Income Tax Exemption u/s 10 (13A)

Exemption u/s 10 (13A)

1.Mr. A, employed with XYZ Ltd. Up to 31.10.2016, received following emoluments

 

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

 

About the author: Sarathy R

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