![GU E-Filling of Returns Solved Question Paper [Gauhati University BCom 3rd Sem NEP FYUGP]](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg-0ogcN4axP2hIAqJPbjVcO3GXZpC2b9_d2iE1AF_Hw9Bs9X-YhbSW1W_dBhSnxTecn03Xwqy82lT74duySrqMB86Ers6RkeQUVMSBcrpYP1SDewdAlbIC63K58TlLypAhLe6266IRRrvNobs_XPKWdKUIEYrlGQREz9V5OB1onB-hsa6i4h38iA2GgXe1/s16000-rw/E-FILING%20of%20returns%20solved%20question%20paper%202023%20pdf%20gu%20bcom%203rd%20sem.webp "GU E-Filling of Returns Solved Question Paper [Gauhati University BCom 3rd Sem NEP FYUGP]")
So, Basically this question paper is CBCS Pattern but very helpful for FYUGP NEP B.Com 3rd Sem examination because syllabus is same as previous syllabus so read this question paper top to bottom.
[Gauhati University B.com 3rd Semester E-Filling of Returns Solved Paper 2023]
2023
E-Filling
(E-Filing of Returns)
Full Mark - 50
The figures in the margin indicate full marks for the questions.
1. Say whether the following statements are True or False: 1×4=4
(a) E-Filing is mandatory for all taxpayers.
False
E-Filing is mandatory for certain categories of taxpayers, such as those with higher income or businesses, but not all taxpayers are required to file electronically.
(b) All allowances are not fully taxable.
True
Certain allowances like House Rent Allowance (HRA) or Leave Travel Allowance (LTA) may not be fully taxable, depending on conditions like actual rent paid, distance traveled, etc.
(c) The previous year may not always be a period of 12 months.
False
The previous year for tax purposes is typically a 12-month period ending on March 31st of the assessment year.
(d) TDS is a kind of advance tax.
True
Tax Deducted at Source (TDS) is an advance payment of tax by the payer on behalf of the payee, and it is deducted at the time of making the payment.
2. Answer the following questions :2×3=6
(a) What is manual filing of returns?
Manual filing of returns involves submitting paper forms or physical documents to the tax authorities instead of submitting the returns electronically. Taxpayers physically submit their return documents, like income details and other relevant forms, to the Income Tax Department.
(b) Mention any two advantages of GST.
Unified Tax System: GST simplifies the indirect tax structure by unifying multiple taxes (like VAT, service tax, excise duty) into a single tax, making compliance easier.
Transparency: The GST system ensures better tax compliance and reduces tax evasion through a clear input-output tax credit mechanism and the use of technology.
(c) State any two differences between E-Filing and manual filing of returns.
Mode of Filing:
E-Filing is done online through the official tax portal, whereas manual filing requires physically submitting paper forms to the tax department.
Convenience:
E-Filing is more convenient and time-saving as taxpayers can file from anywhere, while manual filing requires physically visiting the tax office, leading to more time and effort.
3. Answer any two questions from the following: 5×2=10
(a) Briefly explain any five advantages of E-Filing.
Ans:- Five Advantages of E-Filing:
Convenience:
E-filing can be done from anywhere at any time. Taxpayers can file their returns without visiting tax offices, making the process more convenient.
Time-Saving:
Filing online is faster compared to manual filing. There is no need to wait in long queues or submit physical forms.
Error Reduction:
The e-filing portal has built-in error checks and validations that help reduce mistakes and ensure accuracy in the tax returns.
Instant Acknowledgment:
E-filing provides immediate confirmation of successful submission through an acknowledgment receipt, ensuring there are no delays in processing.
Faster Processing of Refunds:
Tax refunds are processed faster when returns are filed online. The system can automatically calculate any refund due and initiate the process more quickly.
(b) Briefly explain the various heads of income.
Ans:- Various Heads of Income:
Income under the Income Tax Act is classified into the following five heads:
Income from Salary:
This includes all earnings from employment, including basic salary, bonuses, allowances, and perquisites.
Income from House Property:
Income earned from property, whether residential or commercial, such as rent received or deemed income from an unsold property.
Profits and Gains from Business or Profession:
Income derived from any trade, business, or profession, including earnings from self-employment, partnerships, or corporations.
Income from Capital Gains:
Income earned from the sale or transfer of capital assets, such as real estate, stocks, or bonds, after deducting costs like the original purchase price.
Income from Other Sources:
This includes all other forms of income not covered under the other heads, such as interest income, dividend income, and winnings from lotteries.
(c) Write a short note on ITR-1.
Ans:- ITR-1 (also known as Sahaj) is a simplified income tax return form used by individual taxpayers who meet specific conditions. This form is primarily for those who have income from:
Salary/Wages.
Income from a single house property (except those claiming loss).
Other sources of income (like interest income).
Agricultural income up to ₹5,000.
Taxpayers using ITR-1 are typically individuals with simple income sources, and they do not need to report capital gains, business/professional income, or foreign assets. It is easy to fill out and can be filed electronically or manually.
(d) Name some payments/cases when tax should not be deducted at source.
Ans:- Cases When Tax Should Not Be Deducted at Source (TDS):
Here are some scenarios where TDS is not required to be deducted:
Income Below the Exemption Limit:
If the income of an individual is below the taxable limit (such as the basic exemption limit), TDS should not be deducted.
Certain Payments to Government:
Payments made to the government, local authorities, or foreign governments are not subject to TDS.
Payments to Charitable Organizations:
Donations to approved charitable institutions or trusts may be exempt from TDS.
Interest on Savings Account:
If the interest earned on a savings account is below ₹10,000 in a financial year, no TDS will be deducted.
Payment to Non-Residents:
In certain cases, payments made to non-residents may not be subject to TDS, especially if they are not liable to tax in India under the applicable Double Taxation Avoidance Agreement (DTAA).
These exemptions are subject to conditions, and it's important to refer to the relevant sections of the Income Tax Act for specific situations.
4. Answer any three questions from the following: 10×3=30
(a) State the various steps for computation of total income and tax liability of an individual.
Ans:- Steps for Computation of Total Income and Tax Liability of an Individual:
The computation of total income and tax liability of an individual involves several key steps, which can be outlined as follows:
Determine Gross Total Income (GTI): Begin by determining the Gross Total Income from all sources of income such as:
Income from Salary: Salary received or accrued during the year, including allowances and perquisites.
Income from House Property: Rental income or deemed income from properties owned.
Income from Business or Profession: Profits or gains from business or profession.
Income from Capital Gains: Gains from the sale of assets like shares, property, etc.
Income from Other Sources: Any other income not falling under the previous categories (interest, dividends, etc.).
Apply Deductions under Section 80C to 80U: After computing Gross Total Income, deductions can be claimed under various sections like:
Section 80C: For investments in Life Insurance Premium, PPF, EPF, etc.
Section 80D: For premium on health insurance.
Section 80E: For interest on education loans.
Section 80G: For donations to charitable organizations. The total deductions reduce the Gross Total Income.
Compute Net Taxable Income: Subtract the total deductions from the Gross Total Income to arrive at the Net Taxable Income. This is the amount on which income tax will be computed.
Calculate Income Tax Liability: The Income Tax is calculated based on the applicable tax rates, which are subject to the income slab for individuals. For instance:
Income up to a certain threshold may be exempted.
Income exceeding specific slabs is taxed at progressive rates (e.g., 5%, 20%, 30% based on the income range).
Apply Rebate and Tax Credits:
Rebate under Section 87A: Available for individuals with a total income below a certain limit.
Tax Credits: If applicable, such as credits for taxes already paid (advance tax, TDS).
Add Surcharge and Cess: Calculate the cess (e.g., health and education cess) on the computed tax and add any applicable surcharge based on the total income.
Final Tax Liability: After applying all deductions, rebates, credits, and adding the cess, you get the final tax liability payable.
(b) What is Form 26AS? Mention the contents of Form 26AS.
Ans:- Form 26AS is a consolidated tax statement that contains details of the tax deducted at source (TDS), tax collected at source (TCS), advance tax paid, and other taxes related to a taxpayer. It is issued by the Income Tax Department and serves as a useful tool for taxpayers to verify their tax payments and ensure that their TDS and other tax credits are accurately reflected in their tax returns.
Contents of Form 26AS:
Personal Information:
PAN (Permanent Account Number) of the taxpayer.
Name and address of the taxpayer.
Tax Deducted at Source (TDS):
Details of TDS deducted by various deductors (e.g., employers, banks).
TDS amount for each deductor.
TAN (Tax Deduction Account Number) of the deductor.
Date and challan details for the TDS payment.
Tax Collected at Source (TCS):
Details of tax collected at source by specific sellers (e.g., sale of goods or property).
TCS amount and relevant details.
Advance Tax and Self-Assessment Tax:
Details of any advance tax or self-assessment tax paid during the financial year.
Date of payment and the challan number.
Refund Details:
Information about any tax refunds issued, including the amount and date.
Other Information:
Details of any high-value transactions (e.g., transactions in securities, bonds).
Summary of taxes that the taxpayer is eligible to claim as credit.
Form 26AS is an important tool for taxpayers to cross-check the TDS, TCS, and taxes paid, ensuring that all taxes are correctly reflected in their Income Tax Return (ITR) for accurate filing.
(c) Write a note on various provisions of the new tax regime.
Ans:- The New Tax Regime was introduced in the Union Budget 2020 with the objective of simplifying the tax structure and reducing the compliance burden for taxpayers. Under this regime, individuals and Hindu Undivided Families (HUFs) are provided with the option to pay tax at lower rates without availing most of the exemptions and deductions available under the old tax regime. Below are the key provisions of the new tax regime:
Income Tax Slabs: The new tax regime offers reduced tax rates for different income levels, but without the benefit of most deductions and exemptions. The applicable tax slabs for individuals (below 60 years of age) under the new tax regime for the Financial Year 2023-24 (Assessment Year 2024-25) are as follows:
Income up to ₹2.5 lakh: No tax (Exempt)
Income from ₹2,50,001 to ₹5 lakh: 5%
Income from ₹5,00,001 to ₹7.5 lakh: 10%
Income from ₹7,50,001 to ₹10 lakh: 15%
Income from ₹10,00,001 to ₹12.5 lakh: 20%
Income from ₹12,50,001 to ₹15 lakh: 25%
Income above ₹15 lakh: 30%
Note: There is no tax for income up to ₹2.5 lakh, but the income above this limit is taxed progressively based on the above slabs.
No Deductions and Exemptions: Under the new tax regime, taxpayers cannot claim most of the exemptions and deductions available under the old tax regime, such as:
Section 80C: Deductions for investments in life insurance premiums, PPF, EPF, etc.
Section 80D: Deductions for premiums on health insurance.
Section 24(b): Deduction for home loan interest.
House Rent Allowance (HRA) and Standard Deduction.
Other deductions under Sections 80E, 80G, etc..
However, certain deductions, such as NPS (National Pension Scheme) contributions and EPF contributions, are still available under the new tax regime.
No Rebate under Section 87A: In the new tax regime, taxpayers are not eligible for the rebate under Section 87A, which provides a reduction in tax liability for individuals earning up to ₹5 lakh.
No Capital Gains Exemptions: Taxpayers opting for the new tax regime cannot claim exemptions on long-term capital gains (LTCG) or short-term capital gains (STCG) that are available under the old tax regime.
Option to Switch:
Taxpayers have the option to switch between the new tax regime and the old tax regime every year, except in cases where the individual is a business owner or professional. For business owners, once they opt for the new tax regime, they must continue with it for the entire year.
Senior citizens (aged 60 and above) and super senior citizens (aged 80 and above) can still avail of the tax slabs under the old regime, even if they opt for the new tax regime.
No Deduction for Interest on Housing Loans: One of the key features of the new tax regime is that taxpayers are not allowed to claim deductions for interest on housing loans under Section 24(b). This is a significant difference from the old regime.
Income from Business or Profession: For individuals with income from business or profession, the new tax regime allows a simpler tax computation but without the benefit of various deductions related to business expenses, depreciation, and carry-forward of business losses.
Surcharge and Cess: The surcharge and cess are applicable in the same manner as under the old regime. The rates of surcharge depend on the level of total income:
Income above ₹50 lakh but less than ₹1 crore: 10% surcharge.
Income above ₹1 crore but less than ₹2 crore: 15% surcharge.
Income above ₹2 crore but less than ₹5 crore: 25% surcharge.
Income above ₹5 crore: 37% surcharge.
Additionally, a health and education cess of 4% is applicable on the total tax payable.
Advantages of the New Tax Regime:
Simplified Tax Structure: Lower tax rates and a simplified process without the need for calculations related to exemptions and deductions.
Lower Tax Liabilities for Certain Taxpayers: For individuals with lower incomes or those who do not utilize many exemptions, the new tax regime can result in a lower tax burden.
Disadvantages of the New Tax Regime:
Loss of Deductions: Taxpayers who were availing significant deductions under the old regime (e.g., home loan interest, insurance premiums) may find the new tax regime less beneficial.
Complicated for High-Income Earners: Those with substantial income and many deductions may find the old tax regime more favorable.
(d) Write short notes on the following:5+5=10
(i) GST network
(ii) Features of GST
Ans:- i) The GST Network (GSTN) is a non-profit, private company responsible for providing the technological infrastructure and support for the implementation of the Goods and Services Tax (GST) system in India. It acts as the backbone of the entire GST framework and enables the smooth and efficient functioning of the tax system by connecting taxpayers, tax authorities, and various stakeholders.
Key Functions of GSTN:
Platform for GST Returns: GSTN operates the online platform where taxpayers can file their GST returns, such as GSTR-1, GSTR-3B, etc., and make payments.
Centralized Data Processing: It processes and consolidates the data submitted by taxpayers and generates returns and reports for tax authorities.
E-filing of GST Returns: GSTN provides taxpayers with an interface for submitting their GST returns electronically, ensuring transparency and ease of compliance.
GST Registration: It provides a platform for businesses to register for GST and manage their GSTIN (GST Identification Number).
Integration with State and Central Authorities: GSTN links the central and state governments for tax collection, reconciliation, and sharing of information. It ensures seamless flow of data between taxpayers and tax authorities.
(d)(ii) Features of GST
The Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services in India. It replaced multiple indirect taxes like VAT, Service Tax, and Excise Duty. The key features of GST are:
Single Tax Structure: GST replaces various central and state taxes, such as VAT, Service Tax, Excise Duty, and others, into a single tax structure, making the tax system simpler and more transparent.
Destination-based Tax: GST is a destination-based tax, which means it is levied where the goods or services are consumed, rather than where they are produced. This ensures that the final consumer bears the tax burden.
Dual GST Model: India follows a dual GST system, where both the Central Government and State Governments levy GST:
Central GST (CGST): Levied by the central government on intra-state transactions.
State GST (SGST): Levied by state governments on intra-state transactions.
Integrated GST (IGST): Levied by the central government on inter-state transactions, where the tax is shared between the center and the state.
Wide Coverage: GST applies to all goods and services (except a few exceptions) and covers nearly all sectors of the economy, including manufacturing, services, and trade.
Input Tax Credit (ITC): Businesses can claim Input Tax Credit for taxes paid on inputs (goods or services) used to provide taxable supplies. This reduces the cascading effect of taxes.
(e) Explain the basic rules governing the deductions from gross total income under sections 80C to 80U of the Income Tax Act, 1961.
Ans:- DOWNLOAD PDF FOR COMPLETE SOLUTION OF E-FILING OF RETURN 3RD SEM SOLVED
(f) Mr. Manoj Kalita, aged 50 years, is employed in a public sector company. During the previous year 2022-23, he received a basic salary of ₹ 1,10,000 p.m, dearness allowance 40% of basic salary, house rent allowance 20,000 p.m. and servant allowance of ₹8,000 p.m. He maintains a savings bank account with ICICI Bank and during the previous year 2022-23, ₹25,000 was credited in his bank account as interest.
During the previous year, he paid ₹50,000 as life insurance premium and ₹30,000 as medical insurance premium through online banking.
Compute his tax liability if Mr. Kalita opts for old tax regime.
Ans:- DOWNLOAD PDF FOR COMPLETE SOLUTION OF E-FILING OF RETURN 3RD SEM SOLVED
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