Actual Examination Qts

Residential Status• Discuss the concept of residential status and

its impact on the incidence of tax in the case of individuals with suitable examples

[20 marks]• Explain the concept of “Resident” and “NOR”

and how it is particularly relevant to Indians taking up employment abroad [16 marks]

• Examine the relationship between Residential Status and Scope of Income liable to tax

[10 marks]

Mr Patel, after studying medicine in the US for 5 years continuously came back to India on 5th April,2007 and set up practice as a doctor in Mumbai.

In Feb,2008,he visited Singapore as a tourist for a month and there he earned the equivalent of Rs 1 Lac by giving medical advice and also equivalent of Rs 2 Lac as a lottery prize there.

Is he liable to include these sums as part of his Total income for tax purposes in India for the AY 2008-09.

Give reasons-Why? [10 marks]

Residential Status

Residential Status• What is the significance of “Residential Status”

under the Income tax Act?• What is the test to determine “Residential Status”

of a company?

• Mr Robert came to India for the first time on 2-5-2000. He stayed in India and went to UK on 1-5-2004. He again came back to India on 1-7-2005 and stayed upto 1-10-2005 on which day he returned to USA. He accepted a salaried employment in India and came to Delhi on 25-1-2007.

Determine his “Residential Status” for AY 2007-08

[16 marks]

PGBP

• What are the basic conditions to be fulfilled in order to claim depreciation allowance

• Short notes on:– Revenue exp and capital expenditure– Exp on scientific research– Business– Depreciation– C/f and set off of depreciation u/s 32– What is taxable profit? How is it different from

commercial profit?– Block of assets

PGBP

• Write a full note on allowability of depreciation u/s 32. Why is no depreciation allowed on foreign cars and what are the exceptions?

• Give 5 examples of expenditure incurred wholly and exclusively for the purpose of business

• What do you mean by depreciation under the IT Act? Explain the calculation of depreciation for Income Tax act.