Income tax Calculation Example 6 for Salary Employees 2023-24

Income tax Calculation Example 6 For Assessment Year 2023-24 – Example 6

Example 6

For Assessment Year 2023-24

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

2Dearness Allowance1,00.000
3House Rent Allowance1,80.000
4Special Duties Allowance12,000
5Provident Fund60,000
7Deposit in NSC VIII issue30,000
8Rent Paid for house hired by employee1,20,000
9Repayment of House Building Loan (Principal)60
10Tuition Fees for three children (Rs.10.000 per child)30,000


1Gross Salary (Basict-DA+HRA*SDA)7.42,000
Less: House rem allowance exempt U/s 10 (13A) will the amount which is least of:
i)Actual amount of HRA received : Rs.1.80.000
ii)Rent paid in excess of 10% of salary (Including D.A.) assuming D.A. is included for retirement benefits (1.20.000- 55.000) : Rs. 65.000
iii)509:of salary (including D.A) : Rs. 2.75.000
Lou,. Standard deduction u/s 16(ia)50,000,
Gross Total Taxable Income6.27,000
4Less: Deduction U/s 80C
(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
5Total income4.77,000
6Income Tax thereon/payable (includes Rebate aspen Section 87.4)Nil
7Add: Health & Education Ccss 6( 4%.Nil
8Total Income Tax payableNil
9Rounded off toNil

or Aadhaar number, as the case may be # I may be noted that tax liability may not be the same in case the taxpayer opts for concessional tax regime under section 115BAC of the Act.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Discover more from Govtempdiary

Subscribe now to keep reading and get access to the full archive.

Continue reading