Question

Subodh, aged 41 years, gives the following particulars of his income received from
Nalanda Ltd. for the year ended 31st March, 2014 :

Salary after deduction of income-tax at source and own
contribution to recognised provident fund 9,00,000
Income-tax deducted at source 80,000
Own contribution to recognised provident fund 1,45,000
Employer's contribution to the provident fund 1,40,000
Interest credited to provident fund @11% per annum 2,89,000
House rent allowance (actual rent paid by Subodh for the house in
Delhi was 1,08,000) in addition to salary of 9,00,000 as
given above. 1,20,000
He is given free use of 1200 CC car by the employer for domestic as well as official
purposes (with effect from 1st November, 2012) and all expenses including driver's salary
being met by the employer. He is also provided free services of a watchman
(with effect from 1st May, 2013) and a sweeper (with effect from 1st December, 2012).
Salary (2,675 per month per person) is paid by the employer.
Subodh pays life insurance premium of 4,000 on his own life (sum assured 1,00,000).
His income from other sources is 2,40,000.
Compute total income and tax liability of Subodh for the assessment year 2014-15.

Answer 1

Answer:

Salary after deduction of income-tax at source and own

contribution to recognised provident fund 9,00,000

Income-tax deducted at source 80,000

Own contribution to recognised provident fund 1,45,000

Employer's contribution to the provident fund 1,40,000

Interest credited to provident fund @11% per annum 2,89,000

House rent allowance (actual rent paid by Subodh for the house in

Delhi was 1,08,000) in addition to salary of 9,00,000 as