Medical Insurance premium paid by cheque Rs. 22,000 Compute his taxable income from salary and tax liability for the assessment year 2020-21.
Medical Insurance premium paid by cheque Rs. 22,000 Compute his taxable income from salary and tax liability for the assessment year 2020-21.
Chapter3: Income Sources
Section: Chapter Questions
Problem 79P
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Question
Transcribed Image Text:QI.
Mahesh is a Finance Executive at X Ltd. His Income details are as follows:
Basic salary (per month)
Rs. 3,00,000
Deamess allowance (forming part of salary)
30% of basic salary
Transport allowance
Rs. 3,600 pm
(for commuting between place of residence and office)
Motor car running and maintenance charges fully paid by employer
Rs. 40,000
(The motor car is owned and driven by Mahesh. The engine cubic
capacity of car is below 1.60 litres. The motor car is used both for
official and personal purpose by Mahesh)
Rent Free Furnished Accommodation provided by the employer in
Delhi.
Cost of furniture
Rs. 1,00,000
Two Air conditioners taken on hire by the employer and installed in the
accommodation. Hire Charges of each air conditioner is Rs. 2,000 p.a.
Expenditure on accommodation in hotels while touring on official duties
Rs. 30,000
met by employer
Cost of Computer provided by the employer to Mahesh from 1.10.2019
Mahesh made the following payments:
Rs. 50,000
Tuition fee paid for 2 children studying post-graduation courses at
Madras University
Rs. 1,60,000
Donation to Government for promoting family planning
Rs. 50,000
Medical Insurance premium paid in cash
Rs. 5,000
Medical Insurance premium paid by cheque
Rs. 22,000
Compute his taxable income from salary and tax liability for the assessment
2020-21
Q2.
Mr. G owns 3 houses. These houses are used by him for his residential purposes. These houses
are not let out during any part of the previous year 2019-20. All these houses are not used for a
other purposes. The following information is noted from the records of Mr. G:
House I
House2
House 3
Municipal value or fair rent, whichever is higher
12,00,000 12,70,000 27,60,000
(but subject to maximum of standard rent)
Municipal taxes paid by Mr. G
40,000
1,20,000 1,90,000
Interest on capital borrowed to purchase properties
11,000 1,70,000
(date of borrowing in all cases is after April 1, 1999)
Interest on capital borrowed to finance repair, renewal or
2,10,000
7,89,000 14,00,000
reconstruction of house properties
Compute net income for the assessment year 2020-21.
Q3.
X (age: 66 years), a resident individual, furnishes the following particulars for the previous year
2019-20:
Profit and Loss Account for the year ending March 31, 2020
Particulars
Amount (Rs.)
Particulars
Amount (Rs.)
Salary to staff
13,000 Gross profit
4,49,700
Staff welfare expenditure
6,000 Sundry receipts
4,400
General expenses
6,500 Short-term capital gains
3,000
Bad debts
3,000
Advance tax for the assessment year
400
2018-19
Fire insurance
4,000
Advertisement expenses
11,000
Interest on X's capital and loan
3,600
Expenditure on acquisition of a
2,800
copyright incurred on March 1, 2020
(it is put to use on the same day)
Lump sum consideration for
12.000
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Taxable income:
Taxable income can be defined as the income of individual or corporates on which the tax liability is calculated by multiplying the tax rate. Taxable income is calculated after making various allowed deduction from the adjusted gross income of the individual and corporates.
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