Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Ignou solved assignment eco 11 2014 to 2015 (demo)

4,906 views

Published on

Ignou Solved Assignment with Free Solved Question Papers for Online members.

Published in: Education
  • WHY DO YOU NOT GIVE ME THE SOLVED ASSIGNMENT I NEED
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • BEGE101 SOLVED ASSIGN MENT
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

Ignou solved assignment eco 11 2014 to 2015 (demo)

  1. 1. TUTOR MARKED ASSIGNMENT Course Code : ECO - 11 Course Title : Element of Income Tax Assignment Code : ECO – 11/TMA/2014-15 Coverage : All Blocks Maximum Marks: 100 Attempt all the questions. Answer of Q.N.1. Concept of Residential Status of Individuals Under Section5,total income of an assessee isbe chargeable to tax depending upon the residential status of a personandplace and time of accrual of suchincome andthe rulesfor determining residential status of various typesof personsare containedinSection 6. Provisions for determination of the residential status are different for different categories of the assessee viz: a) individuals; b) Hindu Undivided Families (HUF c) Firms or Associations of Persons(AOP); d) Companies; and e) Every other person Residential status of individual Section 6(1): To determine the residentialstatusof anindividual,itisto be ascertained whether he is resident or a non – residentduringthe previousyear. Anindividual will be aresidentinIndiainanypreviousyear,if he satisfies at least one of the following TWO basic conditions: 1) He is in India in the previous year for a period of 182 days or more OR 2) He is in India for a period of 60 days or more during the previous year AND 365 days or more during 4 years immediately preceding the previous year But there are certain exception to these basic conditions. The Second condition of 60 days or more is extended to 182 days or more in following two circumstances: i. An IndiancitizenleavesIndia during the previous year for the purpose of taking up employment outside India. OR as a member of the crew of an Indian ship OR . ii. An Indian citizen or a person of Indian origin comes on visit to India during the previous year. For this purpose,apersonissaid to be of Indian originif eitherhe or any of his parents or any of his grandparents was born inundividedIndia. Inboththe above cases,an individual needs to be present in India for a minimum of 182 days or more to become resident in India instead of 60 days.
  2. 2. If the individual satisfies any of the two conditions, he is a resident in India and if he does not satisfy any of the conditions, he is a non resident during that particular assessment year. Resident and Ordinarily Resident [R & O R ]- Secion 6(6) : Once an individual satisfiesanyof the above twobasic conditionsforaparticularassessmentyear,nextstep wouldbe to determinewhetherhe will be a resident and ordinarily resident of India in that assessment year. Sec. 6(6) providesthata personwill be “resident and ordinarily resident” in India in any assessment year if he satisfies BOTH of the following two conditions: 1) he hasbeen residentinIndiainatleast 2 out of 10 previousyears accordingtothe above basicconditions immediately proceeding the relevant previous year. AND 2) in Indiafora periodof 730 daysor more during7 years immediatelyprecedingthe relevantpreviousyear. Resident and Not Ordinarily Resident [R &N O R ] A residentindividual,whodoesnotsatisfyBOTHof the above conditionsgivenabove,will be a Resident but NotOrdinarily ResidentinIndia. Inotherwords,anindividual becomesresidentbutnot ordinarilyresidentinIndiaIf he Satisfies at least one of the basic conditions but satisfies NONE of the additional conditions OR Satisfies ONLY ONE of the two additional conditions. Non Resident An individual isanon-residentinIndiaif he satisfies none of the basic conditions. It must be noted that if a personsatisfiesthe additional conditions but does not satisfy the basic conditions, he will still be treated as Non- Resident. In such a case, additional conditions are not relevant. From the above discussionitisbroughtoutthat an individual caneitherbe: (a) residentandordinarilyresidentinIndia; (b) residentbutnotordinarilyresidentinIndiaor (c) non-resident Answer of Q.N.2. COMPLETE SOLVED ASSIGNMENTS ARE AVAILABLE FOR ONLINE MEMBERS ONLY. BECOME ONLINE LEARNING MEMBER BY PAYING A NOMINAL FEE OF Rs.300 ONLY. SOME SOLVED QUESTION PAPERS WILL ALSO BE PROVIDED. FOR DETAILS CONTACT: KUMAR NIRMAL PRASAD, TINSUKIA (ASSAM) CONTACT NO. 9577097967
  3. 3. EMAIL: KUMARNIRMALPRASAD@GMAIL.COM WEBSITE: WWW.DYNAMICTUTORIAL.BLOGSPOT.COM Answer of Q.N.3. Annual Value (Section 23) The Annual Value of a house property is the inherent capacity of the property to earn income and it has beendefinedasthe amountforwhichthe propertymay reasonablybe expectedtobe letoutfrom year to year. It is not necessarythat the property should actually be let out. It is also not necessary that the reasonable return from property should be equal to the actual rent realized when the property is, in fact, let out. Computation of annual value: Computation of Annual Value for the determination of Income from House property requires three steps.  STEP 1 Determine the Gross Annual Value(GAV)  STEP 2 Determine the value of Municipal taxes  STEP 3 Compute the Net Annual Value STEP 1- Determine the Gross Annual Value (GAV): Calculation of GAV based on the following factors: 1) Fair Rental Value (FRV): The amount of rent which a similar property (similar to the house property the GAV of which is to be determined) in the same locality would fetch. 2) Municipal Rental Value (MRV):The value of the house propertyunderconsiderationasdeterminedbythe Municipal authorities for the purpose of levying Municipal taxes. 3) StandardRental Value (SRV):The maximum amount of rent which a person can recover from his tenant, legally, as determined by the Rent Control Act. 4) Expected Rental Value (ERV): The Fair rent or Municipal value, whichever is higher, subject to the Standard rent. 5) Unrealisedrent:The amountof rentwhichis notcapable of beingrealised. The amountof Unrealisedrent shall not be included in the actual amount of rent receivable from the house property if all the following for conditions are satisfied: a) Tenancy is in good-faith. b) The defaulting tenant has vacated or steps must have been taken to vacate such tenant. c) The defaulting tenant doesn't continue to occupy any other property of the assessee. d) Assesseehastaken all thereasonablesteps to proceed against the defaulting tenant legally or he must satisfy the assessing officer that if such steps are taken, it will be of no use. 6) Actual rent receivable (ARR): The amount of rent which is equal to the difference between the Rent receivable and the unrealised rent. 7) Unoccupied property: The House property which cannot be occupied by its owner by reason of his employment,businessorprofessionbeinginsome otherplace andhe residesatthatplace in a property not owned by him.
  4. 4. It shouldbe notedthatthe procedure fordeterminationof GrossAnnual Value isnotsame inall the cases. It variesaccordingto the givensituation.Varioussituationsandthe respective proceduresforcomputationof GAV are given below: 1) Property is letout throughout the previousyear (Section 23(1) (a)/ (b)): GAV = ERV or ARR, whichever is higher. 2) Let out property is vacant for a part of the year (Section 23(1) (c)): If the ARR < ERV only because the propertywasvacant for a part of the year,GAV = ERV. If the ARR < ERV forany otherreason, GAV = ERV. If the ARR > ERV even though it was vacant for a part of the year, GAV = ARR. In all the cases, ARR is computed for the let out period only and the ERV is for whole year as usual. 3) Self-occupied or Unoccupied property (Section 23(2)): GAV = Nil 4) Let out for a part of the year and self-occupied for a part of the year (Section 23(3)): GAV = Higher of ERV (calculated for the whole year) and ARR (calculated for let out period only) 5) Deemed to be let out property (Section 23(4)): This case arises when the assessee has more than one Self-occupiedpropertiesinapreviousyear.Insuchcase,onlyone of such properties istreated as self-occupied and the remaining shall be treated as Deemed to be let out properties. Here, GAV = ERV. 6) A portion of the property is let out and the remaining portion is self-occupied: GAV is calculated separatelyforself-occupiedpartandthe letoutpart. The valuesof FR,MV, SR and Municipal taxes are apportioned on the given basis. Thus, there is a scope for charging tax on Notional rent too. This happens when the GAV determined according to the above steps is the ERV. Now that the Gross Annual Value of the house property is determined, the next step is to determine the value of Municipal taxes paid that is deductible from the Gross Annual Value. STEP 2 - Determine the value of Municipal taxes: The municipal tax or the property tax paid is allowed as deduction from the Gross Annual Value if the following two conditions are satisfied. (a) The property is let out during the whole or any part of the previous year, (b) The Municipal taxesmustbe borne bythe landlord.If the Municipal taxesoranypart thereof are borne by the tenant, it will not be allowed. (c) The Municipal taxesmustbe paidduringthe year.Where the municipal taxesbecomedue buthave not been actually paid, it will not be allowed. STEP 3 - Compute the Net Annual Value: Gross Annual Value ++++++ Less: Municipal Taxes ++++++ Net Annual Value ++++++ Deductions allowable under section 24 of the income tax act Followingtwodeductionswill be allowable fromthe netannual value toarrive at the taxable income under the head ‘income from house property’:-
  5. 5. (a) Statutorydeduction:30 percent of the netannual value will be allowedasadeductiontowards repairs and collection of rent for the property, irrespective of the actual expenditure incurred. (b) Interestonborrowed capital: The interest on borrowed capital will be allowable as a deduction on an accrual basisif the money has been borrowed to buy or construct the house. It is immaterial whether the interest has actually been paid during the year or not. If money is borrowed for some other purpose, interest payable thereon cannot be claimed as deduction. Limit of deduction u/s 24(b) A. In case of Let out/ deemed to be let out house property: Interest on Money borrowed is allowed as deduction without any limit. Here interest on money borrowed = interest of P/Y + 1/5 of Pre-construction period (PCP) interest.PCPstartedfromthe date of borrowingandendedon31st mar immediately preceeding (Before) the year of completion. B. In Case of Self Occupied House Property: Max. Rs. 1,50,000 is allowed as deduction if the following conditions are satisfied:  Loan taken after 1 – 4 – 99  For construction/purchase (Capital expenditure) of house  Construction completed within 3years from the end of financial year in which loan is borrowed.  Loan certificate is obtained For all other cases maximum allowed deduction is Rs. 30000 Answer of Q.N.4. COMPLETE SOLVED ASSIGNMENTS ARE AVAILABLE FOR ONLINE MEMBERS ONLY. BECOME ONLINE LEARNING MEMBER BY PAYING A NOMINAL FEE OF Rs.300 ONLY. SOME SOLVED QUESTION PAPERS WILL ALSO BE PROVIDED. FOR DETAILS CONTACT: KUMAR NIRMAL PRASAD, TINSUKIA (ASSAM) CONTACT NO. 9577097967 EMAIL: KUMARNIRMALPRASAD@GMAIL.COM WEBSITE: WWW.DYNAMICTUTORIAL.BLOGSPOT.COM Answerof Q.N.5. COMPLETE SOLVED ASSIGNMENTS ARE AVAILABLE FOR ONLINE MEMBERS ONLY. BECOME ONLINE LEARNING MEMBER BY PAYING A NOMINAL FEE OF Rs.300 ONLY. SOME SOLVED QUESTION PAPERS WILL ALSO BE PROVIDED. FOR DETAILS CONTACT: KUMAR NIRMAL PRASAD, TINSUKIA (ASSAM)
  6. 6. CONTACT NO. 9577097967 EMAIL: KUMARNIRMALPRASAD@GMAIL.COM WEBSITE: WWW.DYNAMICTUTORIAL.BLOGSPOT.COM Notes: 1) Agricultural income is exemptbut it is integratedwithtotal income while calculatingIncome tax liability. 2) Rent from house property is assumedto be gross. 2) loss from speculationcan be setoff against income from speculation.

×