Calculation Of Tax – House Building Loan

Calculation Of Tax House Building Loan

Example 6

For Assessment Year 2018-19

Illustrating Valuation of perquisite and calculation of tax in the case of an employee below the age of 60 years of a Private Company posted at Delhi and repaying House Building Loan ( With valid PAN furnished to employer).

 

S.No.	Particulars	Rupees
1	Salary	4,00,000
2	Dearness Allowance	1,00,000
3	House Rent Allowance	1,80,000
4	Special Duties Allowance	12,000
5	Provident Fund	60,000
6	LIP	10,000
7	Deposit in NSC VIII issue	30,000
8	Rent Paid by the employee for house hired by her	1,20,000
9	Repayment of House Building Loan (Principal)	60,000
10	Tuition Fees for three children (Rs.10,000 per child)	30,000

Computation of total income and tax payable thereon

S.No.	Particulars	Rupees
1	Gross Salary (Basic+DA+HRA+SDA)	6,92,000
	Less: House rent allowance exempt U/s 10 (13A) Least of:	70,000
	(a).    Actual amount of HRA received. :Rs.1,80,000 (b).    Expenditure on rent in excess of 10% of salary (Including D.A.)assuming D.A. is included for retirement benefits (1,20,000- 50,000) :Rs.70000 (c).    50% of salary (including D.A) : Rs.2,50,000
2	Gross Total Taxable Income	6,22,000
	Less: Deduction U/s 80C	1,50,000
	(i).    Provident Fund :                          60,000
	(ii).   LIP :                                                  10,000
	(iii). NSC VIII Issue :                             30,000
	(iv). Repayment of HBA :                     60,000
	(v).   Tuition Fees (Restricted to two children) :                                                20,000
	Total :                                                    1,80,000
	Restricted to                               1,50,000
	Total Income	4,72,000
	Income Tax thereon/payable	11,100
	Add:
	(i).   Education Cess @2%	222
	(ii). Secondary and Higher Education Cess @1%	111
	Total Income Tax payable	11,433
	Rounded off to	11,430