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).

S.No.	Particulars	Rupees
I	Salary	4.50.000
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 for house hired by employee	1,20,000
9	Repayment of House Building Loan (Principal)	60
10	Tuition Fees for three children (Rs.10.000 per child)	30,000

COMUTAT1ON OF TOTAL INCOME AND TAX PAID THEREON:

S.No.	Particulars	Rupees
1	Gross 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	65
	Lou,. Standard deduction u/s 16(ia)	50,000,
	Gross Total Taxable Income	6.27,000
4	Less: 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	1.50,000
5	Total income	4.77,000
6	Income Tax thereon/payable (includes Rebate aspen Section 87.4)	Nil
7	Add: Health & Education Ccss 6( 4%.	Nil
8	Total Income Tax payable	Nil
9	Rounded off to	Nil

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.