Bajrang (Age 50 years) a resident is engaged in the business of textile at Chennai. His wife Usha is employed in ABC Ltd as Accounts Officer. She furnishes you the following details for the year ended 31st March, 2024: P

CS Executive · Tax Laws and Practice · PYQS · June 2024
Bajrang (Age 50 years) a resident is engaged in the business of textile at Chennai. His wife Usha is employed in ABC Ltd as Accounts Officer. She furnishes you the following details for the year ended 31st March, 2024: Particulars Amount (₹) Basic salary per month 1,20,000 Dearness allowance (50% eligible for retirement benefits) per month 60,000 Lunch allowance per month 10,000 Medical allowance per month 5,000 Children education allowance (₹ 2,000 per child for 2 children) per month 4,000 Health club membership fee provided similarly to all staff by ABC Ltd. paid for whole year 20,000 House Rent Allowance per month 30,000 Actual rent paid by her to Bajrang (husband) in Chennai per month 40,000 Contribution to public provident fund ₹ 1 lakh in her account and ₹ 40,000 each in the name of two minor children 1,80,000 Bank FD interest 50,000 Savings bank account interest 15,000 Bajrang furnishes you the following details of income for the year ended 31st March, 2024: Particulars Amount (₹) Turnover from retail trade of garments (He does not maintain books of account for this business, whole of the sale money is received in cash only) 1,20,00,000 Rent from vacant site at Chennai 96,000 Rent from house property at Chennai let out to wife Usha 4,80,000 Arrear salary received from Ex-employer 1,50,000 Gift received from relatives on the occasion of birthday 55,000 Gift of motor car from a friend outside India cost of motor car 5,10,000 Eligible amount of brought forward business loss relating to wholesale trade of the assessment year 2022-23. This business was discontinued w.e.f. 01-04-2023. 3,00,000 Sold a vacant land (whose value for stamp duty purposes is ₹ 15 lakh) on 04-03-2024 14,00,000 The vacant land was acquired by his late father on 01-09-2010 for ₹ 2 lakh. Bajrang inherited the land on 05-06-2022 as per father's Will. Deposited in capital gain bond of REC Ltd. u/s 54 EC on 10-05-2024 9,00,000 Cost inflation index for F.Y. 2010-11 = 167; F.Y. 2022-23 = 331; F.Y. 2023-24 = 348 Based on the facts of the above information, compute the total income of Usha for the assessment year 2024-25, on the assumption that she has not opted the scheme of section 115 BAC.

Answer & Explanation:

Computation of Total Income of Mrs. Usha for the AY 2024-25 Particulars Amount (₹) Amount (₹) Income from Salary Basic Salary (₹ 1,20,000 * 12 month) 14,40,000 Dearness Allowance (₹ 60,000 * 12 month) 7,20,000 Lunch allowance 10,000 per month fully taxable 1,20,000 Medical allowance 5,000 per month fully taxable 60,000 Children education allowance (2,000 x 2 x 12) 48,000 Less: Education allowance deductible (₹ 100 per month x 12 x 2 child) (2,400) 45,600 Health Club membership fee provided similarly to all staff by employer is exempted Nil House rent allowance (taxable calculated as above) 60,000 Gross Salary 24,45,600 Less: Standard Deduction (50,000) Taxable Income from Salary 23,95,600 Income from Other Sources Bank FD Interest 50,000 Saving bank account interest 15,000 Taxable Income from Other Sources 65,000 Gross Total Income 24,60,600 Less: Deduction under Chapter VI-A Under section 80C in respect of contribution to PPF ₹ 1,80,000 (₹ 1,00,000 + 40,000 + 40,000) but restricted to ₹ 1,50,000 1,50,000 Under section 80TTA in respect of saving bank interest 10,000 (1,60,000) Total Income 23,00,600

Topics: Income Tax

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