Income tax Calculation Example 9 for Salary Employees 2023-24 – Example 9
Example 9
For Assessment Year 2023-24
I. Computation of Taxable Salary and allowances, Deduction for Interest on Housing Loan and Deduction u/s 8OC.
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 2022 @24% of basic pay (though living in his own house). His date of increment is 1st July. The following are other particulars of his income. Compute his taxable income and tax payable, for A.Y.2023.24
| Particulars | Rupees |
|---|---|
| Honorarium for valuation of answer books of a departmental Examination | 3,000 |
| Fee for work done for a private body (Prof fees has been retained by Govt.) | 6,000 |
| Contributions to G.P.F. p.m. | 4,700 |
| Postal Life Insurance Premium financed from G.P.F. p.m. | 280 |
| Contribution to Central Govt. Employees Group Insurance Scheme p.m. | 500 |
| 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 |
| Contribution to Public Provident Fund | 10,000 |
| 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 |
COMUTATION OF TOTAL INCOME AND TAX PAID THEREON:
| Particulars | Rupees | |
|---|---|---|
| Income from Salary | ||
| Basic Pay (0, Rs 40.000 p.m | ||
| (March to June ’22) | 1,60,000 | |
| lit, Rs 41,200 p.m • (July 2022 to Feb 2023) | 3,29,600 | 4.89.600 |
| Dearness Allowance(assumed) | ||
| 1.3.2021 to 30.06.2022 g 7% i.e., Rs 40,000 p.m | 11,200 | |
| 1.7.2021 to 31.12.2022 A 9% i.e. Rs 41,200 p.m | 22,248 | |
| 1.1.2022 to 28.02.2023 @ 11%i.e.Rs.41,200 p.m | 9,064 | 5.32,112 |
| House Rent Allowance | 1,17,504 | 6.49.616 |
| Transport Allowance | ||
| 1.3.2022 to 30.6.2022 @ Rs 3200 p.m | 12,800 | |
| 1.7.2022 to 31.12.2022 A Rs 3780 p.m | 22,680 | |
| 1.1.2023 to 28.2.2023 R Rs 3852 p.m | 7704 | |
| 43,184 | ||
| 43,184 | ||
| 6,92,800 | ||
| Honorarium | 3,000 | |
| Foes (2/3 retained by him) | 34,800 | |
| Total Salary | 7,30,600 | |
| Less: Standard Deduction ids section 16(ia) | 50,000 | |
| Net Salary | 6,80,600 | |
| Income from House Property | ||
| Self-occupied u/s 23(2Xa) where property is acquired/constructed with borrowed capital on or after 1.4.1999 and such acquisition/construction computed within five years from the end of FY in which capital was borrowed. |
Nil | |
| Less: Interest on HDFC Loan (upto Rs. 2,00,000) | 2.00,000 (-) | 2.00,000 |
| Gross Total Income | 4.80,600 | |
| Less: Deduction tots 80 C | ||
| – GPF (a) 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 | 3,30,600 | |
| Computation of Tax Liability | ||
| Tax payable | 4,030 | |
| Less : Rebate u/s 87A | 4,030 | |
| Net Income-tax payable | Nil | |
| Add :he/shealth & Education Coss (04%. | Nil | |
| Total Tax Payable | Nil |
It may be noted that tax liability may not be the same in case the taxpayer opts for concessional tax regime under section II5BAC of the Act.