For the year ended 31st March, 2014 Paresh receives a salary of ₹2,80,000. Paresh's contribution to employees' recognised provident fund account is ₹59,000 and matching contribution has been made by employer. Taxable inc

CS Executive · Tax Laws and Practice · PYQS · December 2014
For the year ended 31st March, 2014 Paresh receives a salary of ₹2,80,000. Paresh's contribution to employees' recognised provident fund account is ₹59,000 and matching contribution has been made by employer. Taxable income of Paresh will be —
(A) ₹2,46,400
(B) ₹3,05,400
(C) ₹3,39,000
(D) ₹2,80,000.

Answer & Explanation:

Correct Answer: Option (A)

Correct answer: (A) ₹2,46,400. Salary plus employer contribution over 12% = 2,80,000 + (59,000−33,600) = 3,05,400. After employee PF deduction of 59,000 under section 80C, taxable income = 2,46,400. This answer applies to the historical law and assessment-year context of this December 2014 paper; later amendments may differ.

Topics: Income Tax Act, 1961

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