TUTOR MARKED ASSIGNMENT

Course Code : ECO - 11

Course Title : Element of Income Tax

Assignment Code : ECO – 11/TMA/2016-17

Coverage : All Blocks

Maximum Marks: 100

Attempt all the questions.

1. How is residence of an assesse determined? Explain tax liability on the basis of residence.

 2. Shri A. K. Rana is an employee in a company in Mumbai. He received the following remuneration in previous year:

 Basic Salary                                                                                                              Rs. 5000 per month

Dearness allowance (under terms of employment                                             Rs. 500 per month

 House Rent Allowance (Rent paid Rs. 1500 per month)                                  Rs. 1000 per month

He retired on 1st January, 2014 after 20 years of service. He was paid Rs. 6000 gratuity and Rs. 50,000 of unrecognized provident fund. He was given pension of Rs. 800 per months. He was not covered under payment of Gratuity Act. Employer and employee’s contribution is equal.

 Salary and pension become payable on the last day of each month for the assessment year 2014-15 compute Mr. A. K. Rana’s taxable salary.

3. What do you understand by annual value? Explain the deduction allowed from annual value.

4. Compute ‘income from other sources’ of Dr. Ashish Agrawal for the assessment year 2014-15 from the following particulars of previous year 2013-14

: i. Found Rs. 10,000 lying on road

 ii. Income from card games Rs. 2000

iii. Income from Royalty Rs. 6000

iv. Remuneration received Rs. 4000 for being an examiner

 v. Remuneration received Rs. 1000 for articles written for magazines.

vi. Income from agricultural law in Kathmandu (Nepal) Rs. 11000

 vii. Income from fisheries Rs. 3000

 viii. Amount Rent of Law received Rs. 4000

 ix. Interest received on bank deposit Rs. 1500

x. Dividend received Rs. 3000 on shares of Indian Company

xi. Winnings from Lottery Rs. 2000

xii. Winnings from Horserace Rs. 1500

5. Write short notes on the following:

 (a) Exempted Incomes

(b) Perquisites

 (c) Exempt Capital Gains

(d) Deduction of interest on loan taken for Higher Education (80E)