Mumbai University Solved Question Papers
Taxation Laws
Previous Year Question Paper with Solution
BLS LLB 5 Years · Sem 8
Jun 2019 Examination
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BLS LLB 5 Years Sem 8 Taxation Laws Jun 2019 Question Paper with Solutions
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First published on munotes.in on 24 October 2026.
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Model answers written and edited by the munotes.in editorial desk.
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The University does not publish an official answer key for this paper. The answers in this volume are model answers, written to show how a full-mark answer is built. They are a study aid, not an authority on what an examiner marked.
The question paper reproduced here is the paper as set by the University of Mumbai at the Jun 2019 examination.
The law in these answers is stated as at October 2026. The Income-tax Act, 2025 replaced the Act of 1961 from 1 April 2026; each answer gives the 1961 section the paper asks for, with the 2025 section beside it. No wealth-tax is charged for the assessment year 2016-17 or any later year (section 3(2) of the Wealth-tax Act, as amended in 2015). Since 1 July 2017 the Maharashtra VAT Act covers only liquor and a few petroleum products, and the Central Sales Tax Act six goods; other goods are taxed under the GST Acts of 2017. The central sales tax rate on sales against Form C has been 2 per cent since 1 June 2008, though section 8(1) still prints 3 per cent. The standard deduction from salary, withdrawn from 2005-06 to 2018-19, is now Rs 50,000, or Rs 75,000 under the new regime.
Contents
The questions below are the paper as the University of Mumbai set it at the Jun 2019 examination, in the order it was set.
MarksPage
MarksPage
The Paper as Set
The questions in this volume are the questions asked at the Jun 2019 examination, reproduced as the University of Mumbai set them, in the order it set them. Nothing has been reworded, added or left out. Only the answers are ours. See the original question paper.
Duration 3 hours · Total marks 100 · 25 questions answered
Instructions printed on the paper
- N.B: Answer the questions as per instruction. Figures to the right indicate full marks allotted.
How to use this volume
Solve the paper first, under exam conditions and against the clock. Then read the answers here and mark your own. Reading a solution before attempting the question feels productive and teaches very little, because recognising an answer is not the same as being able to write one.
Q.1
Q.1: Write Short Answers, not more than two sentences
20 Marks - 2 marks each
(a)Define the term "Previous Year" under the Income Tax Act.[2]
Answer
Section 3 of the Income-tax Act, 1961 says: "'previous year' means the financial year immediately preceding the assessment year". The financial year begins on 1 April. So the previous year is the year in which income is earned. The assessment year that follows is the year in which it is taxed.
Example. Income earned from 1 April 2024 to 31 March 2025 is income of the previous year 2024-25. It is assessed in the assessment year 2025-26.
A new business or source, the proviso. A business or profession may be newly set up, or a source of income may newly come into existence, during a financial year. Its first previous year begins on the date of setting up, or the date the source arises, and ends on 31 March. A shop opened on 1 January 2025 has a first previous year of three months.
One previous year for all. Every assessee uses the financial year for all his sources. The Direct Tax Laws (Amendment) Act, 1987 introduced this uniform previous year.
Exceptions: income taxed in the same year. Sections 172 to 176 let income be assessed in the year it is earned, to protect revenue. They cover shipping by non-residents, persons leaving India, and bodies formed for a single event. They also cover persons likely to transfer assets to avoid tax, and discontinued businesses.
The 2025 Act. Section 3 of the Income-tax Act, 2025 replaces "previous year" with the tax year, the financial year itself.
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