The Hindu Business Line : A not-so-taxing exercise

As in the previous two exams filling five blanks would have fetched equal marks. All were based on recent amendments. Considering that the one-by-six criteria were abolished from Assessment Year 2006-07, question on that is surprising.

As in the the previous two exams, there was a `True or False' section. Five questions each carrying two marks (no negative marks) was asked. Three were based on recent amendments. An excellent opportunity to score marks.

Theory section

Three out of four questions, each worth six marks, were to be answered.

The questions were 1. on procedure for registration of charitable trusts u/s 12 AA; 2. on recovery of unrealised rent u/s 25 A . Since Section 25 A is applicable only for unrealised claimed as deduction u/s 24(1)(x) up to Assessment Year 2001-02 most of the students may write Section 25 AA instead of Section 25 A. Marks should be given to the students even if they write Section 25 AA;

3. on Section 44 DA — a difficult question at the PE II level;

4. on Section 133 B. As many students tend to skip this area, that could be a reason for asking this question.

Whether the Income-Tax Act will become simple or not is still a debatable issue but most people, including the student community, will agree that May 2006 Income-Tax Question paper of CA PE II has been definitely made simple.

(concluded)