Income Tax Calculation – Housing Loan and Deduction u/s 80C
Example 10
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* |
||
* After rebate of Rs 2500 u/s 87A
Source: https://www.incometaxindia.gov.in