ECO 11 Solved Question Paper June 2026 gives you complete answers to the Elements of Income Tax term-end paper that IGNOU set on A.Y. 2024-25 law, from the 14-mark total income sum to the short note on bond washing. Two answers are open below so you can judge the depth. All 12 answers sit in the full file, shared on WhatsApp 9899436384.
ECO 11 key facts for the June 2026 term-end paper
- Course code: ECO-11 (printed as ECO-011 on the June 2026 paper, paper code A-1172)
- Subject: Elements of Income Tax (eGyanKosh title: Elements of Income-Tax)
- Programme: IGNOU Bachelor's Degree Programme (BDP), Bachelor of Commerce, Elective Course: Commerce
- Credits: 4
- Blocks and units: 4 blocks, 13 units
- Maximum marks: 50 (assignment carries 30% weightage in the final result)
- Duration: 2 hours
- Questions in the paper: 6 printed questions, 12 answerable items (Q1, Q2, Q3(a), Q3(b), Q4(a), Q4(b), Q5(a), Q5(b), Q6(a) to Q6(d))
- Samples shown on this page: 2 (Q1 and Q2)
- Answers in the paid file: All 12 answers, including the 10 not shown on this page
What the ECO 11 Solved Question Paper June 2026 covers
ECO 11 Elements of Income Tax is the income tax elective of IGNOU's B.Com under the Bachelor's Degree Programme (BDP), taught through 4 blocks and 13 units on the Income Tax Act, 1961.
The June 2026 paper runs for 2 hours and 50 marks. Question 1 is compulsory: a 14-mark computation of Shri Apoorav's taxable income for A.Y. 2024-25 that mixes house property, three businesses, a long-term capital gain on a building, a lottery win and a life insurance premium. You then pick any three of Questions 2 to 6.
Those five optional questions reach all four blocks of the course. They ask about perquisites and the rent-free house, entertainment allowance under Section 16(ii), the unrecognised provident fund, a house that is self-occupied for part of the year, capital gains, Gross Total Income, tax authorities, and four short notes ending with the bond washing transaction.
One detail worth knowing: the Q1 figures are the same set IGNOU used for Shri Apoorva in BCOC-136 Income Tax Law and Practice, June 2022, Question 6 (20 marks, A.Y. 2021-22). Same eight items, same amounts, a new assessment year. So a careful head-wise working of this sum serves students of both courses.
ECO 11 sample answers: Q1 total income and Q2 rent-free house
Two complete answers from the June 2026 paper are shown here, Question 1 (14 marks) and Question 2 (4+8 marks); the other 10 answers are in the full file only.
Both answers below were written by our subject experts for this page, at the length the marks call for. Question text is reproduced as printed, including the paper's own spelling.
Question 1 (14 marks)
1. The following are the particulars of Shri Apoorav for the A.Y. 2024-25. Compute his taxable income: (i) Income from house property (computed) ₹25,000; (ii) LTCG on building ₹30,000; (iii) Winning from lottery ₹80,000; (iv) Life insurance premium paid ₹1,000; (v) Interest on Govt. Securities ₹12,000; (vi) Income from cloth business ₹1,25,000; (vii) Profit from business of growing mushrooms ₹40,000; (viii) Profit from business of dairy farming ₹15,000. (14)
Answer
Shri Apoorav is taken as a resident individual. The question lists a life insurance premium, which is deductible only under the old tax regime, so the working follows the old regime. A note on the new regime is given at the end.
| Particulars | ₹ | ₹ |
|---|---|---|
| I. Income from House Property (computed, as given) | 25,000 | |
| II. Profits and Gains of Business or Profession | ||
| Income from cloth business | 1,25,000 | |
| Profit from growing mushrooms (Note 1) | 40,000 | |
| Profit from dairy farming (Note 2) | 15,000 | 1,80,000 |
| III. Capital Gains: LTCG on building (Note 3) | 30,000 | |
| IV. Income from Other Sources | ||
| Interest on Government securities (Note 4) | 12,000 | |
| Winning from lottery (Note 5) | 80,000 | 92,000 |
| Gross Total Income | 3,27,000 | |
| Less: Deduction under Section 80C, life insurance premium (Note 6) | (1,000) | |
| Taxable (Total) Income | 3,26,000 |
Note 1, mushrooms. Under Section 2(1A), income is agricultural only when it comes from land used for agriculture and involves basic operations on that land, such as tilling and sowing. Mushrooms are usually grown indoors on compost beds or trays, not by cultivating the soil, so the ₹40,000 is business income.
Note 2, dairy farming. In CIT v. Raja Benoy Kumar Sahas Roy (1957), the Supreme Court held that agriculture needs basic operations on land, and that activities like dairy farming are not agriculture by themselves. The ₹15,000 is therefore taxed as business income, not exempt as agricultural income.
Note 3, LTCG on building. The ₹30,000 is taxed under Capital Gains at the special rate of 20% under Section 112. Section 112(2) does not allow Chapter VI-A deductions against this gain.
Note 4, interest on Government securities. Interest on securities is fully taxable under Income from Other Sources. No exemption applies to ordinary Government securities.
Note 5, lottery. Lottery winnings are casual income under Section 56(2)(ib), taxed at a flat 30% under Section 115BB. No expense, no Chapter VI-A deduction and no basic exemption limit can be set against them.
Note 6, life insurance premium. The ₹1,000 premium qualifies under Section 80C, within the overall limit of ₹1,50,000, assuming it is within 10% of the sum assured. It is deducted from the normal-rate income, which at ₹2,17,000 is large enough to absorb it.
How the ₹3,26,000 is taxed. Normal-rate income is ₹2,16,000 (₹25,000 + ₹1,80,000 + ₹12,000 - ₹1,000). The LTCG of ₹30,000 is taxed at 20% and the lottery win of ₹80,000 at 30%. Together: ₹2,16,000 + ₹30,000 + ₹80,000 = ₹3,26,000.
Note on the new regime. From A.Y. 2024-25, Section 115BAC is the default regime. Under it, Section 80C is not allowed, so total income would stay at ₹3,27,000. In the exam, add this one line, but present the old-regime working because the question gives the premium as a deduction item.
Question 2 (4+8 marks)
2. What do you understand by 'prequisites'? Explain the method of valuation of Rent-Free House with an example. (4+8)
Answer
Meaning of perquisites (4 marks). The paper prints "prequisites"; the term in the Act is perquisites. A perquisite is a benefit or facility, in cash or kind, that an employee gets from the employer over and above salary, by virtue of the job. It is taxed under the head Salaries.
Section 17(2) gives an inclusive definition. It covers the value of rent-free accommodation, the value of any concession in rent, benefits given without charge or at a concession to specified employees, any obligation of the employee paid by the employer, and life insurance or annuity premiums paid by the employer. It also covers specified securities or sweat equity shares, and employer contributions to PF, NPS and superannuation above ₹7,50,000 a year.
For valuation, perquisites fall into three groups: those taxable for all employees (such as rent-free accommodation), those taxable only for specified employees (such as a gardener or sweeper), and those that are tax-exempt (such as refreshment during office hours or a laptop given for use).
Valuation of a rent-free house (8 marks). The value is worked out under Rule 3(1) of the Income-tax Rules, 1962. CBDT Notification No. 65/2023, dated 18 August 2023, revised the rates with effect from 1 September 2023 and moved the city bands to the 2011 census.
1. Government employees. For Central and State Government employees, the perquisite is the licence fee fixed by the Government for such accommodation, as reduced by any rent the employee actually pays.
2. Other employees, unfurnished house owned by the employer. The value is a percentage of salary, based on the population of the city where the house is located, as shown in the table below.
| City population | Up to 31 August 2023 (2001 census) | From 1 September 2023 (2011 census) |
|---|---|---|
| Largest cities | 15% of salary (above 25 lakh) | 10% of salary (above 40 lakh) |
| Middle band | 10% of salary (10 lakh to 25 lakh) | 7.5% of salary (15 lakh to 40 lakh) |
| Other places | 7.5% of salary | 5% of salary |
3. House taken on lease or rent by the employer. The value is the actual lease rent paid by the employer or 10% of salary (15% before 1 September 2023), whichever is lower.
4. Furnished house. Add 10% a year of the cost of furniture and appliances if the employer owns them, or the actual hire charges if they are hired from a third party.
5. Hotel accommodation. The value is 24% of salary or the actual hotel charges, whichever is lower. No perquisite arises if the stay is for 15 days or less on transfer.
6. Rent paid by the employee. Any rent the employee pays is deducted from the value worked out above. From 1 September 2023, the value for an employer-owned house kept by the same employee after the first year is also capped using the Cost Inflation Index.
Meaning of salary for Rule 3. Salary includes basic pay, dearness allowance (only if it forms part of retirement benefits), bonus, commission, fees, taxable allowances and other monetary payments. It excludes the value of perquisites, the employer's provident fund contribution and exempt allowances.
Example. Mr Rohan works for a private company in Delhi (population above 40 lakh as per the 2011 census) and is given a furnished, employer-owned flat from 1 April 2024. For P.Y. 2024-25 he gets basic pay of ₹40,000 a month, dearness allowance of ₹10,000 a month (part of retirement benefits) and a bonus of ₹30,000. Furniture cost the employer ₹1,00,000, and Mr Rohan pays rent of ₹2,000 a month.
| Particulars | ₹ |
|---|---|
| Basic pay (₹40,000 x 12) | 4,80,000 |
| Dearness allowance (₹10,000 x 12) | 1,20,000 |
| Bonus | 30,000 |
| Salary for Rule 3 | 6,30,000 |
| 10% of salary (city above 40 lakh) | 63,000 |
| Add: 10% of furniture cost of ₹1,00,000 | 10,000 |
| Less: rent paid by Mr Rohan (₹2,000 x 12) | (24,000) |
| Taxable value of the perquisite | 49,000 |
If the employer had instead leased the flat at ₹5,000 a month, the house value would be the lower of ₹60,000 (actual rent) and ₹63,000 (10% of salary), that is ₹60,000. Adding furniture of ₹10,000 and deducting rent of ₹24,000 gives a perquisite of ₹46,000.
Questions answered only in the full file
The 10 items below are printed exactly as they appear in the June 2026 paper. Their answers are not on this page; they are in the full file.
3. (a) What are the provisions of Section 16(ii) regarding entertainment allowance for non-government employees? (6)
3. (b) What are the provisions regarding unrecognized provident fund in Income Tax Act, 1961? (6)
4. (a) How would you determine the annual value of house property, which is self occupied for a part of the year and let out for the removing part of the year? (6)
4. (b) What do you understand by capital gain? Differentiate between short term gain and long term capital gain. (2+4)
5. (a) What is Gross Total Income? Give the imaginary example of computing Gross Total Income. (6)
5. (b) What are the different Tax Authorities and what are their functions? (6)
6. (a) Write short notes on any two of the following: Agricultural Income (6)
6. (b) Write short notes on any two of the following: Exempted Income (6)
6. (c) Write short notes on any two of the following: Person (6)
6. (d) Write short notes on any two of the following: Bond Washing Transaction (6)
ECO 11 Elements of Income Tax syllabus: four blocks, 13 units
ECO 11 is split into 4 blocks and 13 units: Fundamentals, Salaries, Other Heads of Income and Assessment of Individual.
The table shows where each June 2026 question comes from, so you can see which block carries the most marks. Block 4 alone holds the compulsory 14-mark computation.
| Block | Units | Key topics | June 2026 questions |
|---|---|---|---|
| Block 1: Fundamentals | Unit 1 Basic Concepts-I; Unit 2 Basic Concepts-II; Unit 3 Residential Status and Tax Liability; Unit 4 Exempted Incomes under Section 10 | Person and assessee, agricultural income, residential status, Section 10 exemptions | Q6(a), Q6(b), Q6(c) |
| Block 2: Salaries | Unit 5 Salaries-I; Unit 6 Salaries-II; Unit 7 Salaries-III | Allowances such as entertainment allowance, perquisites and rent-free accommodation, provident funds and gratuity | Q2, Q3(a), Q3(b) |
| Block 3: Other Heads of Income | Unit 8 Income from House Property; Unit 9 Capital Gains; Unit 10 Income from Other Sources | Annual value of a let-out or part-year self-occupied house, short-term and long-term gains, lottery and securities income | Q4(a), Q4(b), Q6(d) |
| Block 4: Assessment of Individual | Unit 11 Deductions from Gross Total Income; Unit 12 Computation of Total Income; Unit 13 Filing of Return and Tax Authorities | Section 80C and other Chapter VI-A deductions, head-wise total income, income tax authorities | Q1, Q5(a), Q5(b) |
Read the units first in our ECO 11 Study Material, which follows the same block order, then test yourself on the questions each block feeds.
The block and unit titles above are taken from IGNOU's own repository. You can check them on the official ECO-11 Elements of Income-Tax page on eGyanKosh.
IGNOU ECO 11 Question Paper pattern and marks split
The ECO 11 Question Paper carries 50 marks in 2 hours: a compulsory 14-mark Question 1 plus any three of Questions 2 to 6 at 12 marks each.
| Question | What it asks in June 2026 | Marks split | Choice |
|---|---|---|---|
| Q1 | Taxable income of Shri Apoorav, A.Y. 2024-25 (numerical) | 14 | Compulsory |
| Q2 | Perquisites and rent-free house valuation with example | 4+8 | Any three of Q2 to Q6 |
| Q3 | Entertainment allowance under Section 16(ii); unrecognised provident fund | 6+6 | Any three of Q2 to Q6 |
| Q4 | Part-year self-occupied house; capital gain and short term vs long term | 6+(2+4) | Any three of Q2 to Q6 |
| Q5 | Gross Total Income with example; tax authorities and functions | 6+6 | Any three of Q2 to Q6 |
| Q6 | Short notes: agricultural income, exempted income, person, bond washing | 6+6 | Any two of four notes |
So the maximum is 14 + (3 x 12) = 50 marks. Since every paper since June 2021 has used this same 2-hour, 50-mark layout, practising with an IGNOU Previous Year Question Paper set trains your timing for exactly this split.
Budget roughly 35 minutes for Q1, because a head-wise table with notes is what earns full marks, and about 25 minutes for each 12-mark question. Leave 10 minutes to recheck totals.
Income tax topics that repeat across ten ECO 11 papers
Across the ten official ECO 11 papers from June 2021 to December 2025, the total income sum, capital gains, annual value of house property and agricultural income appeared in eight or nine sessions each.
We read every one of those ten papers on IGNOU's own sites (webservices.ignou.ac.in and ignou.ac.in): June 2021, December 2021, June 2022, December 2022, June 2023, December 2023, June 2024, December 2024, June 2025 and December 2025. No session in that range was missing.
| Topic | Sessions where it was asked (question) | Times asked out of 10 | In June 2026? |
|---|---|---|---|
| Total income computation as compulsory Q1 | June 2021, June 2022, December 2022, June 2023, December 2023, June 2024, December 2024, June 2025, December 2025 (all Q1) | 9 | Yes, Q1 |
| Capital gains in any form (meaning, capital assets, indexation, Section 54F, numericals) | June 2021 Q4(a), December 2021 Q5(a), June 2022 Q3(a) and Q4, December 2022 Q6(b), June 2023 Q4(b), June 2024 Q6(c), December 2024 Q2(b), June 2025 Q4(b), December 2025 Q4(b) | 9 | Yes, Q4(b) |
| Annual value of house property | June 2021 Q3(a), December 2021 Q2(a), December 2022 Q3(a), June 2023 Q3(a) and Q4(a), June 2024 Q4(b), December 2024 Q3, June 2025 Q4(a), December 2025 Q4(a) | 8 | Yes, Q4(a) |
| Agricultural or partly agricultural income | June 2021 Q5(b), December 2021 Q6(c), June 2022 Q2, December 2022 Q6(c), June 2023 Q6(c), December 2023 Q2(a), June 2025 Q5, December 2025 Q2(b) | 8 | Yes, Q6(a) |
| Residential status | June 2021 Q3(b), December 2021 Q3(b), June 2022 Q3(b), December 2022 Q3(b), December 2023 Q2(b) and Q3, June 2025 Q3(a), December 2025 Q3 | 7 | No |
| Provident funds (types, statutory, recognised, unrecognised) | June 2021 Q2, December 2022 Q4, June 2023 Q3(b), June 2024 Q6(a), December 2024 Q2(a), June 2025 Q3(b) | 6 | Yes, Q3(b) |
| Gratuity | June 2021 Q6(d), June 2022 Q6(d), December 2022 Q2(a), June 2023 Q2(a), June 2025 Q2(a), December 2025 Q2(a) | 6 | No |
| Deductions under Sections 80C, 80D or 80G as a theory question | December 2022 Q6(a), June 2023 Q6(b), December 2023 Q6(b), June 2024 Q6(d), June 2025 Q6(b), December 2025 Q6(c) | 6 | No (80C appears inside Q1) |
| Clubbing of income | June 2023 Q6(a), December 2023 Q5, December 2024 Q4, June 2025 Q6(a), December 2025 Q5 | 5 | No |
| Perquisites (rent-free house, motor car) | December 2021 Q4, June 2022 Q5, June 2024 Q4(a) | 3 | Yes, Q2 |
| Casual income | December 2021 Q6(a), June 2024 Q2(a), December 2024 Q6(a) | 3 | No |
| Exempted income | June 2021 Q4(b), December 2024 Q6(d) | 2 | Yes, Q6(b) |
| Tax authorities | June 2023 Q5 | 1 | Yes, Q5(b) |
| Total income versus gross income | December 2024 Q5(b) | 1 | Yes, Q5(a) |
| Entertainment allowance (as its own question) | December 2024 Q6(c) | 1 | Yes, Q3(a) |
| Person | December 2025 Q6(b) | 1 | Yes, Q6(c) |
| Bond washing transaction | June 2025 Q6(c) | 1 | Yes, Q6(d) |
The June 2023 paper is the closest match to June 2026. Its Q3(b) on the unrecognised provident fund is worded the same as this year's Q3(b), its Q3(a) asks the same part-year self-occupied house question as this year's Q4(a), and its Q5 opens with the same tax authorities question as this year's Q5(b).
If you are short on time, revise the four topics that appear eight or nine times first. Our IGNOU Important Questions files rank topics the same way, by how often IGNOU actually sets them.
How our ECO 11 answers are drafted and checked
Each ECO 11 answer is written from the IGNOU self-learning material, applies the law for the assessment year named in the question, and is checked by a second subject expert before it goes into the file.
Answers are drafted by Prateek Talwar, who writes our commerce answers, and reviewed by Sheetal Kirola. Every numerical answer is reworked by the reviewer from scratch, and the totals must match before the answer is accepted.
Income tax rules change every year, which is where many ready-made answers go wrong. This paper sets Q1 in A.Y. 2024-25, the first year in which the new regime under Section 115BAC became the default, and the rent-free house rules changed on 1 September 2023. Our answers state which rule applies and why.
Length follows the marks. A 12-mark theory answer runs to about two pages with headings, a 6-mark note to about one page, and every numerical is set out as a head-wise table with numbered notes, the format IGNOU examiners reward in this course. That is what makes this IGNOU ECO 11 Solved Question Paper usable as a model for your own answers.
ECO 11 solved file index: all 12 answers mapped to units
The full ECO 11 file has 12 answers: 2 are shown on this page and 10 are in the full file only.
| Question | Topic | Course unit | Marks | Where to find the answer |
|---|---|---|---|---|
| Q1 | Taxable income of Shri Apoorav, A.Y. 2024-25 | Units 11 and 12 | 14 | On this page |
| Q2 | Perquisites and rent-free house valuation | Block 2 (Units 5 to 7) | 4+8 | On this page |
| Q3(a) | Entertainment allowance under Section 16(ii) | Block 2 (Units 5 to 7) | 6 | Full file only |
| Q3(b) | Unrecognised provident fund | Block 2 (Units 5 to 7) | 6 | Full file only |
| Q4(a) | Annual value of a part-year self-occupied house | Unit 8 | 6 | Full file only |
| Q4(b) | Capital gain, short term vs long term | Unit 9 | 2+4 | Full file only |
| Q5(a) | Gross Total Income with an example | Units 11 and 12 | 6 | Full file only |
| Q5(b) | Tax authorities and their functions | Unit 13 | 6 | Full file only |
| Q6(a) | Short note: agricultural income | Unit 2 | 6 | Full file only |
| Q6(b) | Short note: exempted income | Unit 4 | 6 | Full file only |
| Q6(c) | Short note: person | Unit 1 | 6 | Full file only |
| Q6(d) | Short note: bond washing transaction | Unit 10 | 6 | Full file only |
All four Q6 notes are answered in the file, even though the exam asks for only two, so you can choose the pair you know best on the day. The same index layout runs across our BCOM Question Paper pages, so you can plan other electives the same way.
Programmes that study ECO 11 Elements of Income Tax
ECO 11 is an elective course in commerce in IGNOU's B.Com under the Bachelor's Degree Programme (BDP), offered by the School of Management Studies.
eGyanKosh lists ECO-11 among the B.Com electives of the BDP, alongside courses such as ECO-10 Elements of Costing and ECO-12 Elements of Auditing. Students of the IGNOU Bachelor Degree Programme (BDP) / Bachelor of Commerce take it as their income tax paper.
The newer CBCS B.Com (General) teaches income tax through BCOC-136 Income Tax Law and Practice, whose study material is partly adapted from ECO-11. That shared content is why the June 2026 Q1 data set also appeared in BCOC-136 in June 2022.
Get the full ECO 11 Solved Question Paper on WhatsApp
Message us on WhatsApp 9899436384 to get the full ECO 11 Solved Question Paper June 2026 with all 12 answers, including the 10 not shown on this page.
Send the code "ECO 11 June 2026" so we share the right file. You get the remaining answers on entertainment allowance, the unrecognised provident fund, the part-year house, capital gains, Gross Total Income, tax authorities and all four short notes, set out the same way as the two samples above.
ECO 11 Elements of Income Tax FAQs
These eight answers cover the ECO 11 June 2026 paper, the WhatsApp file, the Q1 and Q2 rules, and the topics IGNOU repeats.
How do I get the full ECO 11 June 2026 solved paper on WhatsApp?
Send a WhatsApp message to 9899436384 with the code "ECO 11 June 2026". We reply with the full solved file, which has 12 answers covering every item in the paper. Two of them, Question 1 and Question 2, are shown on this page as samples, so the file gives you the other 10 answers along with those two, laid out in the same head-wise, exam-length format.
Which ECO 11 question is compulsory in the June 2026 paper?
Question 1 is compulsory and carries 14 marks. It asks you to compute the taxable income of Shri Apoorav for A.Y. 2024-25 from eight items, including house property, three businesses, a capital gain, lottery winnings and a life insurance premium. After that, you answer any three of Questions 2 to 6, each worth 12 marks, for a total of 50 marks in 2 hours.
Why are mushroom and dairy profits taxed as business income in ECO 11 Q1?
Both fail the test for agricultural income under Section 2(1A). Agricultural income needs land used for agriculture and basic operations on that land, such as tilling and sowing. Mushrooms are usually grown indoors on compost, and dairy farming is an allied activity, as the Supreme Court explained in the Raja Benoy Kumar Sahas Roy case. So both profits go under business income.
Which rent-free house rates does the ECO 11 sample answer use?
It uses Rule 3 as revised by CBDT Notification No. 65/2023, effective from 1 September 2023. For an employer-owned house given to a non-government employee, the value is 10%, 7.5% or 5% of salary, depending on whether the city population under the 2011 census is above 40 lakh, between 15 and 40 lakh, or lower. The older 15%, 10% and 7.5% rates are also shown.
Which ECO 11 Elements of Income Tax topics repeat most often?
In the ten official papers from June 2021 to December 2025, the total income computation and capital gains each appeared nine times, while annual value of house property and agricultural income appeared eight times each. Residential status came up seven times, and provident funds, gratuity and Chapter VI-A deductions six times each. All four top topics appear again in June 2026.
Does the ECO 11 solved paper follow the eGyanKosh blocks?
Yes. Every answer is mapped to the four eGyanKosh blocks of ECO-11: Fundamentals, Salaries, Other Heads of Income and Assessment of Individual. The file index on this page shows the unit behind each question, so you can see that Block 4 carries the 14-mark Question 1 and that Block 2 supplies Question 2 and both parts of Question 3.
Is ECO 11 useful for BCOC 136 students as well?
Yes, in part. IGNOU's BCOC-136 Income Tax Law and Practice material is partly adapted from ECO-11, and the June 2026 ECO 11 Question 1 uses the same eight figures that BCOC-136 set as Question 6 in June 2022. The law year differs, so BCOC-136 students should still check the assessment year their own paper names before copying any working.
Who writes and checks the ECO 11 answers?
The answers are written by Prateek Talwar, who prepares our commerce answers for IGNOU courses, and reviewed by Sheetal Kirola. The reviewer reworks every numerical answer independently, and the figures must match before an answer goes into the file. Each answer also states which assessment year's law it applies, since income tax rules for ECO 11 change from year to year.