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Ignou Solved Assignment for ECO – 11 Elements of Income Tax

University  IGNOU
Service Type Solved Assignment
Course B.Com
Short Name or Subject Code Ignou Solved Assignment for ECO – 11: Elements of Income Tax
Product B.Com of Solved Assignment (IGNOU)
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1. Define agricultural income and give examples. Distinguish between agricultural income and partly agricultural income with examples. (20)

2. Smt. Renu is an employee of the Ambuja Company, Kolkata since 1st April, 1998. She has been fixed in the grade of Rs. 72,000-3,800-1,10,000 since January 2018. She gets 30% of basic pay as dearness allowance (Which is considered as pay for retirement benefits), Rs. 4,000/- p.m. as entertainment allowance and Rs. 4,500/- p.m. as travelling allowance. She has also received Rs. 800/- p.m. per son as education allowance and Rs. 1,400/- p.m. per son as hostel allowance to meet the cost of education of her three sons. She has been continuously getting entertainment allowance from the date of joining service. She has been provided by the company a rent-free unfurnished accommodation, the fair rent of which is Rs. 1,00,000/- p.a. The company has provided her to reimburse own medical expenses and during the financial year 2018-19 the company paid her in this connection Rs. 44,900/-. The expenses were incurred on treatment by a private doctor. She and her employer each contributed @ 10.5% in the Recognized Provident Fund. She paid during the financial year 2018-19 for travel in respect of official work Rs. 28,000/- as bus fare to the Roadways Corporation. Determine her taxable income under the head ‘Salaries’ for the assessment year 2019-20. (20)

3. What do you understand by Total Income? Is it different from G.T. I.? Explain with examples. (20)

4. Mr. Tata is the Executive Director of an MNC having its head office at Chennai. For the assessment year 2019-20 he submitted the following return :

(i) Salary @ Rs. 32,000 p.m. 3,84,000/-

(ii) Conveyance Allowance (spent for performance of duty) 48,000/-

(iii) Education Allowance for two children @ Rs. 1,200 p.m. 14,400/-

(iv) Cost of Electricity Bills paid by the Company 38,000/- Rs. 4,84,400/-

Less : (a) Entertainment Expenditure incurred on the Customers 26,000/-

(b) Donation to Gandhi National Memorial Fund 8,000/- 34,000/- Rs. 4,50,400/-


The following particulars are available on record :


(i) Mr. Tata paid Rs. 8,000 premium on his friend’s life policy in the previous year.

(ii) Paid Rs. 45,000 of tuition fees for his son in the previous year on the full time education.

(iii) Mr. Tata has kept in his occupation free of rent half portion of company’s premises at Chennai. Annual rent of the building is Rs. 2,00,000.

(iv) He has contributed Rs. 45,000 to a Recognised Provident Fund and has paid premium amounting to Rs. 1,80,000 on a life policy of Rs. 8,00,000 taken on 28th January, 2011.

(v) He took an advance salary of Rs. 1,00,000 in March, 2019.