Page 122 - DCOM301_INCOME_TAX_LAWS_I

Unit 4: Exemptions and Deductions - I

Royalty: It is consideration also including any lump sum consideration but excluding any Notes
consideration which would be the income of the recipient chargeable under the head ‘Capital
gains’.
Subsequent operations: These agricultural operations include weeding, digging the soil around
the growth, nursing, pruning, cutting, etc.

4.11 Review Questions

1. Define and differentiate tax exemption from tax deductions.
2. Define agricultural income. Discuss its essential characteristics.
3. List down the income which is not treated as agricultural incomes.

4. Write a note on Partly Agricultural Income.
5. Explain the exemptions available on the Income of Research Associations.
6. Discuss in brief the tax exemptions for charitable trusts and institutions.
7. According to Section 11(1), provide a list of Income which are not to be included in the
Total Income of an assessee.
8. Explain the treatment of tax exemption for Income from Voluntary Contributions.
9. The exemptions granted by Sections 11 or 12 of the Act are not be available under which all
cases and circumstances.
10. Briefly explain the Tax exemptions to political parties.
11. What are the conditions to be satisfied to enable the Electoral Trust to claim full exemption?

Answers: Self Assessment

1. Exempt 2. Land

3. Rent 4. Basic operations
5. Wholly 6. Partner
7. Central government 8. Section 10(CC)
9. Public Provided Fund (PPF) 10. True

11. False 12. True
13. False 14. False
st
15. Exempt 16. 1 April 1952
17. CBDT 18. Voluntary contribution

19. True 20. False
21. True 22. Religious community or caste
23. Assessing officer 24. Section 13
25. Books of accounts 26. Political parties

27. AOP 28. Chief Executive Officer
29. Electoral trust 30. Chapter VIA

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