Terminal Test - April 2023
Enrollment No………………………..
Name of subject-in-charge(s): Ms. Sarika
Paper (Subject Name): Income Tax Law and Practice
Paper Code: BBA -208
Signature(s) of Subject-in-charge(s):
ANSWER KEY
1. b 2. b 3. a 4. b 5. b 6. a 7. b 8. a 9. d 10. b
11. a 12. a 13. b 14. b 15. b 16. d 17. c 18. b 19. d 20. c
21. b 22. c 23. c 24. a 25. c 26. d 27. c 28. c 29. c 30. c
Terminal Test April 2023
BBA (G) Semester-VI
Paper ID: 017310
Paper Code: BBA 208 Time: 2 ½ Hours
Paper Title: Income Tax Law and Practice Max. Marks: 60
(NOTE: INFLUENCING EVALUATOR BY GIVING NAMES, SYMBOLS ETC. IN ANSWER
BOOK WOULD BE TREATED AS UFM)
PART A
MCQ’S: SELECT THE MOST APPROPRIATE ANSWER (10 X 1)
1. Income tax rates are fixed in:
a. Income tax rules b. a Finance Act c. Income tax Act d. Finance rules
2.A person with the age of _________or more is considered as a super senior citizen as per
Income tax Act 1961:
a. 50 b. a 80
c. 70 d. 60
3. The highest administrative Authority for income tax in India is:
a.a CBDT b. President of India c. Finance Minister d. None of the above
4. Income tax act 1961 came in to force on:
a. 1st April 1960 b.a 1st April 1962 c.1st April 1961 d. 31 March 1972
5.The Central Government has been empowered by entry ___________of the union list of
schedule VII of the constitution of India to levy tax on Income other than agricultural income:
a. 84 b.a 82 c. 81 d. 85
6.Amendments by the finance act are made applicable from:
a.a First day of next financial year b.First day of same financial year c. Last day of same
Accounting year d. None of the above
7. Additional surcharge (health and education cess) of 4 per cent is payable on:
a. Income tax
b.a Income tax plus surcharge
c. Surcharge
d. None of the three
8. The tax payable is rounded off to the nearest multiple of:
a.a Rs. 10 b. Rs. 1,000
c. Rs. 1 d. Rs. 100
9.Person includes:
a. Individual b. firm
c. company d.a All of the above
10.____________is the year in which tax is payable on the income earned during the previous
year:
Terminal Test - April 2023
Enrollment No………………………..
a. Previous Year b.a Assessment Year
c. Both a & b d. None of above
11.Health and Education Cess is levied at the rate of ______% on the amount of income tax plus
surcharge:
a.a 4% b. 3% c. 5% d. 2.5%
12. Agricultural Income has been defined u/s______________:
a.a Sec 2 (1A) b. Sec 2 (2A) c. Sec 2 (42A) d. None of the above
13. Agricultural income is related to__________?
a. Capital b.a Land c. Machinery d. None of the above
14. Rule 8 related to _____________?
a. Gas manufacturing b.a Tea manufacturing c. Pan Card business d. None of the above
15. Profit from tea manufacturing has been divided as:
a.40% as agricultural income & 60% as business income
b.a 60% as agricultural income & 40% as business income
c.75% as agricultural income & 25% as business income
d. None of the above
16. Which income related to land is not agricultural income?
a. Income from mine b. Income from royalty from mine
c. Income of a purchaser of standing crop d.a All of these
17.Agricultural Income is considered while calculating tax if it is.
a. more than 10,000
b. more than 5,000
c.a more than 5,000 and the non- agricultural exceed the basic income exemption limit
d. None of the above
18. Residential status is determined on:
a. Assessment year b.a Previous year c. calendar year d. Accounting year
19. Income earned and received in India shall be taxable in the hands of:
a. Resident only b. Non residents only
c. Resident not ordinary resident d.a All of the above
20. Income which accrue outside India from business controlled from outside India is not
taxable in India in case of:
a. ROR b. RNOR c.a NR d. All
21. Computation of salary is covered under:
a. Section 11-12 b.a Section 15-17 c. Section 6-10 d. Section 16-20
22.From the following deductions which deduction is allowed against gross salary?
a. Income Tax b. Entertainment tax c.a Professional tax d. Education tax
23.Maximum amount of exemption in case of Encashment of leave by Non government
employee?
a. 2,00,000 b. 3,00,000 c.a 5,00,000 d. None of the above
24. Maximum amount of gratuity received by employee covered under the payment of gratuity
Act 1972?
a.a 20,00,000 b. 3,00,000 c. 5,00,000 d. 10,00,000
25. Gratuity received during the tenure of service by government employee then:
a. Fully Exempted b. Partly exempted c.a taxable d. None of the above
26. Which of the following is not the eligible condition for Entertainment allowance:
a. Actual amount received
b. Rs. 5,000 Maximum limit
c. Amount of entertainment allowance actually received during the previous year
d.a Rs. 2,000 Minimum limit
27. Education allowance is exempted up to:
a. Rs. 150 per month up to 4 child b. Rs. 200 per month up to 3 child c.a Rs. 100 per
month up to 2 child d. Rs. 100 per month up to 3 child
Terminal Test - April 2023
Enrollment No………………………..
28. HRA is exempted u/s:
a. 15(13B) b. 12(13C) c.a 10(13A) d. None of the above
29. Agricultural income is:
a. Taxable b.Fully taxable
c.a Exempted d. Partly taxable
30. HRA exempted u/s 10 (13A) include:
a.40% of salary if accommodation is situated at Delhi, Mumbai, Chennai, Kolkata
b.60% of salary if accommodation is situated at Delhi, Mumbai, Chennai, Kolkata
c.a 50% of salary if accommodation is situated at Delhi, Mumbai, Chennai, Kolkata
d. None of above
PART B
SHORT QUESTIONS: ANSWER ANY TWO OF THE FOLLOWING (2 X 5)
1. “Income tax is charged on the income of the previous year during assessment year” Is it true
if not explain why (FIVE EXCEPTIONS)?
2. Mr. Ravi an Indian Citizen went to England on 15th May 2022 for employment purpose and
left his wife and children in India. He came back to India on 25 th March 2023 and took his
wife and children with him on 1st April 2023. Determine his residential status for the previous
year 2022-2023.
3. Mention the provisions of partly agriculture and partly business income?
4. Mr. Mohan is the Karta of HUF doing business at Mumbai. Mr. Mohan is residing in
Australia for past 10 years & visited India for 20 days every year for filing Income Tax return
of HUF. His 2 major sons take care of the day-to-day affairs of business in India. Residential
status of HUF for AY 2023-2024.
5. What all income are chargeable to tax under the head income from house property? Explain.
PART C
LONG QUESTIONS: ANSWER ANY FOUR OUT OF THE FOLLOWING QUESTIONS (4 X 10)
1. The last salary drawn by Mohit is Rs. 80,000 per month (basic + DA). He is entitled to
receive a gratuity of Rs. 14 Lakhs at the time of retirement. He has been in employment for
the last 22 years and 7 months(covered under the payment of gratuity act, 1972). Compute
the Exempted income & taxable income.
2. Compute the taxable amount of pension for the A.Y 2023-2024 in the following cases:
(i) Mr. Arun receives Rs.16,250 p.m as pension from the government during the p.y 2022-
2023
(ii) Mr. Aman receives Rs. 40,000 p.m as pension from Top Fashion pvt. Ltd. during p.y
2022-2023
(iii) Mr. Chirag retires from Jupiter pvt. on 30 june 2022. He gets Rs. 20,000 p.m upto 31
jan, 2023 w.e.f. 1st Feb. 2023, he gets 50% of pension commuted for Rs. 20,00,000.
3. Explain briefly:
a) Briefly distinguish between Assessment and Financial year.
b) Briefly explain the difference between allowances and perquisites.
c) Distinguish between deductions and rebates.
4. From the following information compute the reasonable expected rent of each property:
Particulars Property A Property B Property C
Municipal Value 40,000 50,000 45,000
Fair Rent 60,000 55,000 50,000
Terminal Test - April 2023
Enrollment No………………………..
Standard Rent 70,000 60,000 55,000
5. Explain the head income from House Property? What are the steps of computing Gross
Annual Value?
6. ‘Every assessee is a person, but every person need not be an assessee’. Critically examine
the statement with reference to the relevant definitions under the provisions of the Income
Tax Act, 1961.
7. What is pre-construction period under the head house property? How is it computed?
8. Explain the difference between old tax regime and new tax regime? Describe the slab rate
briefly of new tax regime?
