BBA (Semester-IV

th
) Mid Term Examination-2014
403 - Income-Tax Law & Practice
Time: 1Hrs [Max. Marks: 15]
Note: All questions are compulsory.

[Sec.-A] Very Short Answer Type Questions 1*5 = 5
1. Explain the term Previous Year
2. Mr. Imran Khan, a Pakistani cricket player, comes to India since 1999-2000 every year to play cricket and
stay 120 days. State his residential status for A.Y. 2013-14
3. Deductions under section ( ? ) of Income tax Act shall be allowed from the net annual value of the house in the head
Income from House Property
4. Give any one example of fringe benefit
5. TDS stand for what?

[Sec.-B] Short Answer Type Questions 2*2 = 5
1. Define the term Income. Distinguish between Gross Total Income and Total Income
OR
What do you mean by agricultural income and partly agricultural income? Give any five examples of such
incomes which are connected with land but are not agricultural income.

2. In the following cases determine the amount of interest deductable for the previous year 2012-13,
assuming the loan of 200000 was taken for the construction of the house @ 12% p.a and the house had
been let out:
Date of Borrowing Date of Completion of Construction Loan repaid upto 31.03.2012
(a). 01.04.2005 31.12.2007 Full
(b). 01.10.2006 31.03.2008 Half

OR
The following are the income of Mr. Namesh for the previous year 2012-13:
(i). Interest on England Development Bond (1/5 received in India) 50000, (ii). Income from agriculture in
America received there, but later on remitted to India 81000, (iii). Income earned from business in
Uganda, which is controlled from Delhi ( 25000 received in India) 45000, (iv). Dividend paid by a
domestic company 40000, (v). Profit on sale of building in India but received in Sri Lanka 18000.
From the above information ascertain the gross total income of Mr. Namesh for the P.Y. 2012-13

[Sec.-C] Long Answer Type Questions 5*1 = 5
1. Under the Income Tax Act some incomes are totally exempted from tax while some incomes partially
exempted. Discuss the statement and explain such incomes.
OR
From the following particulars calculate the salary income of Mr. Haridas (an employee of an individual)
for the assessment year 2013-14:
Salary 5500 p.m.
House Rent Allowance 2400 p.m.
Dearness Allowance 5000 p.m.
Entertainment Allowance 1200 p.m.
Mr. Haridas and his employer contribute to recognised provident fund 14% of salary. One small car is
allowed to him by his employer both for private and official use. Expenses of car are borne by the employer.
He lives in a rental house, monthly rent being borne 3000. Mr. Haridas is working at Meerut.