V SEM B.COM AND BBM INCOME TAX LAW AND PRACTICE. Section A. answers any 5 questions.

Each question carries 2 marks 1. Define person as per income tax act. 2. Who is a Not Ordinarily Resident ? 3. Mention the components of income tax? 4. Who is a Deemed Assessee ? 5. Mention any two differences between Previous year and Assessment year? 6. Define Agricultural income? Sections B. answer any two questions. Each question carries 5 marks. 1. Mention any 5 Exempted income u/s 10 of the Income Tax Act. 2. Mention whether the following incomes are agricultural or not? 2X5=10.

Grazing fees realized from piece of land which was used for grazing animals used for agricultural purpose. (ii) Income from butter and cheese making (iii) Income from cultivation and export of flowers. (iv) Income from interest on arrears of rent of agricultural land (v) Incomes from the sale of the replanted trees where the denuded parts of the forest are replanted and subsequent operations in forestry are carried out. 3. Briefly explain the difference between Tax Avoidance and Tax Evasion. Section C answers any two questions. Each question Carries 15 marks. 1. Explain the rules applicable for determination of Residential status of an Assessee as per Income tax Act. 2. From the following information compute the total income of an Assessee who is A). Resident b).Not ordinarily resident c).Non resident (i) Agricultural income from Bangladesh received in Bangladesh Rs 25,000 (ii) Dividend income from an Indian company Rs 12,000 received in India. (iii) Dividend income from a British company Rs 1,500 received in England. (iv) Pension received in London for services rendered in India Rs 65,000 (v) Rent received in Dhaka for a residential house property Rs36, 000 (vi) Rent received from an house property in Kanpur Rs 48,000 (vii) Untaxed foreign income brought to India during the previous year Rs 12,500 (viii) Lottery income received in Maldives Rs 50,000 (ix) Machinery sold in Bangalore for Rs 45,000 was received in Singapore (x) Business income earned in Sri Lanka Rs 1,25,000 was received in Port Blair (xi) Income from hotel business in Kavaratti Rs 45,500 was received in Bahamas island (xii) Income from agriculture in Nepal invested in Islamabad Rs 15,000 (xiii) Dividend received in U.K. from an Iraqi oil company, a part of which Rs 2,000 remitted to India, Rs 14,000 (xiv) Pension received in California for services rendered in India with a limited company Rs 36,000 (xv) Profit from business in Dubai, the business being controlled from Bangalore (onethird received in India) Rs 1,20,000

(i)

3 a) Ram Chandra, an Indian citizen, serving in the U.S.A since 1977, came to India for the first time after 1977 on 30th June, 1998. He stayed here at a stretch for 4 years and left for Japan on 1st July, 2002. He returned to India on 1st April, 2006 and remained in India till 31st July, 2007 when he went back to the U.S.A. He permanently came to India taking an employment with an American concern on 31st December 2009.Determine his residential status for the previous year 2010-11
3 b) determine whether the following are capital or revenue?

(i) (ii) (iii) (iv)

(v) (vi) (vii) (viii)

Expenditure incurred by a bus transport organization to oppose threat against nationalization of bus transport business. The money spent by a bravery company on publishing anti-prohibition literature. A lump sum received by an employee from his employer as damages for termination of his services. A company pays its directors a lump sum in consideration of an agreement as a result of which he cannot carry on any business competing with the business of the company. A railway passenger meets with an accident and is disabled. He receives compensation from the Indian Railways. A company made annual payments for trucks bought under hire-purchase agreement extending over a period of years. Premium on the issue of new shares. Amount received by an Assessee for digging and removing earth from his land for brick making.