EXAMPLES RELATING TO CALCULATION OF INCOME TAX RELATING TO FINANCIAL YEAR 2014-15 (ASSESSMENT YEAR 2015-16):-

Illustration:

Mr. X, aged 45 years, submitted the details of his income and investment for financial year 2014-15, as under:

Particulars Amount(In Rupees)
Income from salary

300000/=

Interest from fixed deposits with bank

15000/=

Interest from personal loans

5000/=

Interest from Public Provident Fund Account (PPF)

25000/=

Deposit in Public Provident Fund Account (PPF)

150000/=

Calculate his income tax liability for financial year 2014-15 (Assessment Year 2015-16).

Solution:

COMPUTATION OF TAXABLE INCOME

PARTICULARS AMOUNT(In Rupees) AMOUNT(In Rupees)
Income from salary

300000/=

Income from other sources
Interest from fixed deposits with bank

15000/=

Interest from saving bank account

5000/=

Interest from  Public Provident Fund Account(Rs.25000/=)

NIL

20000/=

Gross Total Income

320000/=

Less: Deductions under Chapter VI-A
Deposit in Public Provident Fund Account

100000/=

Net Taxable Income

220000/=

Tax Payable

NIL

Note:

  1. Mr. X is 45 years old  and his income tax exemption limit for financial year 2014-15 is Rs.2,50,000/=. In above example his net taxable income is Rs.2,20,000/=. Therefore, he is not liable to pay any income tax.
  2. Interest on Public Provident Fund Account is not taxable.

Illustration:

Mrs. X, aged 42 years, submitted the details of her income and investment for financial year 2014-15, as under:

Particulars Amount(In Rupees)
Income from business

650000/=

Interest from fixed deposits with bank

35000/=

Interest from security deposits

15000/=

Interest from Public Provident Fund Account (PPF)

30000/=

Deposit in Public Provident Fund Account (PPF)

50000/=

Calculate her income tax liability for financial year 2014-15 (Assessment Year 2015-16).

Solution:

COMPUTATION OF TAXABLE INCOME

PARTICULARS AMOUNT(In Rupees) AMOUNT(In Rupees)
Income from Business

650000/=

Income from other sources
Interest from fixed deposits with bank

35000/=

Interest from security deposits

15000/=

Interest from  Public Provident Fund Account(Rs.30000/=)

NIL

50000/=

Gross Total Income

600000/=

Less: Deductions under Chapter VI-A
U/S 80C:Deposit in Public Provident Fund Account

50000/=

Net Taxable Income

550000/=

Tax Payable

35000/=

Education Cess 2%

700/=

Secondary & Higher Education Cess 1%

350/=

Total Tax Liability

36050/=

Note:

  • Mrs. X is 42 years old  and her basic income tax exemption limit for financial year 2014-15 is Rs.250000/=. In above example her net taxable income is Rs.5,50,000/=. Therefore, she is liable to pay income tax. There is no separate income tax slab for a woman tax payer.
  • Interest on Public Provident Fund Account is not taxable.
  • Income Tax Rate from Rs.250000/= to Rs.500000/= is 10%
  • Income tax rate  from Rs.500001 to Rs.10,00,000/= is 20%

Illustration:

Mrs. Y, aged 63 years, submitted the details of her income and investment for financial year 2014-15, as under:

Particulars Amount(In Rupees)
Rental Income from house property

850000/=

House tax paid

50000/=

Interest from fixed deposits with bank

250000/=

Interest from saving bank account

10000/=

Interest from Public Provident Fund Account (PPF)

120000/=

Deposit in Public Provident Fund Account (PPF)

60000/=

Life Insurance Premium Paid

20000/=

Medical Insurance Premium paid

10000/=

Calculate her income tax liability for financial year 2014-15 (Assessment Year 2015-16).

Solution:

COMPUTATION OF TAXABLE INCOME

PARTICULARS AMOUNT(In Rupees) AMOUNT(In Rupees)
Income from House Property
Rent received

850000/=

Less: House Tax paid

50000/=

Net Annual Value

800000/=

Less: Standard Deduction for Repairs 30%

240000/=

 560000/=
Net income from House Property
Income from other sources
Interest from fixed deposits with bank

250000/=

Interest from saving bank account

20000/=

Interest from  Public Provident Fund Account(Rs.120000/=)

NIL

270000/=

Gross Total Income

830000/=

Less: Deductions under Chapter VI-A
Deposit in Public Provident Fund Account

60000/=

Life insurance Premium paid

20000/=

Medical Insurance Premium paid

10000/=

Interest from saving bank accounts

10000/=

100000/=

Net Taxable Income

730000/=

Tax Payable

66000/=

Education Cess 2%

1320/=

Secondary & Higher Education Cess 1%

660/=

Total Tax Liability

67980/=

Note:

  • Mrs. X is 63 years old. Therefore, her income tax exemption limit for financial year 2014-15 is Rs.3,00,000/=. In above example her net taxable income is Rs.7,30,000/=. Therefore, she is liable to pay income tax.
  • Interest on Public Provident Fund Account is not taxable.
  • Maximum amount of Medical insurance premium is allowed Rs.15000/=. In case of Senior Citizen who is 60 years or more, maximum amount is allowed Rs.20000/= under section 80D.
  • Interest from saving account is exempted up to Rs.10000/= u/s 80TTA
  • Income Tax for Senior Citizen for financial year 2014-15 shall be calculated as under:
Income tax slabs Taxable Amount(In Rupees) Rate Tax Amount(In Rupees)
Up to Rs.300000/= 300000/=

NIL

Rs.300001 to Rs.500000/=

200000/=

10%

20000/=

Rs. 500001 to Rs.730000/=

230000/=

20%

46000/=

Total

730000/=

  66000/=

Illustration:

Following are the details of income and investments for financial year 2014-15 (Assessment Year 2015-16):-

Particulars Amount(In Rupees)
Income from house property (Net Annual Value)

300000/=

Income from Business

900000/=

Income from other sources (Taxable at normal rate)

100000/=

Deductions Under Chapter VI-A

100000/=

Calculate the income tax liability for financial year 2014-15 (Assessment Year 2015-16) if the tax payer is:-

a)      45 years old male

b)      45 years old female

c)      61 years old male

d)      61 years old female

e)      81 years old male

f)        81 years old female

Solution:

During financial year 2014-15 following are the exemption limits for individual tax payers:

Type of Tax Payer

Exemption Limit

(In Rupees)

Male below 60 years

250000/=

Female below 60 years

250000/=

Male/Female between 60 and 80 years

300000/=

Male/Female 80 and above

500000/

So keeping in view above table, we shall calculate the tax liability of different types of tax payers as under:

COMPUTATION OF TAXABLE INCOME

  Male below 60 years Female below 60 years Male/Female  60 yrs and above but below  80 yrs. Male/Female  80 years and above
PARTICULARS AMOUNT(In Rupees) AMOUNT(In Rupees) AMOUNT(In Rupees) AMOUNT(In Rupees)
Rental Income from House Property

300000

300000

300000

300000

Income from Business

900000

900000

900000

900000

Income from Other Sources

100000

100000

100000

100000

Gross Total Income

1300000

1300000

1300000

1300000

Total Deductions under Chapter VI-A

100000

100000

100000

100000

Net Taxable Income

1200000

1200000

1200000

1200000

Tax Payable

185000

185000

160000

160000

Education Cess 2%

3700

3700

3200

3200

Secondary & Higher Education Cess 1%

1850

1850

1600

1600

Total Tax Liability

190550

190550

185400

164800

Following are the income tax slabs for individuals for financial year 2014-15:

Income tax slabs Rate
Up to Rs.250000/= nil
From Rs.250001/= to Rs.500000/= 10%
From Rs.500001/= to Rs.1000000/= 20%
Rs.1000001/= onwards 30%

Total

 

Illustration:-
Mr. X had the following income during financial year 2014-15. He is 50 years old.
Calculate the tax liability of Mr.X?
PARTICULARS AMOUNT
(IN RUPEES)
SALARY FROM M/S XYZ LIMITED 2000000
INTEREST ON FDR FROM CITI BANK 60000
INTEREST FROM SAVING BANK A/C 5000
INTEREST ON INFRA BONDS 3000
INTEREST ON PPF ACCOUNT 30000
DIVIDEND RECD FROM MUTUAL FUNDS 20000
HIS EMPLOYER DEDUCTED HIS CONTRIBUTION TO P.F. 70000
HE DEPOSITED IN PUBLIC PROVIDENT FUND ACCOUNT 80000
HE MADE THE REPAYMENT OF HOUSE LOAN 300000
HE PAID INTEREST ON LOAN FOR RESIDENTIAL HOUSE PROPERTY 110000
 
HIS EMPLOYER DEDUCTED TDS ON SALARY 420000
TDS DEDUCTED BY BANK ON INTREST ON FDR 6000

Solution:-
NAME MR. X
STATUS INDIVIDUAL
ASS. YEAR 2015-16
PAN AAAAS1111K
DATE OF BIRTH 12.12.1980
COMPUTATION OF INCOME
INCOME FROM SALARY    
SALARY RECEIVED (AS PER  FORM – 16) – XYZ LTD. 2000000
   
INCOME FROM HOUSE PROPERTY
INTEREST ON LOAN FOR RESIDENTIAL HOUSE PROPERTY -110000
INCOME FROM OTHER SOURCES
INTEREST ON FDR – CITI BANK 60000
INTEREST FROM SAVING BANK A/C 5000
INTEREST ON INFRA BONDS 3000
INTEREST ON PPF (EXEMPT) 30000/= 0
DIVIDEND RECD (EXEMPT) 20000/= 0 68000
 GROSS TOTAL INCOME 1958000
LESS : DEDUCTIONS (CHAPTER VI-A)
CONTRIBUTION TO P.F. 70000
PPF 80000
REPAYMENT OF HOUSE LOAN 300000
GROSS DEDUCTIONS 450000
 DEDUCTIONS RESTRICTED TO  150000
Less: Interest on Saving Bank Account 5000
 Total deduction under Chapter VI-A  155000
NET TAXABLE INCOME 1803000
TAX ON ABOVE 365900
ADD: EC + S&HEC 3% 10977
TOTAL TAX PAYABLE 376877
LESS: TAX PAID
TDS ON SALARY 420000
TDS ON INTREST ON FDR 6000 426000
NET REFUND DUE 49123
CALCULATION OF INCOME TAX
PARTICULARS INCOME TAX RATE TAX
UP TO 250000 250000 0 0
FROM 250001 TO 500000 250000 10% 25000
FROM 500001 TO 1000000 500000 20% 100000
800001 ONWARDS 803000 30% 240900
 TOTAL 1803000 365900

EXAMPLES RELATING TO CALCULATION OF INCOME TAX RELATING TO FINANCIAL YEAR 2015-16 (ASSESSMENT YEAR 2016-17)

Illustration:
 
Mr. AJAY KUMAR ARORA HAD THE FOLLOWING DETAILS DURING
THE FINANCIAL YEAR 2015-16 (ASSESSMENT YEAR 2016-17)
 PARTICULARS  AMOUNT (RS.)
PROFIT FROM M/S R.S.ENTERPRISES 38162
INTEREST FROM M/S RAMA BUILDERS 250800
INTEREST FROM SAVING BANK ACCOUNT 23783
INTEREST ON FDR WITH STATE BANK OF INDIA 64395
INTEREST ON FDR WITH SOUTH INDIAN BANK 30080
INTEREST ON FDR WITH IDBI BANK 81067
INTERET ON APPLICATION MONEY 3700
DIVIDEND FROM UTI 10597
INTEREST FROM TAX FREE BONDS 58271
INTREST FROM PPF ACCOUNT 68722
LIFE INSURANCE PREMIUM PAID 5608
AMOUNT DEPOSITED IN PPF A/C 150000
MEDICAL INSURANCE PREMIUM PAID 11388
TDS DEDUCTION:-
M/S RAMA BUILDERS 25080
IDBI BANK 8107
STATE BANK OF INDIA 6441
SOUTH INDIAN BANK 3008
PERSONAL DETAILS OF MR.AJAY KUMAR ARORA
PAN AABBC5252X
DATE OF BIRTH 28.10.1954
WARD NO. 70(1) DELHI
STATUS INDIVIDUAL

PREPARE THE COMPUTATION OF INCOME?

Solution:

NAME AJAY KUMAR ARORA
STATUS INDIVIDUAL
ASS. YEAR 2016-17
PAN AABBC5252X
DATE OF BIRTH 28.10.1954
WARD NO. 70(1) DELHI
COMPUTATION OF INCOME
     
INCOME FROM BUSINESS/PROFESSION        
PROFIT FROM M/S R.S ENTERPRISES   38162
(PROP. MR. AJAY KUMAR ARORA)      
 
INCOME FROM OTHER SOURCES
INTEREST FROM RAMA BUILDERS 250800
INTEREST FROM SAVING BANK A/C 23783
INTEREST ON FDR FROM SBI 64395
INTEREST ON FDR FROM SIB 30080
INTEREST ON FDR FROM IDBI 81067
INTEREST ON APPLICATION MONEY 3700
DIVIDEND FROM UTI (EXEMPT) 10597 0
INTEREST FROM TAX FREE BONDS 58271
INTEREST ON PPF A/C (EXEMPT) 68272 0 453825
GROSS TOTAL INCOME 491987
LESS : DEDUCTIONS U/S 80
LIC PREMIUM 5608
PPF 150000
RESTRICTED TO 150000 150000
MEDICLAIM INSURANCE PREIUM 11388
INTEREST ON S/B ACCOUNT 10000 21388
NET TAXABLE INCOME 320599
R/O 320600
TAX ON ABOVE 2060
LESS REBATE U/S 87-A 2000
NET TAX PAYABLE 60
ADD:EC AND S&HEC % 2
NET TAX PAYABLE 62
LESS: TAX PAID
TDS ON INTEREST BY M/S RAMA BUILDERS 25080
TDS ON FDR – IDBI BANK 8107
TDS ON FDR – STATE BANK OF INDIA 6441
TDS ON FDR – SOUTH INDIAN BANK 3008 42636
NET REFUND DUE 42574

NOTE
FORM NO. ITR-4 SHALL BE USED TO SUBMIT THE RETURN FOR ABOVE TRANSACTIONS.

Illustration

Mrs. SUDHA GUPTA HAD THE FOLLOWING DETAILS DURING THE FINANCIAL YEAR 2015-16:-
PARTICULARS AMOUNT
(RS.)
SALARY RECEIVED FROM M/S A.K.Builders (P) LTD. 192000
INTEREST FROM SAVING BANK ACCOUNT 6027
INTEREST ON FDR WITH STATE BANK OF INDIA 63766
INTEREST ON FDR WITH IDBI BANK 278731
INTERET ON KISAN VIKAS PATRA 10933
INTEREST FROM INCOME TAX REFUND 461
INTREST FROMM PPF ACCOUNT 67442
LIFE INSURANCE PREMIUM PAID 5456
DEDUCTION OF TDS
IDBI BANK 27874
STATE BANK OF INDIA 6377
PERSONAL DETAILS OF MRS SUDHA GUPTA
PAN AADFG1452T
DATE OF BIRTH 07.07.1956
WARD NO. 70(1) DELHI
STATUS STATUS

Solution:

COMPUTATION OF INCOME

NAME   MRS. SUDHA GUPTA          
STATUS   INDIVIDUAL          
ASS. YEAR   2016-17          
PAN   AADFG1452T          
DATE OF BIRTH   07.07.1956          
COMPUTATION OF INCOME              
               
INCOME FROM SALARY              
SALARY FROM M/S A.K. PVT. LTD.             192000
               
INCOME FROM OTHER SOURCES              
INTEREST FROM FDR (SBI)           63766  
INTEREST FROM FDR (IDBI)           278731  
INTEREST FROM KISAN VIKAS PATRA           10933  
INTEREST FROM INCOME TAX REFUND           461  
INTEREST FROM SAVING BANK A/C           6027  
INTEREST ON PPF A/C (EXEMPT)       67442   0 359918
               
               
GROSS TOTAL INCOME             551918
               
LESS : DEDUCTIONS U/S 80              
LIC PREMIUM           5456  
PPF           60000  
INTEREST FROM SAVING BANK A/C           6027 71483
               
NET TAXABLE INCOME             480435
TAX ON ABOVE             23044
               
  250000 0   0      
  230435 10%   23044      
TOTAL 480435     23044      
               
LESS: REBATE U/S 87A             2000
NET TAX PAYABLE             21044
ADD: EC + S&HEC 3%             631
TOTAL TAX PAYABLE             21675
               
LESS: TAX PAID              
               
TDS ON FDR – IDBI         27874    
TDS ON FDR – SBI         6377   34251
               
REFUND DUE             12576
               

NOTE
FORM NO. ITR-2A SHALL BE USED TO SUBMIT THE RETURN FOR ABOVE TRANSACTIONS.

 Illustration:

RAJ KUMAR HUF HAD THE FOLLOWING DETAILS DURING THE FINANCIAL YEAR 2015-16:-
PARTICULARS AMOUNT
(RS.)
INTEREST RECEIVED FROM SAVING BANK ACCOUNT 12122
INTEREST ON FDR WITH STATE BANK OF INDIA 139197
INTEREST ON FDR WITH IDBI BANK 372526
INTERET ON FDR WITH SOUTH INDIAN BANK 103369
TDS DEDUCTION:-
 
IDBI BANK 37253
STATE BANK OF INDIA 13923
SOUTH INDIAN BANK 10337
PERSONAL DETAILS OF RAJ KUMAR HUF
 
PAN AAHDS1111P
DATE OF INCORPORATION 04.06.1979
WARD NO. 70(1) DELHI
STATUS HUF

Solution:

NAME RAJ KUMAR HUF
STATUS HUF
ASS. YEAR 2016-17
PAN AAHDS1111P
DATE OF INCORPORATION 04.06.1979
COMPUTATION OF INCOME              
               
INCOME FROM OTHER SOURCES
INTEREST FROM FDR (SBI) 139197
INTEREST FROM FDR (SIB) 103369
INTEREST FROM FDR (IDBI) 372526
INTEREST FROM SAVING BANK A/C 12122 627214
GROSS TOTAL INCOME 627214
LESS: DEDUCTIONS U/S 80TTA
INTEREST ON SAVING BANK A/C 10000
NET TAXABLE INCOME 617214
ROUNDED OFF 617210
TAX ON ABOVE 48442
250000 0 0
250000 10% 25000  
117210 20% 23442  
TOTAL 617210 48442
ADD: EC + S&HEC 3% 1453
TOTAL TAX PAYABLE 49895
LESS: TAX PAID  
TDS ON FDR – IDBI 37253
TDS ON FDR – SBI 13923
TDS ON FDR – SIB 10337 61513
REFUND DUE 11618

NOTE
FORM NO. ITR-2A SHALL BE USED TO SUBMIT THE RETURN FOR ABOVE TRANSACTIONS.

 Illustration:

MR.MOHIT HAS THE FOLLOWING DETAILS –  
DURING FINANCIAL YEAR 2015-16  
   
PARTICULARS AMOUNT
  (RS.)
SALARY RECEIVED FROM M/S XYZ COMPANY LTD. 600000
(AS PER FORM 16)  
RENT RECEIVED FROM HOUSE PROPERTY 100000
MUNICIPAL TAX PAID 30000
INTEREST ON LOAN FOR SELF OCCUPIED RESIDENTIAL HOUSE IN DELHI  
MR. X LIVES IN MUMBAI. HOUSE IS NOT RENTED DURING F.Y.2015-16 31000
SHORT TERM CAPITAL GAIN ON SHARES SUBJECT TO –  
SECURITY TRANSACTION TAX 5000
INTEREST ON TAXABLE BONDS 12500
INTEREST FROM POST OFFICE – MONTHLY INCOME SCHEME 10000
DIVDEND FROM MUTUAL FUNDS 4000
DIVDEND FROM SHARES – TAX FREE 5000
SALES OF SHARES SUBJECT TO SECURITY TRANSACTION TAX 200000
   
LIFE INSURANCE PREMIUM PAID 10000
AMOUNT DEPOSITED IN PUBLIC PROVIDENT FUND A/C 100000
REPAYMENT OF HOUSING LOAN 260000
TUTION FEES PAID OF CHILDREN 36000
CONTRIBUTION IN NEW PENSION SCHEME 70000
MEDICAL INSURANCE PREMIUM PAID FOR SELF, WIFE AND CHILDREN 21000
MEDICAL INSURANCE PREMIUM PAID FOR PARENTS WHO ARE BOTH – SENIOR CITIZEN AND ARE NOT DEPENDENT ON MR. MOHIT
 26000
HELATH CHECK UP OF WIFE AND SELF 5000
HELATH CHECK UP OF PARENTS 5000
INTEREST FROM PPF A/C 30000
INTEREST FROM SAVING BANK ACCOUNT 12000
PF DEDUCTED BY M/S XYZ COMPANY LTD. 30000
DETAILS OF TDS  
M/S XYZ COMPANY LTD. 21000
OTHER DETAILS OF MR. MOHIT  
   
PAN LKDIU4444T
STATUS INDIVIDUAL
DATE OF BIRTH 30.06.1970
WARD NO. 20(6)
   
CALCULATE THE TAXABLE INCOME AND TAX PAYABLE OF MR. MOHIT.  
   

Solution:

NAME MOHIT
STATUS INDIVIDUAL
ASS. YEAR 2016-17
PAN LKDIU4444T
DATE OF BIRTH 30.06.1970
COMPUTATION OF INCOME
               
INCOME FROM SALARY            
SALARY RECEIVED (AS PER FORM – 16) –             600000
(M/S MOHAN ASSOCIATES LTD.)
LOSS FROM HOUSE PROPERTY
RENT FROM COMMERCIAL PROPERTY 100000
LESS: MUINICIPAL TAX 30000
70000
LESS: STANDARD DEDUCTION FOR REPAIR 30% 21000
NET RENTAL INCOME 49000
LESS: INTEREST ON BORROWED CAPITAL 30000
NET INCOME FROM HOUSE PROPERTY 19000
INCOME FROM CAPITAL GAINS
LONG TERM CAPITAL GAIN ON SALE OF SHARES 0
SHOT TERM CAPITAL GAINS ON SALE OF SHARES 5000 5000
INCOME FROM OTHER SOURCES
INTEREST ON PPF (EXEMPT) 30000 0
INTEREST FROM SAVING BANK A/C 12000 12000
DIVIDEND FROM MUTUAL FUNDS 4000 0
DIVIDEND FROM SHARES 5000 0
INTEREST FROM TAXABLE BONDS 12500 12500
INTEREST FROM POST OFFICE (MIS) 10000 10000 34500
GROSS TOTAL INCOME 658500
LESS : DEDUCTIONS (CHAPTER VI-A)
DEDUCTION U/S 80C
LIFE INSURANCE PREMIUM PAID 10000
CONTRIBUTION TO P.F. A/C 30000
AMOUNT DEPOSITED IN PPF A/C 100000
TUTION FEES OF CHILDREN 36000
REPAYMENT OF HOUSING LOAN 260000
TOTAL 426000
RESTRICTED TO 150000
DEDUCTION U/S 80CCD(1B)
CONTRIBUTION UNDER NEW PENSION SCHEME 70000
RESTRICTED TO 50000
DEDUCTION U/S 80D
TOTAL DEDUCTIONS 200000
MEDICALINSURANCE PREMIUM PAID FOR SELF- WIFE AND CHILDREN  21000
21000
AMOUNT PAID FOR HEALTH CHECK UP OF SELF-WIFE AND CHILDREN  5000
26000
RESTRICTED TO 25000
MEDICAL INSURANCE PREMIUM PAID FOR PARENTS WHO ARE SENIOR CITIZEN  26000
AMOUNT PAID FOR HEALTH CHECK UP OF PARENTS  5000
31000
RESTRICTED TO 30000 55000
DEDUCTION U/S 80TTA 10000 10000
TOTAL TAXABLE INCOME 393500
TAX ON RS. 393500/= 14350
 
TAX ON SHORT TERM CAPITAL GAIN 15% ON RS.5000/= 750
TOTAL TAX PAYABLE 15100
LESS: REBATE US/ 87-A 2000
NET TAX PAYABLE 13100
ADD: EC + S&HEC 3% 393
TAX PAYABLE 13493
LESS: TDS ON SALARY-M/S XYZ CO. LTD. 21000
REFUND DUE 7507
NOTE
FORM NO. ITR-2A SHALL BE USED TO SUBMIT THE RETURN FOR ABOVE TRANSACTIONS.

   
Illustration:  
   
MS. CHETNA GUPTA HAS THE FOLLOWING DETAILS –  
DURING FINANCIAL YEAR 2015-16  
   
PARTICULARS AMOUNT
  (RS.)
INTEREST RECEIVED ON FDR – CITIBANK 13355
INTEREST ON FDR – SOUTH INDIAN BANK 2575
INTEREST ON FDR – UNION BANK OF INDIA 43928
INTEREST FROM SAVING BANK ACCOUNTS 3580
INTEREST FROM DEBENTURES 888
INTEREST FROM PPF A/C 138438
DIVIDEND RECEIVED FROM MUTUAL FUNDS 12906
LIFE INSURANCE PREMIUM PAID 23447
AMOUNT DEPOSITED IN PUBLIC PROVIDENT FUND A/C 147000
   
DETAILS OF TDS  
CITIBANK 1353
UNION BANK OF INDIA 4393
   
OTHER DETAILS OF MS. CHETNA GUPTA  
   
PAN AABCD1010M
STATUS INDIVIDUAL
RESIDENTIAL STATUS NON-RESIDENT (NRI)
DATE OF BIRTH 10.01.1984
WARD NO.  
   
PREPARE THE COMPUTATION OF INCOME OF MS. CHETNA GUPTA ?  
   

Solution:

NAME MS. CHETNA GUPTA
STATUS INDIVIDUAL
RESIDENTIAL STATUS NON-RESIDENT
ASS. YEAR 2016-17
PAN AABCD1010M
DATE OF BIRTH 10.01.1984
COMPUTATION OF INCOME
               
INCOME FROM OTHER SOURCES
INTEREST ON FDR – CITIBANK 13355
INTEREST ON FDR – SOUTH INDIAN BANKCITIBANK 2575
INTEREST ON FDR – UBI 43928
INTEREST FROM SAVING BANK A/C 3580
INTEREST FROM DEBENTURES 888
INTEREST ON PPF (EXEMPT) 138438 0
DIVIDEND RECD (EXEMPT) 12906 0 64326
GROSS TOTAL INCOME 64326
LESS : DEDUCTIONS U/S 80-C
LIC PREMIUM 23447
PPF 147000
170447
RESTRICTED TO 150000/= 150000
US 80TTA
INTEREST ON SAVING BANK A/C 3580
NET TAXABLE INCOME -89254
NET TAX PAYABLE 0
LESS: TDS
CITI BANK 1353
TDS – UBI 4393 5746
REFUND DUE 5746

NOTE
FORM NO. ITR-2A SHALL BE USED TO SUBMIT THE RETURN FOR ABOVE TRANSACTIONS.

   
Illustration:  
   
MR.ABHIK SHARMA HAS THE FOLLOWING DETAILS –  
DURING FINANCIAL YEAR 2015-16  
   
PARTICULARS AMOUNT
  (RS.)
SALARY RECEIVED FROM M/S MOHAN ASSOCIATES LTD. 2611475
(AS PER FORM 16)  
INTEREST PAID ON BORROWED CAPITAL FOR RESIDENTIAL HOUSE 1157621
INTEREST FROM PPF A/C 30308
INTEREST ON SECURITY DEPOSIT 6437
AMOUNT DEPOSITED IN PUBLIC PROVIDENT FUND A/C 100000
PF DEDUCTED BY M/S MOHAN ASSOCIATES LTD. 87000
PRINCIPAL AMOUNT OF RESIDENCIAL HOUSING LOAN 144000
DETAILS OF TDS  
M/S MOHAN ASSOCIATES LTD. 387363
OTHER DETAILS OF MR. ABHIK SHARMA  
   
PAN ACIKJ1896P
STATUS INDIVIDUAL
DATE OF BIRTH 25.06.1978
WARD NO.  
   
   

Solution:

NAME ABHIK SHARMA
STATUS INDIVIDUAL
ASS. YEAR 2016-17
PAN ACIKJ1896P
DATE OF BIRTH 25.06.1978
COMPUTATION OF INCOME
               
INCOME FROM SALARY            
SALARY RECEIVED (AS PER FORM – 16) –             2611475
(M/S MOHAN ASSOCIATES LTD.)
LOSS FROM HOUSE PROPERTY
INTEREST ON BORROWED CAPITAL -1157621
 
INCOME FROM OTHER SOURCES
INTEREST ON PPF (EXEMPT) 30308 0
INTEREST FROM SECURITY DEPOSIT 6437
GROSS TOTAL INCOME 1460291
LESS : DEDUCTIONS (CHAPTER VI-A)
SEC-80-C
CONTRIBUTION TO P.F. 87000
PPF 100000
REPAYMENT OF HOUSING LOAN 144000
TOTAL 331000
RESTRICTED TO 150000
TOTAL DEDUCTIONS 150000
TOTAL TAXABLE INCOME 1310291
ROUND OFF 1310290
TAX ON ABOVE 250000 0 0
250000 10% 25000  
500000 20% 100000  
310290 30% 93087  
TOTAL 1310290 218087 218087
ADD: EC + S&HEC 3% 6543
TAX PAYABLE 224630
LESS: TDS ON SALARY-MCKINSEY + OTHERS 387363
REFUND DUE 162733

NOTE
FORM NO. ITR-2A SHALL BE USED TO SUBMIT THE RETURN FOR ABOVE TRANSACTIONS.

Illustration:
MS. MAMTA BHATT HAS THE FOLLOWING DETAILS –
DURING FINANCIAL YEAR 2015-16
PARTICULARS AMOUNT
(RS.)
PROFESSIONAL CHARGES RECEIVED 445000
BANK CHARGES PAID 391
SALARY RECEIVED FROM M/S JAY ASSOCIATES (P) LTD. 192000
INTEREST RECEIVED ON FDR – STATE BANK OF INDIA 6539
INTEREST FROM SAVING BANK ACCOUNTS 11978
INTEREST FROM PPF A/C 105892
AMOUNT DEPOSITED IN PUBLIC PROVIDENT FUND A/C 150000
OTHER DETAILS OF MS. MAMTA BHATT
PAN ADFGH1120P
STATUS INDIVIDUAL
DATE OF BIRTH 16.02.1960
WARD NO.
PREPARE THE COMPUTATION OF INCOME OF MS. MAMTA BHATT ?
 

Solution:

NAME MS. MAMTA BHATT
STATUS INDIVIDUAL
ASS. YEAR 2016-17 M
PAN ADFGH1120P
DATE OF BIRTH 16.02.1960
COMPUTATION OF INCOME
                 
INCOME FROM PROFESSION                
                 
PROFESSIONAL CHARGES RCD 445000  
LESS: BANK CHARGES 391 444609
   
INCOME FROM SALARY
SALARY RCD FROM JAY ASSOCIATES PVT. LTD. 192000
INCOME FROM OTHER SOURCES
INTEREST FROM FDR (SBI) 6539
INTEREST FROM SAVING BANK A/C 11978
INTEREST ON PPF A/C (EXEMPT) 105892 0 18517
 
GROSS TOTAL INCOME 655126
LESS : DEDUCTIONS U/S 80
PPF 150000
INTEREST FROM SAVING BANK A/C 10000 160000
NET TAXABLE INCOME 495126
ROUNDED OFF 495130
TAX ON ABOVE 24513
250000 0 0
245130 10% 24513
TOTAL 495130 24513
LESS: REBATE U/S 87-A 2000
22513
ADD: EC + S&HEC 3% 735
 
TOTAL TAX PAYABLE 23248

NOTE
FORM NO. ITR-4 SHALL BE USED TO SUBMIT THE RETURN FOR ABOVE TRANSACTIONS.

Illustration:  
   
M/S RAM CHANDER HUF HAS THE FOLLOWING DETAILS  
DURING F.Y. 2015-16.  
   
PARTICULARS AMOUNT
  (RS.)
RENT RECEIVED FROM M/S SIMPLE RUBBERS 600000
RENT RECEIVED FROM M/S RAMA & CO. 60000
RENT RECEIVED FROM M/S PREM NATH ASSOCIATES 60000
INTEREST FROM SAVING BANK ACCOUNTS 9590
INTEREST ON FDR WITH STATE BANK OF INDIA 1655
INTEREST ON FDR WITH UNION BANK OF INDIA 6474
   
DETAILS OF TDS  
STATE BANK OF INDIA 167
M/S SIMPLE RUBBERS 60000
OTHER DETAILS OF M/S RAM CHANDER HUF  
   
PAN AAASP1542T
STATUS HUF
DATE OF BIRTH 20.02.1984
WARD NO.  
   
PREPARE THE COMPUTATION OF INCOME OF RAM CHANDER HUF?  

Solution:

NAME RAM CHANDER (HUF)
STATUS HUF
ASS. YEAR 2016-17
PAN AAASP1542T
DATE OF INCORPORATION 20.02.1984
COMPUTATION OF INCOME
INCOME FROM HOUSE PROPERTY
SIMPLE RUBBERS 600000
RAMA & COMPANY 60000
PREM NATH ASSICIATES 60000 720000
 
ANNUAL VALUE 720000
LESS : DEDUCTION U/S 24 (STANDARD DEDUCTION %) 216000
NET INCOME FROM RENT 504000
INCOME FROM OTHER SOURCES
 
INTEREST FROM FDR (SBI) 1655
INTEREST FROM FDR (UBI)   6474
INTEREST FROM SAVING BANK A/C 9590 17719
GROSS TOTAL INCOME 521719
LESS: DEDUCTIONS UNDER CHAPTER VI-A
INTEREST ON S/B ACCOUNT 9590
NET TAXABLE INCOME 512129
ROUND OFF 512130
.
TAX ON ABOVE
250000 0
250000 10% 25000
12130 20% 2426
TOTAL 512130 27426 27426
ADD: EC + S&HEC 3% 823
TOTAL TAX PAYABLE 28249
LESS: TAX PAID  
TDS ON FDR – SBI 167
TDS ON RENT – M/S SIMPLE RUBBERS 60000 60167
REFUND 31918

NOTE
FORM NO. ITR-2A SHALL BE USED TO SUBMIT THE RETURN FOR ABOVE TRANSACTIONS.

   
Illustration:  
   
MS. MEENAKSHI HAS THE FOLLOWING DETAILS –  
DURING FINANCIAL YEAR 2015-16  
   
PARTICULARS AMOUNT
  (RS.)
SALARY RECEIVED FROM M/S RAHUL & COMPANY 594800
(AS PER FORM 16)  
INTEREST RECEIVED ON FDR – STATE BANK OF INDIA 18059
MONTHLY INTEREST RECEIVED FROM POST OFFICE 16800
INTEREST ON FDR – IDBI BANK 35089
INTEREST FROM SAVING BANK ACCOUNTS 12358
INTEREST ON FDR – KARNATAKA BANK 14909
INTEREST FROM PPF A/C 64883
AMOUNT DEPOSITED IN PUBLIC PROVIDENT FUND A/C 150000
MEDICAL INSURANCE PREMIUM PAID 3405
   
DETAILS OF TDS  
M/S RAHUL & COMPANY 17654
KARNATAKA BANK 1491
STATE BANK OF INDIA 1806
IDBI BANK 3509
SELF ASSESSMENT TAX PAID 7184
OTHER DETAILS OF MS. MEENAKSHI  
   
PAN ADBFG1485K
STATUS INDIVIDUAL
DATE OF BIRTH 12.03.1980
WARD NO.  
   
PREPARE THE COMPUTATION OF INCOME OF MS.MEENAKSHI  
   
   

Solution:

NAME MS. MEENAKSHI
FATHER’S NAME MR. ASHOK KUMAR
STATUS INDIVIDUAL
ASS. YEAR 2016-17
PAN ADBFG1485K
DATE OF BIRTH 12.03.1980
COMPUTATION OF INCOME
             
INCOME FROM SALARY          
SALARY RECEIVED (AS PER FORM – 16)          
(M/S RAHUL & COMPANY)         594800
INCOME FROM OTHER SOURCES
INTEREST ON FDR – SBI 18059
INTEREST FROM SAVING BANK A/C 12358
MIS FROM POST OFFICE 16800
INTEREST ON FDR – IDBI BANK 35089
INTEREST ON FDR – KARNATAKA BANK 14909
INTEREST ON PPF (EXEMPT) 64883 0 97215
GROSS TOTAL INCOME 692015
LESS : DEDUCTIONS U/C VI A
U/S 80-C PPF 150000
U/S 80-D MEDICAL INSURANCE PREMIUM 3405
US 80TTA INTEREST ON SAVING BANK A/C 10000 163405
NET TAXABLE INCOME 528610
TAX ON ABOVE 250000 0 0
250000 10% 25000  
28610 20% 5722  
TOTAL 528610 30722
TAX PAYABLE 30722
ADD: EC + S&HEC 3%
NET TAX PAYABLE 922
INTEREST PAYABLE
TOTAL TAX PAYABLE 31644
LESS: TAX PAID  
TDS ON SALARY (RAHUL & CO.) 17654
TDS – KARNATAKA BANK LTD 1491
TDS – SBI 1806
TDS- IDBI 3509
SELF ASSESSMENT TAX PAID 7184 31644
 
TAX PAYABLE/REFUND DUE NIL

NOTE
FORM NO. ITR-2A SHALL BE USED TO SUBMIT THE RETURN FOR ABOVE TRANSACTIONS.

Illustration:

Mrs. MAYA DEVI HAD THE FOLLOWING DETAILS DURING THE FINANCIAL YEAR 2015-16:-
RENT RECEIVED FROM M/S ABC ENTERPRISES (G-20/89 NEHRU PLACE) 400680
RENT RECEIVED FROM M/S ABC ENTERPRISES (G-4/89 NEHRU PLACE) 216300
RENT RECEIVED FROM M/S R K BROTHERS (B-1 RANJEET NAGAR) 157500
RENT RECEIVED FROM M/S R K BROTHERS (B-2 RANJEET NAGAR) 157500
INTEREST FROM SAVING BANK ACCOUNT 30833
INTEREST ON FDR WITH STATE BANK OF INDIA 19384
INTEREST ON FDR WITH IDBI BANK 1458431
INTEREST ON FDR WITH SOUTH INDIAN BANK 161198
INTEREST ON FDR WITH UNION BANK OF INDIA 154364
INTEREST FROM M/S RAMA BUILDERS 25800
INTREST FROM PPF ACCOUNT 129036
MUNICIPAL TAX PAID 43869
AMOUNT DEPOSITED IN PPF A/C 1000
FIX DEPOSIT WITH IDBI BANK FOR TAX SAVING PURPOSE 250000
MEDICAL INSURANCE PREMIUM PAID 17416
TDS DEDUCTION:-
IDBI BANK 145844
STATE BANK OF INDIA 1940
SOUTH INDIAN BANK 16120
UNION BANK OF INDIA 15436
RAMA BUILDERS 25080
ABC ENTERPRISES 61704
PERSONAL DETAILS OF MRS SUDHA GUPTA
PAN AADCG1452J
DATE OF BIRTH 11.05.1938
WARD NO. 70(1) DELHI
STATUS INDIVIDUAL

Solution:

NAME MRS. MAYA DEVI
STATUS INDIVIDUAL
ASS. YEAR 2015-16
PAN AADCG1452J
DATE OF BIRTH 11.05.1938
WARD NO. 70(1) DELHI
COMPUTATION OF INCOME
INCOME FROM HOUSE PROPERTY
PROPERTY NO. G-20/89 400680
PROPERTY NO. G-4/89 216300
PROPERTY NO. B-1, RANJEET NAGAR 157500
PROPERTY NO. B-2, RANJEET NAGAR 157500 931980
LESS: MUNICIPAL TAXES 43869
ANNUAL VALUE 888111
LESS : DEDUCTION U/S 24 (STANDARD DEDUCTION %) 266433
NET INCOME FROM RENT 621678
INCOME FROM OTHER SOURCES
INTEREST FROM FDR (SBI) 19384
INTEREST FROM FDR (SIB) 161198
INTEREST FROM FDR (UBI) 154364
INTEREST FROM FDR (IDBI) 1458431
INTEREST FROM SAVING BANK A/C 30833
INTEREST FROM RAMA BUILDERS 250800
INTEREST FROM PPF A/C (EXEMPT) 129036 0 2075010
GROSS TOTAL INCOME 2696688
LESS: DEDUCTIONS UNDER CHAPTER VI-A
PPF 1000
FIX DEPOSIT WITH BANK 250000
251000
RESTRICTED TO 150000.00
INTEREST FROM SAVING BANK ACCOUNTS 10000
MEDICLAIM 17416 177416
NET TOTAL INCOME 177416.00 2519272
ROUND OFF 2519270
TAX ON ABOVE
300000 0
200000 10% 20000
500000 20% 100000
1519270 30% 455781 575781
TOTAL 2519270
ADD: EC + S&HEC 3% 17273
TOTAL TAX PAYABLE 593054
LESS: TAX PAID  
TDS ON FDR – SIB 16120
TDS ON FDR – SBI 1940
TDS ON FDR – UBI 15436
TDS – RAMA BUILDERS 25080
TDS – FDR – IDBI 145844
TDS – ABC ENTERPRISES 61704 266124
NET TAX PAYABLE 326930

NOTE
FORM NO. ITR-2A SHALL BE USED TO SUBMIT THE RETURN FOR ABOVE TRANSACTIONS.

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