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 |