Mr. Anurag is in a government service. His basic salary is 50,000 p.m. and he is getting dearness allowance @ 63% of the basic salary it comes under the terms of employment). He contributes 10% of his basic salary in notified pension scheme. The central government contributes the same amount. He contributes 60,000 to public provdent fund and paid 25000 as preminum as his life policy compute the taxable income of mr. anurag for the assessment year 2020_2021 .
Answers
Taxable income of Mr. Anurag for the assessment year 2020_2021 is Rs. 7,45,200
Given,
Mr. Anurag is in a government service. His basic salary is 50,000 p.m. and he is getting dearness allowance @ 63% of the basic salary it comes under the terms of employment). He contributes 10% of his basic salary in notified pension scheme. The central government contributes the same amount. He contributes 60,000 to public provdent fund and paid 25000 as preminum as his life policy.
To find,
Compute the taxable income of mr. anurag for the assessment year 2020_2021 .
Solution,
Rs. Rs.
Rs. Basic salary @ 50,000 p.m. 6,00,000
Dearness allowance 3,78,000
Contribution towards pension scheme 10% on 9,78,000 97,800
Gross Salary 10,75,800
Less: Standard deduction 50,000
Net Salary 10,25,800
Less: Deduction u/s 80 C
U/s 80 C for LIP & PPF (Rs. 25,000 + Rs. 60,000) 85,000
U/s 80 CCD (1) contribution on to NPS 47,800
(Being the amount contributed – Deduction 1,32,800
allowed U/s 80 CCD (1B) i.e. 97,800 – 50,000
not exceeding 10% of salary)
1,32,800
(Amount u/s 80 C, 80 CCC and 80 CCD (1) is 50,000
limited to Rs. 1,50,000 hence u/s 80 CCD (1B) Amount
Deposited in NPS (10% of salary or Rs. 50,000
(whichever is less) i.e. Rs. 97,800 of Rs. 50,000)
U/s 80CCD (2) for employer's contribution to NPS 97,800 2,80,600
upto 10% of salary of Mr. Anurag
Taxable Income 7,45,200