Question

From the following particulars calculate the salary income of Mr. Haridas (an employee of an individual) for the Assessment Year 2020-21 : ₹ Salary 11,000 per month House-rent allowance 4,800 per month Dearness allowance 10,000 per month Entertainment allowance 2.400 per month Mr. Haridas and his employer contribute to a recognised provident fund 14% of salary. One small car is allowed to him by his employer both for private and official use. Expenses of ear are borne by the employer. He lives in a rented house, monthly rent being 6,000. Mr. Haridas is working at Meerut.​

Answer 1

Answer:

The taxable income of Mr. Haridas For Assessment Year 2020-21 will be Rs. 2,65,840/-

Explanation:

TAXABLE INCOME will be 315840-50000 = 2,65,840/-

Step 1:

We have to find HRA that will be

1. Actual HRA received = 4800*12=57600
2. rent paid over 10% of salary=  46800

rent = 6000*12=72000

10% of salary = 252000 @10% = 25200

3. 40% of salary because he is staying in Meerut =

40% of 252000 = 100800

4. Taxable HRA = 57600-46800 = 10800

Step 2:

we will add

Basic salary = 132000

HRA               = 10800

DA                = 120000

Entertainment allowance= 28800

Small car mixed use   = 21600

RPF                  = 2640

TOTAL     = 315840

Less: standard deduction (50000)

TAXABLE INCOME will be 315840-50000 = 2,65,840/-

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