One Computation of Taxable Salary and allowances, Deduction for Interest on Housing Loan and Deduction u/s 80C.

One Computation of Taxable Salary and allowances, Deduction for Interest on Housing Loan and Deduction u/s 80C.

Mr. X, a Central Govt. Officers in Delhi, is receiving Basic Pay Rs.40,000, DA at prescribed rates, transport allowances @ Rs.3600+DA thereon, and HRA (existing- from 1st July 2017 @24% of basic pay (though living in his own house). His date of increment is Ist July. The following are other particulars of his income. Compute his taxable income and tax payable, for A.Y.2018-19.

S.NO. PARTICULARS RUPEES
1 Honorarium for valuation of answer books of a departmental examination 3,000
2 Fee for work done for a private body (1/3rd of fees has been retained by Govt.) 6,000
3 Contributions to G.P.F. p.m. 4,700
4 Postal Life Insurance Premium financed from G.P.F. p.m. 280
5 Contribution to Central Govt. Employees Group Insurance Scheme p.m. 500
6 Life Insurance Premium (being a Life Insurance Policy of Rs.1,00,000 taken in name of his wife before 1.04.2012) 10,500
7 Contribution to Public Provident Fund 10,000
8 Repayment of HDFC loan borrowed after 1.04.1999 EMI Rs.25,000 (Towards loan Rs.95,000, towards interest Rs.2,05,000) 3,00,000

Computation of Tax

S.NO. PARTICULARS RUPEES
1 Income from Salary
Basic Pay @ Rs 40,000 p.m
(March to June ’17) 1,60,000
@ Rs 41,200 p.m * (July 2017 to Feb 2018) 3,29,600 4,89,600
Dearness Allowance
1.3.2017 to 30.06.2017 @ 4% i.e., Rs 40,000 p.m 6,400
1.7.2017 to 31.12.2017 @ 5% i.e. Rs 41,200 p.m 14,420
1.1.2018 to 28.02.2018 @ 7% (assumed) i.e.,Rs. 41,200 p.m 5,768
5,16,188
House Rent Allowance
@ 30% of basic pay (on existing old pay & @ 24% from 01.07.2017)
1.3.2017 to 30.06.2017 @ Rs 7,000 21,000
1.07.2017 to 28.2.2018 @ Rs 9,888 79,104 1,00,104
Transport Allowance
1.3.2017 to 30.6.2017 @ Rs 3200 p.m 1.7.2017 to 31.12.2017 @ Rs 3780 p.m 12,800
22,680
1.1.2018 to 28.2.2018 @ Rs 3852 p.m 7704
43,184
Less: Exempt u/s 10(14) @ 800 p.m 19200 23984
6,40,276
Honorarium 3,000
Fees (2/3 retained by him) 4000
Total Salary 6,47,276
Less: Standard Deduction
Net Salary 6,47,276
2 Income from House Property
Self-occupied u/s 23(2)(a) deemed at nil
Less: Interest on HDFC Loan 2,00,000 (-) 2,00,000
Gross Total Income 4,47,276
Less: Deduction u/s 80 C
– GPF @ Rs 4,700/-p.m 56,400
– CGEGIS @ Rs 500/- p.m 6,000
– Life Insurance Premium 10, 500
– Repayment of HDFC Loan 95,000
– Deposit in Public Provident Fund 10,000
1,77,900
1,50,000
Restricted to a maximum of Taxable Income 2,97,276
COMPUTATION OF TAX LIABILITY
Tax payable 2,365
Add: Surcharge
Add: Education Cess 71
Total Tax Liability Nil*

About the author: Sarathy R

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