ECO-11 Elements of Income Tax Solved Assignment 2017-2018


Assignment Code: ECO –11/TMA/2017-18

Medium: English


ECO-11 Elements of Income Tax


    1. Assesses have been divided into three categories on the basis of residence. How these categories affect the tax liability of an assesses? Explain defining these categories.
    2. Explain the provisions of Income – tax Act in connection with taxability of gratuity AN Encashment of earned leave by an employee retiring form an organization.
    3. Mr. Raman Prakash is reader in a college, run by a society, on a monthly salary of Rs. 44, 000. Besides salary he also gets 43% of salary as dearness allowance, Rs 800 p.m. entertainment allowance and Rs. 500 p.m. as proctor’s allowance. During the year he gets Rs. 450 p.m. as additional D.A. Arrears of salary receive Rs. 25, 000.
      He contributes 10% of his salary to Provident Fund. The college contributes an equal amount. Interest credited to his provident fund @ 12% amounted to Rs. 40,000. Three children of Mr. Raman Praksh are studying in an institution run by the society, which runs the college for which he paid nothing. Normally, expenditure in an institution of that standard comes to Rs. 1,500 p.m. for one student. Mr. Raman Prakash is provided with a rent-free accommodation in a city (population 13 lakh) which is owned by the college.
      Its fair rental value is Rs. 2,500 p.m. A gardener for the upkeep of the garden on the back side of the house is also provided. The salary of gardener amounting to Rs. 300 p.m. is also paid by the college. During the year Mr. Raman Prakash proceeded on two months’ leave with full pay to his home at Jaipur. The college paid Rs. 6,500 being the air fair to and from Jaipur fro him and his wife for this purpose.
      Compute the taxable salaries income of Mr. Raman Prakash for the year ending on 31st March, 2016 for the assessment year 2016-17.
    4. From the following information of Mr.Sunil, compute the taxable income of house property:
      Particular Amount
      (i) Municipal Valuation 3,30,000
      (ii) Fair Rent 3,60,000
      (iii) Standard Rent under Rent Control Act 3,36,000
      (iv) Unrealised rent of previous year 2011-12 (Conditions of Rule 4 satisfied) previous year 2011-12 30,000
      (v) Rent realized in year 2014-15 from Unreaslised Rent of previous year 2011-12 24,000
      (vi) House was let at Rs. 30,000 p.m.
      (vii) Rent Unrealised of the eyar 2015-16 30,000
    5. Write brief notes on the following:
      (i) Valuation of Rent Free House
      (ii) Provident Fund
      (iii) Interest on Securities
      (iv) Provisions Regarding set–off of Losses


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