Direct & Indirect Tax Important Questions 2025 [Gauhati University BCom 4th Semester FYUGP]

The Direct & Indirect Tax subject in Gauhati University BCom 4th Semester (NEP FYUGP) covers key taxation concepts, including income tax, GST, and customs law. Understanding important questions can help students focus on high-scoring topics and prepare effectively for the 2025 examination. This blog post highlights unit-wise important questions to guide students in their revision.

Gauhati University B.Com 4th Semester Direct & Indirect Tax Important Questions 2025

Unit 1: Introduction

Syllabus Topics:

➥ Basic Concepts: Income, Agricultural Income, Person, Assessee, Assessment Year, Previous Year, Gross Total Income, Total Income.

➥ Residential Status; Scope of Total Income on the Basis of Residential Status.

➥ Exempted Income under Section 10.

Section 1: True/False, Fill in the Blanks, MCQs (1 Mark Each)

1). Income tax is an annual tax on income. → (Basic concepts: Income) [GU BCom 2018]
2). Nationality of an assessee has no relation with the concept of residential status. → (Residential status) [GU BCom 2018]
3). An Indian citizen is always considered as resident and ordinarily resident in India. → (Residential status) [GU BCom 2018, 2017, 2015]
4). Residential status is determined with reference to the individual’s physical presence in India. → (Residential status) [GU BCom 2018]
5). As per Section 2(7), a person by whom any tax or any other sum of money is payable under the Income Tax Act is known as __________. → (Basic concepts: Assessee) [GU BCom 2018]
6). The basis of charge of salary income is as per section __________ of the Income Tax Act. → (Basic concepts: Income) [GU BCom 2016]
7). Agricultural income is fully exempt from income tax under Section __________ of the Income Tax Act. → (Basic concepts: Agricultural income; Exempted income under Section 10) [GU BCom 2016]
8). The present Income Tax Act came into force with effect from __________. → (Basic concepts: Income) [GU BCom 2017]
9). __________ of an assessee has no relation with the concept of residential status. → (Residential status) [GU BCom 2017]
10). As per which of the following sections, 'a person' has been defined in the Income Tax Act? → (Basic concepts: Person) [GU BCom 2013]

Section 2: Questions Carrying 2 Marks

1). State the meaning of 'Total Income' as per the Income Tax Act. → (Basic concepts: Total income) [GU BCom 2013, 2015]
2). State the meaning of 'Previous Year' as per the Income Tax Act. → (Basic concepts: Previous year) [GU BCom 2013, 2016, 2017]
3). Define 'Person' as per Income Tax Act. → (Basic concepts: Person) [GU BCom 2014]
4). State the meaning of 'Assessment Year' as per the Income Tax Act. → (Basic concepts: Assessment year) [GU BCom 2014]
5). Write the meaning of 'Total Income' as per Income Tax Act. → (Basic concepts: Total income) [GU BCom 2015]
6). An assessee commences his business on:

1st July, 2014 and
16th January, 2014.
In each case, what will be his assessment year and what period will be treated as his previous year for the concerned assessment year?
→ (Basic concepts: Assessment year, Previous year) [GU BCom 2015]
7). When is an individual considered 'Non-Resident in India' for income tax purposes? → (Residential status) [GU BCom 2015]
8). State the meaning of 'Income' as per the Income Tax Act. → (Basic concepts: Income) [GU BCom 2018]
9). State the meaning of 'Agricultural Income'. → (Basic concepts: Agricultural income) [GU BCom 2018]
10). Who is a 'Resident but Not Ordinarily Resident' individual? → (Residential status) [GU BCom 2017]
11). Explain the meaning of 'Assessee' as per the Income Tax Act. → (Basic concepts: Assessee) (Newly created)

Section 3: Questions Carrying 5 Marks (Descriptive, ~150-200 words)

1). Explain the concept of 'Previous Year' under the Income Tax Act. Discuss its significance in the taxation process with an example of a new business setup.
(Basic concepts: Previous year)

2). Describe the meaning of 'Agricultural Income' under the Income Tax Act. How does it influence the tax computation for an individual engaged in both agricultural and non-agricultural activities?
(Basic concepts: Agricultural income)

3). Discuss the importance of determining the 'Residential Status' of an assessee. How does it differ for an individual and a Hindu Undivided Family (HUF)?
(Residential status)

4). What is meant by 'Exempted Income' under Section 10 of the Income Tax Act? Provide three examples and briefly explain their tax treatment.
(Exempted income under Section 10)

5). Explain the concept of 'Total Income' under the Income Tax Act. How is it derived from various sources of income, and what role does it play in tax liability calculation?
(Basic concepts: Total income)

Section 4: Questions Carrying 10 Marks (Detailed Discussion, ~300-400 words)

1). Elaborate the meaning of 'Total Income'. → (Basic concepts: Total income) [GU BCom 2014]
2). Discuss with reason whether the following are agricultural incomes as per the Income Tax Act. → (Basic concepts: Agricultural income) [GU BCom 2018]
3). Discuss the manner of determining the residential status under 'Resident but Not Ordinarily Resident'. → (Residential status) [GU BCom 2018]
4). Explain the concept of 'Income' under the Income Tax Act. Discuss how it differs from the general economic understanding of income, with examples.
(Basic concepts: Income)
5). Discuss the significance of 'Agricultural Income' in the Indian tax system. Explain the conditions under which income qualifies as agricultural income, with relevant examples.
(Basic concepts: Agricultural income)
6). Elaborate on the definition of 'Person' under the Income Tax Act. How does this definition impact the taxation of different entities such as individuals, companies, and trusts?
(Basic concepts: Person)
7). Define 'Assessee' under the Income Tax Act. Discuss the various categories of assessees and their relevance in the tax assessment process.
(Basic concepts: Assessee)
8). Explain the relationship between 'Assessment Year' and 'Previous Year' under the Income Tax Act. Illustrate with examples how they apply to a newly started business.
(Basic concepts: Assessment year, Previous year)
9). Discuss the concept of 'Gross Total Income' and its role in determining taxable income. How does it differ from 'Total Income', and what adjustments are made between the two?
(Basic concepts: Gross total income, Total income)
10). Describe the criteria for determining the residential status of an individual under the Income Tax Act. How does residential status affect the tax liability of an individual?
(Residential status)
11). Explain the scope of total income for a resident, not ordinarily resident, and non-resident individual under the Income Tax Act. Provide examples to illustrate the differences.
(Scope of total income on the basis of residential status)
12). Discuss the provisions of exempted income under Section 10 of the Income Tax Act. Highlight five key exemptions and explain their importance to taxpayers.
(Exempted income under Section 10)
13). Analyze how the residential status of a company is determined under the Income Tax Act. Discuss its implications on the taxation of global income with a hypothetical scenario. (Residential status)