c.1961 d.1964
2.The CBDT functions under the control of -----------
a.Ministry of External Affairs b.Ministry of Legal c.Ministry of Finance d. Mininstry of
Corporate laws
3.The jurisdiction of CBDT is ----
a.whole of India b.part of India c.Whole of Tamil nadu d.Whole of Kerala
4.The ----------- is empowerd to appoint the members of CBDT
a.State Government b.central Government c.Union territory d. Local authority
5.The jurisdiction of additional commissioner is determined by -------
a. Commissioner b.Director c.CBDT d. Assessing Officer
6 .Income escaping assessment is otherwise called as
a. self assessment b. enquiry before assessment c.summary assessment
d.re-assessment
7. There are ------------ types of Best judgement assessment
a.2 b.3 c.4 d.5
8. In the administrative setup of the Income tax department , the highest authority is the ---
a. Chief Commissioner b. Director General c.CBDT d. Assessing Officer
9. Interest credited to Recognized Provident fund shall be -----------
a. Fully exempt b. fully taxable c. exempt upto 9.5% p.a d..Exempted upt 14%
of salary
10. The ----------- is empowerd to appoint the members of CBDT
a.State Government b.central Govt c. Union territory d.Local authority

2. 11.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
12.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%
13.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
14. 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
15.Due date of filing of return for company assessee is ----------- ofthe assessment year
a.30th June b.31st July c.31-Aug d.31 Sep 31 sep
16.Income escaping assessment is otherwise called as
a.self assessment b.enquiry before assessment c.summary assessment d.re-assessment
17. 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
18. Rebate u/s 87A shall be ------
a. Rs.3,000 b.Rs.2,000 c.Rs.1,000 d. Rs.500
19.Tax deducted on lottery is-----------
a.20% b.25% c.30% d.35%
20.A capital asset held by an assessee for not more than 36 months immediately preceding
the date of transfer is called as -------------
a. Short term capital asset b. Long term capital asset c.medium capital asset
d. total capital gain
PART - B (3X2=6 Marks)
ANSWER ALL THE QUESTIONS
21. Define CBDT
22. What is meant by best judgement assessment?
23. List any four fully taxable allowances.

3. PART - C (3X8=24 Marks)
ANSWER ALL THE QUESTIONS
24.a. Explain the assessment procedure as per Income Tax Act.
(Or)
b. Discuss the powers and functions of Central Board of Direct Taxes
25.a. What are the authorities provided by Income tax Act for the administration of the tax?
Discuss briefly the powers of Income tax officer.
(Or)
b. Explain the procedure of assessment as per Act
26.a. Bimal is the manager of Punjab cotton mills ltd. He draws a salary of Rs.20,000 p.m.
his other items of income are:
a. Interest on fixed deposits with Andhra bank Rs.10,800 and interest credited in the
saving account in the bank Rs.2,000
b. Winning from lottery Rs.60,000
c. Dividends from on Indian company Rs.3,600
d. Long term capital gain from the sale of his residential house occupied for the last
20 years, Rs.1,15,000. He purchased another house for his residence for Rs.
1,05,000 within four months of the transfer of his residential house.
e. Short term capital loss Rs.10,000
f. Long term capital loss from gold brought forward from the assessment year 2021-
22 is Rs.20,000
The following deductions are claimed
1. Life insurance premium (policy for Rs. 1,00,000)Rs. 14,500
2. Donation for Punjab university Rs.10,000
Compute his total income and tax payable for the assessment year 2021-22
(Or)
b. Explain the procedure for computation of total income and tax liability of individual as per
Income tax Act.