Question

Q2. Mr. X is a regular employee of Rama & Co., in Gurgaon. He was appointed on 1.4.2018

in the scale of Rs. 20,000 – Rs. 1,000 – Rs. 30,000. He is paid 10% D.A. & Bonus equivalent

to one month pay based on salary of March every year. He contributes 15% of his pay and

D.A. towards his recognized provident fund and the company contributes the same amount.

He is provided free housing facility which has been taken on rent by the company at Rs. 10,000 per month. He is also provided with following facilities:

(i) Facility of laptop costing Rs. 50,000. (ii) Company reimbursed the medical treatment bill of his brother of Rs. 25,000, who is dependent on him. (iii) The monthly salary of Rs. 1,000 of a house keeper is reimbursed by the

company. (iv) A gift voucher of Rs. 10,000 on the occasion of his marriage anniversary. (v) Conveyance allowance of Rs. 1,000 per month is given by the company towards

actual reimbursement. (vi) He is provided personal accident policy for which premium of Rs. 5,000 is paid

by the company. (vii) He is getting telephone allowance @ Rs. 500 per month. (viii) Motor car owned by the employer (cubic capacity of engine exceeds 1.60 litres)

provided to the employee from 01.04.2018 meant for both official and personal

use. Repair and running expenses of Rs. 45,000 from 01.4.2018 to 31.03.2019

were fully met by the employer. The motor car was self-driven by the employeCompute the salary of Mr. X chargeable to tax in the assessment year 2019-20​


plz solve this question ​

Answer 1

The correct entry of expenses of Mr. X are -

Computation of income with salary

Basic salary( 20,000 x 2) = 2,40,000

- Allowance = 2,400

+ Bonus ( March) = 20,000

+ Employer contribution = 10,800

Working Notes -  

Meaning of Salary  

Basic salary = 2,40,000

D.A = 2400

= 2,64,000

15% of 2,64,000 = 3960

- Exemption = 28800

= 10800

Rent for accomodation -

15% of Salary ( 2,66,000 x 15%) = 39900

Rent paid ( 10,000 x 12) = 1,20,000

Salary

Basic = 2,40,000

Bonus = 20,000

TA = 6000

= 2,66,000

Laptop Facility = -  

+ Medical treatment = 25000

+ House Keeping = 12000

+ Gift Voucher = 10000

+ Medical Insurance = -

+ Telephone = 6000

+ Car facility = 28800

+ Conveyance = -

+ Gross Salary = 4,16,500

- Deduction = 40,000

Net salary = 3,75,500