Bachelor's Degree Programme (BDP)

ECO - 11

Bachelor’s Degree Programme (BDP)

ASSIGNMENT 2016-17

Elective Course in Commerce ECO – 11: Elements of Income Tax

For July 2016 and January 2017 admission cycle

School of Management Studies Indira Gandhi National Open University Maidan Garhi, New Delhi -110 068

Elective Course in Commerce ECO – 11: Element of Income Tax ASSIGNMENT- 2016-17

Dear Students, As explained in the Programme Guide, you have to do one Tutor Marked Assignment in this Course. Assignment is given 30% weightage in the final assessment. To be eligible to appear in the Term-end examination, it is compulsory for you to submit the assignment as per the schedule. Before attempting the assignments, you should carefully read the instructions given in the Programme Guide. This assignment is valid for two admission cycles (July 2016 and January 2017). The validity is given below: 1. Those who are enrolled in July 2016, it is valid upto June 2017. 2. Those who are enrolled in January 2017, it is valid upto December 2017. You have to submit the assignment of all the courses to The Coordinator of your Study Centre. For appearing in June Term-End Examination, you must submit assignment to the Coordinator of your study centre latest by 15th March. Similarly for appearing in December Term-End Examination, you must submit assignments to the Coordinator of your study centre latest by 15th September.

TUTOR MARKED ASSIGNMENT Course Code Course Title Assignment Code Coverage

: : : :

ECO - 11 Element of Income Tax ECO – 11/TMA/2016-17 All Blocks Maximum Marks: 100

Attempt all the questions. 1.

How is residence of assesses determined for income tax purposes? Explain the incidence of residence status on tax liability. (10+10)

2.

(a) What are the provision of Income Tax Act 1961 regarding the provident fund? (b) What do you understand by ‘Annual Value of House Property’? How would you determine the annual value of a house which remained vacant for a part of the previous year? (10+10)

3.

Mr. Lalit an ordinarily resident in India earned the following incomes during the financial year 2015-16 Director’s fee Income from agricultural land in Pakistan Interest on postal saving bank account Dividend from foreign company Rent from subletting a house Other expenses obtained on this sub let house Rent payable by Mr. Lalit for the sub let house Incoming from Race course Interest on securities

Rs. 2,000 Rs. 50,000 Rs. 1,000 Rs. 7,000 Rs. 2,62,500 Rs. 10,000 Rs. 1,20,000 Rs. 1,23,000 Rs. 40,000

You are required to calculate income from other sources of Mr. Lalit for the Assessment year 2016-17. (20) 4.

Mr. A earned GTI of Rs. 5,00,000 in the previous year 2015-16 and made the following donations during the year. (i) Rs. 10,000 to CM’s Earthquake relief fund, Maharashtra (ii) Rs. 1,50,000 to National Foundation for Communal Harmony (iii) Rs. 40,000 to Municipality for family planning (iv) Rs. 25,000 to approved institutions Compute the amount of deduction admissible u/s 80G for the assessment year 2016-17. (20)

5.

Write brief notes on the following: (i) Agricultural Income (ii) Previous year (iii) Assesses (iv) Taxable Income (v) Casual Income (4×5)