Scribd
Upload
5 views5 pages

Income Tax Calculation for Ms. Mehta 2024-25

Ms. Anjali Mehta's total income for FY 2024-25 is calculated to be ₹711,200 after accounting for her salary components, HRA exemptions, and various deductions under sections 80C, 80D, and 80TTA. She received cash gifts from friends and family, but only the gift from her friend is considered taxable income. The document outlines her salary, other income sources, and expenses, leading to the final income figure for tax filing.

Uploaded by

priyaadh89
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
5 views5 pages

Income Tax Calculation for Ms. Mehta 2024-25

Ms. Anjali Mehta's total income for FY 2024-25 is calculated to be ₹711,200 after accounting for her salary components, HRA exemptions, and various deductions under sections 80C, 80D, and 80TTA. She received cash gifts from friends and family, but only the gift from her friend is considered taxable income. The document outlines her salary, other income sources, and expenses, leading to the final income figure for tax filing.

Uploaded by

priyaadh89
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Ms. Anjali Mehta, aged 52, is employed with Coal India, Kolkata.

She receives
the following salary details for FY 2024–25:

Basic Salary: ₹50,000/month

Dearness Allowance (DA): ₹10,000/month (DA forms part of retirement


benefits)

HRA Received: ₹20,000/month

Rent Paid: ₹22,000/month

She resides in a rented flat in Kolkata.

Value of Perquisites as per sec17(2) Rs 100000

She received cash gift of RS 100000 from her friend Mr Mohak on 10.10.2024
and Rs 55000 from her brother Mr Anand.

Income from Other Sources:

Savings account interest from Canara Bank ₹8,000

Fixed deposit interest: ₹15,000

She made the following expenses during 2024-25

[Link] Premium Paid on own Life Rs 18000.(policy no-302223466)

[Link] Fees of her three children Rs 1500 per month per child

[Link] to PPF Rs 120000

[Link] Rs 80000 Invested in NPS having PRAN no


(110172611702)

[Link] Insurance Premium paid in cheque for Rs 20000 (policy no-


501113466) from GIC

TDS of Rs 1000 deducted every month by her employer TAN no


(CALB05661G).Professional Tax OF Rs 150 is also deducted every
month.

Calculate Total Income and Tax Liability for filing ITR for FY 2024-25.
Cash Gift from Mr Mohak (friend) Rs 100000 shall be considered as income of MR
Anand
Cash Gift from Mr Anand Since the amount received from the relative of
the recipient hence the provision of sec 56(2)(x)
is not applicable though the amount exceeds Rs
50000

Solution:

Step 1: Calculate Annual Salary Components

 Basic Salary = ₹50,000 × 12 = ₹6,00,000


 DA = ₹10,000 × 12 = ₹1,20,000
 HRA Received = ₹20,000 × 12 = ₹2,40,000
 Rent Paid = ₹22,000 × 12 = ₹2,64,000

Step 2: Use HRA Exemption Rule

Under Section 10(13A), HRA exemption is the least of the following three:

1. Actual HRA received: ₹2,40,000


2. 50% of Salary (Basic + DA) [for metro cities]:
o Salary = ₹6,00,000 + ₹1,20,000 = ₹7,20,000
o 50% of ₹7,20,000 = ₹3,60,000
3. Rent Paid – 10% of Salary (Basic + DA):
o Rent Paid = ₹2,64,000
o 10% of Salary = 10% of ₹7,20,000 = ₹72,000
o Excess = ₹2,64,000 – ₹72,000 = ₹1,92,000
Calculation of Total Income

[Link] FROM SALARIES

Basic Salary (50000*12) 600000

Dearness Allowances( 10000*12) 120000

HRA (20000*12) 240000

LESS:EXEMPTED (192000)

[Link] FROM OTHER SOURCES

Savings account interest from Canara Bank 8000

Fixed deposit interest 15000

Gift from friends 100000

Gross Total Income 939200

Less Deduction

SEC 80C

LIC Premium Paid 18000

Tution Fees(1500*2*12) 36000

Contribution to PPF 120000 174000 150000

Sec 80D

Medical Insurance 20000 20000

SEC 80CCD(1B) 80000 50000

SEC 80TTA 8000 8000

TOTAL INCOME 711200

You might also like