Question

The following particulars relate to the income of sri m. Mehta for the previous year 2019-

2020.:

He is employed in a cotton textile mill at Bangalore on a monthly salary of Rs. 25000 p.m. he

is also entitled to commission @ 1% of the sales achieved by him. The sales achieved by him

during the previous year is Rs. 4000000. He received the following allowances and

perquisites during the previous year:

a) Dearness allowances @ Rs. 6000 p.m. (forming part of retirement salary).

b) Bonus @ 2 months basic salary

c) Entertainment allowance @ Rs. 2000 p.m.

d) House rent allowance @ Rs. 5000p.m.

e) The employer paid Rs. 11000 towards the income tax liability of sri m Mehta.

f) He is also provided with gas, electricity and water facility and employer spent Rs. 15000

on these facilities.

g) He and his employer both contribute 15% of his salary to his recognized provided fund

and interest credited to this fund @9% amounted to Rs. 30000 during the previous year.

h) He spent Rs. 6000 p.m. as rent of the house in Bangalore.

i) He provides a car (above 1.6 lt.) to m. Mehta which is used for official work and is also

used by Mehta for commuting from his residence to office and back.

j) He is given children education allowance of Rs. 70 p.m. per child for his four children.

k) He contributes Rs. 10000 as premium on medical insurance policy taken for his father.

Compute his taxable income and tax liability for the assessment year 2020-2021.​

Answer 1

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Answer 2

The following particulars related to the income of Sri M. Mehta for the previous year 2019-20. He is employed in a cotton textile mill at Bangalore on amonthly salary of k25,000 p.m. He is also entitled to commission@ 1% of the sles achieved by him. The sales achieved by him during the previous year is 40,00,000. He received the following allowances and perquisites during the previous year: (