Mr. Prakash, a non-Governmental employee has the following salary detail for the assessment year 2021-22: Basic Salary ₹60,000 p.a., D.A. ₹24,000 p.a., Entertainment Allowance ₹3,600 p.a., LIC Premium Paid by employer ₹3

CS Executive · Tax Laws and Practice · PYQS · December 2021
Mr. Prakash, a non-Governmental employee has the following salary detail for the assessment year 2021-22: Basic Salary ₹60,000 p.a., D.A. ₹24,000 p.a., Entertainment Allowance ₹3,600 p.a., LIC Premium Paid by employer ₹3,600, Income Tax paid by employee ₹2,000, and Professional tax paid by employer on behalf of employee ₹2,000. Find his taxable salary for the assessment year 2021-22.
(A) ₹50,600
(B) ₹41,200
(C) ₹43,200
(D) ₹93,200

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B), (D). Official source note: Option B is correct if Mr. Prkash not opted for Section 115BAC of the Income tax Act, 1961. Option D is correct if Mr. Prkash opted for Section 115BAC of the Income tax Act, 1961.

Topics: Income Tax Act, 1961

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