A. X (25 Yrs) is a salaried employee of a public sector company in Mumbai. He has submitted following details for the year ending 2020-21: Basic pay: Rs. 200,000; dearness pay: Rs.1,75,000 (40 percent for retirement benefits); HRA: Rs. 15,000; employer’s contribution to provident fund: Rs. 24,000; besides the employer provides him a car (1800CC) for official and private purpose. Employer has provided him a credit card for which his employer has paid bill of Rs. 200,000(50 percent is used for official purpose). His employer has also sold a music system for Rs.2000 to him (Cost of music system to employer when it was purchased in 2009 was Rs. 20,000). X owns a small house in Mumbai, use for self-occupation details of which are: municipal valuation: Rs.2,30,000; standard rent: Rs.2,50,000; during the previous year he paid interest of Rs. 20,000 on house loan taken in 2015. He also received interest from deposits in saving bank account Rs. 25,000 and dividend from an Indian company Rs. 20,000. He also received gift of Rs. 20,000 from his friend and Rs. 50,000 on the occasion of his marriage from his office staff. Calculate his tax liability for the relevant assessment yea
A. X (25 Yrs) is a salaried employee of a public sector company in Mumbai. He has submitted following details for the year ending 2020-21: Basic pay: Rs. 200,000; dearness pay: Rs.1,75,000 (40 percent for retirement benefits); HRA: Rs. 15,000; employer’s contribution to provident fund: Rs. 24,000; besides the employer provides him a car (1800CC) for official and private purpose. Employer has provided him a credit card for which his employer has paid bill of Rs. 200,000(50 percent is used for official purpose). His employer has also sold a music system for Rs.2000 to him (Cost of music system to employer when it was purchased in 2009 was Rs. 20,000). X owns a small house in Mumbai, use for self-occupation details of which are: municipal valuation: Rs.2,30,000; standard rent: Rs.2,50,000; during the previous year he paid interest of Rs. 20,000 on house loan taken in 2015. He also received interest from deposits in saving bank account Rs. 25,000 and dividend from an Indian company Rs. 20,000. He also received gift of Rs. 20,000 from his friend and Rs. 50,000 on the occasion of his marriage from his office staff. Calculate his tax liability for the relevant assessment yea
Chapter15: Choice Of Business Entity—other Considerations
Section: Chapter Questions
Problem 45P
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A. X (25 Yrs) is a salaried employee of a public sector company in Mumbai. He has submitted following details for the year ending 2020-21:
Basic pay: Rs. 200,000; dearness pay: Rs.1,75,000 (40 percent for retirement benefits); HRA: Rs. 15,000; employer’s contribution to provident fund: Rs. 24,000; besides the employer provides him a car (1800CC) for official and private purpose. Employer has provided him a credit card for which his employer has paid bill of Rs. 200,000(50 percent is used for official purpose). His employer has also sold a music system for Rs.2000 to him (Cost of music system to employer when it was purchased in 2009 was Rs. 20,000).
X owns a small house in Mumbai, use for self-occupation details of which are: municipal valuation: Rs.2,30,000; standard rent: Rs.2,50,000; during the previous year he paid interest of Rs. 20,000 on house loan taken in 2015.
He also received interest from deposits in saving bank account Rs. 25,000 and dividend from an Indian company Rs. 20,000. He also received gift of Rs. 20,000 from his friend and Rs. 50,000 on the occasion of his marriage from his office staff. Calculate his tax liability for the relevant assessment year.
B. Deduction under 80G is available on the basis on donation to certain funds, charitable institutions. Deduction is available to both resident as well non-resident. Mr. A resident in India made following contributions-Rs. 25,000 to PM Relief Fund, Rs. 75,000 National Children Relief Fund,Rs. 65,000 to colony welfare fund. Rs. 39,000 to a local orphanage. Discuss the amount of deductions he can claim as per the provisions of section 80G.
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