IGNOU BCOC-136 December 2023 Previous Year Question Paper

Q1.(a) “The income of the previous year is taxed in the current year.” Explain. 10

(b) Distinguish between the following : 5+5

(i) Gross Total Income and Total Income

(ii) Previous year and Assessment year

Q2.(a) What do you understand by Casual Income ? How are they treated under the Income Tax Act ? 10

(b) Write ten exempted incomes U/S 10 of Income Tax Act. 10 [ 2 ]

Q3.(a) After serving for 33 years and 9 months in Reliance Petrochemicals Ltd. Mr. A, who is covered by P ayment of Gratuity Act, retires from service on 30th April, 2021. The company pays him a gra tuity of ` 85,000. His monthly basic s alary at the time of retirement was ` 4,500. You are required to determine the amount of exempted gratuity under Section 10

(10) of the Income Tax Act. 10

(b) Mr. Sanjeev Kant is manager in Roadways. He gets salary ` 25,000 p.m. Compute value of the perquisites of car under the following different circumstances : 10

(i) The employ er has provided him a car of 1.6 ltr. capacity. Total expenses and driver’s salary incurred by employe r i.e. ` 18,000. Car is used for both private and official purpose.

(ii) The employer has provided him a

Q4.4 l tr. capacity car with driver only for private use. Expenses of car are ` 18,000. The cost of car is ` 5,00,000. [ 3 ] BCOC–136

(iii) The employer has provided with a facility of bus (50 ho rse power) which carries him along with other employees from home to office an d back from office to home.

Q5.(a) Discuss the provision s of Recognized Provident Fund in detail. 10

(b) State any five business losses which are not deductible from business income.

Q6.(a) Mohit sells his only residential house in Bangalore on 26th September, 2021 for ` 26,00,000 and incu rs an expenditure of ` 30,000 in connection with the transfer . Cost of this house for Mohit in 1979 was ` 2,00,000 and on 1st April, 2001 the fair market value was ` 3,00,000. On 15th January, 2022, he purchased a residential flat in Bangalore for ` 4,00,000 and deposited ` 2,00,000 in Capital Gain Account Scheme. Calculate the capital gain chargeable to tax for assessment year [ 4 ] BCOC–136 2022-23. The cost inflation index for 2001-02 was 100 and for 2021 22 it is 317. 15

(b) Explain the benefits of e-filing.

Q7.(a) Explain the following te rms in the context of Income Tax Act : 5+5

(i) Capital Assets and cost of improvement

(ii) Partnership Deed

(b) Who can be a partner of a firm ? Distinguish between a working partner and a non-working partner.

Q8.Income of Shri Hemendra for the year ended 31st March, 2022 consists of the following : 20

(a) Business profit (after setting off ` 20,000 paid as donation to an educational institution and ` 7,000 as deposit in National Saving Certificate) 50,000

(b) (20%) 1/5th share of profit from a registered firm (which has paid income tax) 8,000 [ 5 ] BCOC–136

(c) Interest on government securities (gross) 10,000

(d) Dividend on shares of foreign company (gross) 5,000 Compute the total income of Shri Hemendra for the assessment year 2022-23.

Q9.Write short notes on any four of the following : 4×5=20

(a) Deduction U/S 80 G

(b) Best Judgement Assessment (U/S 144)

(c) Permanent Account Number

(d) Person

(e) Assessee in default [ 6 ] BCOC–136 2023 –136 5+5

(ii) [ 7 ] BCOC–136 [ 8 ] BCOC–136

(ii)

(iii) [ 9 ] BCOC–136 [ 10 ] BCOC–136 5+5

(ii) [ 11 ] BCOC–136 50]0

(00)

Q10.000

Q11.000

Q12.000 [ 12 ] BCOC–136 4×5=

(20)