LL.B. (Five Years) Sem 10 Law of Taxation May 2026 75/25 Question Paper - Mumbai University | munotes

Questions asked in this paper

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Q.1 Answer any Six of the following, any 6 of 8 12 Marks

1. (a) Which Article of the Indian Constitution states that no tax shall be levied or collected except by the authority of law?
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2. (b) What is the main difference between Tax Evasion and Tax Avoidance?
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3. (c) What is meant by Tax Deduction at Source (TDS)?
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4. (d) What is Carried Forward and Set-off of Losses?
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5. (e) What is the maximum amount of professional tax payable per year under the Maharashtra Professional Tax Act?
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6. (f) When did the Goods and Services Tax (GST) come into force in India?
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7. (g) What is meant by Clubbing of Income?
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8. (h) What is the difference between Exemption and Deduction?
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Q.2 Short Notes (any Two), any 2 of 4 12 Marks

1. (a) Objectives and Key Features of GST
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2. (b) Nature and Scope of Tax
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3. (c) Residential Status
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4. (d) Assessment under GST
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Q.3 Answer any Two of the following, any 2 of 4 12 Marks

1. (a) Mr. Ramesh, an Indian citizen, left India for the first time on 10th August 2022 to take up employment in Dubai. During the financial year 2024-25, he visited India for 95 days. In the four years preceding 2024-25, his total stay in India was 420 days.
   • (i) Determine his residential status for the assessment year 2025-26 as per the Income Tax Act, 1961.
   • (ii) How to determine Residential status of an Individual
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2. (b) Mr. Arjun, a businessman based in Pune, receives income from both India and the U.K. He is uncertain about whether a particular transaction involving foreign consultancy fees is taxable in India. To avoid future disputes, he decides to apply for clarity under the Income Tax Act, 1961. Meanwhile, for the Assessment Year 2024-25, his return is selected for faceless assessment. He receives an online notice from the National Faceless Assessment Centre (NFAC) seeking additional documents related to his business expenses.
   • (i) What remedy is available to Mr. Arjun to obtain a written decision in advance regarding the taxability of his foreign consultancy income?
   • (ii) What is meant by Faceless Assessment, and how will Mr. Arjun respond to the notice issued by NFAC?
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3. (c) ABC Ltd., an Indian company, merges with XYZ Ltd., another Indian company, in FY 2024-25. As per the merger agreement, shareholders of XYZ Ltd. receive shares of ABC Ltd. in exchange for their existing shares. Mr. Suresh, a shareholder of XYZ Ltd., holds 1,000 shares with a cost of Rs. 50,000, and after the merger, he receives shares of ABC Ltd. valued at Rs. 1,50,000.
   • (i) Determine the tax implications for Mr. Suresh under the Income Tax Act, 1961.
   • (ii) Specifying provisions applicable to mergers and acquisitions.
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4. (d) M/s Sunrise Pvt. Ltd., based in Maharashtra, sells machinery to M/s Orion Ltd., located in Karnataka, for Rs. 10,00,000. The goods are dispatched from Mumbai to Bengaluru. The invoice mentions IGST @18%. Sunrise Pvt. Ltd. also provides transportation services for the same consignment and charges Rs. 50,000.
   • (i) Determine the tax liability under the Integrated GST Act, 2017 for the transaction.
   • (ii) Specify the type of supply, applicable tax rate, and whether IGST or CGST/SGST applies.
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Q.4 Essay type Answer (any Three), any 3 of 5 39 Marks

1. (a) Explain in detail the Assessment Procedure under the Income Tax Act, 1961. What are the different stages involved in the assessment of income?
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2. (b) Explain the Heads of Income under the Income Tax Act, 1961.
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3. (c) Explain the structure, applicability, and administration of Goods and Services Tax (GST) under the Central GST Act, 2017 and Integrated GST Act, 2017.
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4. (d) Discuss the Tax Deduction at Source (TDS) and Advance Tax system in India.
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5. (e) Discuss the main provisions, scope, and procedure for assessment and advance rulings under the Maharashtra GST Act, 2017
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