Short Questions
1. Total Income
2. Advance Tax
3. Concept of tax
4. Profit in lieu of salary
5. Capital gains
6. Carry forward of business losses
7. GST
8. Article 265 of the Indian Constitution
9. Residential status
10. Income from House.
11. PAN
12. Tax deducted at source /TDS
13. Agricultural Income
14. Income Liable to Tax
15. Assessment Year
16. Foreign National Under Income Tax Act
17.De Novo Assessment on remand
18. Belated Returns
19. Assessment
20. Previous year
21. Declared goods
22. Clubbing income
23. Long term Capital gains.
24. Due dates of advance tax payments other than Individual & HUF.
25. Person
26. Kinds of GST.
27. “Input tax credit” under GST
28. Financial year and Assessment Year
29. Double Taxation Relief/ Double Taxation
30. Works Contract
31. Cancellation of certificate of registration of Vat dealer
32. An Association of persons and A Body of individual Person under the
Persons chargeable to/ Types of Persons under Income Tax Act
33. Income Tax.
34. Assessee
35. Characteristics of salary
36. Entertainment Allowance
37. Vat dealer
38. Indirect Tax
39. Defective Return U/s 139(9)
40. Reverse Charge Under GST
41. Income Tax Authorities
42. Persons Not Liable for Registration under GST
Long Answers
1. Explain the method of calculation of gratuity and its treatment on retirement for Government and non Government employees under Income Tax Act.
2 Define “Perquisite”” and give a detailed account of perquisites exempt from Income Tax. [
3. Give the history and development of Income-tax law in India.
4. What are the objectives and salient features of Income Tax Act 1961
5. Explain the term Dealer and Total Turnover” under VAT Act 2005. [ Raghu ]
6. “Taxation Power is derived from Article 265 of the constitution of India” Explain theobjet of Taxation.
7. When and to what extent Capital Gains are exempted from Tax under Income Tax Act? [ Raghu]
8. Define the term ‘Dealer’ and explain the different categories of dealers A.P. Value Added Tax Act 2005. covered by the AP Value Added Tax 2005.
9. Write a note on Administrative officers under IGST Act? What are their powers? [ Raghu]
10. What are the conditions precedent to be complied for claiming exemption of expenses incurred for the treatment of specified diseases under section 80DDB of the Income te tax4 [
11. Define Allowances? How many kinds of allowances are there? Provide and explain Allowances fully taxable under IT Act?
12. Write a note on Tax liability on composite and mixed supplies?
13. Discuss the scope of Tax Laws and the constitutional provisions relating to Tax. [ Raghu ]
14. Explain the distinguishing features of “Capital receipt” and “Revenue receipt”.,
15. Explain the procedure relating to registration of “Dealer” under APGST Act.
16. Explain the salient features of the General Sales Tax Act.
17. Who can be the member of the Appellate Tribunal?
18. Give a detailed note on procedure of Registration under GST Act, 2017.
19. Explain how tax liability of an assessee is determined with reference to Residence?
20. What are the various deductions allowed under the head salaries and income from house property?
21. Define income and explain the concept of Income tax.
22. What is tax evasion and tax avoidance? Discuss their effects and methods of prevention. [Raghu ]
23. Explain the importance of place of supply under GST and SGST.
24. What is income? Write a brief note about the incidence of Tax?
25. What tests would you apply to determine the residence of:
a) a Hindu undivided family,
b) a limited company
c) an Individual
d) Mention the penalties imposed under the following cases [
26) a )Failure to furnish returns under section 271? b) Failure to pay Advance Tax?
27) What are the various deductions allowed under the head salaries and income from house property
28) Explain the scheme of taxation of estimated income U/s 44AD. 44 ADA & 44AE of Income Tax Act
29) Define “Value of Supply”. Explain how the value of supply is determined in the case of Good and Services under GST ACT?
Case Laws
1. A person has sustained a loss of Rs. 1 lakh in his speculative business. He wants to claim set-off of this loss from his income of Rs.30,000 received under the head income from house property. Will he be allowed to do so under the law? Decide with reasons.
2. A, while travelling in TSRTC bus, meets with an accident and is temporarily disabled. TSRTC pays an amount of Rs. 10,000 as compensation to him. State whether the amount is revenue receipt or capital receipt.
3. ‘A’ company is formed solely to do the business of building houses and letting them on rent. Is this income of the company taxable? If so under what head of the Income?
4. The gross total income before deduction under section. 80C of ‘X’ a resident individual, aged 64 years is Rs.3,20,000/- and total income after deduction under sec 80C is Rs.2,85,000. Is it necessary for him to submit his return of income voluntarily?
5. Shyam, a partner of a firm constitutes a partnership with his two sons and a daughter with his share in the main partnership. Shyam is separated from his wife and is paying maintenance to her. What is his tax liability on the income earned from the main partnership and the amount?
6. John is a foreign citizen (not being a person of Indian origin). Since 1990, he visits Indi very year in the ‘month of May for 99 days. Find out the residential status of John for the assessment year 2014-15 under Income Tax Act 1961.
7. ‘A’ an Assessee, is a partner in a firm created a trust. By a settlement deed he assigned his profits of ten percent [right, title, interest (excluding capital] in the firm to the trust. He claimed his income transferred to trust as diversion of income. Is he legally justified?
8. The Assess purchased a flat in July 2013 on a loan and started paying EMI from the date of receipt of the loan. The assesse will receive the: possession of the house in August 2014, whether the interest benefit will be available to the assesse for the assessment year 2014-2015 (BY:2013-2014)2 1 “Yes! why and if ‘Not! why? Explain
9. The assesse’s dependent brother has to undergo bypass surgery and was hospitalized. The assesse has paid Rs.65,000 for his treatment. The assesse claimed deduction under section $0DDB towards the medical treatment expenses. The assessing officer disallowed his claim and added the medical expenses to his income and levied Defend your client?
10. X estimated his income for F.Y.2015-2016 and calculated tax a sum of Rs.25,000 for the purpose of advance tax. He has paid the 1st installment in time i.e. before 15 September 2015. He has failed to pay balance two installment i.e. before 15th December and 15th March 2016. He paid the balance by way of self assessment tax and filed the returns on 15th December, 2016. Calculate the interest for default of two advance tax installment and for late filing returns.
11. The assesse is a senior citizen and he has a house property which was purchased in the year 1967. He has invested sufficient amount for extension and improvement in the year 1983. He sold the house for Rs.56 lakhs in the year 2006. After calculating the index value of the cost price of the property as on 2006, the capital gain arise was Rs.49.80,000. The assesse has deposited the capital gain in capital gain account with SBI for a lock in period of 3 years. The assesse failed to invest the capital gain in purchase of the house nor in constructing the house. After maturity of the deposit can the assess withdraw the deposit, if so what is the procedure? Whether the assesse is liable to pay capital gain tax or he need not pay the tax?
12. The assessee’s dependent mother a senior citizen had open heart surgery performed by a general surgeon in a private hospital, and he has incurred expenses towards surgerysand treatment a sum of Rs. 3.00,000/- and claimed exemption u/s 80DDB a sum of Rs.60,0001 The assessing officer rejected the claim and levied tax. Is the assessing officer correct or not? As department counsel defend the assessing officer with reasons.
13. “The assessee during the financial year, has invested FD a sum of R5.5,00,000/- in the name of his wife who is a house wife having no income of her own and not an assessee. The assessee doesn’t want to show the interest accrued on the FD and seeks your clarification and advise, As a Tax Consultant advise your client.
14. ‘X” Ltd. is an Indian subsidiary of an American company manufacturing and selling copier machines. The Indian company among other things purchases and sells these copier machines also. Does any part of the profits of the sales of American company to the Indian company accrue or arise in India? Discuss.
15. A has earned a sum of Rs. 3,00,000/- as annual value from house property. Outline the deduction that can be claimed by the assessee under the income from house property
16. A promised to marry& girl B and gifted to her 10,00 shares, having face value of Rs 100 each share on 10™ April 2008. He then married B. in August 2008. During the year 2008-09 the shares so gifted yielded 2 gross dividends of RS 100000 Explain in whose hands the amount is taxable ?
17. 17.A, a non resident for the assessment year 2020-21 has Rs,5,00,000 in India under income from other sources. He drew a salary of Rs.50,00,000 from his employer at USA. What is his Tax liability under Income Tax Act .
18. A, a publisher of a news paper sells the unsold copies of the paper as waste. Is such sale liable to VAT ?
19. A, an assessee filed a return of income on 25.7.2021 in respect of assessment year 2020-21 disclosing an income of Rs 8,00,0000 from his business. It was not accompanied by any proof of payment of Tax due on self assessment. Discuss the validity of such return.
20. A sold his only house property occupied by him as a residential house for Rs.15,00 000 in December 2008. The house property was purchased by him in the month of January 1984 for a consideration of Rs.10,00,000. Determine the capital gain.
21. Mrs. Y made certain cash gifts for her husband, which he invested in some interest yielding securities. The interest realized on securities was included in the income of Mrs. Y by the income Tax department which was objected to by Mrs. Y. Discuss and decide whether the action of the assessing officer is correct.
22. A bequeathed his property to B under his last will. Does this amount to a transfer for the purpose of charging capital gains?
23. M. X has 3 house properties, 2 are self-occupied: 1 of them is offered for rent. Interest paid on a home loan of both the self-occupied: property is Rs 3.00 lakhs and interest paid on let out property is Rs. 2.5 lakhs. What deductions can be claimed by him under house property income? PTR.
24. Assessee, an individual, was entitled to 1/3rd share of the estate of his deceased husband. The remaining 2/3rd share was transferred to the name of the assessee’s minor daughter. The daughter’s share was deposited as a fixed deposit in the Bank, and the fixed deposit receipt was produced before the Court for safe custody until the daughter attained majority. Assessee preferred an application under section 197(1) seeking a certificate for non-deduction of tax with respect to interest accruing annually on such fixed deposit. However, the Income- Tax Officer rejected the application on the grounds that the income of the minor had to be clubbed with the income of the assessee for the purpose of taxation under the Act.
25. The assessee an NRI wants to sell the House Property of his father who purchased it 40 years ago and died leaving behind his heirs i.e. his wife, son and his two daughters. The assessee needs your advice on the following issues.
26. When a property is received on inheritance or as a gift, it is not taxable for the received. When the inheritor or receiver of this property sells it, capital gain aspiring to the sale of that property is taxable to him.
27. The assessee is a retired employee, and he has income from salary pension. Along with pension and house property and from other sources. His taxable income for the financial year 2019 -202 was Rs 2,90,000. In the month of April 2020, he became a senior citizen. Since he attained 60 years of age his income is much below the exempted income of Rs.2,50,000 and Rs 3,00,000. He has filed nil return. The assessing officer assessed the income and levied tax and interest. You as the consultant advise the assessee.
28. Mr. A’ is ga government employee and has borrowed Rs. 2,00,000 for higher education of his son ‘B’, who’s studying medicine. in tax returns which deductions he can avail?
29. The assessee and his wife owned a joint property with a joint home loan. which is given out on rent. The assessed share of the joint loan is 40: 60. Both are earning members and income tax assesses. In fact, the assessee is paying the entire EMI. Can both claim EMI as exemption and only assessee can claim since he is paying the entire EMI? Your client seeks your advice. Advice your client appropriately with reasons.
30. The assessee is a naval officer, he is. planning to take 2 housing loans of Rs 20,00,000. The assessee seeks your advice if he gets the possession of property of the house only after one year. But he starts paying interest, will he get an income tax rebate? Advice properly.
31. Mr. Prakash is a member of HUF, and he throws his self-earned property into the common hotchpot of the family. The members are his elder brother, brother’s wife, their two minor sons and his own wife and two minor daughters. The self-earned property is Rs. 20,00,000 and it fetches income of Rs 3,00,000 Per annum. Asses taxable income of HUF.
32. Under 80 C of IT Act exemption for tuition fees paid to any college or school can be claimed to an extent of Rs.12,000 per annum, for two children, clarify whether any tuition fee paid for self-education can also be claimed as deduction under above section (80C)
33. The assessee is a salaried doctor and has a house loan of Rs. 8 lakhs. He has been paying EMI for the past 2 years. His father is a retired government servant and planning to sell his 2 acres land, the proceeds of which he will pay for the loan of the assessee. The assessee seeks your advice whether the assessee have to pay tax on the amount which his father is paying for his housing loan or is there an exemption on the amount earned by the fertile agricultural land? whether the assesse’s father is liable to pay tax on amount earned from agricultural land?
34. An assessee is the owner of an old flat built in 1983. There are 16 flats, and all flat owners decided to hand over their flats for redevelopment. The builder agreed to hand over a new flat along with a compensation of Rs 8 lakhs to each flat owner and retain the rest of the flats by the builder. Whether the compensation is taxable or not? What will the tax liability be for the exchange of new flats for the old one? If the assessee is liable for any tax, advise your client how to avoid the tax liability?
35. Mr. Madhu is practicing advocating his wife ‘Roja’ to work in his law firm and draws a salary of 25000Rs. /- While computing the total income for Mr. Madhu the assessing officer clubbed the salary of his wife. Discuss.
36. Shyam, a partner of a firm consists of Madhu, a partnership officer’s two sons and a daughter with his share in the main partnership. Shyam is separated from his wife and is paying maintenance to her. What is his tax liability on the income earned from the main partnership and the amount?
37. Mrs. Y’ made certain cash gifts for her husband, which he invested in some interest yielding securities. The interest realized in securities was included in the income of Mrs. ‘Y’ by the income tax department, which was objected to by Mrs. ‘Y’. Discuss and decide whether the action of the assessing officer is correct.
38. John is a foreign citizen (not being a person of Indian origin). Since 1990, he visits India every year in the month of May for 99 days. Find out the residential status of John for the assessment year 2014-15 under Income Tax Act, 1961.
39. . ‘A’ is Assessee, a partner Ina firm created trust. By a settlement deed he assigned his profits of ten percent [right, title, interest (excluding capital)] to the firm to the trust. He claimed his income transferred to trust as diversion of income. Is he legally justified? Discuss.
40. A person has sustained a loss of Rs. 1 lakh in his speculative business. He wants to claim set-off of this loss from his income of Rs.30,000 received under the head income from house property. Will he be allowed to do so under the law? Decide with reasons.
41. A, while travelling in TSRTC bus, meets with an accident and is temporarily disabled. TSRTC pays an amount of Rs. 10,000 as compensation to him. State whether the amount is revenue receipt or capital receipt.
42. ‘A’ company is formed solely to do the business of building houses and letting them on rent. Is the income of the company taxable? If so, under what head of the Income?
43. The gross total income before deduction under section. 80C of ‘X’ a resident individual, aged 64 years is Rs.3,20,000/=and total income after deduction under sec 80C is Rs.2,85,000. Is it necessary for him to submit his return of income voluntarily?
44. A government employee draws Rs.20,000/- p.m., receives HRA of Rs.24,000/- And he resides in his own house. He paid total house loan principal of Rs.15.0004- and interest Rs.60,0001- P.F. 10,000/-, LIC 5000/-, Tuition fee 30,000/- He has undergone treatment for renal failure in a private hospital where he was treated by a general physician. He claimed deduction u/s 80 DDB. You as an assessing officer calculate his taxable income. The assessee version is only a transfer of stock to its depot. Give your opinion with reason?
45. X estimated his income for FY. 2011-12 and calculated tax at Rs.25,000 for the purpose of advance tax. He has paid for the 1S installment in time i.e… before 15th September 2011. He has failed to pay the balance of two installments i.e. before 15th March 2012. He paid the balance by way of self-assessment tax and filed the return on 15′ December 2012. Calculate the interest in default of two advance tax installments and for late filing of returns.
46. ‘X’ Ltd. is an Indian subsidiary of an American company manufacturing and selling copier machines. The Indian company among other things purchases and sells these copier machines also. Does any part of the profits of the sales of American company to the Indian company accrue or arise in India? Discuss.
47. an importer at Delhi imported the goods from “Y” of London and after obtaining clearance from customs: he sold the goods to buyer in Indian and claimed exemption, but the sales tax officer rejecting the claim of “X’ levied tax under the Central Sales Tax treating.it as not a sale in the course of import. Whether the assessing officer is correct? Defend your client.
48. The assessee’s dependent mother a senior citizen had open heart surgery performed by a general surgeon in a private hospital, and he has incurred expenses towards surgery and treatment a sum of Rs, 3,00,000/- and claimed exemption u/s 80DDB a sum of Rs.60,000I The assessing officer rejected the claim and levied tax. Is the assessing officer correct or not? As department counsel defends the assessing officer with reasons.
49. The assessee during the financial year, has invested FD a sum of Rs.5,00,000/- in the name of his wife who is a housewife having no income of her own and not an assessee. The assessee doesn’t want to show interest accrued with the FD and seeks your clarification and advice, as a Tax Consultant advises your client.
50. The Assessee purchased a flat in July 2013 on a loan and started paying EMI from the date of receipt of the loan. The assessee will receive the possession of the house in August 2014, whether the interest benefit will be available for the to the assesse assessment year 2014-2015 (F.Y.2013-2014)? If ‘Yes’ why and if “Not, why? Explain.
51. The assessed dependent brother has to undergo bypass surgery and was hospitalized. The assessee has paid Rs.65,000 for his treatment. The assesse claimed deduction under section 80DDB towards the medical treatment expenses. The assessing officer disallowed. his claim and added the medical expenses to his income and levied tax. Defend your client!
52. X estimated his income for F.Y.2015-2016 and calculated tax a sum of Rs.25,000 for the purpose of advance tax. He paid for the 1st instalment in time, i.e. before 15 September 2015. He failed to pay balance two instalments i.e. before 15th December and 15th March 2016. He paid the balance by way of self-assessment tax and filed the returns on 15th December 2016. Calculate the interest in default of two advance tax installments and for late filing returns!
53. Mr. Madhu is practicing advocating his wife ‘Roja’ to work in his law firm and draws a salary of 25000Rs. /- while computing the total income for Mr. Madhu, the assessing officer | clubbed the salary of his wife. Discuss.
54. ‘X’ an assesse transfers some of his assets to ‘Y’ during the pendency of the proceedings under the income tax act with a view to defraud the revenue. is this transfer valid? Discuss
55. The assessee an NRI wants to sell the house property of his father who purchased forty years back and died leaving behind his legal heirs i.e. his wife, son and his two daughters.
The assessee needs your advice on the following issues: –
(a) Does he have to pay tax on the amount that he receives?
(b) How can he avoid paying Tax?
(c) Does his mother who is a senior need to pay any tax?
As tax consultant advise the party accordingly with explanation.
56. An employee retires from service and his monthly pension is fixed at R.3000/- PM. He commuted Rs.2500/-out of his pension and received Rs.2,00,000/- as commuted value of pension. Work out the amount of commuted pension of the employee both.
1. Employee received Gratuity and
2. Employee not received gratuity.
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