Calculation of tax in the case of an employee below the age of 60 years of a Private Company posted at Delhi and repaying House Building Loan
Example 6
For Assessment Year 2018-19
Illustrating Valuation of perquisite and calculation of tax in the case of an employee below the age of 60 years of a Private Company posted at Delhi and repaying House Building Loan ( With valid PAN furnished to employer).
|
S.No. |
Particulars |
Rupees |
|
1 |
Salary |
4,00,000 |
|
2 |
Dearness Allowance |
1,00,000 |
|
3 |
House Rent Allowance |
1,80,000 |
|
4 |
Special Duties Allowance |
12,000 |
|
5 |
Provident Fund |
60,000 |
|
6 |
LIP |
10,000 |
|
7 |
Deposit in NSC VIII issue |
30,000 |
|
8 |
Rent Paid by the employee for house hired by her |
1,20,000 |
|
9 |
Repayment of House Building Loan (Principal) |
60,000 |
|
10 |
Tuition Fees for three children (Rs.10,000 per child) |
30,000 |
Computation of total income and tax payable thereon
|
S.No. |
Particulars |
Rupees |
|
1 |
Gross Salary (Basic+DA+HRA+SDA) |
6,92,000 |
|
|
Less: House rent allowance exempt U/s 10 (13A) Least of: (a). Actual amount of HRA received. :Rs.1,80,000 (b). Expenditure on rent in excess of 10% of salary (Including D.A.)assuming D.A. is included for retirement benefits (1,20,000- 50,000) :Rs. 70,000 (c). 50% of salary (including D.A) : Rs. 2,50,000 |
70,000 |
|
2 |
Gross Total Taxable Income |
6,22,000 |
|
|
Less: Deduction U/s 80C (i). Provident Fund : 60,000 (ii). LIP : 10,000 (iii). NSC VIII Issue : 30,000 (iv). Repayment of HBA : 60,000 (v). Tuition Fees (Restricted to two children) : 20,000 Total : 1,80,000 Restricted to 1,50,000 |
1,50,000 |
|
|
Total Income |
4,72,000 |
|
|
Income Tax thereon/payable |
11,100 |
|
|
Add: (i). Education Cess @2% (ii). Secondary and Higher Education Cess @1% |
222 111 |
|
|
Total Income Tax payable |
11,433 |
|
|
Rounded off to |
11,430 |
Source: https://www.incometaxindia.gov.in