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®
BRILLIANT’S Code No. 1248 E-7

Tax Planning and

Management
MBA
SEMESTER- 3rd
(Finance Specialization)

According to DAVV University, Indore

New Syllabus

With Last Year Solved Question Papers

Bilingual English & Hindi

A§
J«
Or Ed§{hÝXr ^m
o f m_|

th

www.thebrilliants.in
PP
New Syllabus

Tax Planning and Management

Examination Scheme: The faculty member will award internal marks out of 20
(8 for tests and 12 for class participation). The semester examination carrying 80
marks will have two sections A and B. Section A worth 20 marks will have 4
theory questions out of which students will be required to attempt any two questions.
Section B carrying 60 marks will contain five numerical out of which students
will be required to attempt any three questions.

Course Contents
1. Introduction to Direct Taxes, Income Tax, Wealth Tax.
2. Important Provision of Income Tax Act.
3. Basic Concepts: Assessment Years, Previous years, Person, Income,
Gross Total Income, Capital and Revenue Receipts and Expenditure,
Residential Status and Incidence of Tax, Tax Free Income.
4. Income from Salary: Meaning, Taxability of Allowances and
Perquisites, Permissible Education, Treatment of PF, Gratuity, Tax
Planning.
5. Income from Business and Profession: Basis of Charge, Scheme of
Provisions, Deductions Expressly Allowed, Expenses Allowed Under
Restriction, Depreciation, Tax Planning.
6. Income from House Property: Tax Planning, Income from Capital
Gains and other Sources: Tax Planning.
7. Deduction: Deduction Allowed from Total Income, Rebates and Relief,
TDS: Tax Deduction at source, Advance payment of Tax, Filling of
Returns.
8. Tax Planning in Relation to NRIs.
PP
Contents
UNIT-1. Introduction to Direct Taxes, Income Tax, Wealth Tax

1.1: Introduction to Direct Taxes

1.2: Introduction to Wealth Taxes

UNIT-2. Introduction to Income Tax

UNIT-3. Residential Status and Incidence of Tax, Tax Free (Exempted)

Income

3.1: Residential Status and Incidence of Tax

3.2: Tax Free (Exempted) Income

UNIT-4. Income From Salary

UNIT-5. Income from Business or Profession

5.1: Income from Business or Profession

5.2: Depreciation

UNIT-6. Income from House Property: Income from Capital Gains &
Income from Other Sources: Tax Planning

6.1: Income from House Property

6.2: Income from Capital Gain

6.3: Income from Other Sources

UNIT-7. Deduction Allowed from Total Income, Rebates and Relief, TDS:
Tax Deduction at Source, Advance Payment of Tax, Filling of
Returns

7.1: Deduction Allowed from Total Income

7.2: Deduction and Collection of Tax at Source (TDS & TCS)

7.3: Advance Payment of Tax, Filling of Returns

UNIT-8. Tax Planning in Relation to NRIs (Non-Resident in India)

PP
UNIT 1
1.1 Introduction to Direct Tax
MEANING AND DIFFERENCE BETWEEN DIRECT TAXES AND INDIRECT TAXES
S>
m̀ao
Š Q>Q>¡Šgo
g Ed§BZS>
m̀ao
Š Q>Q>¡Šgo
g H$mAW©Ed§BZ_| A§
Va
Q.1. Explain the meaning and difference between Direct Taxes and Indirect Taxes.
S>
m̀ao
Š Q>Q>
¡Š go
g Ed§BZS>
m̀ao
Š Q>Q>
¡Š go
g H$mAW©g_Pm
B` oEd§BZ_|A§
Va H$s{O` o
Ÿ&[MBA-2014] 21

OBJECTIVES OF TAXATION UNDER INCOME TAX AND WEALTH TAX

BZH$_ Q>¡Šg VWmdo
ëWQ>¡Šg Ho
$A§
VJ©
V Q>
¡Š go
eZ Ho
$CÔo
í`
Q.2. As a developing country, what are the objectives of taxation under Income
Tax and Wealth Tax? [MBA-2014]
{dH$m
gerc Xo
e Ho
${cE, BZH$_ Q>
¡Š g VWmdo
ëWQ>
¡Š g Ho
$A§
VJ©
V Q>
¡Š go
eZ Ho
$Š` mCÔo
í ` h¢
? 23
  Review Questions ................................................................................. 25

1.2 Introduction to Wealth Taxes

BASIC CONCEPTS OF WEALTH TAX/ do
ëWQ>
¡Š g Ho
$~o
{gH$H$m
°Ýgo
ßQ>
²g
Q.3. Write a short note on main provisions of Wealth Tax.
do
ëWQ>
¡Š g gogå~pÝYV _w
»` àm
dYm
Zm|na g§
{j ßV {Q>
ßnUr {b{I ` o
& [MBA-2017]
OR
Discuss in brief the basic concepts about Wealth Tax.
do
ëWQ>
¡Š g Ho
$~o
{gH$H$m
°Ýgo
ßQ>
²g Ho
$~m
ao_|g§
jon _|~Vm
B` o
Ÿ& [MBA-2012]
OR
Explain the Wealth Tax provisions for Assets.
Ago
Q>
²g Ho
${cEdo
ëWQ>
¡Š g àm
{dOÝg H$m
o og_Pm
B` o
Ÿ& [MBA-2011] 26
  Review Questions ................................................................................. 28

UNIT 2
Introduction to Income Tax
DEFINITION OF VARIOUS TERMS/ {d{^Þ Q>
åg©
H$sn[a^m
fm
Q.4. Define 'Assessment year' and 'Previous year'.
"Ago
g_o
ÝQ>B` a' Ed§'àr{d` g B` a' H$sn[a^m
f mXr{O` o
Ÿ& [MBA- 2018, 2016]

BRILLIANT’S  Tax Planning and Management  5

 OR

PP
Define and distinguish between: 'Assessment year' and 'Previous year'.
"Ago g_o
ÝQ>B` a' Ed§'àr{d` g B` a' H$sn[a^m
f mXr{O` o
Ÿ Ed§AÝVa ~VmB` o
& [MBA- 2017]
OR
Explain the following terms with suitable examples: (a) Assessment year
(b) Person. [MBA-2014]
{ZåZ{c{I V Q>
åg© H$sCn` wŠ VCXm haU g{hV ì` m
»` mH$s{O` o
Ÿ&(a) Ago
g_oÝQ>B©
` a(b) ng©
Z 29
DISTINCTION BETWEEN GROSS TOTAL INCOME AND TOTAL INCOME
J«
m
°g Q>
mQ>
oc BÝH$_ VWmQ>
mo
Q>
c BÝH$_ _|A§
Va
Q.5. Define and Distinguish between Gross Total Income (GTI) and Total Income
(TI). [MBA- 2017]
J«
m°g Q>
mQ>
ob BÝH$_ (GTI) Am
¡a Q>
mQ
o>
b BÝH$_ (TI) H$sn[a^m
f mXo
Vohþ
EBZ_|_|A§
Va ~Vm
BEŸ& 35

MEANING OF 'INCOME'/ 'BÝH$_' H$mAW©

Q.6. Explain the concept of 'income' with suitable example.
"BÝH$_" H$sAdYm
aUmH$m
oCn` w
Š V CXm
haU H$sghm̀Vmgog_Pm
B` o
Ÿ& [MBA- 2014]
OR
Explain the concept of "income" with relevant section of Income Tax Act in
brief. [MBA- 2012]
BÝH$_ Q>
¡Š g EŠQ>Ho
$Cn` w
Š V go
Š eÝg go"BÝH$_" H$sAdYm
aUmH$m
og§
jon _|g_PmBEŸ& 37
EXCEPTIONS TO THE GENERAL RULE THAT 'INCOME OF THE PREVIOUS YEAR
IS CHARGEABLE TO TAX IN THE IMMEDIATELY FOLLOWING ASSESSMENT
YEAR'
gm
_mÝ̀ ê$c {H$àr{d` g B` a H$sBÝH$_ na cJZodm
coQ>
¡Š g H$m{ZYm
aU
©
AmJm_r Agog_|Q>B` a _|hmJm
o , Ho
$Andm
X
Q.7. 'Income of a previous year is chargeable to tax in the immediately following
assessment year'. Is there any exception to this rule? Discuss.
"àr{d` g B` a H$sBÝH$_, Vwa§
V ~m
Xdm
boAgo
g_|Q>B` a _|H$a ` m
½
o` hm
Vr h¡Ÿ&' Š` mBg {Z` _ H$m
o
H$m
B©Andm
o Xh¡? ì` m»` mH$s{OEŸ& [MBA- 2018, 2016] 40

CAPITAL AND REVENUE/ H¡$

[nQ>
b Ed§ao
do
Ý̀ y
Q.8. Write short notes on:/ g§
{j ßV{Q>
ßnUr {b{I E…
(a) Capital and revenue receipts/ H¡$[nQ
>b Ed§ao
do
Ý̀ yàmpßV` m± [MBA-2014]
(b) Capital and revenue expenditure/ H¡$[nQ >
b Ed§aodo
Ý̀ yH$mEŠgn|{S>
Ma 42
  Solved Practical Questions .................................................................. 44
  Review Questions ................................................................................. 46

BRILLIANT’S  Tax Planning and Management  6

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UNIT 3
3.1 Residential Status and Incidence of Tax
RESIDENTIAL STATUS OF AN ASSESSEE
{H$gr Ago
gr H$mao
[gS>
|{e` c ñQ>
Q>
og
Q.9. Write short note on: Residential Status and Incidence of Tax.
ao
{gS>
|{e` b ñQ>
Q>
og Am
¡a Q>
¡³ g H$mB§
{gS>
|g na {Q>
ßnUr {b{I E& [MBA- 2018]
OR
What do you mean by Residential Status of Individual Assessee? How
Residential Status of an individual assessee is determined for Income Tax
purpose? Explain the relationship between Residence and tax Liability in this
regard.
BpÝS>
{dOwAb Ago gr Ho$ao
[gS>|{e` b ñQ> Q>
og goAm n Š` mg_PVoh¢? BÝH$_ Q>
¡Š g Ho$nn©O Ho $
{bE BpÝS>
{dOwAb Ago gr H$mao[gS>|{e` b ñQ>
Q>
og H¡$gokmV {H$̀mOm
Vmh¡? ao[gS> |g Ed§Q>
¡Š g
bm̀{~{bQ>r (Xm
{` Ëd) Ho
$~rMg§ ~§Y H$m og_Pm B` o
Ÿ& [MBA- 2015]
OR
Explain in detail about Residential status, along with conditions applicable to
them from tax point of view.
ao
[gS>
pÝe` c ñQ>
o Q>
o g Ho
$~m
ao_| {dñVm
anyd©
H$g_Pm
BE, gm
Whr Q>
¡Š g Ho
$Ñ{ï>
H$m
U goCZHo
o ${cE
EpßcHo
$~c eVm ] H$m
o~Vcm
BEŸ& [MBA-2013]
OR
Explain the concept of ‘Residential Status’ with reference to Income Tax Act
in brief. [MBA- 2012]
BÝH$_ Q>
¡Š g EŠQ>Ho
$g§
X^©_| "a[ogS>
|{e` b ñQ>
Q>
og' Ho
${dMm
a H$m
og§
jon _| g_Pm
BEŸ& 47
RESIDENTIAL STATUS AND INCIDENCE OF TAX
ao
{gS>
pÝe` b ñQ>
o Q>
og VWmQ>
¡Š g H$mB§
{gS>
Ýg
o
Q.10. Discuss the provisions of Income Tax Act relating to residential status of
individual and incidence of tax.
ao
{gS>
pÝe` b ñQ>
o Q²>
o g Ho
$Am
Yma na Q>
¡Š g Ho
$Xm
{` Ëd Ho
$gå~ÝY _| BÝH$_ Q>
¡Š g EŠQ>Ho
$àmdYmZm |
H$mdU©Z H$s{OE& [MBA- 2017]
OR
Write a short note on: 'Residential Status and Tax Liability'.
g§
{j ßV {Q>
ßnUr {b{I ` o
: 'ao
{gS>
p
oÝe` b ñQ>
Q²>
o g Ed§Q>
¡Š g bm
B{~{bQ>
r'Ÿ& [MBA- 2016] 55

BRILLIANT’S  Tax Planning and Management  7

PP
Q.11. Mention any 5 types of income which are deemed to accrue or arise in
India.
BÝH$_ Ho
${H$Ýht 5 àH$m
am
| H$m
o~Vcm
BE Om
o^m
aV _| d¥
{Õ Ho
${cE g_PoOm
Voh¢
Ÿ&
[MBA- 2013] 58
  Solved Practical Questions .................................................................. 59
  Review Questions ................................................................................. 67
  Practical Questions ............................................................................... 67

3.2 Tax Free (Exempted) Income

INCOME EXEMPTED FROM TAX/ H$ago_w
º $Am̀
Q.12. Write a short note on: Ten Exempted Incomes. [MBA- 2016]
Xg H$a_w
Š V Am̀m
| na g§
{j ßV {Q>
ßnUr {b{I ` o
Ÿ&
OR
What do you mean by exempted Incomes? Name any sixteen exempted
Incomes available to Individual Assessee. [MBA- 2015]
H$a_w
Š VAm̀goAm
n Š` mg_PVoh¢
? BpÝS>
{dOw
Ab Ago
gr H$m
oCnbãYH$m
o
B©16 H$a_w
Š VAm̀~Vm
B` o
Ÿ& 70

TAX FREE INCOME/ Q>

¡Š g \ «
$sBÝH$_
Q.13. Explain the term 'Tax Free Income' with suitable example.
"Q>
¡Š g \ «
$s BÝH$_" Q>
_©H$m
oCn` w
Š V CXm
haU H$s ghm̀Vmgog_Pm
B` o
Ÿ& [MBA-2014]
OR
Give eight instances of income exempted from tax, describing in brief the
condition, if any, to be fulfilled in respect of each to be eligible for exemption.
H$a go_w
º $Am̀ Ho
$AmR>CXm haU Xr{OE, àË̀o
H$_m _co_| Ny>
Q>Ho
$` m
½
o` hm
ZoHo
o ${cE ny{V©H$s
OmZodmcr Amdí` H$eVm] H$m
og§
{j á _| g_PmBEŸ&
OR
Enumerate with reference to section 10 of the Income Tax Act, 1961, five types
of income which are totally exempted from tax.
BÝH$_ Q>
¡Š g EŠQ>
, 1961 Ho
$go
Š eZ 10 Ho
$gÝX^©_|, BÝH$_ Ho
$nm
MàH$m
± a ~Vm
B` oOm
oQ>
¡Š g
gonyar Vah _wº $hm|Ÿ&
OR
Explain the incomes exempted under the following sections of Income Tax
Act: (i) Section 10 (1) (ii) Section 10 (5) (iii) Section 10 (13 A)
BÝH$_ Q>¡Š g EŠQ>Ho
${ZåZ go
Š eÝg Ho
$AÝVJ©
V Ny>
Q>dm
cr BÝH$_ H$mog_PmB` o
: (i) go
Š eZ 10(1)
(ii) go
Š eZ 10(5) (iii) go
Š eZ 10 ( 13 A) 72
  Review Questions ................................................................................. 77

BRILLIANT’S  Tax Planning and Management  8

PP
UNIT 4
Income From Salary
MEANING OF SALARY/ do
VZ H$mAW©
Q.14. ''Salary is taxable either on due basis or on receipt basis". Discuss.
''do
VZ H$a ` m
½
o` h¡, ^cohr ~H$m̀mHo
$Am
Yma na hm
o` màm
pßV Ho
$Am
Yma na &'' g_Pm
BEŸ& 79

ALLOWANCES AND PERQUISITES/ Acm

CÝgo
g Ed§AZw
cm^
Q.15. Mention any four allowances under the Head Income from Salary.
do
VZ goAm̀ Ho
$ho
S>Ho
$A§
VJ©
V {H$Ýht Mm
a Acm
CÝgo
g H$m
o_o
ÝeZ H$s{OEŸ& [MBA- 2013]
OR
Explain in detail about any 5 perquisites covered under Head-Income from
Salary. [MBA- 2013]
do
VZ goAm̀ ho
S>Ho
$A§
VJ©
V gpå_{cV {H$̀oJE{H$Ýht nm
§
MAZw
bm^ Ho
$~m
ao_|{dñVm
a gog_Pm
BE&
OR
Under the head income from salary, mention:
do
VZ goAm̀ erf ©
H$Ho
$A§
VJ©
V g_Pm
B` o
:
(a) Different allowances and their taxability. (any 3)
{d{^Þ Acm
CÝgo
g Ed§CZH$s Q>
¡Š go
{~{cQ>
r
(b) Different types of perquisites and their taxability. (any 3)
{d{^Þ AZw
cm^ Ed§CZH$s Q>
¡Š go
{~{cQ>
r (H$m
B©3)
o [MBA- 2012]
OR
Discuss various allowances and perquisites as per I.T. Provisions for employees.
B§
H$_ Q>
¡Š g Ho
$àmdYm
Zm| Ho
$AZw
gma H$_©
Mm
[a` m
| H$m
o{_cZodm
co{d{^Þ Acm
CÝgo
g Ed§AZwcm^m |
H$mdU©Z H$s{O` o
& [MBA- 2011] 82

RETIREMENT BENEFITS/ [aQ

>m̀a_|Q>~o
{Z{\ $Q²>
g
Q.16. Write a short note on: ‘Commutation of Pension’.
'n|eZ Ho
$H$å` w
Q>
eZ' na g§
o {úm
á {Q>
ßnUr {c{I E& [MBA- 2012]
OR
Discuss the provisions of income tax act about the following retirement
benefits:
(i) Gratuity (ii) Encashment of Earned Leave (iii) Pension
{ZåZ{c{I V [aQ>m̀a_|Q>~o
{Z{\ $Q²>
g Ho
$g§
X^©_|B§ H$_ Q>
¡Š g EŠQ>Ho
$àm
dYm
Zm|H$sì` m
»` mH$s{O` o
:
(i) J«
À̀ w
o Q>
r (ii) A{O© V AdH$m e H$mZH$XrH$aU (iii) n|eZ 101

BRILLIANT’S  Tax Planning and Management  9

PP
DEDUCTIONS FROM GROSS SALARY U/S 16
go
Š eZ 16 Ho
$A§
VJ©
V J«
m
g go
coar _| goH$Q>
m¡{V` m
±
Q.17. Mention any two section No. and Deduction allowed under it for any Head of
Income.
{H$gr ^r Am̀ Ho
$ho
S>Ho
$A§
VJ©
V Am
Zodm
co{H$Ýht Xm
ogo
Š eZ H$s g§
»` mEd§Xr JB©H$Q>
m
¡Vr H$m
o
~Vcm BEŸ& [MBA-2013]
OR
Write short notes on: Permissible deduction from GTI under Income from Salary.
g§
{úm
á {Q>
ßnUr {c{I E: do
VZ goAm̀ Ho
$A§
VJ©
V GTI _|goñdrH¥
$V H$Q>
m¡Vr & [MBA-2013] 107
  Solved Practical Questions .................................................................. 84
  Review Questions ............................................................................... 123
  Practical Questions ............................................................................. 123

UNIT 5
5.1 Income from
Business or Profession
MEANING OF TERMS 'BUSINESS', 'PROFESSION' AND 'VOCATION'
"{~OZo
g', "àm
o
\o
$eZ' Am
¡a "dm
o
Ho
$eZ' eãXm
|H$mAW©
Q.18. Define the terms ‘business’, ‘profession’ and ‘vocation’ as per Income Tax Act.
BÝH$_ Q>
¡Š g EŠQ>Ho
$AZw
gma "{~OZo
g', "àm
\o
o$eZ' Am
¡a "dm
Ho
o$eZ' eãXm
| H$s ì` m
»` mH$s{OEŸ& 127
PROVISIONS RELATING TO ALLOWANCE OF VARIOUS EXPENDITURES
{d{^Þ àH$m
a Ho
$ì` ` m
|Ho
$ñdrH¥
${V g§
~§
Yr àm
dYm
Z
Q.19. Mention the types of business income not taxable with brief reasons.
CZ {~OZo
g BÝH$_ H$m
og§
jon _| H$m
aU g{hV Xem
B` oOm
© oQ>
¡Š go
~c Zht h¡Ÿ& [MBA-2014]
OR
Discuss the provisions for deductions expressly allowed in respect of Rent,
Rates, Taxes, Repairs and insurance of Building with relevant sections.
{H$am̀m
, Xa, H$a, {~pëS>
J̈ H$s{anò[aJ̈ Ed§BÝí` m
ao
oÝg gogå~pÝYV ñnï>ê$n goñdrH¥
$V H$Q>
m¡{V` m
|
Ho
$àm dYmZm| H$s goŠ eÝg g{hV ì` m »` mH$s{O` o
Ÿ& [MBA-2014]
OR
Write short notes on: Deductions expressly, allowed under Income from
Business and Profession. [MBA-2013]
g§
{úm
á {Q>
ßnUr {c{I E: {~OZo
g Am
¡a àm
\o
o$eZ goBÝH$_ Ho
$A§
VJ©
V ñdrH$m
a H$s J` r H$Q>
m¡{V` m
Ÿ&
§ 129

BRILLIANT’S  Tax Planning and Management  10

PP
TAX PLANNING IN RESPECT OF PROFITS AND GAINS OF
BUSINESS OR PROFESSION
{~OZo
g ` màm
\o
o$eZ Ho
$bm
^m|Ho
$gå~ÝY _|Q>
¡Š g- ßbm
qZJ
Q.20. Discuss the important points for tax planning in respect of profits and gains
of Business or Profession. [MBA- 2018]
{~OZog ` màm
\o
o$eZ Ho
$bm
^m|Ho
$gå~ÝY _|Q>
¡Š g ßbm
qZJ Ho
${b` o_hÎdnyU©nm
°BÝQ²>
g H$sì` m
»` m
H$s{O` o
& 138
  Solved Practical Questions ................................................................ 147
  Review Questions ............................................................................... 162
  Practical Questions ............................................................................. 162

5.2 Depreciation
Q.21. Write a note on: 'Depreciation u/s 32 of the Income Tax Act'
'BÝH$_ Q>
¡Š g EŠQ>Ho
$go
Š eZ 32 Ho
$A§
VJ©
V S>
{à{gEeZ' na EH${Q>
o ßnUr {b{I EŸ& 167
CARRYING FORWARD OF UNABSORBED DEPRECIATION
AZEãOm
°ãS>
©S>
{à{gEeZ H$m
o oAm
JocoOm
Zm
Q.22. How would you treat unabsorbed depreciation while calculating total income?
Q>
mQ>
ob BÝH$_ H$s JUZmH$aVog_` Am
n AZEãOm
°ãS>
©S>
{à{gEeZ H$mŠ` mH$a|Jo
o ? 175
  Solved Practical Questions ................................................................ 170
  Review Questions ............................................................................... 176

UNIT 6
6.1 Income from House Property
COMPUTATION OF INCOME FROM A LET OUT HOUSE PROPERTY
{H$am̀ona {X` oJ` ohm
Cg àm
°nQ>
ugoAm̀ H$sJUZm
Q.23. Discuss the important points regarding house property and its tax planning.
hm
Cg àm°nQ>
ugog§
~§
{YV BÝH$_ Ho
$~m
ao_| _hËdnyU©~m
V| ~Vm
BE VWmBgH$s Q>
¡Š g ßbm
qZJ ^r
~Vm
BE& [MBA- 2017]
OR
Write notes on: (i) Annual Value (ii) Unrealized Rent (iii) Standard Rent
{Q>
ßnUr {c{I E: (i) EÝ̀yAc d¡ë` y(ii) AZ[a` cm
BÁS>ao
ÝQ>(iii) ñQ>
¡ÝS>
S>
©ao
ÝQ>
Ÿ& [MBA- 2010]
OR

BRILLIANT’S  Tax Planning and Management  11

 Briefly discuss the deductions from Annual Value of House Property.

PP
hm
Cg àm
°nQ>
u H$s EÝ̀yAc d¡ë` y_| goH$Q>
m¡{V` m
| H$m
og§
jon _| ~Vm
BEŸ& [MBA- 2011] 177

COMPUTATION OF INCOME FROM A SELF OCCUPIED

PROPERTY AND ITS TAX PLANNING
ñd` §Ho
$Cn` m
J H$sàm
o °nQ>
una BÝH$_ H$sJUZmEd§BgH$s Q>
¡Š g ßbm
qZJ
Q.24. Discuss the important points regarding house property and its tax planning.
_H$m
Z gånpËV gogå~pÝYV _hËdnyU©{~ÝXþ
Am| H$s ì` m
»` mH$s{OE Ed§BgH$s Q>
¡Š g ßbm
qZJ
g_PmB` o
& [MBA-2017] 188
  Solved Practical Questions ................................................................ 180
  Review Questions ............................................................................... 196
  Practical Questions ............................................................................. 197

6.2 Income from Capital Gain

MEANING AND TYPES OF CAPITAL GAINS/ H¡${nQ>
c Jo
Z H$mAW©VWmàH$m
a
Q.25. Explain in detail the term "Capital Asset" under the Head Income from Capital
Gains. [MBA-2013]
H¡${nQ>
b Jo
Z goAm̀ ho
S>Ho
$A§
VJ©
V "H¡${nQ>
c Ago
Q>
" eãX H$m
o{dñVm
a gog_Pm
BEŸ&
OR
What do you understand by the term ‘Capital Gain’? How many types are
there?
'H¡${nQ>
c Jo
Z' eãX goAm
n Š` mg_PVoh¢
? BgHo
${H$VZoàH$m
a hm
Voh¢
o ? [MBA-2011]
OR
What is Capital Gain? What are the kinds of Capital Gain?
H¡${nQ>
c Jo
Z Š` mh¡? H¡${nQ>
c Jo
Z Ho
${H$VZoàH$m
a h¢
? [MBA-2010] 200

PROCEDURE OF COMPUTATION OF CAPITAL GAIN/ H¡$[nQ>

c Jo
Z H$sJUZmH$s{d{Y
Q.26. Distinguish short term and long term capital gains for: (i) Residential Property
(ii) Equity Shares
em °Q>
- Q>
© _©H¡${nQ>
b JoZ Ed§bm J- Q>
± _©H¡${nQ>
b Jo
Z Ho
$_Ǜ {ZåZ Am
Yma na A§
Va ñnï>H$s{OE:
(i) ao{gS>
pÝe` c àm
o °nQ>
u (ii) B{ŠdQ>r eòg© [MBA-2013]
OR
Mention Cost Inflation Index for any four years.
{H$Ýhr Mm
a df m
]Ho
${cEH$m
°ñQ>BÝâco
eZ BÝS>
Š g H$m
o o_o
ÝeZ H$s{OEŸ& [MBA-2013]
OR

BRILLIANT’S  Tax Planning and Management  12

 Briefly explain how capital gain is computed?

PP
g§
jon _| ~Vm
BE {H$H¡${nQ>
c Jo
Z H$s JUZmH¡$goH$s Om
Vr h¡? [MBA-2011]
OR
What is the procedure of Computation of Capital Gain? Explain various
exempted capital gains under Income Tax Act. [MBA-2010]
H¡$[nQ>
c Jo
Z H$s JUZmH$s {d{Y Š` mh¡? BÝH$_ Q>
¡Š g EŠQ>_| {d{^Þ Ny>
Q>dm
coH¡${nQ>
c Jo
Z
g_Pm BEŸ& 202
  Solved Practical Questions ................................................................ 205
  Review Questions ............................................................................... 221
  Practical Questions ............................................................................. 222

6.3 Income from Other Sources

INCOME TAXABLE UNDER THE HEAD ‘INCOME FROM OTHER SOURCES’
AÝ̀ òm
Vm
o |goBÝH$_ ho
S>Ho
$A§
VJ©
V H$a ` m
½
o` BÝH$_
Q.27. Explain in brief income taxable under the head ‘Income from other Sources’.
"AÝ̀ òm
Vm
o | goAm̀' ho
S>Ho
$AÝVJ©
V H$a ` m
½
o` BÝH$_ H$m
og§
jon _| g_Pm
B` o
Ÿ&
OR
Mention the different types of income specifically mentioned as chargeable to
tax under the head ‘Income from other Sources’.
{d{^Þ àH$m
aH$sAm̀ ~Vm
B` o{deo
f H$aOm
o'AÝ̀ òm
Vm
o |goBÝH$_' ho
S>Ho
$AÝVJ©
VH$a` m
½
o` hm
|Ÿ& 224
  Solved Practical Questions ................................................................ 229
  Practical Questions ............................................................................. 233

UNIT 7
7.1 Deduction Allowed from Total Income
DEDUCTIONS U/S 80C TO 80 U, REBATE AND RELIEF
go
Š eZ 80 C go80 U Ho
$AÝVJ©
V {S>
S>
Š eZ, [a~o
Q>Ed§am
hV
Q.28. Write a short note on: Deductions allowed from Total Income
g§
{j ßV {Q>
ßnUr {b[I E: Hw
$b Am̀ _| goñdrH¥
$V {S>
S>
Š eÝg [MBA-2017]
OR
Write a short note on: Deduction of U/S 80C.
go
Š eZ 80C Ho$AÝVJ© V {S>
S>
Š eZ na g§
{j ßV {Q>
ßnUr {b[I EŸ& [MBA-2016]

BRILLIANT’S  Tax Planning and Management  13

 OR

PP
Write a short note on “Deduction of U/S 80G”.
""go
Š eZ 80G Ho
$AÝVJ©
V {S>
S>
Š eZ'' na g§
{j ßV {Q>
ßnUr {b{I EŸ& [MBA-2015]
OR
Explain the deductions allowed and conditions applicable for the following:
{ZåZ{c{I V gogå~pÝYV ñdrH¥
$V {S>
S>
Š eÝg Ed§cm
Jyhm
Zodm
o cr H$ÝS>
reÝg H$sì` m
»` mH$s{O` o
…
(a) 80 CCD (b) 80 E (c) 80 D [MBA-2014]
OR
Discuss qualifying investments and the amount of investments under each
section from 80C to 80G. At least one type of investment in each section and
total types should be 10 investments.
goŠ eZ 80 C go80 G VH$àË̀o H$go Š eZ Ho
$AÝVJ©
V Šdm{b\ $m
B§
J BÝdoñQ>
_|Q²>
g Am ¡a BÝdo
ñQ>
_|Q²>
g
H$s am{e ~Vm B` o
Ÿ&àË̀o
H$go
Š eZ _| H$_ goH$_ EH$àH$m
a H$mBÝdoñQ>
_|Q>Am ¡a Hw
$b 10 àH$m a Ho $
BÝdoñQ>_|Q>hm
|Ÿ& [MBA- 2012] 237

REBATE AND RELIEF/ ar~o

Q>VWmar{c\ $
Q.29. Discuss the provisions of Sec. 89 with respect to relief to a salaried employee
for salary in arrear or advance. Also give example.
EH$do
VZ^m Jr H$_©
o Mmar H$m
odo
VZ ~H$m̀m` mES>
dmg Ho
§ ${bE go
Š eZ 39 Ho
$AÝVJ©
V am
hV Ho
$
àmdYm
Zm| H$mog_Pm B` o
Ÿ& 259
  Solved Practical Questions ................................................................ 241
  Review Questions ............................................................................... 262

7.2 Deduction and Collection of Tax at

Source (TDS & TCS)
PROVISIONS of TDS/ TDS Ho
$àm
dYm
Z
Q.30. Write a short note on 'Tax Deduction at Source' (TDS).
'gm
g©
o naQ>
¡Š g {S>
S>
Š eZ' (TDS) nag§
{j ßV{Q>
ßßUr {b{I EŸ& [MBA-2018, 2015]
OR
Briefly explain TDS / g§
úmn _|g_Pm
o BE: TDS [MBA-2013]
OR
Discuss in detail the TDS provisions and the sections applicable for the following:
TDS àm{dOÝg Am
o ¡a{ZåZ ho
VwcmJyhmZodm
o cogo
Š eZ H$m
o{dñVm
agog_Pm
B` o
…
(a) Interest on Securities / {gŠ` m[aQ>
o rOnaã̀ mO
BRILLIANT’S  Tax Planning and Management  14
 (b) Winnings from Lotteries or Cross word puzzles

PP
cm°Q>
ar ` mdJ©
nho
c r goOrVr JB©
aH$_
(c) Dividends/ {S>{dS>o
ÝS²>
g

Give suitable examples to illustrate, if the amount is ` 2 lacs in each of the

above.
Cn` w
Š VCXm
haUm
|gog_Pm
B` o` {XCnam
Š VàË̀o
o H$H$sam
{e ` 2 cm
I hm
Ÿ&
o [MBA-2012]
OR
Write a note on ‘TDS provisions for interest on securities’.
"{gŠ` m
[aQ>
o rO naã̀ m
O Ho
${cETDS Ho
$àm
dYm
Z" naEH${Q>
ßnUr {c{I ` o
Ÿ& [MBA-2011] 263

TAX COLLECTION AT SOURCE (TCS) [SEC.206C]

gm
g©na Q>
o ¡Š g H$co
Š eZ (TCS) [SEC.206C]
Q.31. Write a note on ‘Tax Collection at Source’.
"gm
g©
o naQ>
¡Š g H$co
Š eZ" na{Q>
o ßnUr {c{I ` o
Ÿ& 271
  Review Questions ............................................................................... 272

7.3 Advance Payment of Tax,

Filling of Returns
ADVANCE PAYMENT OF TAX / Q>
¡Š g H$mES>
dmÝg no
_|Q>
Q.32. What do you understand by 'Advance Tax'? How it is computed? Discuss the
provisions of Income Tax Act regarding its payment.
'ES>
dmÝg Q> ¡Š g' goAmn Š` mg_PVoh¢ ? BgH$sJUZmH¡$goH$sOm
Vr h¡? BgHo
$no
_o
ÝQ>Ho
$gå~ÝY _|
BÝH$_ Q>
¡Š g EŠQ>Ho $àm
dYm Zm|H$sì` m
»` mH$s{O` o
Ÿ& [MBA-2018, 2016]
OR
Write short note on: 'Advance Payment of Tax'
g§
{j ßV{Q>
ßnUr {b{I E: 'Q>
¡Š g H$mES>
dmÝg no
_|Q>
' [MBA-2017]
OR
Write a short note on "Advance Payment of Tax".
Q>
¡Š g Ho
$""ES>
dmg no
§ _|Q>
' ' nag§
{j ßV{Q>
ßnUr {b{I EŸ& [MBA-2015]
OR
Briefly explain: Advance Payment of Tax.
g§
úmn _|g_Pm
o BE: Q>
¡Š g H$mES>
dmÝg no
_|Q>& [MBA-2013]
OR
Mention the due dates of payment of advance tax and percentage of tax payable
for Individuals and Corporates. Also mention types of incomes covered and
above what amount, it is levied.

BRILLIANT’S  Tax Planning and Management  15

 ES>
dmg Q>
§ ¡Š g Ho
$no
_o
ÝQ>H$sS²>
` yS>
Q²>
o g Ed§ì` pŠVVWmH$m °nm
}ao
Q>²g Ho
${cEQ> ¡Š g Mw
H$m̀oOm ZoH$mà{VeV

PP
~VmB` o
Ÿ&` h ^r ~VmB` o{H${H$VZoàH$m a H$sBÝH$_ H$dS> ©h¡Am ¡a {H$VZr am {e Ho$~m X` h dgyc m
OmVmh¡Ÿ? [MBA-2012]
OR
Mention important dates and advance tax payable for corporate assessee, and
briefly explain how advance tax liability is computed?
H$m
°nm
}ao
Q>Agogr Ho${cE_hËdnyU© Vm
arI |Am
¡aMw
H$m
Zo` m
½
o` ES>
dm g Q>
§ ¡Š g ~Vm
B` oAm
¡ag§jo
n _|~Vm
B` o
{H$ES>dmg Q>
§ ¡Š g cm̀[~{cQ>
r H$sJUZm{H$g àH$m
aH$sOm Vr h¡Ÿ? [MBA-2011] 273

FILING OF RETURN OF INCOME / BÝH$_ Ho

$[aQ>
Z©H$m
oXm
{I c H$aZm
Q.33. Write a short note on: Filing for Returns
g§
{úm
á {Q>
ßnUr {c{I E: [aQ>
Z©\ $m
Bc H$aZm [MBA-2018, 2013]
OR
Discuss the provisions of Income Tax Act relating to filing of Return of Income.
BÝH$_ H$s[aQ>
Z©\ $m
B©
b H$aZoHo
$gå~ÝY _|BÝH$_ Q>
¡Š g EŠQ>Ho
$àm
dYm
Zm|H$sì` m
»` mH$s{O` o
Ÿ&
[MBA-2016]
OR
Write a short note on "Filing of Income Tax Return of Individuals".
""B§
{S>
{dOw
Aëg Ûm
amBÝH$_ Q>
¡Š g [aQ>
Z©H$s\ $m
BqbJ'' nag§
{j ßV{Q>
ßnUr {b{I EŸ& [MBA-2015]
OR
(a) Who should file the return of income and which section stipulates it?
{H$goBÝH$_ Ho
$[aQ>
Z©H$m
o\ $m
Bc H$aZmMm
{hEEd§H$m
¡Z gr go
Š eZ Bg nabm
Jyhm
Vr h¡?
o
(b) What is the penalty for failure to furnish the Return? Mention Section related
to this?
[aQ>
Z©H$m
o\ ${Z©
e H$aZo_|Ag\ $c hm
ZonaŠ` mno
o ZëQ>
r h¡? Bggog§
~§
§{YVgo
Š eZ H$m
o~Vcm
BEŸ&
(c) What is revised return and the time limits applicable?
[adm
BÁS>[aQ>
Z©{H$goH$hVoh¢Ed§BgHo
${cEñdrH¥
$Vg_` gr_mŠ` mh¡?
In all the above cases, give one example each of an individual, his income, the
A.Y. or F.Y. and the section which is applicable.
Cnamº $g^r Ho
o $gog _|, {H$gr ì` {º$, CgH$sAm̀, Ago
g_|Q>df ©
AWdm\ $m̀Zo
pÝe` c df ©
Ed§go
Š eZ
OmoEpßcHo
$~c h¡, CgH$màË̀o H$Ho $g Ho
${cEEH$CXmhaUXr{OEŸ& [MBA-2013]
OR
(a) Return of Income is filed in prescribed ITR forms. Mention Type of ITR form
and its applicability.
[aQ>
Z©Am°\$BÝH$_ {ZpíMV ITR \ $m
°åg©_|CnpñWV \ $sëS>h¡Ÿ&ITR \ $m
°_©Ho
$àH$m
a VWmBgHo
$
AZwà` m
J H$mC„ o
o I H$s{OEŸ&
(b) Due dates for filing returns of Income.
BÝH$_ Ho
$[aQ>
Z©H$m
oO_mH$aZoHo
${cES²>
` yS>
Q>nag§
o {j á {Q>
ßnUr {c{I ` o
Ÿ& [MBA-2012] 276

BRILLIANT’S  Tax Planning and Management  16

Q.34. File an IT Return for Manager working in a software company earning ` 12 lacs

PP
per annum. PF deduction 10%. Pays House Rent of ` 10,000 per month and travels
to company in his own car. Tuition Fees paid for 2 children’s education is ` 1
lakh per annum. TDS is deducted as per applicable IT slabs.
{H$gr gm °âQ>
dòa H§
$nZr _|H$m̀©aV n« {V df ©
` 12 cmI H$sAm̀ dm co_¡ZoOa Ho${cEEH$IT [aQ> Z©
\ $mBc H$s{OE&PF H$Q> m¡Vr 10%à{V_m h `10,000 Ho
$hm Cg a|Q>H$m^w JVm Z VWmOm oAnZr ñd` §
H$sH$m a_|H§$nZr VH$Q́>
dc H$aVmhm
o Ÿ&à{Vdf ©
o Xmo~ÀMm
|H$s{ej mHo ${cEŸ1 cm I én` oQ>` yeZ \ $sg
AXmH$aVmhm Ÿ&cm
o JyhmZodm
o cr IT ñc¡ãg Ho$AZwgm aTDS H$sH$Q>m¡Vr H$sOm Vr hmŸ& [MBA-2012] 280
o
Q.35. Write short notes on the following:/ {ZåZ{c{I Vnag§ {j á{Q> ßnUr {c{I ` o
:
(i) Self-Assessment/ go ë\ $Ago g_o
ÝQ>
(ii) Regular Assessment/ ao ½` yc aAgog_o
ÝQ>
(iii) PAN (Permanent Account Number)/ PAN (na_m Zo
ÝQ>AH$m C§Q>Zå~a) 287
  Review Questions ............................................................................... 290

UNIT 8
Tax Planning in Relation to NRIs
(Non-Resident in India)
TAX INCIDENCE AND PLANNING FOR NRIs
NRIs Ho
${bE Q>¡Šg BpÝgS>o
Ýg VWmßbm
qZJ
Q. 36. Discuss in brief: Tax Planning in relation to NRIs.
NRIs Ho
$g§
~§
Y _|Q>
¡Š g ßbm
qZJ {df ` na g§
jon _|MMm
©H$s{OEŸ& [MBA-2012, 2017]
OR
Discuss the provisions of any two sections from 115A to 115D regarding compu-
tation of income and tax thereon for NRIs.
Ho
NRIs${bEBÝH$_ VWmCg na Q>
¡Š g H$sJUZmgog§
~§
{YV 115A go115D VH$Xmogo
Š e§
g go
àm
dYm
Zm|na MMm
©H$s{OEŸ& [MBA-2011] 291

TAX EVASION, TAX AVOIDANCE, TAX PLANNING & TAX MANAGEMENT

Q>
¡Š g Bdo
OZ, Q>
¡Š g Adm
°BS>
|g, Q>¡Šg ßbm
qZJ VWmQ>¡Šg _¡Zo
O_o
ÝQ>
Q.37. Define and differentiate between Tax Planning and Tax Avoidance. Explain
salient features and scope of Tax Planning.
Q>
¡Š g ßbm
qZJ VWmQ>¡Š g Adm°BS>
|g H$sì` m
»` mH$s{OEEd§CZ_|A§
Va ~Vm
BEŸ&Q>
¡Š g ßbm
qZJ Ho
$
_w»` bj U Ed§ñH$m
n H$m
o og_Pm BEŸ& [MBA-2015]
OR

BRILLIANT’S  Tax Planning and Management  17

 Briefly explain the terms: (a) Tax Avoidance (b) Tax Planning

PP
{ZåZ{c{I V Q>
åg©H$m
og§
{úm
á _|g_Pm
BE: (a) Q>
¡Š g Adm
°BS>
Ýg (H$a go~Mm
o d) (b) Q>
¡Š g ßcm
qZJ
(H$a{Z` m
OZ)
o [MBA-2013]
OR
(a) Compare to bring out the differences between:
{ZåZ{b{I V Ho
$~rM_|A§
Va ho
VwVw
bZmH$s{OE…
(i) Tax Avoidance and Tax Evasion/ Q >
¡Š g Adm
°BS>
|g VWmQ>
¡Š g Bdo
OZ
(ii) Tax Planning and Tax Management on any four broad parameters.
Q>
¡Š g ßbm
[Z§
J VWmQ>
¡Š g _¡Zo
O_o
ÝQ>VWmBg Vw
bZmho
VwMm
a {dñV¥
V n¡am
_rQ>
g©H$mCn` m
J
o
H$r{OEŸ&
(b) Give one example for Tax avoidance, Tax evasion, Tax planning and Tax
management. [MBA-2012]
Q>
¡Š g Adm
°BS>
|g, Q>
¡Š g Bdo
OZ, Q>
¡Š g ßbm
qZJ VWmQ>
¡Š g _¡Zo
O_|Q>H$mEH$CXm
haU Xr{OEŸ&
OR
Write notes on: Tax evasion, Tax avoidance and Tax planning.
Q>
¡Š g Bdo
OZ, Q>
¡Š g Adm
°BS>
|g VWmQ>
¡Š g ßbm
qZJ na {Q>
ßnUr {b{I EŸ& [MBA-2011]
OR
“Tax Planning is legal and moral way of tax saving.” Discuss this statement
and describe its importance in relation to NRIs. What is the difference be-
tween tax planning and tax management?
""Q>
¡Š g ßbmqZJ Q>
¡Š g H$m
o~Mm
ZoH$mbrJb VWm_m °ab VarH$mh¡''Ÿ&Bg H$WZ naMMm ©H$s{OEVWm
NRIs Ho $g§~§
Y _|BgHo $_hËd H$mdU©
Z H$s{OEŸ&Q>¡Š g ßbm
qZJ VWmQ> ¡Š g _¡Zo
O_o
ÝQ>Ho$~rMŠ` m
A§Vah¡? [MBA-2010] 297
  Review Questions ............................................................................... 303

Solved Question Papers 305

T-20 Questions 321

Chapterwise Solution 327

BRILLIANT’S  Tax Planning and Management  18