Taxation

  1. Article 265 of the Constitution of India says that “No tax shall be levied or collected except by authority of law.”
  2. When facilities are provided by the employer either in the form of kind or reimbursement of expenses, they are called Perquisites.
  3. The test of residence for persons under the Income Tax Act, 1961 is laid down in Section 6.
  4. The Current Assessment Year is 2024-2025.
  5. The Relevant Previous Year to the current assessment year is 2023-2024.
  6. Which of the following is a Direct Tax?
    Answer: Income Tax
  7. If the assessee holds the house property as stock-in-trade, any income received from that will be treated as Income from Other Sources.
  8. When ARV is Rs. 1,00,000/-, FRV is Rs. 1,20,000/- and MRY is Rs. 90,000/-, the Gross Annual Value (GAV) is 1,20,000/-.
  9. When a teacher earns money from invigilation and paper valuation, such income is charged under the head “Income from Other Sources.”
  10. Equity shares, debentures, and units of mutual funds are classified as Tangible Financial Assets.

Blanks

  1. Section 10(1) of the Income Tax Act, 1961 states that Agricultural income is exempted from tax.
  2. Fair Rental Value means the rent of similar type of accommodation in the similar locality.
  3. The standard deduction available under the head Income from House Property u/s 24(a) is 30% of Net Annual Value (NAV).
  4. The maximum threshold limit of tax-free income for a person below 60 years is 2,50,000/-.
  5. The maximum threshold limit of tax-free income for a person above 60 years and below 80 years is 3,00,000/-.
  6. A person who is 80 years and above is called a Super Senior Citizen (or Very Senior Citizen).
  7. The full form of HRA is House Rent Allowance.
  8. While Business is profit-oriented, Profession is service-oriented.
  9. The Immovable Assets such as land and buildings are considered to be Long-Term Capital Assets when they are held for a period more than two years.
  10. Income received by the assessee will fall under the head Income from Salary provided a Master-Servant relationship exists between the payer and the receiver (i.e., Employer-Employee).

 

1) Assessee:
The term “assessee” is defined under Section 2(7) of the Income Tax Act, 1961. It refers to a person by whom any tax or any other amount is payable under the Act. This includes individuals, Hindu Undivided Families (HUFs), companies, firms, Association of Persons (AOP), Body of Individuals (BOI), local authorities, and artificial juridical persons. An assessee may also include a person against whom any proceeding under the Act has been initiated for assessment of income or loss, or of the amount of refund due. There are various types of assessees like regular assessee, deemed assessee, and representative assessee.

2) Assessment Year:
Assessment Year refers to the 12-month period starting from April 1st of every year to March 31st of the next year, in which the income earned in the previous year is assessed and taxed. For example, if the income is earned in the financial year 2023-24, it will be taxed in the assessment year 2024-25. During the assessment year, the assessee files the income tax return, and the Income Tax Department processes the return, makes assessments, and issues refunds or raises demands if required.

 

3) Previous Year:
Previous Year is the financial year immediately preceding the assessment year in which the income is earned. It also spans from 1st April to 31st March. For example, for assessment year 2024-25, the previous year is 2023-24. According to Section 3 of the Income Tax Act, tax is levied on the income earned in the previous year. In general, income of the previous year is taxed in the assessment year, but there are exceptions like for income of non-residents or in cases of newly set-up businesses.

 

4) Person:
Under Section 2(31) of the Income Tax Act, the term “person” includes: (i) an individual, (ii) a Hindu Undivided Family (HUF), (iii) a company, (iv) a firm, (v) an Association of Persons (AOP) or Body of Individuals (BOI), (vi) a local authority, and (vii) every artificial juridical person not falling under the above categories. This wide definition ensures that all entities capable of earning income and being taxed are brought under the tax net. Each type of person has different rules for computation of income and tax liability.

 

5) Income from House Property (Computation):
To compute income from house property, we start with the Gross Annual Value (GAV), which is the higher of fair rent, municipal value, or actual rent received, subject to a standard ceiling. From GAV, municipal taxes paid by the owner are deducted to arrive at Net Annual Value (NAV). A standard deduction of 30% of NAV is allowed under Section 24(a), and interest on borrowed capital is deductible under Section 24(b).
Example:

  • MRV = ₹2,50,000, FRV = ₹2,80,000, ARV = ₹3,00,000 → GAV = ₹3,00,000
  • Municipal Taxes = ₹10,000 → NAV = ₹2,90,000
  • Less: 30% Std. Deduction = ₹87,000
  • Less: Interest on loan = ₹1,00,000
  • Income from House Property = ₹2,90,000 – ₹87,000 – ₹1,00,000 = ₹1,03,000

 

 

Information Technology 


Fill in the Blanks

  1. CERT-IN: Indian Computer Emergency Response Team
  2. Digital Signature Certificate (DSC) is given under Section 2(1)(9)
  3. Who issues Electronic Signature Certificate? → Certifying Authority
  4. IT Act 2000 is based on UNCITRAL Model Law on E-Commerce, 1996
  5. Certifying Authority is the repository for Electronic Signature Certificates
  6. IT Act 2000 has overriding effect on all other laws according to Section 81
  7. Public Key and Private Key together form a Key Pair
  8. Who appoints Controller of Certifying Authorities? → Central Government
  9. Who coined the term Cyber Space? → William Gibson
  10. E-Contracts are valid as per Section 10A

Multiple Choice Questions (MCQ)

  1. Appeal to Cyber Appellate Tribunal (CAT) shall be done in a period of:
    → 45 days
  2. Order passed by Controller is challenged to:
    → Appellate Tribunal
  3. Authentication is effected by use of Digital Signature using:
    → Asymmetric Crypto System
  4. IT Act 2000, Section 2(1)(i) relates to:
    → ‘Information’ (Answer: All of the above)
  5. Exemption from liability of Intermediary is provided under:
    → Section 79
  6. Major amendments to IT Act, 2000 were made in:
    → 2008
  7. Intermediaries include:
    → Cyber Café, ISP, Online Payment Sites (Answer: All of the above)
  8. Hash Functions are used for:
    → Encryption
  9. Which section of IT Act, 2000 relates to functions of Controller of Certifying Authorities?
    → Section 18
  10. Licence to Certifying Authority is issued by:
    → Controller

Short
1. Cyber Space

  • Cyber space is the global environment of digital communication via the internet and computer networks.
  • It includes websites, emails, messaging platforms, online games, cloud computing, and social media.
  • The term “Cyber Space” was coined by William Gibson in his novel Neuromancer.
  • Cyber space is intangible but real, where millions of people interact, transact, and share data.
  • Legal concerns in cyber space include:
    • Cyber crimes (hacking, identity theft, phishing)
    • Jurisdictional issues (cross-border data and actions)
    • Privacy and data protection
  • In India, cyber space activities are governed by the Information Technology Act, 2000.

 

  1. E-Commerce
  • E-Commerce stands for Electronic Commerce, which is the buying, selling, and exchange of goods and services via the internet.
  • It includes:
    • B2B (Business to Business) – companies doing business with each other.
    • B2C (Business to Consumer) – online shopping platforms.
    • C2C (Consumer to Consumer) – platforms like OLX, eBay.
  • Major components:
    • Online shopping
    • Electronic payments
    • Internet marketing
    • Online auctions
  • The IT Act, 2000 provides legal validity to:
    • Electronic contracts
    • Digital signatures
    • Electronic records
  • It promotes the growth of e-commerce by ensuring security, trust, and legal enforceability of online transactions.

 

  1. Recognition of Electronic Records and Evidence
  • The IT Act, 2000, under Section 4, gives legal recognition to electronic records.
  • An electronic record includes data stored, sent, or received in electronic form, such as:
    • Emails
    • PDFs and scanned documents
    • SMS or WhatsApp messages
  • Section 65B of the Indian Evidence Act, 1872 deals with the admissibility of electronic records.
  • Conditions for admissibility:
    • The electronic record must be produced from a computer used regularly.
    • A certificate under Section 65B(4) must be provided.
  • This provision allows digital evidence in civil and criminal cases, helping in speedy trials and modern investigation.

 

  1. Digital Signature
  • A Digital Signature is a mathematical technique used to validate the authenticity and integrity of a digital message or document.
  • It uses an Asymmetric Cryptographic System consisting of:
    • A Private Key (kept secret by the signer)
    • A Public Key (shared to verify the signature)
  • Legal recognition is given under Section 3 of the IT Act, 2000.
  • Functions of a digital signature:
    • Ensures that the message comes from the claimed sender.
    • Protects the document from being altered (integrity).
    • Provides non-repudiation, meaning the sender cannot deny the signature.
  • Digital signatures are widely used in:
    • Online contracts
    • E-Governance portals
    • Income Tax filing and ROC submissions
    • Banking and legal communications

 

  1. E-Banking
  • E-Banking (Electronic Banking) refers to banking services delivered through electronic channels like the internet, mobile, and ATMs.
  • Services include:
    • Internet banking (view balance, transfer funds, apply for loans)
    • Mobile banking (banking via smartphone apps)
    • ATM services (cash withdrawal, mini-statements)
    • Electronic Fund Transfers (NEFT, RTGS, IMPS)
  • Benefits:
    • 24×7 access to banking
    • Saves time and cost
    • Reduces the need for physical bank visits
  • Legal aspects:
    • Governed under IT Act, 2000 for digital transaction security
    • RBI Guidelines on online banking safety and grievance redressal
    • Ensures protection of customers’ data and funds
  • Challenges include cyber fraud, phishing attacks, and the need for strong cybersecurity.

 

Law relating to Women

MCQ:

  1. Fundamental Rights are contained in Part III, Articles 12–35.
  2. The Article that allows the State to make special provisions for children and women is Article 15(3).
  3. There could be no discrimination by the Constitution if women’s rights are protected according to Article 14.
  4. Section 497 of IPC was challenged based on Article 14 for the first time in the case of Sowmithri Vishnu v. Union of India, 1985.
  5. The 73rd and 74th Amendments (1992) to the Constitution supported reservation for women in local bodies.
  6. The 81st Amendment Bill (1996) led to the reservation of one-third seats in the Lok Sabha for the first time in Parliament.
  7. The Article that indicates Uniform Civil Code for all citizens is Article 44.
  8. Guidelines for preventing and addressing sexual harassment of women in the workplace are based on the case Vishaka & Others v. State of Rajasthan, 1997.
  9. Restitution of conjugal rights under Section 9 of the Hindu Marriage Act was held violative of Fundamental Rights (Article 14, 21) in the case of Sareetha v. T. Venkata Subbaiah, 1983.
    → (Section 9 of HMA declared null and void)
  10. Under Section 125 of CrPC, maintenance is provided for:
    → Wife, children, and parents
    → Answer: All the above

 

FILL IN THE BLANKS :

  1. The Indian Constitution was adopted by the Constituent Assembly on November 26, 1949.
  2. The Preamble of the Indian Constitution states that it aims to secure equality of status and of opportunity to all of its citizens.
  3. Fundamental Rights are covered from Articles 12–35 (Part III).
  4. The case law that dealt with Air India’s policy of terminating female flight attendants upon first pregnancy is Air India v. Nargesh Meerza, 1981.
  5. Full form of CEDAW: The Convention on the Elimination of All Forms of Discrimination Against Women.
  6. Right to Marry – Whether it is an absolute right or not is addressed in the case X v. Hospital Z, 1998.
    → Right to marry is not an absolute right.
  7. Polygamy was not allowed after passing the Hindu Marriage Act, 1955.
  8. The Child Marriage Restraint Act, 1929 was repealed and replaced by the Prohibition of Child Marriage Act, 2006.
  9. The Widow Remarriage Act was passed in 1856.
  10. Divorce by mutual consent is governed by Section 13B of the Hindu Marriage Act, 1955.

Short
SHORT NOTES

  1. Constitutional Provisions in Support of Women
    • Article 14: Equality before the law and equal protection of the laws.
    • Article 15(3): Allows the State to make special provisions for women and children.
    • Article 16: Equality of opportunity in public employment.
    • Article 21: Protection of life and personal liberty, includes right to dignity.
    • Directive Principles:
      • Article 39(a): Equal right to livelihood.
      • Article 42: Maternity relief and just working conditions.
      • Article 51A(e): Fundamental duty to renounce practices derogatory to women’s dignity.
  1. Legal Provisions for Women for ‘Maintenance’ under Various Laws
    • Section 125 CrPC: Maintenance for wife (including divorced wife), children, and parents.
    • Hindu Adoption and Maintenance Act, 1956: Section 18 provides maintenance to wife during marriage and after separation under certain grounds.
    • Protection of Women from Domestic Violence Act, 2005: Section 20 allows monetary relief including maintenance.
    • Muslim Women (Protection of Rights on Divorce) Act, 1986: Maintenance during iddat period and provision for fair and reasonable maintenance thereafter.
    • Special Marriage Act, 1954: Section 36 and 37 provide for interim and permanent alimony.
  2. Divorce by Mutual Consent under Muslim Law – Explained
    • Muslim law does not have a formal concept of mutual consent divorce like in Hindu law. However, the following forms apply:
      • Mubarat: Both husband and wife agree to dissolve the marriage.
      • Khula: Wife initiates divorce by offering to return dower or property; husband agrees.
    • These forms are recognized under personal law and are valid if both parties consent and follow due procedure.
  3. Hindu Wife’s Special Grounds for Divorce under the Hindu Marriage Act, 1955
    Under Section 13(2), special grounds for wife include:

    • Husband has another wife living at the time of marriage.
    • Husband is guilty of rape, sodomy, or bestiality.
    • Wife was married before the age of 15 and repudiated marriage after age 15 but before 18.
    • Maintenance decree has been passed in her favor, and no cohabitation for one year.
  4. Essentials of the Indian Christian Marriage Act, 1872
    • Applies to Indian Christians and governs solemnization and registration of marriage.
    • Conditions:
      • Either party must be Christian.
      • Marriage must be solemnized by a licensed minister or Marriage Registrar.
      • Notice of intended marriage must be given.
      • Marriage must be solemnized in presence of at least two witnesses.
    • Registration: Mandatory for legal validity.
    • Minimum Age: 21 years for male, 18 years for female.

 

 

Human Rights

  1. Human Rights are necessarily
    a. Static
    b. Dynamic
    c. Closed
    d. Rotating
  2. The World Conference on Human Rights, 1993 was held in
    a. Vienna
    b. Geneva
    c. New York
    d. India
  3. Which UN council selects the members of the Commission on Human Rights?
    a. The ECOSOC
    b. The Trusteeship Council
    c. The General Assembly
    d. The ICJ
  4. United Nations decade for Human Rights Education was
    a. 1965–1974
    b. 1985–1994
    c. 1995–2004
    d. 2000–2009
  5. Which of the following types of rights have been described as first generation rights?
    a. Social and economic rights
    b. Civil and political rights
    c. Cultural rights
    d. People’s rights
  6. Which of the following is the first charter of Human rights?
    a. Bill of Rights
    b. Constitution of Media
    c. The Cyrus Cylinder
    d. None of the above
  7. Who adopted the landmark document, the Universal Declaration of Human Rights?
    a. UNESCO
    b. UNICEF
    c. UNO
    d. None of the above
  8. In which year have the changes been made in the NHRC?
    a. 1999
    b. 2000
    c. 2005
    d. 2006
  9. The Universal Declaration of Human Rights is applicable to
    a. Every individual, regardless of religion, race, gender, or cultural background
    b. The citizens of UN member countries
    c. Some countries
    d. None of the above
  10. Declaration of the Rights of Man and of the Citizen
    a. Italy
    b. America
    c. France
    d. India

Blanks

  1. Atrocities of Second World War mark the start of current era of human rights.
    True
  2. _____ is the Headquarter of the National Human Rights Commission.
    New Delhi
  3. ICCPR refers to
    International Covenant on Civil and Political Rights
  4. ICESCR refers to
    International Covenant on Economic, Social and Cultural Rights
  5. WHO refers to
    World Health Organization
  6. The Protection of Human Rights Act in India was enacted in the year – 1993
  7. UPR refers to – Universal Periodic Review
  8. Right to Education is guaranteed under Article _____ in India. – Article 21A
  9. ECOSOC refers to – Economic and Social Council
  10. The Human Rights Day is observed on – 10th December

Shorts
1. Kinds of Human Rights

Human rights are generally classified into three main categories:

  • Political and Civil Rights: These include the right to life, liberty, equality before the law, freedom of speech, and right to vote.
  • Social, Economic, and Cultural Rights: These cover the right to education, health, work, social security, and cultural participation.
  • Collective Rights: Also called solidarity rights, such as the right to development, peace, clean environment, and cultural identity.

 

  1. Generation of Human Rights
    Human rights have evolved over time and are classified into different generations:
  • First Generation: Civil and Political Rights that focus on individual liberty and participation (e.g., free speech, fair trial).
  • Second Generation: Economic, Social, and Cultural Rights that ensure equality and social justice (e.g., education, work, healthcare).
  • Third Generation: Collective Rights that protect group interests (e.g., environment, development, peace).
  • Digital Generation: Emerging rights in the digital world, like data privacy and internet access.
  • Future Challenges: Rights dealing with AI, climate change, bioethics, and global governance.

 

  1. Human Rights Committee
  • Established under ICCPR, 1966, it is a core body of the UN responsible for implementing and monitoring civil and political rights.
  • Consists of 18 independent experts serving 4-year terms.
  • Reviews periodic reports (every 4 years) submitted by member states on human rights implementation.
  • Provides concluding observations for improvement and strengthens the legal framework in member countries.

 

  1. Human Rights and the Indian Constitution
  • Protected through the Protection of Human Rights Act, 1993, which established NHRC, SHRCs, and Human Rights Courts at the district level.
  • India is a party to major international instruments like UDHR, ICCPR, and ICESCR.
  • Part III (Articles 12–35): Guarantees Fundamental Rights.
  • Part IV (Articles 36–51): Directive Principles of State Policy (DPSPs).
  • Judicial interpretation has expanded the scope and application of rights through landmark rulings.

 

  1. International Bill of Human Rights
  • A collective name for the key human rights instruments developed by the United Nations:
    1. Universal Declaration of Human Rights (UDHR), 1948
    2. International Covenant on Civil and Political Rights (ICCPR), 1966
    3. International Covenant on Economic, Social and Cultural Rights (ICESCR), 1966
    4. Optional Protocols to ICCPR and ICESCR
  • These documents form the cornerstone of international human rights law.
  • India has not signed the Second Optional Protocol to ICCPR (abolishing the death penalty) and the Optional Protocol to ICESCR.

 

Investment and Securities

  1. Prospectus: An invitation to the public for the subscription of securities. Defined under Section 2(70).
  2. The amount payable on application of equity shares shall not be less than 5% of the nominal value.
  3. Validity period of a Shelf Prospectus: 1 year from the date of first issue (Section 31 of Companies Act, 2013).
  4. Addendum Case: New Brunswick & Canada Railway Co. — A case related to misstatements in the prospectus.
  5. Equity Shareholders are called Ordinary Shareholders.
  6. Debenture Holders are Creditors (Secured or Unsecured) of the company.
  7. Debenture Trust Deed must be executed within 60 days of the allotment of debentures [Section 71(13)].
  8. Nominal value of shares offered to the public for subscription is called Issued Capital.
  9. Interim Dividend must be declared before the end of the financial year, and it is different from final dividend.
  10. Shares which do not enjoy any preferential rights for dividend or repayment are called Ordinary Shares / Equity Shares.
  11. When a company creates a charge on its property or assets, it must register the particulars with ROC within 30 days [Section 77]. (Extension of 300 days possible with additional fees.)
  12. Can a dividend be lawfully adjusted against any due from the shareholder? – Yes
  13. A registered shareholder is a member, but a registered nominee may not be a shareholder – True
  14. Reduction of Share Capital requires a special resolution and approval by the Tribunal (NCLT).
  15. A shareholder is entitled to receive the share certificate within 60 days from the date of allotment of shares.
  16. Shares offered to the existing equity shareholders by a company are known as Rights Shares (Right Issue).
  17. Debenture holders do not carry any voting rights.
  18. No company can issue debentures exceeding Rs. 500 crores unless it appoints a Debenture Trustee before making the offer to more than 500 persons.
  19. Debenture Trustee takes necessary steps to protect the interest of debenture holders.
  20. Private Placement means any offer or invitation to subscribe to securities made to a select group of persons by a company other than by way of public offer.

Shorts

  1. Civil and Criminal Liability for Misstatement in Prospectus:
    A company issuing a prospectus must ensure all statements are true and not misleading. If there is a misstatement or omission of a material fact, both civil and criminal liabilities may arise.
  • Civil liability under Section 35 of the Companies Act, 2013 includes compensation to investors who suffered losses.
  • Criminal liability may lead to imprisonment up to 10 years and/or fine up to ₹10 crores under Section 34.
  • Directors, promoters, and others who authorized the issue are held accountable unless they prove due diligence.

 

  1. Various Kinds of Debentures:
    Debentures are long-term debt instruments issued by companies to raise funds. Types include:

    • Secured and Unsecured Debentures: Secured are backed by company assets; unsecured (naked) are not.
    • Convertible and Non-Convertible Debentures: Convertible can be converted into equity (fully or partly); non-convertible remain debt instruments.
    • Redeemable and Irredeemable (Perpetual) Debentures: Redeemable are repayable after a specific period; irredeemable have no fixed maturity and are repaid only on liquidation or at the company’s discretion.
    • Registered and Bearer (Unregistered) Debentures: Registered debentures are recorded in the company’s register; bearer debentures are transferable by delivery.
    • Fixed and Floating Rate Debentures: Fixed-rate carry a constant interest; floating-rate vary based on market benchmarks like LIBOR or PLR.
    • Zero-Coupon and Specific Rate Debentures: Zero-coupon carry no interest and are issued at a discount; specific rate debentures carry a stated interest rate.
    • Secured Premium Notes: A type of secured debenture issued at par and redeemed at a premium over face value.

 

  1. Charge:
    A charge is a form of security interest created on the assets of a company to secure a loan.
  • Can be fixed (on specific assets) or floating (on general assets).
  • It must be registered with the Registrar of Companies within 30 days of creation (Section 77 of Companies Act, 2013).
  • Failure to register may render the charge invalid against the liquidator or creditors.
  • Creditors use charges to safeguard recovery in case of default.

 

  1. Transfer and Transmission of Securities:
  • Transfer refers to the voluntary passing of rights from one person to another by way of sale, gift, or agreement. It requires a proper instrument of transfer and approval by the board.
  • Transmission is the automatic transfer of securities upon the death, insolvency, or inheritance of the holder, as per legal provisions.
  • No instrument of transfer is required for transmission; only legal documents like a death certificate or succession certificate are needed.

 

  1. Recognised Stock Exchanges:
    A Recognised Stock Exchange is one that is registered and regulated under the Securities Contracts (Regulation) Act, 1956.
  • SEBI grants recognition to stock exchanges based on compliance with specific guidelines.
  • Examples include NSE, BSE, and MCX.
  • These exchanges facilitate transparent and regulated trading of securities.
  • They also enforce rules on listing, trading, settlement, and investor protection.