CWA - DIRECT TAX - IMPORTANT QUESTIONS

CWA

APPLIED DIRECT TAX

IMPORTANT QUESTIONS – June 2011 Exam

 

BASIC CONCEPTS:

 

Distinguish:

1. Assessee vs person
2. AOP vs BOI
3. Previous year Vs Assessment year
4. Direct tax vs Indirect tax

Short notes:

1. Exception to the general rule "Income earned in the previous year is taxed in the assessment year'
2. Agricultural income as defined u/s 2(1A)
3. Charitable purpose and exemption available u/s 11.

 

Salary:

Short notes:

1. Perquisite valuation wrt:

- Transfer and usage of moveable assets.

      - Medical facility.

      - RFA

2. Profit in lieu of salary u/s 17(3)

3. Exemptions available u/s 10(10) of IT act.

4. Commuted pension

5. Exemptions wrt HRA and conditions to be fulfilled.

 

House property:

Short notes:

1. Concrete structures are only assessable under Sec 22. Elaborate
2. Income from house property is chargeable in hands of owner. Exceptions.
3. Explain the concept of deemed let out property.
4. Distinguish between unrealized rent and arrears of rent.
5. Explain the concept of treating pre-construction interest.

 

Profits and gains of business or profession:

Short notes:

1. Concept of block of assets and mode of calculation of depreciation.
2. Scope of income under business or profession.
3. Conditions for claiming depreciation u/s 32.
4. Deduction wrt scientific research u/s 35.
5. Deduction wrt to specified business u/s 35AD.
6. Deduction wrt amortization of preliminary expenses.
7. Provisions u/s 36
8. Disallowances u/s 40(b) wrt partnership firm & sec 40A(3)
9. Sec 43B: Deduction based on actual payment basis.
10. Tax audit u/s44AB
11. Deemed income u/s 41
12. Presumptive income for resident and non-resident.

Capital gains

Short notes:

1. Capital asset u/s2(14) and transfer u/s 2(47)
2. Chargeability u/s45
3. Transactions not regarded as transfer u/s47.
4. Taxability of capital gains u/s 111A and sec 112.
5. Exemptions u/s 54
6. Explain the need for Capital gains accounts scheme

 

Income from other sources

1. Concept of deemed dividend u/s 2(22)(a)-(e)
2. Taxability of family pension and deduction allowable u/s 57.

 

Clubbing of income and set-off and carry forward of losses

1. Clubbing provision with respect to minor-child and spouse.
2. Exceptions to clubbing provision.
3. difference between inter-source and inter-head adjustment
4. Whether LTCL can be adjusted against STCG?
5. Exception to general rule "loss of one person cannot be carried by another person"

Deductions u/c V1-A:

1. Sec 80C , 80ccc and 80ccd
2. Sec 80D,80E and 80G
3. 80QQB and 80RRB

Tax deducted at source:

1. objective of TDS
2. Sec 193,Sec194 and sec 194A
3. sec 194B,194BB and 194C
4. Sec 194I and 194J.

Filing of return of Income

1. Loss return, revised and belated return.
2. Concept of self-assessment tax u/s 140A.
3. Difference between notice issue u/s 142(1) and 142(2A)
4. Best judgment assessment u/s 144

Wealth tax

1. Persons not an assessee u/s 45 of wealth tax act.
2. Asset definition u/s 2(ea)
3. Exemptions from wealth tax u/s5.