Osmania University · Faculty of Law
Law of Taxation · April/May 2017
April/May 2017 · Law of Taxation · Semester 6
FACULTY OF LAW
LL.B. (3 YDC) III - Year VI - Semester / B.A. LL.B. (5 YDC) V - Year X - Semester /
BBA LL.B. (5 YDC) V - Year X - Semester Examination, April / May 2017
Subject : LAW
PAPER - I : LAW OF TAXATION
Time : 3 hours Max. Marks : 80
PART - A (5 x 6 = 30 Marks)
Answer any FIVE of the following.
1. Assessee.
2. Non Resident under the Income Tax Act.
3. Perquisites.
4. Financial year and Assessment Year.
5. Double Taxation Relief.
6. Works Contract.
7. Profit in lieu of Salary.
8. Assets Taxable under Wealth Tax.
PART - B (2 x 15 = 30 Marks)
Answer any TWO of the following.
9. "Taxation Power is derived from Article 265 of the Constitution of India" - Explain the object of
Taxation.
10. Define the term 'Dealer' and explain the different categories of dealers covered by the A.P . Value
Added Tax Act, 2005.
11. When and to what extent are Capital Gains exempted from Tax under the Income Tax Act?
12. Explain the meanings of the following terms as provided under the Wealth Tax Act, 1956: (i) Net
Wealth (ii) Valuation date.
PART - C (2 x 10 = 20 Marks)
Answer any TWO of the following.
13. A has a house property which was let out during the financial year 2016-17, at Rs. 25,000/- p.m.
He paid municipal tax Rs. 6,000/- p.a., premium on fire insurance Rs. 3,500/-, and paid house loan
principal Rs. 30,000/- and interest Rs. 65,000/- p.a. from HDFC. Compute the net taxable income
from house property for the assessment year 2017-18.
14. 'A', a government employee, draws Rs. 20,000/- p.m., receives HRA of Rs. 24,000/- and he resides
in his own house. He paid total house loan principal of Rs. 15,000/- and interest Rs. 60,000/-. He paid
PF Rs. 10,000/-, LIC Rs. 5,000/-, and Tuition fee Rs. 30,000/-. He has undergone treatment for renal
failure in a private hospital where he was treated by a general physician, and he has claimed
deduction u/s 80DDB. You as an assessing officer, calculate his taxable income.
15. Under section 80C of the Income Tax Act, exemption for tuition fee paid to any college or school
can be claimed to an extent of Rs. 12,000/- per annum, for two children. Clarify whether any tuition
fee paid for self-education can also be claimed as a deduction under the above section.
16. Prepare the draft proforma of computation of Income from Salary, House property, applying the
provisions of Sections 10(3), 16, 24, 80DDB, 80E, and 80C appropriately.