Paper 7- Direct Taxation.pdf

Paper 7 - Direct Taxation, 100 marks, 3 hours, Income Tax Assessment Year 2020-21, Income-tax Act, 1961.
Question 1: 10 marks, choose the most appropriate alternative, 10 questions.
Question 1(A)(i): In case of loss, a partnership firm may claim deduction in respect of remuneration to partner to the extent of Rs. 1,50,000/- or 90% of book profit, whichever is lower.
Question 1(A)(ii): Salary received by a Member of State Legislature and Commission received by an employee director of a company are taxable under the head ‘salaries’.
Question 1(A)(iii): A Zero Coupon Bond shall be treated as Long term capital asset if it is held by the transferor for more than 36 months.
Question 1(A)(iv): Quoting ‘Permanent Account Number’ (PAN) is compulsory in the following transactions: Payment to LIP exceeding Rs. 50,000 in a financial year, Sale or purchase of any immovable property valued at Rs. 4,00,000.
Question 1(A)(v): Income taxable u/s 56(2)(x) is Rs. 25,000, difference between market value and actual consideration.
Question 1(B): Match the following, 5 marks.
Question 1(C): Say True or False, 5 marks.
Question 1(D): Fill in the blanks, 5 marks.
Question 2: 16 marks, Tax Evasion, Residential status, Self-occupied houses.
Question 3: 15 marks, Computation of income under the head 'Salaries'.