The particulars given below are of Mr. Ramaswamy's income (age 57 years) posted in J. K. Swami Pvt. Ltd. in Hyderabad, for the previous year 2024-25: (1) Basic Pay 30,000 per month till January 31, 2025, ₹ 35,000 p.m. fr

Computation of taxable salary of Mr. Ramaswamy for A.Y.2025-26 Particulars Amount Amount (₹) Basic Pay [₹ 30,000 x 10 + ₹ 35,000 x 2] 3,70,000 Dearness Allowance [₹ 3,70,000 x 30%] 1,11,000 Employer's contribution to recognized provident fund 72,000 Less: Exempt (₹ 3,70,000 + 55,500) x 12% (upto 12% of Basic Salary + DA part of retirement benefit) (51,060) 20,940 Leave encashment for P.Y. 2024-25 15,000 Advance salary for April 2025 received on 31.3.2025 35,000 Arrear salary for March 2024 (already taxed on F.Y. 2023-24) Nil Refresher course for upgrading skills (Exempt) Nil Motor Car Facility (W.N. 1) 25,000 Gross Salary 5,76,940 Less: Standard Deduction under section 16(ia) (50,000) Taxable Income from Salary 5,26,940 Working Note 1: The motor car is chargeable as under: If the Car is owned / hired by the employee; expenses met by the employer & is used by the employee partly for official and partly for Personal purposes, the taxable value of the perquisite would be the actual expenditure incurred by the employer as reduced by the taxable value of the perquisite determined basis the engine capacity, i.e., ₹ 46,600 - INR (1800*12) = ₹ 25,000. Note: While calculating advanced salary received in March 2025 for the month of April, 2025 only basic pay (excluding employer's contribution to PF) is considered.