prepare a budget by analyzing a fictional character’s finances, using a cash flow chart. Answers need...

prepare a budget by analyzing a fictional character’s finances, using a cash flow chart.

Answers need to be accurate to the nearest cent.

Expert Solution

Salary Structure	Monthly	Yearly	Exemption	Taxable Salary
Basic Salary	Rs. 59,000.000	Rs. 708,000.000		Rs. 708,000.000
HRA	Rs. 29,500.000	Rs. 354,000.000	Rs. 169,200.000	Rs. 184,800.000
Medical Allowance	Rs. 2,000.000	Rs. 24,000.000	Rs. 15,000.000	Rs. 9,000.000
Transport Allowanace	Rs. 1,200.000	Rs. 14,400.000	Rs. 14,400.000	Rs. 0.000
Performance Pay	Rs. 5,000.000	Rs. 60,000.000		Rs. 60,000.000
Special Allowance	Rs. 15,000.000	Rs. 180,000.000		Rs. 180,000.000

Total	Rs. 52,700.000	Rs. 632,400.000		Rs. 1,141,800.000
			Gross Taxable Salary	Rs. 1,141,800.000

HRA Calculations (Figures in Rs.)
	Actual Rent Paid	Rs. 20,000.000
	HRA	Rs. 29,500.000
Case 1	50% of Basic	Rs. 29,500.000
Case 2	Actual HRA Received	Rs. 29,500.000
Case 3	Actual Rent - 10% of Basic	Rs. 14,100.000
	Lower of the 3 is	Rs. 14,100.000

Deductions
Section 24 B
Interest on House Loan	Rs. 24,000.000	Rs. 24,000.000

Section 80C
PF Deduction	Rs. 84,960.000
Principle on home loan	Rs. 170,000.000
Total Deduction		Rs. 150,000.000
80D
Medical Insurance Premium	Rs. 25,000.000	Rs. 25,000.000


	Net Taxable Income	Rs. 942,800.000

Tax Calculations
Slabs	Tax Rate	Amount
Rs. 0 to Rs. 2.5 Lacs	Rs. 0.000	Rs. 0.000
Rs. 2.5 Lacs to Rs. 5 Lacs	Rs. 0.050	Rs. 12,500.000
Rs. 5 Lacs to Rs. 10 Lacs	Rs. 0.200	Rs. 90,560.000
Above Rs. 10 Lacs	Rs. 0.300
	Total Tax	Rs. 103,060.000

jeff jeffy answered 2 years ago

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