ECO-11 No. of Printed Pages : 6

BACHELOR'S DEGREE PROGRAMME

Term-End Examination 06752 December, 2013

ELECTIVE COURSE : COMMERCE

ECO-11 : ELEMENTS OF INCOME TAX

Time : 2 hours Maximum Marks : 50

Note : Question no. 1 is compulsory and attempt any three questions from the remaining questions.

1. Income particulars of Prabha for the previous year 14 2011-12 are as follows :

Salary Entertainment Allowance House Rent Allowance Dearness allowance

Rs. 20,000 per month 2,000 per month 6,000 per month 2,500 per month

(under terms of employment) Bonus (equal to two months salary) commission (1% on sale of 20,00,000) The employer also paid her Gas, Electricity and water expenses worth Rs. 4,000 for the year She paid Rs. 5,000 per month for her house in Mumbai. Compute her taxable income from salary for the assessment year 2012-13.

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2. Define the term perquisites. Explain, with 4, 8 examples, the method of valuation of the furnished rent, free accommodation provided by the employer to a non-government employee.

3. (a) Mr. Ganesh has a house in Delhi. The 7, 5 municipal value of this house is Rs.1,40,000. His family lives in this house. On Ist July, 2011 this house was let out on a rent of Rs.10,000 per month as he was transferred to Bhopal on the same day. Rs.7,000 municipal tax was paid on this house. Compute its annual value and the income from house property for the assessment year 2012-13.

(b) State the rules regarding deduction of interest on loan from annual value to arrive at taxable income from house property under section 24.

4. (a) Define the term 'capital assets' as per section 8, 4 2(14) of the Income Tax Act, and state the assets that are not included there in.

(b) Mrs. Savitri Jain purchased some ornaments in 1987-88 for Rs. 90,000. These were sold on January 10th, 2012 for Rs. 5,00,000. Compute her Capital gain for the assessment year 2012-13. The inflation index for 1987-88 and 2011-12 was 150 and 785 respectively. Also state the rate at which it should be taxed.

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5. (a) Explain the provisions of Income Tax Act 6, 6 regarding exemption of income of political parties as per section 13(A).

(b) Define 'agricultural income' and state its kinds.

6. Write short notes on any two of the following :

(a) Deduction of Tax at source

(b) Previous year

(c) Residential status of an H.U.F

(d) Death cum Retirement Gratuity

6, 6

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