Total income computed under the head of Salary of ₹6,50,000 and of other sources of Sevak Kumar, who have attained the age of 60 years on 01.04.2021 for the year ended on 31.03.2021 is of ₹6,50,000 after claiming deducti

CS Executive · Tax Laws · PYQS · December 2021
Total income computed under the head of Salary of ₹6,50,000 and of other sources of Sevak Kumar, who have attained the age of 60 years on 01.04.2021 for the year ended on 31.03.2021 is of ₹6,50,000 after claiming deduction of ₹60,000 under section 80C of the Act. The liability of Sevak Kumar when he opts to pay tax under the provisions of section 115BAC and by availing the benefit of CBDT Circular No. 28/2016 dated 27.07.2016 for A.Y. 2021-22 shall be:
(A) ₹34,840
(B) ₹40,560
(C) ₹28,600
(D) ₹44,200

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A), (B). Official source note: The question is not specifically mentioned whether satndard deduction u/s 16(iia) of ₹ 50,000 has been deducted while computing salary income. Option A is correct as follow: Total Income 650000 + 60000 (Section 80C) = 710000. Accordingly Tax will be 34,840 i.e. Option A assuming Standard deduction u/s 16 (iia) of ₹ 50,000 has not been deducted while computing Salary Income. Option B is correct as follow: Total Income 650000 + 60000 (Section 80C) + 50000 (Standard Deduction) = 760000. Accordingly Tax will be 40560. Assuming Standard deduction u/s 16 (iia) of ₹ 50,000 has been deducted while computing Salary Income.

Topics: Income Tax Act, 1961

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