MR. R.P.

SINGH
Computation of Income of Mr. X for the previous year 2010-11 relevant to
Asstt. Year 2011-12
A. Income from Salary:1.
2.
3.

Basic salary for 12 months

DA for 12 months

45000 X 12
40% of 540000

540000
216000

Total
HRA for 12 months 30% of 7,56,0000
Exemption of HRA
(i)
50 % of salary (Basic + DA)
(ii)
HRA received during rental
accommodation for April, 10 to
Dec, 10= 9 months= 30% of
63000 = 18,900
(iii)
Rent paid for 9 months - 10%
of salary = 20,000 6300 =

63000 x 12
2,26,800

7,56,000

31,500 p.m

18,900 p.m.
13,700 pm

Least is exempted which is (iii)

Actual HRA for 12 months=
18900 x 12 = 2,26,800
Exempt hra= 13700 x 9 = 1,23,300

4.
5.
6.
7.
8.
9.
10.

Taxable HRA
(2,26,800 1,23,300)
Commission @ 5% of Rs.1,00,00,000 as
profits in lieu of salary
Transport Allowance @ 12000 p.m.
Less: exempted 800 p.m.
Education allowance for three children
Less: exempted Rs.100 p.m. for maximum
of two children
Hostel Allowance for two children
Less: exempted Rs.300 p.m. for maximum
of two children
Special allowance Rs.3000 p.m. not
specially defined, so it is fully taxable
Entertainment Allowance Rs.4000 p.m. No
deduction is available for non- government
employee, so it is fully taxable
Travelling Allowance 6000 (4500 was
utilized for official purpose)
Less: exempted for official purposes
TOTAL SALARY

Valuation of perquisites:-

INCOME TAX

1,03,500
500000
12000 X 12
800 X 12
100 X 2 X12

144000
(-) 9600
2000
(-)2400

300 X 2 X 12

6000
(-)7200

3000 X 12
4000 X 12

134400
NIL
NIL
36000

48000

48000

6000
(-)4500

1500
15,79,400

MR. R.P. SINGH

Salary calculated for the purpose of valuation of perquisites in respect of rent-free
accommodation, salary includes:- Basic salary, DA, Bonus, Commission, Fees, all other taxable
allowances (excluding amount not taxable) and any monetary payment
Total salary comes to
Particulars
11

12.

Rs.15,79,400

Rent free accommodation in Noida

(population above 25 lakhs)
Amount of rent paid or 15% of salary,
whichever is lower

Where
the
employer is paid
rent
Amount
paid
Rs.35000 p.m.
for three months
=35000 X 3 =
1,05,000

15%
Rs.15,79,400
2,36,910

Taxable
perquisites
for
rent-free
accommodation
Gas & Electricity bills paid by employer of
Rs.24000 is not taxable

of
=

1,05,000
NIL

TOTAL INCOME FOR SALAY & PERQUISITES (15,33,500 + 1,05,000)

16,84,400

B. Income from long term capital gain:1.

2.

From commercial Building

From shares (non-listed)
TOTAL INCOME FROM LONG TERM
CAPITAL GAIN

4,17,000
1,10,000
5,27,000

C. Income from other sources:1.

2.

Income from Horse races

Winning from lottery
TOTAL INCOME FROM
SOURCES

14,000
75,000
OTHER

89,000

D. Income From House Property:1.

TOTAL INCOME
PROPERTY

FROM

HOUSE

1,20,000
36,000

Less: Standard Deduction under sec 24

(a) [30%]

INCOME TAX

84,000

MR. R.P. SINGH

E. Income from Business & Profession:1.

TOTAL INCOME FROM BUSINESS &

PROFESSION

70,000

GROSS TOTAL INCOME

Rs.24,54,400/-

Less: Deduction under Chapter VIA:(a) Contribution in PF

Rs.1,80,000
(b) Post office
Rs.30,000
(c) LIC Premium
Rs.56000
Total
Rs.2,66,000
Deduction U/s 80C subject to limit
Deduction U/s80D for medical premium subject to limit
Deduction U/s80E for interest paid on education Loan

Rs.1,00,000/Rs.15,000/Rs.12,500/-

[ Infrastructure bond (abolished frm A.Y. 2012-13)

Earlier 20,000 was deducted but now dropped ]
Total deduction

(-) Rs.1,27,500/-

TOTAL INCOME OF MR. X FOR THE A.Y. 2011-12

-

Income from Long term Capital gain

(on which only 20% tax is applicable)
20/100 * 5,27,000 =1,05,400
Total Income left

Rs.23,26,900/-

Rs. 5,27,000
Rs. 17,99,900

Tax Slab Over 8,00,000

So tax = 92,000 + 30% on amount exceeding 8,00,00 i.e. 9,99,900
= 92,000 + 2,99,970
= 3,91,970

Tax payable on Total Income

+ tax on LTCG (1,05,400)

Rs.3,91,970/Rs 1,05,400

Total Tax Payable

Rs. 4,97,370

INCOME TAX