Income tax Calculation Example 5 For Assessment Year 2023-24 – Example 5
Example 5
For Assessment Year 2023-24
Illustrating valuation of perquisite and calculation of tax in the case of an employee below age of sixty years of a private company in Mumbai who was provided accommodation in a flat at concessions rate for ten months and in a hotel for two months (With valid PAN^ furnished
to employer).
| S.No. | Particulars | Rupees |
| I | Salary | 7.00,000 |
| 2 | Bonus | 1,40,000 |
| 3 | Free gas, electricity, water etc. (Actual bills paid by company) | 40,000 |
| 4(a) | Flat at conccssional rate (for ten month). @ Rs.36000/month | 3,60, 000 |
| 4(b) | Hotel rent paid by employer (for two month) | 1,00,000 |
| 4(c) | Rent recovered from employee. | 60,000 |
| 4(d) | Cost of furniture. | 2,00,000 |
| 5 | Subscription to Unit Linked Insurance Plan | 50,000 |
| 6 | Life Insurance Premium | 10,000 |
| 7 | Contribution to recognized P.F. | 42,000 |
COMUTAT1ON OF TOTAL INCOME AND TAX PAID THEREON:
| S.No. | Particulars | Rupees |
| I | Salary | 7,00,000 |
| 2 | Bonus | 1,40,000 |
| 3 | Total Salary( 1+2) for Valuation of Perquisites | 8,40,000 |
| Valuation of perquisites | ||
| 4(a) | Perquisite for flat (Cities having population>25 lalch as per 2001 census) 15% of salary for 10 months=Rs.1,05,000/- | 1,38,600 |
| Perquisite for hotel: Lower of (24% of salary of 2 months=Rs 33,600) and (actual payment= Rs 1,00,000) i.e. Rs 33,600 | ||
| 4(c) | Perquisites for furniture @ 10% of cost (10% of Rs. 2,00,000) Rs. 20,000 | |
| 4(c)(i) | Total of 14(a)1-(b)+(c)I (1,05,000+ 33,600+ 20,000) = Rs.158,600 Less: rent recovered: (-)Rs. 60,000 =Rs.98,600 | |
| 4(d) | Add: Perquisite for frec gas, electricity, water etc. Rs.40,000 (+) Rs 98,600 (4(c)(i)] = Rs1,38,600 Total perquisites | |
| 5 | Gross Total Income (Rs.8,40,000H- 1,38,600) | 9,78,600 |
| 6 | Less: Standard deduction u/s 16(ia) | 50,000 |
| 7 | Gross I Mal Income | 9.28.600 |
| 8 | Less: Deduction Us 80C: (i). Provident Fund (80C) : 42,000 (ii)LIC (80C) : 10,000 (iii)Subscription to Unit Linked Insurance Plan(80C): 50,000/- Total =102,000 Restricted to Rs 1.02.000 tits SW | 1.112,000 |
| 9 | Total Income | 8.26,600 |
| 10 | Tax Payable | 77,820 |
| II | Add: Health & Education Cess @ 4%. | 3113 |
| 12 | Total Income Tax payable | 80,933 |
or Aadhaar number, as the case may be.
# It 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.A40