Gauhati University B.com 4th Sem Question Paper
E-filing of Returns Question Paper 2022
COMMERCE
(E-Filing of Returns)
(Skill Enhancement Course)
OPTION-B
Paper: COM-SEC-4024
Figures in the margin indicate full mark for the questions
1. Say whether the following statements are True or False : (any four) 1×4=4
(i) E-Filing is mandatory for a company.
Ans: True
(ii) Filing of ITR is compulsory if a taxpayer has deposited an amount of Rs. 1 crore or more in one or more than one current account.
Ans: True
(iii) A person can hold at least two PAN.
Ans: False
(iv) Assessment year is always a period of 12 months.
Ans: True
(v) For submitting Form 150, the applicants must be below 60 years of age.
Ans: False
(vi) IGST is collected by State Government.
Ans: False
(vii) GST signifies one state many tax.
Ans: False
(viii) The burden of GST is borne by the consumer.
Ans: True
2. Answer any three of the following questions: 2×3=6
(a) What is ITR-V?
Ans: ITR-V is the acknowledgement generated after electronically filing an income tax return in India. It needs to be signed and sent to the tax department as proof of filing.
(b) What is a digital signature certificate (DSC)?
Ans: A digital signature certificate (DSC) is an electronic identification that allows individuals or organizations to digitally sign documents and authenticate their identity in online transactions.
(c) What is total income?
Ans: Total income refers to the overall earnings from various sources during a specific period, which is used to calculate income tax liability.
(d) Briefly explain TAN.
Ans: TAN is the Tax Deduction and Collection Account Number issued by Indian tax authorities to entities responsible for deducting or collecting tax at source.
(e) What is Form 16A?
Ans: Form 16A is a certificate issued for tax deducted at source (TDS) on income other than salaries, providing details of the deductor, deductee, nature of payments, and tax deducted.
(f) Explain ITR-1 briefly.
Ans: ITR-1, also known as Sahaj, is the simplest income tax return form used by individuals in India with income from salaries, one house property, and other sources.
3. Answer the following questions : (any two) 5x2=10
(a) State any five differences between E-filing and manual filing of returns.
Ans:
1. Method: E-filing involves electronically submitting tax returns using online platforms or software, while manual filing requires physically filling out paper forms and submitting them via mail or in-person.
2. Convenience: E-filing provides the convenience of filing returns from anywhere with an internet connection, whereas manual filing requires visiting tax offices or mailing forms, which can be time-consuming.
3. Accuracy: E-filing reduces the chances of errors as the online platforms often have built-in validation checks, while manual filing is more prone to mistakes during manual data entry.
4. Processing time: E-filing generally results in faster processing of tax returns as it eliminates the need for physical handling and manual data entry.
5. Documentation: E-filing allows for easy storage and retrieval of digital records, while manual filing requires physical storage and organization of paper documents.
(b) Mention any five disadvantages of manual filing of returns.
Ans:
1. Time-consuming: Manual filing requires filling out forms by hand and visiting tax offices, which can be a time-consuming process.
2. Error-prone: Manual data entry during the filing process increases the chances of making mistakes in calculations or entering incorrect information.
3. Delays in processing: Manual filing may result in slower processing and longer wait times for the tax return to be processed and refunds to be issued.
4. Difficulty in tracking: With manual filing, it can be challenging to track the progress of the tax return and any associated communications or updates.
5. Inconvenience: Manual filing requires physical submission of forms, which may be inconvenient for individuals who live far from tax offices or have limited access to transportation.
(c) Explain the structure of PAN.
Ans: PAN stands for Permanent Account Number, which is a unique ten-character alphanumeric identifier issued by the tax authorities in many countries. The structure of PAN varies across jurisdictions, but I will explain the structure as per the Indian tax system, which follows a common structure:
The PAN structure in India is as follows: The first five characters are letters (A-Z), followed by four numerals (0-9), and ending with one letter (A-Z). The first three characters are typically alphabetic series running from AAA to ZZZ. The fourth character represents the status of the PAN holder, such as "P" for individual, "C" for company, "H" for Hindu Undivided Family (HUF), "F" for firm, "A" for Association of Persons (AOP), "T" for Trust, "B" for body of individuals, etc. The fifth character represents the first letter of the PAN holder's surname or last name. The remaining four digits are random numerals.
For example, a PAN with the structure "ABCDE1234F" could belong to an individual (P) with the surname starting with the letter "F."
(d) Who are responsible for deducting tax at source?
Ans: In many tax systems, individuals or entities responsible for making payments to others are required to deduct tax at source. The following entities typically have the responsibility of deducting tax at source:
1. Employers: Employers are responsible for deducting income tax from the salaries or wages paid to their employees.
2. Banks and Financial Institutions: Banks and financial institutions deduct tax at source on interest income earned by depositors, such as on fixed deposits or savings account interest.
3. Contractors and Freelancers: Companies or individuals hiring contractors or freelancers may be required to deduct tax at source from the payments made for
Also Read: GU e-Filing of Returns Solved Paper 2021