Osmania University · Faculty of Law
Law of Taxation · August/September 2013
August/September 2013 · Law of Taxation · Semester 6
FACULTY OF LAW
LL.B. (3 YDC) III - Year VI - Semester Examination, August / September 2013
Subject : LAW
PAPER - I : LAW OF TAXATION
Time : 3 Hours Max. Marks : 80
PART - A (5 x 6 = 30 Marks)
Write short notes on any FIVE of the following.
1.Due dates on advance tax payments
2. Perquisites.
3. Capital Gains.
4. Commutation of Pension.
5. Net Wealth.
6. "Sale Price" under VAT.
7. Person Chargeable to Wealth Tax.
8. "Input Tax" under VAT.
PART - B (2 x 15 = 30 Marks)
Answer any TWO of the following.
9. What is PAN, its importance and what are the rules regarding PAN for opening a Bank Account?
10. What are the conditions precedent to be complied for claiming exemption of expenses incurred
for the treatment of specified deceases under section 80DDB of the Income Tax Act?
11. What are the debts which are not deductible in computation of net wealth under the Wealth Tax
Act?
12. Write a note on voluntary Registration of a VAT dealer and issue of certificate.
PART - C (2 x 10 = 20 Marks)
Answer any TWO of the following.
13. The assessee, during the financial year 2012-13, estimated his income and calculated the tax
which is around Rs. 15,000. The assessee did not pay any advance tax as envisaged under the Income
Tax Act, nor he had any TDS. He paid the entire tax as self assessment tax and filed the returns before
the due date. As an assessing officer, while assessing and passing the assessment order, how will you
impose the tax as per the provisions of the Income Tax Act?
14. The assessee is a retired employee and he is having income from salary (pension), income from
house property, income from other sources. In the month of April 2013 he became a senior citizen.
Since he has attained 60 years of age and his income is much below the exempted income of Rs.
2,50,000/-, he has filed a nil return. The assessing officer advises the assessee.
15. The assessee filed his wealth tax return for the A.Y . 2012-13 belatedly after the valuation date.
Before the completion of the assessment the assessee died. While completing the assessment the
wealth tax officer has taken the value of the property as on the date of filing the returns and levied
excess tax and interest thereon, and passed the orders. Since the assessee died, the wealth tax
officer issued the demand notice on the legal representative of the deceased assessee. Defend the
legal representative of the deceased assessee as their counsel.
16. The assessee has purchased house property in the year 1989. Subsequently he invested a
sufficient amount for extension and improvement in the year 1993. He sold the house for Rs. 85
lakhs in July, 2012. After calculating the index value of the cost price and improvement of the
property as on 2012, the capital gain arose was Rs. 69,50,000. The assessee has deposited this capital
gain in a capital gain account with SBI for a lock-in period of 3 years. The assessee did not invest the
capital gain in purchase of a house nor in constructing a house. After maturity of the deposit, can the
assessee withdraw the deposit? If so, what is the procedure? If he does not invest as required, is the
assessee liable to pay the tax?