Kamlesh Kant, a resident, aged 58 years, has the following income during the previous year 1.4.2019 to 31.3.2020: Salary income ₹7,75,000 Interest on savings bank account with Allahabad Bank ₹25,000 He had made the follo

Computation of Total Income of Mr. Kamlesh Kant for AY 2020-21 Particulars Amount (₹) Income from Salaries 7,75,000 Income from other Sources (Interest on savings bank account) 25,000 Gross Total Income 8,00,000 Less: Deduction under Chapter VI-A i. Under section 80C (Life insurance premium paid) Premium paid in respect of policy taken on life of son (Note 1) (25,000) ii. Premium paid in respect of policy taken on own life (Note 1) (20,000) iii. Under section 80D (Medical insurance premium paid) (Note. 2) (25,000) iv. Under section 80TTA (Interest on savings bank account (Note 3) (10,000) Total Income 7,20,000 Notes: Deduction under section 80C in respect of insurance premium paid in respect of a policy taken before 1.4.2012 shall be allowed up to 20% of sum assured and in respect of policy taken on or after 1.4.2012 it would be restricted to 10% of sum assured. Deduction under section 80D is allowable in respect of health insurance premium paid by any mode other than cash and expenses on preventive health check-up (up to ₹5,000) paid by any mode, including cash subject to maximum of ₹25,000 which is the overall limit in respect of a resident individual and his family members (excluding parents), who are below the age of 60 years. As per section 80TTA, deduction shall be allowed from the gross total income of an individual in respect of income by way of interest from the savings bank account subject to a maximum of ₹10,000. Note: Salary income of ₹7,75,000 is considered computed, as chargeable under the head salary, after allowing the standard deduction of ₹50,000 under section 16(ia) of the Income Tax Act, 1961. Alternatively: Salary income of ₹7,75,000 if considered as gross salary, then the standard deduction of ₹50,000 under section 16(ia) of the Income Tax Act, 1961 needs to be deducted from gross salary for computing income chargeable under the head salary and taken as ₹7,25,000.