Question

Mr. Mehta, a Chartered Accountant, is living at Kanpur and is
carrying on his profession there for the year 2017-18.He has supplied
the following particulars. Compute his total income and tax liability
IIIUS - 1 - 4
for the assessment year 2018-19:
(a) Professional gain Rs. 52,400
(b) Rent received from house in Delhi Rs.18,000 p.a
(c) Municipal taxes Rs.1,500 p.a
(d) Long-term capital gain Rs. 10,000.
(e) Part-time salary as lecturer in tax laws Rs.25,000.
(f) Rent paid at Kanpur Rs.2,000 p.m.
(g) Interest on Govt. securities Rs.19,000
He deposited Rs. 15,000 in PPF A/​

Answer 1

Explanation:

52400

+4950

+10000

+25000

+19000

Answer 2

Answer:

The total income of Mr.Mehta is ₹ $98900$

Mr. Mehta's tax liability is ₹ $83900$

Step-by-step-explanation:

Given: Profesional gain ₹$52,400$

          Rent received from a house in Delhi ₹ $18,000$ p.a

          Municipal taxes ₹$1,500$ p.a

          Long-term capital gain ₹  $10,000.$

          Part-time salary as a lecturer in tax laws ₹ $25,000.$

          Rent paid at Kanpur ₹ $2,000$ p.m.

           Interest recieved on the Govt. securities ₹ $19,000$

            He deposited ₹  $15,000$ in PPF

To find the Total income and tax liability of Mr. Mehta.

Solution:

• We have to first add all his incomes that he recieved from all the different sources

$52400+ 18000+ 10000 + 25000 + 19000 = 122400$

• From this, we are required to subtract the payments he made.

          $124400 - 1500 - 24000( 2000$ ×$12)$ $= 98900$

• Therefore his total income is ₹ $98900$
• From the total income, he has to subtract his deductions which is the deposit in the PPF account.

        $98900 - 15000 = 83900$

• Tax liability is ₹ $83900$ on which his tax has to be calculated.

Therefore, the total income is ₹ $98900$ and tax liability is $83900$.

PROJECT CODE: #SPJ1