Commerce Lab - Practical Question Bank

FACULTY OF COMMERCE, OSMANIA UNIVERSITY

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B.Com (Tax Procedures & Practices) II year W.E.F.2010-11

INCOME TAX PROCEDURE AND PRACTICE

Time: 60 Minutes Record : 10

Skill Test : 20
Total Marks: 30

1. Prepare an exhibit the regulatory frame work of Income Tax Act, in India in the form of a
chart.
2. Specify various income tax authorities through a table.
3. Know and indicate the income tax authorities under whose purview your area falls.
4. Browse the web site www.incometaxindia.com and make a note of its structure in brief.
5. Obtain a blank form No. 49A and make a note of important content.

6. From the following particulars fill form 49A

Name: Sudha Maduri, Father’s Name: Rajender, Residential Address: Flat No 204, Manish
Residency, Chandanagar, Hyderabad, AP, Date of Birth: 13-05-1985, Address for
communication: Residential address, Date of application: 24-06-2010, Assessing Officer code
details: Area code: AFR, A,O type O, Range code 02, Name to be printed on PAN card:
Sudha Maduri.

7. Shri Rohit wants to apply for P.A.N. Fill in the particulars in the form-49A. PERSONAL
PROFILE: Name: Rohit, Father’s Name : Satish N, Qualification: 10+2, Date Of Birth: 5-12-
1989, Address for communication:128, Sri Krupa Residency, Deshmukh Colony, Sec-bad, AP.
Cell No-9923781222, Email id: rohitwilliams@yahoo.com. Proof of Identity: Bank Pass
Book, Proof of Residency: Gas Bill, Name on PAN card: N.Rohit.

8. Draw a table indicating various types of challans used for remittance of income tax by various
assessees.
9. Prepare a chart showing any five incomes which are subject to TDS under I.T Act, 1961.
10. Prepare a table showing various dates and rates for payment of advance tax under IT Act.
11. Prepare a chart indicating the applicability of ITR-1 to ITR-5.
12. Obtain blank ITR-2 and make a note of important contents.

13. From the following prepare ITR 2:

Name Narsing Rao, Father’s Name : Sanjeev Rao, Residentaial Address : Telephone No.
………………………., PAN :AABPR1121F, TAN : TANB19240 Email IDF : Residential
status : Resident. He is submitting the Return voluntarily before due date for assessment year
2010-2011 on 12.6.2010. income from salary Rs. 3,10,000, Less professional tax, Rs. 7,200,
Taxable allowance : Rs. 29,000 Taxable perquisites : Rs. 68,200 Total Salary Rs. 6,00,000,
Income from house property : Rs. 55,790 Income from other sources Rs. 15,000. Income fro
capital gaion : Rs. 5,41,285. Less deductions under section 80: 80 C Rs. 85,000. 80D Rs.

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 12,000. 80E Rs. 15,000 80G Rs. 1,000 (Total Rs. 1,13,000) Total income : Rs. 10,99,075.
Less long term capital gain Rs. 5,41,285. Income taxable at normal rate Rs. 5,57,790. He has
paid advance tax as follows.
Rs. 54,000 on 13.12.2009. Rs. 54,258 on 10-02-2010. TDS deducted Rs. 24,080. Self
assessment tax paid on 12.05.2010 to the extent of liability. All payments are remitted in same
bank.

14. From the following file ITR – 2 of Mr Hyder Ali.

He is working as a lecturer in Sai Ramana Degree College, situated at Chikalaguda.,
Secunderabad. Income particulars : Income from salary Rs. 778200. Income from house
property – nil. Short term capital gain RS. 23000. Gross total income Rs. 726200.

15. Prepare a table indicating the differences between Dayabaga and Mitakshara school of Hindu
Law.
16. Present the list of deductions available to a HUF under chapter VI-A.
17. Present a table indicating the rates of income tax applicable to HUF.
18. Compute the amount of tax liability of a HUF whose income is Rs. 3,20,000 which includes
Long term capital gain of Rs. 30,000.
19. Prepare a chart showing the conditions to be satisfied to assess a Firm as PFAF.
20. Prepare a chart showing the conditions to be satisfied to assess a Firm as AOP.
21. Present the limits of remuneration admissible u/s 40b through a chart.
22. Obtain ITR-5 and make a not of important contents.
23. Prepare a table showing prescribed time for filing of return by various assessees.
24. Prepare a table showing the rates of income tax applicable to PFAF.
25. Prepare a table showing the rates of income tax applicable to PFAOP.
26. Present a table indicating deductions available u/s 80 to Firms.

27. The net profit of a Professional firm was Rs. 4,50,000 after the salary paid to partners A, B,
C at the rate of Rs. 60,000 each. Determine the remuneration allowable u/s 40b.

28. The net profit of a Non-Professional firm was Rs. 6,00,000 after the salary paid to partners
A, B, C at the rate of Rs. 50,000 each. Determine the remuneration allowable u/s 40b.

29. Prepare a table indicating the rates of income tax applicable to domestic companies.
30. Prepare a table indicating the rates of income tax applicable to foreign companies.
31. List of deductions u/s 80 applicable to companies in a chart.
32. Present the procedure to determine book profit of company’s u/s 115JB.
33. List out the ITR forms applicable to companies.
34. Prepare a table showing different types of assessment under I. T. Act.
35. What is tax clearance certificate by whom it is issued?
36. Prepare a table showing the individual who shall sign return on behalf of assessee u/s 140.
37. Prepare a chart showing the reasons which result in defective return.
38. Prepare a table showing the dates for payments of advance tax by corporate assessees.
39. Prepare a table showing the dates for payments of advance tax by non-corporate assessees.
40. Prepare a table listing out the rates of TDS applicable to a) salaries b) interest on securities
c) dividends d) Lottery prizes e) winning from horse races.

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41. Prepare a table showing the due dates of refund u/s 240.
42. Compute Tax liability of Mr.Srinivas for the assessment year 2010-11.
a. Actual Rent received Rs 900000
b. Long term capital gains Rs 400000
c. Short term capital gains on sale of shares (STT Paid) Rs 200000
d. Income from units of UTI Rs 30000
e. Dividends from RIL Rs 20000
f. Winning from lotteries Rs 100000
g. Deposited in PPF Rs 200000
h. LIC premium paid Rs 50000

43. From the following particulars compute taxable income of Mr. Prakash for the assessment
year 2010-11.
a) Salary Gross-Rs 250000; b) Professional tax paid-Rs 2400
c) Rent received-Rs 300000; d) Business income(Net)-Rs 500000
e) Business loss-Rs 150000; f) Long term capital gain-Rs 50000
g) Winning from horse race-Rs 150000

44. Shrivasthav a qualified engineer furnishes the following particulars of his income.
Compute taxable income.
a)GTI- Rs 900000; b)Contribution to RPF- Rs 50000
c)LIC premium paid- Rs 25000; d)Deposited in NSS scheme- Rs 50000
e)Medical insurance premium paid through cheque- Rs 15000
f)Donation given to PMNRF- Rs 50000; g)Donation given to PMDRF- Rs 50000
h)Donation given to GHMC for promotion of family planning- Rs 100000.

45. What are the tax rates for Women assessee for the assessment year 2009-10?

46. From the given particulars. Compute tax liability of Mr. Ramana who is 70 years old for the
assessment year 2010-11.
a)Pension received-Rs 360000; b)Rent received-Rs 200000
c)Lottery winnings -Rs 100000; d)Medical insurance premium paid-Rs 200000(through cheque)
e)Donation given to A.P cyclone relief fund-Rs 50000.

47. Methods of Taxation-There are two widely accepted systems of computation of Income Tax
i.e.; a) Blanket system at a rate of 22% and b) Slab system as exists actually for the current
year. Calculate tax on GTI Rs 450000 under two systems?

48. What are the conditions to be fulfilled by assessee U/S 184?

49. Calculate allowable remuneration to working partner in case profit/loss to a firm.

a) Book profit-Rs 50000 remuneration paid to working partner-Rs 80000
b) Book loss-Rs 30000 remuneration paid to working partner-Rs 80000

50. Obtain a blank challan for payment of tax and fill it.
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