Income tax Calculation Example 6 for Salary Employees 2023-24 – Example 6
Example 6
For Assessment Year 2023-24
Illustrating Valuation of perquisite and calculation of tax in the case of an employee below the age of 60 y ears of a Private Company posted at Delhi and repaying House Building Loan (With valid PAN’ furnished to employer).
| S.No. | Particulars | Rupees |
|---|---|---|
| 1 | Salary | 4.50.000 |
| 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 for house hired by employee | 1,20,000 |
| 9 | Repayment of House Building Loan (Principal) | 60 |
| 10 | Tuition Fees for three children (Rs.10.000 per child) | 30,000 |
COMUTATION OF TOTAL INCOME AND TAX PAID THEREON:
| S.No. | Particulars | Rupees |
|---|---|---|
| 1 | Gross Salary (Basict-DA+HRA*SDA) | 7.42,000 |
| 2 | Less: House rem allowance exempt U/s 10 (13A) will the amount which is least of: i)Actual amount of HRA received : Rs.1.80.000 ii)Rent paid in excess of 10% of salary (Including D.A.) assuming D.A. is included for retirement benefits (1.20.000- 55.000) : Rs. 65.000 iii)509:of salary (including D.A) : Rs. 2.75.000 |
65 |
| 3 | Lou,. Standard deduction u/s 16(ia) | 50,000, |
| 4 | Gross Total Taxable Income | 6.27,000 |
| 5 | 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 |
| 6 | Total income | 4.77,000 |
| 7 | Income Tax thereon/payable (includes Rebate aspen Section 87.4) | Nil |
| 8 | Add: Health & Education Ccss 6( 4%. | Nil |
| 9 | Total Income Tax payable | Nil |
| 10 | Rounded off to | Nil |
or Aadhaar number, as the case may be # I may be noted that tax liability may not be the same in case the taxpayer opts for concessional tax regime under section 115BAC of the Act.