Assignments

OMBF-303_TXT_70:30 Assignment Submission Last Date Time: Jan 9 2025 11:55PM

Assignment: 1
Instructions:
 Number of Questions: 20
 Maximum Marks: 20
 Each question carries 1 Mark.
 All questions are compulsory.
 Attempts: 1
1
What shall be the cost of acquisition of capital asset being immovable property which has been
acquired without consideration (gift) and taxed under section 56 of the Act?
Cost to the previous owner
Nil
Stamp duty value of the property as considered while computing income u/s
56(2)
Cost incurred by the assessee on execution of Gift Deed.

2
Surplus on sale of rural agricultural land is?
taxable under the head “ Income from Other Sources”.
taxable under the head “ Profits and gains from business or
profession”
not taxable as rural agricultural land is not a capital asset
taxable only if transferor is a company

3
Long term capital gain on SPEC
is exempt u/s 10(38)
is exempt u/s 10(37)
is taxable @ 15% u/s 111A
is taxable @ 10% u/s.
112A
4
Which asset is a specified asset for the purpose of section 54 EC?
NABARD Bonds
NHB Bonds
SIDBI Bonds
NHAI Bonds

5
A partnership firm will be treated as resident in India, if the control and management of its affairs is
located in India.
Partly
Wholly
Exclusively
Wholly or
Partly
6
Section deals with the provisions relating to depreciation allowance while computing income
chargeable to tax under the head “Profits and Gains of business or profession”.
3
0
3
1
 3
2
3
5
7
If a domestic servant is engaged by the employer and salary is paid by him, the perquisite is
Taxable in the hands of all employees
Not taxable at all
Taxable in the hands of specified employees
only
not taxable upto Rs. 500 p.m. per servant

8
Assuming that the rate of Interest on employer’s contribution to Recognized Provident Fund is
12.5% p. a., then,
entire interest accrued is taxable in the hands of
employee
Total Interest accrued is exempt in the hands of
employee
interest upto 9.5% is taxable in the hands of employee
interest upto 3% is taxable in the hands of employee

9
The salary for the purpose of calculation of perquisite in respect of residential accommodation in
the hands of private sector employee does not include:
Bonus
Commission
Non-monetary
payment
Monetary payment

10
Identify the income that may be taxable in the hands of a non-resident in India
Bank interest from State Bank of America, New Jersy
Rental Income from property located in Washington DC,
USA
Rental income from hotel located in Switzerland
Rental income from property located in Ahmedabad

11
Which of the following incomes is not a deemed receipt as per section 7 of the Income Tax Act?
Interest credited to recognised provident fund account of an employee in excess of 9.5% per
annum.
Employer’s contribution to recognized provident fund in excess of 12%.
Transfer balance in case of reorganisation of unrecognized provident fund.
Gift in kind received from non-relative

12
The salary of Member of Parliament shall be chargeable to tax under the head
Profits and
gains from
Business or
Profession
Income from other sources
Salary Income
Capital gains

13
Interest relating to pre-construction period is allowable under the head house property?
 In 5 equal installments from the year in which it was
incurred
In the year in which it was incurred
In the year in which house property was constructed
In the year in which house property was bought

14
Out of followings who is not regarded as relative of Individual for the purpose of section 40A(2)?
Husband
Brother in Law
Sister
Any lineal ascedent or descedent of an
Individual
15
The amount withdrawn from Tea Deposit Account under section 33AB of the Act in the event
of_________ is taxable.
Death of the assessee
Partition of HUF
Liquidation of
Company
Closure of Business

16
The amount withdrawn from Site Restoration Fund Account under section 33 ABA as reduced by the
amount payable to_________shall be deemed to be the business income in the year in which it is
withdrawn.
Associate company
Local Authority
Central
Governement
State Government

17
The provisions of deemed income under section 35 AD (7B) of the Act regarding misutilization of
assets of specified business shall not apply to the ________
Partnership Firm
Sick company
Government
company
Industrial company

18
Income from a farm house is agricultural income
True
Fals
e
19
Personal property tax can be classified as direct tax?
True
Fals
e
20
Income from salary in respect of service rendered outside India is treated as an income deemed to
accrue or arise in India in case of a resident and ordinarily resident.
True
Fals
 e

Assignment: 2

Instructions:
 Assignment 2 is based on the following text/paragraph of case study/situational exercise etc. You
first need to read this text and then answer the following MCMR i.e. Multiple choice multiple
response questions.
 Number of Questions: 5
 Each question carries 2 Mark
 All Five Questions are Mandatory.
 Attempts: 1
Mr. X wanted to file his return of income for the previous year 2021- 22. He required
assistance for which he has approached you. He has shared the following details relevant to
the P.Y. 2021-22. Mr. X owned a house property in Mumbai and the same was rented out for
` 70,000 p.m. He claims that this was the only income which he earned during the P.Y.
2021-22. However, when you had sought for his bank statement, you observed the
following information additionally. There is a credit for ` 23,975 towards income-tax refund
which includes ` 5,775 towards interest on income-tax refund. On 15th August, 2021, the
bank statement showed a credit of ` 55,000 which he claimed to have received as a gift 1
from his grandchildren on his 60th birthday. On further assessment you were able to
understand that Mr. X and his wife had travelled to Australia during the P.Y. 2021-22 to
spend some time with their daughter, who is staying in Australia, since her marriage. On
scrutiny of their passport and relevant documents you conclude that they had left India on
27th September, 2021 and retuned on 30th March, 2022. During the 4 years preceding
previous year 2021-22, both had stayed in India for 320 days. Prior to that, they had been
staying only in India.

2 What is the residential status of Mr. X for the P.Y. 2021-22?

Resident
ordinarily resident
Non-resident
Deemed resident but not ordinarily resident

3 Identify the Previous year & Assessment Year .

2021- 22
2020- 21
2022-23
2022

4 There is a credit for_______ towards income-tax refund which includes ` _____ towards interest on
income-tax refund.
22975
5757
23975
5775

5 Mr. X had given the house property at Mumbai on rent to Mr. Y, a salaried employee. Is there any
requirement to deduct tax at source on such rent by Mr. Y, if yes, what would be the amount of TDS to be
deducted?
No, there is no requirement to deduct tax at source
Mr. Y is a salaried employee
 Yes, Mr. Y is required to deduct tax at source
Rs. 42,000

6 Which of the following statements is correct with respect to advance tax liability of Mr. X for P.Y. 2021-
22?
Advance tax liability shall not arise, since Mr. X is a resident senior citizen
he has no income chargeable under the head “Profits and gains of business or profession
Advance tax liability shall arise
his tax liability is not less than ` 10,000