Income under the head salary

Problem 1
Statement showing income under the head salary of Mr. H. V. Sardar
Individual
Ordinary resident
Indian citizen

Previous year:
Assessment year:

Amount (`)

Particulars

2012-13
2013-14

Amount (`)

Basic Salary

300,000

Dearness Allowance

100,000

Entertainment Allowance

60,000

Medical Allowance

10,000

Education Allowance
Less: Exempt (2 Child x 100 x 12)

5,400
-2,400

3,000

Hostel Allowance
Less: Exempt (1 Child x 300 x 12)
Employers contribution to Recognised provident fund
Less: Exempt upto 12% of salary (300000 x 12%)

6,600
-3,600
46,000
-36,000

Interest credited to Recognised provident fund (12%)

Less: Exempt upto 9.5% (12% - 48000: 9.5% - ?)

48,000
-38,000

Commission

30,000

10

Bonus

30,000

11

Value of Rent-free furnished accommodation at Ahmedabad

Population of Ahmedabad is above 25 lakh = 15 % of BABC
B = Basic Salary = 300,000
A = All taxable Allowance = 60,000+10,000+3,000+3,000=76,000
B = Bonus = 30,000
C= commission = 30,000
BABC = 436,000 x 15 % = 65,400
Value of Rent-free unfurnished accommodation
Add: 10 % of Furniture value ( 200000 x 10% )
Value of Motor car
Owned by employer, for office and personal purposes, maintained
by employer
Engine cubic capacity 1.6 litres = 1800 x 12
Chauffeurs salary = 900 x 12

12

Taxable Salary

10,000
10,000

65,400
+20,000

85,400

21,600
+10,800

32,400

Gross Salary
Less: Deductions
1) Entertainment Allowance (non-government employee)
2) Professional Tax

3,000

6,73,800
NA
+2,400

(2,400)

6,71,400

Problem 2
Statement showing income under the head salary of Mr. David
Individual
Ordinary resident
Indian citizen

Previous year:
Assessment year:

Particulars
1

Amount (`)

Basic Salary
Salary after deducting I-tax and Employees contribution to RPF
Add: Income tax
Salary after deducting employees contribution to RPF (15% x salary)
` 2,55,000 is the remaining 85% of the salary (255000 / 85 x 100)
Dearness Allowance (60% of Basic salary = 300000 x 60%)

City Compensatory Allowance (15 % basic salary = 300000 x 15 %)

Children Education Allowance (200 x 3 x 12)

Less: Exempt ( 100 x 2 x 12)
Employers Contribution to RPF (Equal to Employees Contribution
to RPF)
Less: Exempt upto 12 % of salary (300000 x 12%)
Bonus (25000 x 2)

Commission (500 x 12)

Value of Rent-free furnished accommodation at Bangalore

Population of Bangalore is above 25 lakh = 15 % of BABC
B = Basic Salary = 300,000
A = All taxable Allowance = 45,000+4,800=49,800
B = Bonus = 50,000
C= commission = 6,000, BABC = 405,800 x 15 % = 60,870
Value of Rent-free unfurnished accommodation
Add: 10 % of Furniture value ( 100000 x 10%)
Gardeners Salary is not taxable separately when rent-free
accommodation is provided by the employer
Value of Motor Car
Owned by employer, for office and personal purposes, maintained by
employer
Engine cubic capacity 1.8 litres = 2400 x 12
Chauffeurs salary = 900 x 12

Amount
(`)

2,45,000
+10,000
2,55,000
300,000
180,000
45,000
7,200
-2,400
45,000
-36,000

4,800

9,000
50,000
6,000

Gross Salary
10

2012-13
2013-14

Less: Deductions:
1) Professional Tax

60,870
+10,000

70,870

28,800
+10,800

39,600

7,05,270
-2,400

Taxable Salary

7,02,870

Problem 3
Statement showing income under the head salary of Mr. J
Individual
Ordinary resident
Indian citizen

Previous year:
Assessment year:

Amount (`)

Particulars

2012-13
2013-14

Amount (`)

Basic Salary (22500 x 8 + 30000 x 4)

300,000

Dearness Allowance (50 % of Basic salary = 300000 x 50%)

150,000

Medical Allowance

Education Allowance
Less: Exempt (2 Child x 100 x 12)

5
6
7

20,000
8,000
-2,400

Hostel Allowance
Less: Exempt (1 Child x 300 x 12)
Interest credited to Recognised provident fund (12%)
Less: Exempt upto 9.5% (36000 / 12% x 9.5%)

5,000
-3,600
36,000
-28,500

5,600
1,400
7,500

Gas, Water and Electricity charges paid by the company

18000 x 2/3rd used for personal use

12,000

Compensation for injury during performing office duty

Exempt

Value of Motor car

Owned by employer, for office and personal purposes, maintained
by employer
Engine cubic capacity above 1.6 litres = 2400 x 12
Chauffeurs salary = 900 x 12
Value of concessional furnished accommodation at Ahmedabad
Population of Ahmedabad is above 25 lakh = 15 % of BABC
B = Basic Salary = 300,000
A = All taxable Allowance =1/3rd of DA taken for retirement 50000
+ 20,000+5,600+1,400 = 77,000
B = Bonus = Zero, C= commission = Zero
BABC = 3,77,000 x 15 % = 56,550
Value of Rent-free unfurnished accommodation
Add: 10 % of Furniture value ( 400000 x 10% )

10

11
12

Less: Rent recovered

Employers contribution to Recognised provident fund
Less: Exempt upto 12% of salary ((300000 + 50000) x 12%)

28,800
+10,800

56,550
+40,000
96,550
-16,550
45,200
-42,000

39,600

80,000
3,200

Expenses paid on behalf of an employee

Club fees
LIC Premium

Gross Salary
13 Less: Deductions

5,000
+3,000

8,000
6,27,300
NIL

1) Professional Tax

Taxable Salary

6,27,300

Problem 5
Statement showing income under the head salary of Shweta shah
Individual
Ordinary resident
Indian citizen

Previous year:
Assessment year:

Amount (`)

Particulars

2012-13
2013-14

Amount (`)

Basic Salary (20500 x 4 + 21000 x 8)

250,000

Dearness Allowance (40 % of Basic salary)

(50% DA is part of the retirement benefits)
House Rent Allowance
Less: Exempt (minimum of the below 3)
1) HRA received (1500 x 12) =
18,000
2) Rent paid 3500 x 12 =
42,000
-10% of salary 300,000 x 10% = 30,000 12,000
(250000+50000)
3) 40% of Salary =
1,20,000
Entertainment Allowance (500 x 12)

100,000

4
5
6
7
8

Education Allowance (1800 x 12)

Less: Exempt [(2 Child x 100 x 12) + (200 x 300 x12)]

18,000
-12,000

6,000
21,600
-9,600

Employers contribution to Recognised provident fund (3500 x 12)

Less: Exempt upto 12% of salary (300000 x 12%)
Interest credited to Recognised provident fund (11.5%)
Less: Exempt upto 9.5% (17250 / 11.5% x 9.5%)

42,000
-36,000
17,250
-14,250

Compensation for injury during performing official duty

6,000
3,000

3,83,000
NA
+2400

Taxable Salary

12,000

Exempt

Gross Salary
Less: Deductions
1) Entertainment Allowance
9
2) Professional Tax

6,000

-2,400

3,80,600

Problem 30
Individual
Ordinary resident
Indian citizen

Statement showing income under the head salary of Mr. David

Previous year:
Assessment year:

Particulars

Amount (`)

2012-13
2013-14

Amount (`)

Basic Salary (40,000 x 12)

4,80,000

Dearness Allowance (50% of Basic salary = 480000 x 50%)

2,40,000

Bonus

Transport Allowance (1000 x 12)

Less: Exempt (800 x 12)
City Compensatory Allowance

5
6
7
8
9

10

30,000
12,000
9,600

Children Education Allowance

Less: Exempt ( 100 x 2 x 12)
Employers Contribution to RPF @ 14% of salary
Less: Exempt upto 12 % of salary (480,000 x 12%)
Interest credited to Recognised provident fund (12%)
Less: Exempt upto 9.5% (20160 / 12% x 9.5%)
Value of concessional Rental furnished accommodation at Rajkot
Population of Rajkot is 15 lakh = 10 % of BABC
B = Basic Salary = 480,000
A = All taxable Allowance = 2400+12000+5100= 19,500
B = Bonus =30,000
C= commission = ZERO, BABC = 529,500 x 10 % = 52,950
Value of Rent-free unfurnished accommodation
Add: 10 % of Furniture value (100000 x 10%)
Less: Rent recovered
Gardeners Salary is not taxable separately when accommodation is
provided by the employer
Value of Motor Car
Owned by employer, for office and personal purposes, maintained by
employer
Engine cubic capacity 1.8 litres = 2400 x 12
Chauffeurs salary = 900 x 12

7,500
-2,400
67,200
-57,600
20,160
-15,960

5,100
9,600
4,200

52,950
+10,000
62,950
-12000

50,950

28,800
+10,800

39,600

Gross Salary
11

2,400
12,000

Less: Deductions:
1) Professional Tax

8,73,850
-2,400

Taxable Salary

Amount of deduction under section 80 C (maximum limit ` 100,000)

1)
Employees contribution to RPF @ 14%
= 67,200
2)
Investment in Public provident fund
= 20,000
3)
LIC premium
= 16,000
4)
Repayment of housing loan
= 20,000
------------------------------------------------------------------------------------Total deduction u/s 80C would be ` 100,000.

123,200

8,71,450

Problem 6
Individual
Ordinary resident
Indian citizen

Statement showing income under the head salary of Mr. Yogi

Previous year:
Assessment year:

Particulars

Amount (`)

Basic Salary (14,000 x 6 + 15,000 x 6)

Dearness Allowance (40% of Basic salary)

Entertainment Allowance (800 x 12)

Children Education Allowance (1200 x 2 x 12)

Less: Exempt ( 100 x 2 x 12)
Gas, Electricity and water charges (18,000 x 2/3 personal use)

5
6

7
8

2012-13
2013-14

Amount (`)
1,74,000
69,600
9,600

Salary paid by company to watchman (2200 x 12)

Gardeners Salary is not taxable separately when rent-free
accommodation is provided by the employer
Expenses paid by co. on behalf of Mr. Yogi
LIP
PPF deposit
Value of Rent-free furnished accommodation
Population of Bangalore is 15 lakh = 10 % of BABC
B = Basic Salary = 174,000
A = All taxable Allowance = 34800+9600+26400= B = Bonus = ZERO
C= commission = ZERO, BABC = 2,44,800 x 10 % = 24,480
Value of Rent-free unfurnished accommodation
Add: 10 % of Furniture value (204800 x 10%)

10

Employers Contribution to RPF @ 12% of salary

Less: Exempt upto 12 % of salary (174000 x 12%)
Hotel bill and club bill paid by the employer (TAXABLE)

11

Compensation for injury during performing official duty

12

Less: Deductions:
1) Entertainment Allowance
2) Professional Tax

28,800
-2,400

26,400

10,300
32,000

42,300

24,480
+20,480

44,960

20,880
-20,880

ZERO
20,000
EXEMPT

Gross Salary

4,25,260
Nil
2,400

Taxable Salary

26,400
12,000

-2400

4,22,860

Problem 7
Statement showing income under the head salary of Shri Gamit
Individual
Ordinary resident
Indian citizen

Previous year:
Assessment year:

Amount (`)

Particulars

2012-13
2013-14

Amount (`)

Basic Salary (3000 x 6 + 4000 x 6)

42,000

Dearness Allowance

29,000

Commission on sales

175,000

House Rent Allowance

Less: Exempt (minimum of the below 3)
1) HRA received =
60,000
2) Rent paid 4000 x 12 =
48,000
-10% of salary 246000 x 10% = 24,600 23,400
(42000+29000+175000)
3) 40% of Salary =
90,400
Vehicle Allowance (750 ` x 12 months)
Exempt- Actual Exps. (12000) or allowance (9000) whichever is low

60,000
-23,400

36,600

9,000
-9,000

ZERO

Tour Allowance (1200 ` x 5 tour)

Exempt- Actual Exps. (5000) or allowance (6000) whichever is low
Daily Allowance (250 ` x 60 days)
Exempt- Actual Exps. (9600) or allowance (15000) whichever is low
Uniform Allowance (900 ` x 12)
Exempt- Actual Exps. (9000) or allowance (10800) whichever is low

6,000
-5,000
15,000
-9,600
10,800
-9,000

Research Assistant Allowance (600 x 12)

Exempt- Actual Exps. (9000) or allowance (7200) whichever is low
Education Allowance
Less: Exempt (100 x 2 x 12)
Entertainment Allowance

7,200
-7200
6,000
-2,400

Employers Contribution to RPF @ 15% of salary Less: Exempt upto

12 % of salary (42000+29000=71,000 x 12%)
(DA is a part of retirement benefit)

10,650
-8,520

5
6
7
8
9
10
11
12

Taxable Salary

5,400
1,800
ZERO
3,600
6,000
2,130
3,02,530

Gross Salary
Less: Deductions
1) Entertainment Allowance (non-government employee)
13
2) Professional Tax

1,000

NA
NIL

NIL
3,02,530

Problem 8
Individual
Ordinary resident
Indian citizen

Statement showing income under the head salary of Shri Ramesh

Previous year:
Assessment year:

Particulars

Amount (`)

2012-13
2013-14

Amount (`)

Basic Salary (30,000 x 12)

Commission

12,500

Bonus (30000 x 2)

60,000

Entertainment Allowance (500 x 12)

Employers Contribution to RPF

Less: Exempt upto 12 % of salary (360,000 x 12%)
Interest credited to Recognised provident fund (10%)
Less: Exempt upto 9.5% (20000 / 10% x 9.5%)
Value of unfurnished accommodation
Population = 7.5% of BABC
B = Basic Salary = 360,000
A = All taxable Allowance = 6,000= 6,000
B = Bonus =60,000
C= commission = 12,500, BABC = 4,38,500 x 7.5 % = 32,888
Value of Rent-free unfurnished accommodation
Gross Salary
Less: Deductions:
1) Entertainment Allowance
2) Professional Tax

6
7

3,60,000

6,000
51,840
-43,200
20,000
-19,000

NA
-2400

Amount of deduction under section 80 C (maximum limit ` 100,000)

1,18,200

1,000

32,888
4,81,028

Taxable Salary
1)
Employees contribution to RPF @ 15%
= 54,000
2)
Investment in Public provident fund
= 40,000
3)
LIC premium
= 4,200
4)
FD in SBI
= 20,000
------------------------------------------------------------------------------------Total deduction u/s 80C would be ` 1,00,000.

8,640

-2,400
4,78,628

Problem 9
Statement showing income under the head salary of Shri Agadam
Individual
Ordinary resident
Indian citizen

Previous year:
Assessment year:

Amount (`)

Particulars
1

Basic Salary (10,000 x 12)

Dearness Allowance (20 % of basic salary)

Employers Contribution to RPF @ 12% of salary (exempt upto 12%)

City Compensatory Allowance

Interest credited to Recognised provident fund (12%)

Less: Exempt upto 9.5% (2400 / 12% x 9.5%)
House Rent Allowance (1000 x 12)
Less: Exempt (minimum of the below 3)
1) HRA received =
12,000
2) Rent paid
30,000
-10% of salary 120000 x 10% = 12,000 18,000
3) 40% of Salary =
40,000
Entertainment Allowance (200 x 12)

Travelling Allowance ( savings)

Value of Motor Car

Owned by employer, for office and personal purposes, All expenses
met by employee
Engine cubic capacity 1.8 litres = 900 x 12
Education at Employers Institute (1000x12x2)
Exempt upto 1000 per child per month (1000 x 12 x 2)

10

2012-13
2013-14

Amount (`)
120,000
24,000
ZERO
12,000

2,400
-1,900
12,000
-12,000

500
ZERO

2,400
2,000

10,800
24000
-24,000

ZERO

11

Gas, Water facility paid by the employer

6,000

12

Leave encashment salary (received during tenure - taxable)

3,000

13

Free lunch facility (200 days x 100 ` )

Less: Exempt upto ` 50 per meal (200 x 50)
Telephone facility

14

15

20,000
-10,000

1,90,700

Gross Salary
Less: Deductions
1) Entertainment Allowance (non-government employee)
2) Professional Tax

Taxable Salary

10,000
Exempt

NA
2,400

-2,400
1,88,300

Problem 10
Statement showing income under the head salary of Mr. Sachin
Individual
Ordinary resident
Indian citizen

Previous year:
Assessment year:

Amount (`)

Particulars

2012-13
2013-14

Amount (`)

Basic Salary (65,00 x 3 + 7000 x 9)

82,500

Dearness Allowance (50 % of basic salary)

41,250

Bonus and Commission

Less: Commission recovered
Entertainment Allowance

62,000
-2,000
4,200
-1,200

Children Education Allowance (350 x 12)

Less: Exempt (100 x 12)
Value of Concessional Rental furnished accommodation
Population of -------- is 15 lakh = 15 % of BABC
B = Basic Salary = 82500
A = All taxable Allowance = 6000+3000= BC = Bonus &
commission = 60000, BABC = 1,51,500 x 15 % = 22,725
Value of Rent-free unfurnished accommodation
Add: 10 % of Furniture value (80000 x 10%)
Value of Furnished accommodation
Less: Rent recovered by employer
Gardeners salary

Medical Expenses reimbursed by Employer

Value of Motor Car

Owned by employer, for office and personal purposes, maintained
by employee
Engine cubic capacity 1.8 litres = 900 x 12
Employers Contribution to RPF @ 15% of salary
Less: Exempt upto 12 % of salary (82,500 x 12%)
Interest credited to Recognised provident fund (15%)
Less: Exempt upto 9.5% (7500 / 15% x 9.5%)

4
5
6

10
11

12

22,725
+8,000
30,725
-8,250

60,000
6,000
3,000

22,475
EXEMPT
EXEMPT

10,800
12,375
-9,900
7,500
-4,750

Gross Salary
Less: Deductions
1) Entertainment Allowance (non-government employee)
2) Professional Tax

Taxable Salary

NA
2,400

2,475
2,750
2,31,250

-2,400
2,28,850

Problem 11
Statement showing income under the head salary of Mr. Madhav
Individual
Ordinary resident
Indian citizen

Previous year:
Assessment year:

Amount (`)

Particulars

2012-13
2013-14

Amount (`)

Basic Salary (7,500 x 12)

90,000

Dearness Allowance (20 % of basic salary)

18,000

Commission on sales (1100,000 x 1%)

11000

Employers Contribution to RPF

Less: Exempt upto 12 % of salary ((90000+9000+11000) x 12%]
Interest credited to Recognised provident fund (11%)
Less: Exempt upto 9.5% (4400 / 11% x 9.5%)
House Rent Allowance (1700 x 12)
Less: Exempt (minimum of the below 3)
1) HRA received =
20,400
2) Rent paid (2000 x 12)
24,000
-10% of salary 110000 x 10% = 11,000 13,000
(90000+DA 9000+ Comm. 11000)
3) 40% of Salary =
44,000
Value of Motor Car
Owned by employer, for office and personal purposes, All expenses
met by employer
Engine cubic capacity more than 1.6 litres = 2400 x 12
Chauffeurs Salary= 900 x 12
Interest on Concessional Car loan : Interest @ 12 %
Less: Concession in interest @ 9 %
Entertainment Allowance

5
6

8
9
10

11

Educational Allowance
Less: Exempt [(100 x 1 x 12) +(300 x 12)]

15,000
-13,200
4,400
-3,800
20,400
-13,000

28,800
10,800
18,000
-13,500

24,000
-4,800

Taxable Salary

600
7,400

39,600
4,500
13,600

19,200
2,05,700

Gross Salary
Less: Deductions
1) Entertainment Allowance (non-government employee)
2) Professional Tax

1,800

NA
NIL

NIL
2,05,700