Exemption u/s 10 (13A)
1.Mr. A, employed with XYZ Ltd. Up to 31.10.2016, received following emolumentsÂ
| S.No. | Particulars | Rupees |
|---|---|---|
| 1. | Basic pay p.m. | 13,000 |
| 2. | Bonus for the year received in July, 2015 | 7,200 |
| 3. | Club facility (for private use only) Expenditure by employer p.m. | 700 |
| 4. | House Rent Allowance p.m. | 2,800 |
| 5. | Employer’s contribution to URPF p.m. (Mr. A also made equal contribution) | 1,000 |
| W.e.f. 01.11.2015, Mr. A joined PQR Ltd., with following pay package : | ||
| 1. | Basic pay p.m. | 18,000 |
| 2. | House Rent Allowance p.m. | 1,600 |
| 3. | Club Facility (for private use only) Expenditure by employer p.m. | 1,100 |
| 4. | Use of car for journey between office and residence — Employer’s expenditure p.m. | 600 |
| 5. | Employer’s contribution to RPF p.m. (Mr. A also made equal contribution) | 2,000 |
| Other particulars of Mr. A are as under : | ||
| 1. | Mr. A resides at Amritsar paying a monthly rent of | 3,500 |
| 2. | Mr. A’s income from other sources | 95,000 |
| 3. | Mr. A contributed to LIC/PPR/NSC etc. | 20,000 |
| Compute Mr. A’s taxable income and tax liability for A.Y. 2017-18. | ||
Computation of Tan
| S.No. | Particulars | Rupees | |
|---|---|---|---|
| 1 | Income from Salary | ||
| (a) From XYZ Ltd. | |||
| Basic pay (Rs.13,000 x 7) | 91,000 | ||
| Bonus | 7,200 | ||
| Club facility (Rs.700 x 7) | Rupees | 4,900 | |
| H.R.A. (Rs.2,800 x 7) | 19,600 | ||
| Less : Exempt u/s 10(13A) | 15,400 | 4,200 | |
| Employer’s Contribution to U.R.P.F. | 1,07,300 | ||
| (b) From PQR Ltd. | Rupees | ||
| Basic pay (Rs.18,000 x 5) | 90,000 | ||
| H.R.A. (Rs.1,600 x 5) | 8,000 | ||
| Less : Exempt u/s 10(13A) | 8,000 | ||
| Club Facility (Rs.1,100 x 5) | 5,500 | ||
| Facility of Car (not taxable as perquisite) | 15,400 | ||
| Employer’s Contribution to R.P.F. | 95,500 | ||
| Gross Salary | 2,02,800 | ||
| Less: Deduction | |||
| Net Salary | 2,02,800 | ||
| 2 | Income from Others Sources | 95,000 | |
| Gross Total Income | 2,97,800 | ||
| Less : Deduction u/s 80C | |||
| : Contribution to LIC/PPF/NSC | Rs. 20,000 | ||
| : Contribution to RPF ( Rs.2000 x 5) | Rs. 10,000 | 30,000 | |
| Total Income | 2,67,800 | ||
| Computation of Tax Liability | |||
| Tax payable on Rs.2,67,800 | 8,90 | ||
| Less : Rebate u/s 87A | 8,90 | ||
| Net Income-tax payable | Nil | ||
| Add : Surcharge | Nil | ||
| Add : EC @ 2% | — | ||
| Add : S&HEC @ 1% | — | ||
| Total Tax Payable | Nil | ||