V Sem B.com - Income Tax I - Question Paper 2008

V Sem B.Com. Examination, Nov./Dec. 2008
(Semester Scheme)
COMMERCE
Paper - 5.2 : Income Tax - I

Time : 3 Hours                                                                                  Max. Marks : 90

SECTION – A

Answer any ten questions.                                                                        (10×2=20)

1. a) What do you mean by “Profession” ?
b) What do you mean by “expressly admissible expenses” ?
c) Define “Speculative transaction”.
d) Define “Transfer of an asset”.
e) What do you mean by “long term capital gain” ?
f) How do you determine the “cost of acquisition” if the asset is acquired by gift ?
g) How do you gross up the value in the following cases.
i. Net interest received on bank deposits.
ii. Net amount received on winning from lottery.
h) What is a “Bond Washing Transaction” ?
i) Mention the provisions for deductions under Section 80DD.
j) Give the meaning of set-off and carry forward.
k) Hoe do you set-off and carry forward short term capital losses.
l) Give the meaning of Gross Total Income and Total Income.

SECTION – B

Answer any five questions.                                                                       (5×5=25)

2. Mr. X purchased a house property in 1978 for Rs. 80,000/-. The fair market value of this house was Rs. 1,40,000/- on 1st April 1981. In the year 1985 on 1st November he incurred Rs. 60,000 for improvement of the house and sold the property on 10th September 2005 for Rs. 15,00,000/- and purchased a house for Rs. 5,00,000 on 15th March 2006. Compute the capital gain chargeable to tax for the assessment year 2006-07.
The cost inflation index are 1981-82 = 100, 1985-86 = 133, 2005-06 = 497.

3. Discuss with reasons, the admissibility of the following expenses while computing profits and gains of business.
a) Income tax paid Rs. 30,000/-
b) Outstanding sales tax pf previous years paid during the year Rs. 20,000/-
c) Interest paid on loan taken for daughter’s marriage Rs. 8,000/-
d) Loss due to Robbery Rs. 50,000/-
e) Legal expenses Rs. 10,000/- to defend the assessee’s title to his assets.

4. Briefly discuss the provisions for deductions under Section 80 U.


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