Question

Mr. Anil working in Mumbai had provided the following information for the previous year______________;

• Salary – Rs. 20,000 per month

• Bonus equal to six months’ salary

• Transport Allowance (for coming to the office and going back to his residence) at Rs. 650 per month.

• Entertainment Allowance – Rs. 500 per month

• Received House rent Allowance of Rs. 3,000 per month from the employer, but he paid a rent of Rs. 4,000 per month

• Personal Medical Bills of Rs. 32,200 were reimbursed by the employer. His treatment has been done in a private nursing home not belonged to the employer.

• His contribution to Company’s Recognized Provident Fund is Rs. 18,000 and the employer contributes an equal amount. The interest credited to PF account 9.5% p.a., Rs. 12,000.

• Interest on Government Securities – Rs. 3,000

• Income from Units of Mutual fund – Rs. 5,500 (Gross)

• Interest on Post Office Saving Bank – Rs. 6,500

• Donation paid to Prime Minister’s Drought Relief Fund – Rs. 2,500 by cheque.

• Donation paid to Government for Promotion of family planning – Rs. 2,000

• Life Insurance Premium paid during the year – Rs. 4,200

Compute total taxable income and tax liability thereon.

Answer 1

1. COMPUTATION OF TOTAL INCOME AND NET TAX LAIBILITY OF Mr.ANIL



WORKING NOTES
1.

WORKING NOTE 2