Mumbai University Solved Question Papers
Taxation Laws
Previous Year Question Paper with Solution
LLB 3 years · Sem 4
Oct 2024 - 60/40 Examination
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LLB 3 years Sem 4 Taxation Laws Oct 2024 - 60/40 Question Paper with Solutions
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First published on munotes.in on 24 October 2026.
Published by munotes.in, Mumbai.
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 Oct 2024 - 60/40 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 The standard deduction from salary, withdrawn from 2005-06 to 2018-19, is now Rs 50,000, or Rs 75,000 under the new regime.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 Oct 2024 - 60/40 examination, in the order it was set.
MarksPage
MarksPage
The Paper as Set
The questions in this volume are the questions asked at the Oct 2024 - 60/40 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 2 hours · Total marks 60 · 22 questions answered
Instructions printed on the paper
- N.B: 1. Ensure that you have received the Correct Question Paper. 2. Do not reveal your identity anywhere on the Answer Sheet. 3. Provide Examples/Illustrations/Citations wherever required/needed.
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 in not more than two sentences, any six
12 Marks - 2 marks each
(a)What is "Annual Value" under the Income Tax Act?[2]
Answer
Annual value is the notional yearly income of a house property, taxed under "Income from house property". Under section 23(1) of the Income-tax Act, 1961, it is the higher of expected rent and actual rent, less municipal taxes the owner pays.
The rules, section 23.
- (a) Expected rent. The sum for which the property might reasonably be expected to let from year to year. It is judged from the municipal valuation, fair rent of similar property and, where rent control applies, the standard rent.
- (b) Actual rent. Where the property is let and the actual rent received or receivable is higher, the actual rent is taken.
- (c) Vacancy. A let property may be vacant for part of the year. If, owing to the vacancy, the actual rent is less than the expected rent, the actual rent is taken.
- Municipal taxes. Taxes levied by a local authority are deducted in the year the owner actually pays them (proviso).
- Unrealised rent is left out if the conditions of rule 4 are met (Explanation).
- Self-occupied houses. The annual value of up to two houses occupied by the owner for his residence is nil (section 23(2), (4)).
Rent control caps expected rent. In Shiela Kaushish v. Commissioner of Income-tax, (1981) 4 SCC 121, a Delhi warehouse was let at a rent far above its standard rent. The Supreme Court held that the expected rent could not exceed the standard rent under the Rent Act. Today the actual rent is taken where it is higher.
The 2025 Act. Section 21 of the Income-tax Act, 2025 carries the same rules.
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