Income tax Calculation Example 9 for Salary Employees 2023-24

Income tax Calculation Example 9 For Assessment Year 2023-24 – Example 9

Example 9

I. Computation of Taxable Salary and allowances, Deduction for Interest on Housing Loan and Deduction u/s 8OC.

Mr. X, a Central Govt. Officers in Delhi, is receiving Basic Pay Rs.40,000. DA at prescribed rates, transport allowances ® Rs.3600+DA thereon, and HRA (existing- from 1st July 2022 @24% of basic pay (though living in his own house). His date of increment is 1st July. The following are other particulars of his income. Compute his taxable income and tax payable, for A.Y.2023.24

Honorarium for valuation of answer books of a departmental Examination3,000
Fee for work done for a private body (Prof fees has been retained by Govt.)6,000
Contributions to G.P.F. p.m.4,700
Postal Life Insurance Premium financed from G.P.F. p.m.280
Contribution to Central Govt. Employees Group Insurance Scheme p.m.500
Life Insurance Premium (being a Life Insurance
Policy of Rs.1,00.000 taken in name of his wife before 1.04.2012)
Contribution to Public Provident Fund10,000
Repayment of HDFC loan borrowed after 1.04.1999
EMI Rs.25,000 (Towards loan Rs.95,000, towards interest Rs.2,05,000)


Income from Salary
Basic Pay (0, Rs 40.000 p.m
(March to June ’22)1,60,000
lit, Rs 41,200 p.m • (July 2022 to Feb 2023)3,29,6004.89.600
Dearness Allowance(assumed)
1.3.2021 to 30.06.2022 g 7% i.e., Rs 40,000 p.m11,200
1.7.2021 to 31.12.2022 A 9% i.e. Rs 41,200 p.m22,248
1.1.2022 to 28.02.2023 @ 11%i.e.Rs.41,200 p.m9,0645.32,112
House Rent Allowance1,17,5046.49.616
Transport Allowance
1.3.2022 to 30.6.2022 @ Rs 3200 p.m12,800
1.7.2022 to 31.12.2022 A Rs 3780 p.m22,680
1.1.2023 to 28.2.2023 R Rs 3852 p.m7704
Foes (2/3 retained by him)34,800
Total Salary7,30,600
Less: Standard Deduction ids section 16(ia)50,000
Net Salary6,80,600
Income from House Property
Self-occupied u/s 23(2Xa) where property
is acquired/constructed with borrowed capital
on or after 1.4.1999 and such acquisition/construction computed
within five years from the end of FY in which capital was borrowed.
Less: Interest on HDFC Loan (upto Rs. 2,00,000)2.00,000 (-)2.00,000
Gross Total Income4.80,600
Less: Deduction tots 80 C
– GPF (a) Rs 4,700/-p.m56,400
– CGEGIS @ Rs 500/- p.m6,000
– Life Insurance Premium10,500
– Repayment of HDFC Loan95,000
– Deposit in Public Provident Fund10,000
Restricted to a maximum of Taxable Income3,30,600
Computation of Tax Liability
Tax payable4,030
Less : Rebate u/s 87A4,030
Net Income-tax payableNil
Add :he/shealth & Education Coss (04%.Nil
Total Tax PayableNil

It may be noted that tax liability may not be the same in case the taxpayer opts for concessional tax regime under section II5BAC of the Act.

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