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Solution To Question1

Mrs. X's total taxable salary income for AY 2024-25 is Rs. 14,25,954, which includes components such as basic salary, dearness allowance, commission, medical allowance, pension, taxable gratuity, taxable HRA, car perquisite, concessional loan perquisite, and a taxable gift. The computation details various allowances and exemptions applicable to her retirement benefits. Key figures include a basic salary of Rs. 7,20,000 and taxable gratuity of Rs. 5,00,000.

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34 views3 pages

Solution To Question1

Mrs. X's total taxable salary income for AY 2024-25 is Rs. 14,25,954, which includes components such as basic salary, dearness allowance, commission, medical allowance, pension, taxable gratuity, taxable HRA, car perquisite, concessional loan perquisite, and a taxable gift. The computation details various allowances and exemptions applicable to her retirement benefits. Key figures include a basic salary of Rs. 7,20,000 and taxable gratuity of Rs. 5,00,000.

Uploaded by

22bch1600
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We take content rights seriously. If you suspect this is your content, claim it here.
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Solution to Question 1

Mrs. X retires on 28th February 2024 and receives the following taxable components

and exemptions. Below is the computation of her Net Salary Income for AY 2024-25:

1. **Basic Salary**: Rs. 60,000 per month

Annual Basic Salary (March 2023 to February 2024): Rs. 7,20,000

2. **Dearness Allowance**: Rs. 8,000 per month (60% included in retirement benefits)

Annual Dearness Allowance: Rs. 96,000

3. **Commission**: Rs. 2,400 per month

Annual Commission: Rs. 28,800

4. **Medical Allowance**: Rs. 24,500 (fully taxable)

5. **Pension**:

Monthly pension: Rs. 28,000

For March 2024: 75% of pension = Rs. 21,000

Total Taxable Pension: Rs. 21,000

6. **Gratuity**: Rs. 15,00,000 received (exempt up to Rs. 10,00,000 under Sec 10(10))

Taxable Gratuity: Rs. 5,00,000

7. **Provident Fund**: Accumulated balance of Rs. 25,00,000 is fully exempt.


8. **House Rent Allowance (HRA)**:

HRA paid until January 2024: Rs. 25,000 per month for 11 months = Rs. 2,75,000

Exemption under Sec 10(13A):

- Actual HRA received: Rs. 2,75,000

- Rent paid less 10% of salary (Basic + DA): Rs. 2,75,000 - Rs. 81,600 = Rs. 1,93,400

- 50% of salary (for metro city): Rs. 3,60,000

Least of the above: Rs. 1,93,400

Taxable HRA: Rs. 2,75,000 - Rs. 1,93,400 = Rs. 81,600

9. **Car Perquisite**:

Employer provided car (engine capacity 1.5L):

- Perquisite for car + driver: Rs. 3,600 per month = Rs. 43,200

10. **Concessional Loan**:

Loan Amount: Rs. 1,00,000

Concessional Interest: 2% p.a.

SBI Lending Rate: 14%

Difference in interest: 14% - 2% = 12%

Perquisite = Rs. 1,00,000 x 12% x (26/365) = Rs. 854

11. **Gift**: Air purifier worth Rs. 10,000 (Taxable as perquisite)

### Computation of Taxable Salary Income:

- Basic Salary: Rs. 7,20,000

- Dearness Allowance: Rs. 96,000

- Commission: Rs. 28,800

- Medical Allowance: Rs. 24,500


- Pension: Rs. 21,000

- Taxable Gratuity: Rs. 5,00,000

- Taxable HRA: Rs. 81,600

- Car Perquisite: Rs. 43,200

- Concessional Loan Perquisite: Rs. 854

- Gift: Rs. 10,000

**Total Taxable Salary Income: Rs. 14,25,954**

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