TAXATION

Capital Gain Tax Rate

 Tax rates of STCG (Short Term Capital Gain) covered under section 111A is
charged to tax @ 15%.

 Tax rates of LTCG (Long Term Capital Gain) covered under section 111A is
charged to tax @ 20%.



Unit-2: HEADS OF INCOME

INCOME FROM
OTHER SOURCES

Prepared & Presented by,
Prof. Vikrant D. Palatshaha

MKSSS’s Shri Siddhivinayak Mahila Mahavidyalaya, Karvenagar, Pune-52



Basis of Charge (Section 56):

This is the residual head of charge of income. Where a source of income does not
specifically fall under any one of the other heads of income i.e. Income from
Salary, Income from House Property, Income from Business and Profession and
Income from Capital Gain, such income is to be brought to charge u/s 56 under
head of “Income from Other Sources”.

According to section 56 of the Income Tax Act, the following three conditions
need to be satisfied for a receipt to be categorized as income from other
sources.

– There is an income.
– Such income is not exempted under any other provisions of the

Income Tax Act.
– Such income cannot be charged as salary, income from house

property, profits and gains from business or profession, or capital
gains.

Income from Other Sources List

S.N. Particulars Taxability

1 Interest on Securities of Central Govt. or State Govt. Taxable

2 Interest on National Savings Certificate (NSC) Taxable

3 Interest on Debentures, Bonds issued by Statutory Corporation or Co-op. Taxable
Society or Public Sector Company

4 Interest on sum deposited under National Pension Scheme Taxable

5 Interest on sum deposited under Post Office Savings Scheme or Time Deposit Exempted upto ₹3,500 and in case of
Joint Venture ₹7,000

6 Dividend Received from any Indian or Domestic Company Exempted

7 Dividend Received from Foreign Company or Co-op. Society Taxable

8 Dividend on Preference Shares or Equity Shares Exempted

9 Interest on Bank Deposit or Company Deposit Taxable

10 Royalty from Books Taxable

11 Income from U.T.I. or Mutual Funds Taxable

12 Winnings from Cross Word Puzzles, Card Games, Lotteries, Horse Races, Taxable
Game Shows, Subletting activities etc.

13 Family Pension Amount Exempted: 1/3rd of received amount or
₹15,000 whichever is less

continue

S.N. Particulars Taxability

14 Income of Scientific Research Associations, Professional Associations, Trade Taxable
Unions

15 Interest on PPF Exempted

16 Interest on own contribution to URPF Taxable

17 Income of Local Authority Exempted

18 Income Tax Refund Taxable

19 Share of Profit from Firm Exempted

20 Gift from Friend Taxable

21 Examination Remuneration from University Taxable

UNIT-3:
COMPUTATION OF TOTAL

TAXABLE INCOME AND
TAX LIABILITY OF AN

INDIVIDUAL

Prepared & Presented by,
Prof. Vikrant D. Palatshaha

MKSSS’s Shri Siddhivinayak Mahila Mahavidyalaya, Karvenagar, Pune-52

Gross Total Income:

The ‘Gross Total Income’ (GTI) is the total income earn by the assessee by
adding all heads of income. Income from salary, house property, other
sources, business or profession, and capital gains earned in a financial year
are all added to arrive at the GTI.

Total Income:

The ‘Total Income’ (TI) is derived after subtracting the various deductions
under Section 80 from the GTI. So, first calculate the GTI and then subtract
the deductions to arrive at the TI.

Computation of Total Taxable Income

Particulars Amount
I. Income from Salary
II. Income from House Property xxx
III. Income from Business & Profession xxx
IV. Income from Capital Gains xxx
V. Income from Other Sources xxx
xxx
Less: Deductions u/s 80
Gross Total Income xxx

xxx

Total Taxable Income xxx

Solution

Deductions u/s 80

 Under Section 80C:
This section allows specific investments and expenses to be deducted from the GTI up to ₹1.5
lakh.
• Contribution to RPF & PPF
• Investment in LIC, NSC & Other specific investments.
• Housing Loan Principal Amount
• Tuition fees paid for the children.
• Interest on NSC.
• Fixed Deposit with any Bank more than 5 years.

continue

continue

 Section 80CCD:
NPS (National Pension System) contribution up to ₹50,000 is allowed as deduction.

 Section 80D:
Section 80D of the Income Tax Act provides tax deductions for medical expenditure made for the self and the
family.
• Maximum deduction of ₹25,000 per year on health insurance premium for self and family individual less

than 60 years of age.
• Maximum deduction of ₹50,000 per year for a senior citizen i.e. individual more than 60 years of age.

 Section 80DDB:
This section allows deduction of expenditure incurred for treatment of specified diseases like Dementia,
Dystonia musculorum deformans, Motor neuron disease, Ataxia, Chorea, Hemiballismus, Aphasia, Parkinsons
disease, AIDS, Chronic Renal Failure, Hematological disorders , Haemophilia, Thalassemia.
• Maximum deduction for individual less than 60 years ₹40,000.
• Maximum deduction for individual more than 60 years i.e. senior citizen ₹1,00,000.

 Section 80E:
This section allows deduction for Interest paid on higher education loan without any limitation

continue

 Section 80G:
This section allows deduction for Donation made to certain funds or charitable trusts in rupees upto 50% or 100% of
donated amount.
1. National Defense Fund 100%
2. Prime Minister National Relief Fund 100%
3. Promotion for Family Planning Fund 100%
4. National Children’s Fund 100%
5. Swachh Bharat Kosh 100%
6. Clean Ganga Fund 100%
7. National Fund for Communal Harmony 100%
8. University of National Eminence 100%
9. Donation to an approved Charitable Institution 50%.
(Note: Donations in kinds are not allowed as deduction under this section)

 Section 80GG:
This includes housing rent allowance (HRA) exemption for those who do not have an HRA component in their salary.
Deduction will be least of the following.
• ₹2,000 pm
• Rent paid less 10% of Adjusted gross total income
• 25% of Adjusted gross total income

continue

 Section 80TTA:
Section 80TTA of the Income Tax Act 1961 provides deduction on the interest earned on savings account with a
bank, cooperative society or post office, up to ₹10,000/-. No deduction for FD interest is available u/s 80TTA.

 Section 80TTB:
Section 80TTB of the Income Tax Act 1961 provides to Senior Citizens on the interest earned on savings account
with a bank, cooperative society or post office & Fixed Deposits up to ₹50,000/-.

 Section 80QQB:
This section allows deduction of Royalty income of authors of certain books other than text books up to
₹3,00,000.

 Section 80U:
This section gives a fixed deduction to a physical disable or handicapped individual.
• For normal disability (less than 80%) fixed deduction of ₹75,000.
• For severe disability (more than 80%) fixed deduction of ₹1.25 lakhs.



INCOME TAX SLABS

Indian Income tax levies tax on individual taxpayers on the basis of a slab
system. Slab system means different tax rates are prescribed for different
ranges of income. It means the tax rates keep increasing with an increase in
the income of the taxpayer. This type of taxation enables progressive and fair
tax systems in the country. Such income tax slabs tend to undergo a change
during every budget. These slab rates are different for different categories of
taxpayers. Income tax has classified three categories of individual taxpayers
such as:
• Individuals (aged less than of 60 years) including residents and non-

residents
• Resident Senior citizens (60 to 80 years of age)
• Resident Super senior citizens (aged more than 80 years)

INCOME SLAB AND TAX RATES FOR F.Y. 2021-22/A.Y 2022-23

• Income Tax Rate & Slab for Individuals & HUF (aged less than 60 years):

Taxable Income Tax Rate
Up to ₹2,50,000 NIL
₹2,50,000 to ₹5,00,000 5%
₹5,00,000 to ₹10,00,000 20%
Above ₹10,00,000 30%

Calculation of Tax Liability:

INCOME SLAB AND TAX RATES FOR F.Y. 2021-22/A.Y 2022-23

• Income Tax Rate & Slab for Individuals & HUF (senior citizens aged 60 to
80 years):

Taxable Income Tax Rate
Up to ₹3,00,000 NIL
₹3,00,000 to ₹5,00,000 5%
₹5,00,000 to ₹10,00,000 20%
Above ₹10,00,000 30%

Calculation of Tax
Liability:

INCOME SLAB AND TAX RATES FOR F.Y. 2021-22/A.Y 2022-23

• Income Tax Rate & Slab for Individuals & HUF ( super senior citizens aged
above 80 years):

Taxable Income Tax Rate
Up to ₹5,00,000 NIL
₹5,00,000 to ₹10,00,000 20%
Above ₹10,00,000 30%

CALCULATION OF INCOME TAX/TAX LIABILITY
Step-1: Calculate Income Tax as per applicable Income Tax Slab
Step-2: Less- Rebate u/s 87A of ₹12,500 (if total taxable income is less than ₹5,00,000)
Step-3: Add- Surcharge if,

a) 10% of Income tax where total income exceeds Rs.50 lakh
b) 15% of Income tax where total income exceeds Rs.1 crore
Step-4: Add- 4% Health & Education Cess
Step-5: Less- Advance Tax or TDS (if paid)

Example

Example

Calculate tax liability of Mr. Narendra below 60 years age for the A.Y. 2022-23. His total taxable income is ₹10,30,000

Particulars Tax Slab Working ₹

Total Taxable Income= ₹10,30,000 NIL
12,500
Tax liability before rebate Up to 2,50,00 NIL NIL 1,00,000

₹2,50,000 to ₹5,00,000 @5% On ₹2,50,000 @5% 9,000
1,21,500
₹5,00,000 to ₹10,00,000 On ₹5,00,000 @20% 1,21,500

Above ₹10,00,000 On ₹30,000 @30% N.A.
N.A.
Total + 4,860
N.A.
Conversion into nearby ₹10 1,26,360

Less: Rebate u/s 87A (if total taxable income is less than ₹5,00,000)

Add: Surcharge (if applicable)

Add: 4% Education Cess

Less: TDS/Advance Tax Paid

Total Tax Liability

INCOME SLAB AND TAX RATES FOR F.Y.
2020-21/A.Y 2021-22
CALCULATION OF INCOME TAX/TAX
LIABILITY

Problem-1:

Mrs. Kalyani Bakre is working in Mahindra and Mahindra Ltd. Nashik. She was furnished the following details of her income for the year 2021-
22.
a) Basic salary ₹90,000 p.m.
b) Dearness Allowance 40% of basic salary considered for retirement benefits.
c) House Rent Allowance ₹5000 p.m.
d) Entertainment Allowance ₹2000 p.m.
e) Children's Education Allowance ₹1000 p.m. Mrs. Kalyani Bakre has one son and two daughter's learning in High schools.
f) Employers contribution to RPF 14% of basic salary Plus D.A. Same amount is contributed by Mrs. Kalyani to this fund.
g) Mrs. Kalyani lives in a rented house at Nashik for which she pays ₹10,000 per month as rent.
h) Mrs. Kalyani has a house in Pune, which is let-out @ ₹14,000 per month the municipal value of house is ₹1,40,000. She has paid ₹11,000

as municipal Tax of the Property for the year 2020-21.
i) Mrs. Kalyani also won Maharashtra Lottery prize of ₹1,00,000 during the year.
j) She also received net income from consultancy service during the year ₹50,000.
k) Her savings and expenses for the year 2020-21 are as follows.

i) LIC premium paid ₹40,000.
ii) High school's tuition fees paid for son ₹15,000.
iii) Housing Loan installments for house in Pune ₹2,00,000 which includes ₹1,20,000 as interest on Loan for the year.
l) The company has deducted ₹2500 as professional Tax for the year and ₹25,000 per month as income tax from her salary. You are required
to compute the total Taxable Income and Tax liability of Mrs. Kalyani Bakre for A.Y. 2022-23.

Solution
Continue
Working Notes:
Working Notes:

Solution 12,000 ₹ ₹
- 2,400
Particulars 10,80,000 15,23,340
Gross Salary 4,32,000 (10,100)
Income From Salary NIL NIL
Basic Salary (₹90,000 x 12) 24,000 NIL
Dearness Allowance (40% of ₹10,80,000) 9,600 1,50,000
House Rent Allowance (W.N.-1) 30,240
Entertainment Allowance (₹2,000 x 12)
Children Education Allowance (₹1,000 x 12) 15,75.840
Less: Exempted (₹100 x12 x 2) 50,000
Employer’s Contribution to RPF (W,N.-2) 2,500

Less: Deductions u/s 16 1,00,000
i) Standard Deduction 50,000
ii) Professional Tax

Income From Salary (A)

Income from House Property (W.N.-3) (B)

Income from Business (C)

Income from Capital Gain (D)

Income from Other Sources (E)
Income from Lottery
Income from Consultancy

Problem-1: continue Working Notes: Working Notes: Computation of Total Taxable Income

continue ₹₹
Particulars 16,63,240
Gross Total Income (A + B + C + D + E)

Less: Deductions u/s 80: Total 2,11,680
Section 80C 40,000
i) Own contribution to RPF 15,000
ii) LIC Premium 80,000
iii) Tuition fees paid for son
iv) Housing Loan Principal Amount 3,46,680

Maximum limitation of Section 80C is ₹1,50,000 therefore, qualified amount for deduction 1,50,000
15,13,240
Net Taxable Income

Solution
Deductions u/s 80
Calculation of Tax Liability:

Calculation of Tax Liability: Tax Slab Working ₹

Particulars Up to ₹2,50,00 NIL On ₹2,50,000 NIL NIL
Total Taxable Income= ₹15,13,240 ₹2,50,000 to ₹5,00,000 @5% On ₹2,50,000 @5% 12,500
Tax liability before rebate ₹5,00,000 to ₹10,00,000 On ₹5,00,000 @20% 1,00,000
Above ₹10,00,000 On ₹5,13,240 @30% 1,53,972
2,66,472
Less: Rebate u/s 87A (if total taxable income is less than ₹5,00,000) Total 2,66,470
Add: Surcharge (if applicable) Conversion into nearby ₹10
Add: 4% Education Cess N.A.
Tax Liability N.A.
Less: i) TDS (₹25,000 x12) + 10,660
Income Tax Refund 2,77,130
- 3,00,000
22,870

Working Notes: ₹ ₹
60,000
Working Note-1: Calculation of HRA 60,000
Salary = B.S. + D.A. (if applicable) + Commission (if given in fixed %) N.A. - 60,000
NIL
= ₹10,80,000 + ₹4,32,000 + N.A. = ₹15,12,000 6,04,800
Particulars
₹
House Rent Allowance (₹5,000 x 12) 2,11,680
- 1,81,440
Less: Least of the following,
a) Actual HRA received 30,240
b) Rent Paid – 10% of Salary i.e. ₹1,20,000 – 1,51,200
c) 40% of Salary i.e. 40% of ₹15,12,000 Solution Problem-1:

Taxable HRA

Working Note-2: Company’s Contribution to RPF
Salary = B.S. + D.A. (if applicable) + Commission (if given in fixed %)

= ₹10,80,000 + ₹4,32,000 + N.A. = ₹15,12,000
Particulars

Company’s Contribution to RPF 14% of B.S. + D.A.

Less: Exempted 12% of Salary i.e. 12% of ₹15,12,000

Taxable Contribution

Working Notes: ₹

Working Note-3: Calculation of Income from House Property 1,68,000
- 11,000
Particulars
1,57,000
Gross Annual Value
Less: Municipal Tax - 47,100
- 1,20,000
Net Annual Value
(10,100)
Less: Deductions u/s 24
i) Standard Deduction- 30% of NAV
ii) Interest on loan

Loss from House Property

Problem-1:
Solution

Problem-2

Mr. Chand aged 65 years working as Manager in DPS Ltd, Pune. furnished the following details of his income for the
financial year 2021-22. Compute his total taxable income and tax liability for the A.Y. 2022-23.

1. Basic Salary ₹ 60,000 per month (Fixed)

2. Dearness Allowance 70% of salary (60% of that considered for retirement benefits)

3. Transport Allowance ₹ 8,000 p.m.

4. House Rent Allowance ₹12,000 p.m. He pay’s ₹20,000 p.m as house rent for the house of his residence in Pune.

5. He get Medical Allowance ₹9,000 p.m.

6. Company contributes 13% of basic salary to his RPF and equal amount is contributed by him to this fund. Interest
credited during the year on balance of this Account @ 12% is ₹1,20,000.

7. He received ₹60,000 interest on Fixed Deposits in the bank and ₹12,000 as dividend received from other than
domestic company.

8. He paid ₹16,000 as LIC premium for policy of ₹1,50,000. Deposited 1,10,000 in PPF during F.Y.

9. Company has deducted ₹20,000 for month as Advance Tax from his salary, ₹2,500 as professional Tax and ₹2,000 p.m.
as TDS.

10.Long Term Capital Gain ₹1,90,000

11.He has Rented House at Nashik, letout it @ ₹20,000 p.m. he has paid ₹6,000 as Municipal Tax. He paid ₹1,60,000 as

Housing loan repayment. Which include ₹60,000 as interest on loan. Solution

Continue

Calculation of Tax Liability:

Working Notes:

Solution ₹₹

Particulars 1,20,000 7,20,000
Income From Salary - 95,000 5,04,000
Basic Salary (₹60,000 x 12) Gross Salary
Dearness Allowance (70% of ₹7,20,000) 96,000
Transport Allowance (₹8,000 x 12) Income From Salary (A) 6,240
House Rent Allowance (W.N.-1) Income from House Property (W.N.-3) (B)
Medical Allowance (₹9,000 x 12) 1,08,000
Company’s Contribution to RPF (W,N.-2) Income from Business (C) NIL
Interest Credited to RPF @12% Income from Capital Gain (D)
Less: Exempted @9.5% i.e. 1,20,000/12 x 9.5 25,000

Less: Deductions u/s 16 14,59,240
i) Standard Deduction
ii) Professional Tax 50,000
2,500
Income from Other Sources:
Interest on Fixed Deposits 14,06,740
Dividend received from other than domestic company 1,03,800
NIL
1,90,000

60,000
12,000

Income from Other Sources (E) 72,000

Continue Working Notes: Working Notes:

continue ₹₹
Particulars 17,72,540
Gross Total Income (A + B + C + D + E)

Less: Deductions u/s 80: Total 93,600
Section 80C 16,000
i) Own contribution to RPF (13% of B.S. i.e. ₹7,20,000) 1,10,000
ii) LIC Premium 1,00,000
iii) Deposited in PPF 3,19,600
iv) Housing Loan Principal Amount
1,50,000
Maximum limitation of Section 80C is ₹1,50,000 therefore, qualified amount for deduction 16,22,540

Net Taxable Income

Deductions u/s 80
Calculation of Tax
Liability:

Calculation of Tax Liability: Tax Slab Working ₹

Particulars On ₹3,00,000 NIL NIL
On ₹2,00,000 @5% 10,000
Total Taxable Income= ₹16,22,540 – 1,90,000 (for LTGC) = ₹14,32,540 On ₹5,00,000 @20% 1,00,000
On ₹4,32,540 @30% 1,29,762
Tax liability before rebate Up to ₹3,00,00 NIL 2,39,762
Total 2,39,760
₹3,00,000 to ₹5,00,000 @5% Conversion into nearby ₹10
N.A.
₹5,00,000 to ₹10,00,000 N.A.
+ 9,590
Above ₹10,00,000 2,49,350
38,000
Less: Rebate u/s 87A (if total taxable income is less than ₹5,00,000) 2,87,350
Add: Surcharge (if applicable) - 2,40,000
Add: 4% Education Cess - 24,000
23,350
Tax as per Tax Slab (A)
Tax on Long term Capital Gain ₹1,90,000 @20% (B)

Total Tax Liability (A + B)
Less: i) Advance Tax (₹20,000 x 12)

ii) TDS (₹2,000 x 12)
Tax Payable

INCOME SLAB AND TAX RATES FOR F.Y. 2020-21/A.Y 2021-22 Continue Problem-2 UNIT-2 INCOME FROM CAPITAL GAIN.pptx

Working Notes: ₹ ₹
1,44,000
Working Note-1: Calculation of HRA 1,44,000
Salary = B.S. + D.A. (if applicable) + Commission (if given in fixed %) 1,37,760 - 1,37,760
4,08,960 6,240
= ₹7,20,000 + ₹3,02,400 + N.A. = ₹10,22,400
Particulars ₹
93,600
House Rent Allowance (₹12,000 x 12)
- 1,22,688
Less: Least of the following, NIL
a) Actual HRA received
b) Rent Paid – 10% of Salary i.e. ₹2,40,000 – 1,02,240
c) 40% of Salary i.e. 40% of ₹10,22,400

Taxable HRA

Working Note-1: Company’s Contribution to RPF
Salary = B.S. + D.A. (if applicable) + Commission (if given in fixed %)

= ₹7,20,000 + ₹3,02,400 + N.A. = ₹10,22,400
Particulars

Company’s Contribution to RPF 13% of B.S. i.e. 13% of ₹7,20,000

Less: Exempted 12% of Salary i.e. 12% of ₹10,22,400

Taxable Contribution

Working Notes: ₹
2,40,000
Working Note-3: Calculation of Income from House Property - 6,000
2,34,000
Particulars - 70,200
- 60,000
Gross Annual Value 1,03,800
Less: Municipal Tax
Problem-2
Net Annual Value Solution

Less: Deductions u/s 24
i) Standard Deduction- 30% of NAV
ii) Interest on loan

Income from House Property

Problem-3
Mr. Prakash Aged 45 years is working in Shrirampur, Dist. Ahemadnagarin Alfa Ltd. as Manager. He furnished the following details of his
income for the year 2021-22.
a) Basic Salary ₹50,000 p.m.
b) D.A. 40% of Basic Salary (not considered for retirement benefits).
c) Bonus received during the year ₹1,60,000.
d) Entertainment Allowance ₹1,000 p.m.
e) Transport Allowance ₹1,800 p.m.
f) Personal medical bill of ₹22,000 were reimbursed by employer for the treatment taken by him in private hospital.
g) His contribution to company’s RPF is ₹80,000 for the year and an equal amount is contributed by the company.
h) He has two houses in Shrirampur. One of which is used for his self residence and another is let out at ₹10,000 p.m. He paid ₹10,000 as
municipal tax for each house.
i) He received interest on debentures of Zindal India Ltd. ₹20,000 during the financial year.
k) He also received ₹10,000 dividend on SBI mutual funds.
l) He earned ₹70,000 as income from business.
m) He paid tuition fees ₹60,000 of his two children who are learning in Engineering college.
n) He paid Life insurance premium of ₹30,000 for the policy taken.
o) He paid Medical insurance premium of ₹30,000 for the medical policy taken for himself and family.
p) Company has deducted ₹2,500 as professional tax for the year from his salary and ₹5,000 p.m. as TDS.
Compute Total Taxable Income and Tax Liability of Mr. Prakash for the A.Y 2022-23.

Solution continue Calculation of Tax Liability: Working Notes: Working Notes:

Solution ₹₹

Particulars Gross Salary 6,00,000
Income From Salary 2,40,000
Basic Salary (₹50,000 x 12) Income From Salary (A) 1,60,000
Dearness Allowance (40% of ₹6,00,000) Income from House Property (W.N.-2) (B)
Bonus 12,000
Entertainment Allowance (₹1,000 x 12) Income from Business (C) 21,600
Transport Allowance (₹1,800 x 12) Income from Capital Gain (D) 22,000
Personal Medical Bill Reimbursement
Company’s Contribution to RPF (W.N.-1) 8,000

Less: Deductions u/s 16 10,63,600
i) Standard Deduction
ii) Professional Tax 50,000
2,500
Income from Other Sources:
Interest on Debentures of Zindal India Ltd. 10,11,100
Dividend received on SBI Mutual Funds 77,000
70,000
NIL

20,000
10,000

Income from Other Sources (E) 30,000

Problem-3 continue Working Notes: Working Notes: UNIT-2 INCOME FROM OTHER SOURCES.pptx

continue ₹₹
Particulars 11,88,100
Gross Total Income (A + B + C + D + E)

Less: Deductions u/s 80: Total 80,000
Section 80C 30,000
i) Own contribution to RPF 60,000
ii) LIC Premium 1,70,000
iii) Tuition fees for children
1,50,000
Maximum limitation of Section 80C is ₹1,50,000 therefore, qualified amount for deduction
Section 80D: 25,000
Mediclaim Insurance Premium Paid (Actual ₹30,000, Allowed maximum upto ₹25,000) 10,13,100

Net Taxable Income

Problem-3 Solution Calculation of Tax Liability:

Calculation of Tax Liability: Tax Slab Working ₹

Particulars Up to ₹2,50,00 NIL On ₹2,50,000 NIL NIL
Total Taxable Income= ₹10,13,100 ₹2,50,000 to ₹5,00,000 @5% On ₹2,50,000 @5% 12,500
Tax liability before rebate ₹5,00,000 to ₹10,00,000 @20% On ₹5,00,000 @20% 1,00,000
Above ₹10,00,000 @30% On ₹13,100 @30%
3,930
Total 1,16,430
Conversion into nearby ₹10 1,16,430

Less: Rebate u/s 87A (if total taxable income is less than ₹5,00,000) N.A.
Add: Surcharge (if applicable) N.A.
Add: 4% Education Cess + 4,660
1,21,090
Less: TDS (₹5,000 x 12) - 60,000
61,090
Total Tax Liability

Continue INCOME SLAB AND TAX RATES FOR F.Y. 2020-21/A.Y 2021-22 Problem-3

Working Notes: ₹
80,000
Working Note-1: Company’s Contribution to RPF
Salary = B.S. + D.A. (if applicable) + Commission (if given in fixed %) - 72,000
8,000
= ₹6,00,000+ N.A. + N.A. = ₹6,00,000
Problem-3 Solution
Particulars
Company’s Contribution
Less: Exempted 12% of Salary i.e. 12% of ₹6,00,000
Taxable Contribution

Working Notes: ₹

Working Note-2: Calculation of Income from House Property 1,20,000
- 10,000
Particulars
1,10,000
Gross Annual Value
Less: Municipal Tax - 33,000
N.A.
Net Annual Value
77,000
Less: Deductions u/s 24
i) Standard Deduction- 30% of NAV
ii) Interest on loan

Income from House Property

Problem-3 Solution