Sumptijied Approacn to mcome 14s 4 (©) AERP 10% of ay ajo tain o 7.0 nae ’¢ your answer if the employee does not exercise any option and hence by default, he is under the Tegime, i.c., section 11SBAC(1A)? ane fe iP a PRACTICAL PROBLEMS . X-was employed with ABC Lad. He retired wae 1.2.2024 afer completing a service of 24 years.end 4 month, submits the following information i Basie Salary Deamess Allowance 10,000 per month (at the time of retirement) jowance forms part of salary as 120% of Basic Salary (40% of deamess al per tems of employment). 1,000 wef 1.7-2023 His pension was determined at €6,000 per month. He got 50 sum tr £5.00,000 as commuted pension. In addition to this, he reecived @ Brant sam sotine wo €1,12.000 on account of accumulated Teave of 240 days. He was eo sessment year 2024-25 assuming that he is not covered un hy f medical facilities availed of by X from his employer in th, of pension commuted we 13.2024 and reccveg ity of %2,40,000 and leave encashmer fled to 40 days leave for every yeast Last increment der Payment of Gratuity Act, ‘Compute his Gross Salary for a ‘Ans.: %4,78,107 (See Problem No. 4.1 of Practical Approac! 2. Compute the taxable value of the perquisite in respect of following situations: (a) the employer reimburses the following medical expenses: (i) treatment of X by his family physician &8,400 (ii) treatment of Mrs. X in a private nursing home 87,200 (id) treatment of X's mother (dependent upon him) €2,400 by a private doctor (i) treatment of X's brother (not dependent upon him) 2800 () treatment of X's grandfather (dependent upon him) 23,000 insurance scheme on the life of (&) The employer reimburses an insurance premium of €6,000 paid by X under 2 health i their family members are provided fieg X and his wife. (©) The employer maintains = hospital for the employecs where they and m rena expenses on treatment of X and his family members during the previous YEA 2023-24 were as under. [.No. [Particulars z F (@ _ | treatment of X's major son (dependent upon him) 4,400 [am_[rreatment of X 10,400) | ip_[treatment of X's uncle 9,200 [@)_[ireatment of Mrs. X 16,000 ()__| treatment of X's widowed sister (dependent upon him) 8,200 [cop _[ineatment of X's handicapped nephew 5,000 (@ Expenses on cancer treatment of married daughter ‘OFX at Tata Memorial Hospital, Mumbai paid by the employer €1,00,000 and reimbursement of expenses for medical treatment ‘of himself amounting to 240,000. (6) The following expenses on treatment of X's major som outside India were paid by the employer. las Particulars ‘Actual| — Expenses | No. expenses| _ permitted| by RBI. z z [ta [Actual medical expenses 1,50,000| _1,20,000] | | Gi) [Expenses on stay broad of X's son and brother who 1,30,000 90,000 I | accompanied the patient 2,40,000 =] [Gia [Travelling expenses of X's son and X's brother “Assume thai the other income of X is (a) 21,20,000 (6) &1,80,000. (including income under the head salary excluding the ove taxable perquisite)Ps () 21,800, (0) Ni (6) 14 ct) apni, an individual employed by a company, dy 3 Bethe choice of one ofthe two atematiys Bre ip geing a Fone unfumished house aA or ting a cash house ren allowance of 813,099 Go sond alte 000 per month, ‘opts for the second alternative and takes qe Roi at arent of £13,000 per month, Sash house rent allowance of 213,000 per month. He tak: Grave made a Wise CHO? Discuss. Assume pease ee {@) opts tobe taxed under the old regime (does not excise ary option and ene by deta If he opts for HRA taxable salary in nt ‘Ans Y income shalt be ¥2,9 1e opts for RFA taxable salary in 5 the old re Ce ea a, ae a lie ne sy “AR was hi Which isnot cov eG ee "86,000 fred under the Payment of Gratuit pcm ots ay, C6 Ga PE month as dames aes en ther syment of Gray Act, 1972. He got £30,000 vent allowance. is owm hose. He algo ware employment) and 23,750 per month as botyecn office and residence, ~100 Per month as conveyance allowance for commuting He ried on 1.1.2024 and got 6,00,000 as pat contribution which did not exceed & 60,000 being the amount of salary 2.50.00 may yen a 8 EB ale in is opie fn His including deamess all. © facto tt cnet ocean et na He was allowed to get pension of ¢ sie Section LISBAC(IA 4400 (1A), ry to this fund was equal. He also received ths eamed leave to his credit at the time of 211,000 during the previous year against the due amount Calelte his income from salaries forthe assessment year 2024: 7 (@) opts to be taxed under the old regime. x eee (©), doesnot exercise any option and lence by defau, he is under the ew regime, ic, sectio Ants (@) $645,900 @) 8647300 (See Problem No. 44 of Pracel appar, 5. Rwas appointed asthe Branch Manager of a company at He also reeives 10% of his pay as Deamess Allowance, 21500, pam, ew 5 ic ‘The company has given him a rent-free residential house since 1.7 3 fair Ouse is Company has incurred the following expenses in respect of this Meee 2003 chao sea Repairs €20,000, Electricity Bills 23,500, Water Bills €2,000, Telephone Bill the name of employer but telephone bill was On 1.10.2023 his conveyance allowance w: mn LISBAC(IA), , Is 8600. The eleetrcty and water bills are in inthe name of employee. Provident fund, Interest credited during the Previous year to his provident fund a/c @ 121/2% p.a. 212,500, Compute his taxable income under the head S: laries for the assessment year 2024-25 assuming that he has not spent any ‘mount of conveyance allowance for official duties. Further, assume that the population of lair is more then &0 Wine Assume R: 5 (2) opts to be taxed under the old regime. (©) doesnot exercise any option and hence by default, he is unde the new regime, ie, seston 1ISBAC(LA). ‘Ans. (a) 32,62,350 (b) &2,62,350 (See Problem No. 4.5 of Practical Approach) 6: is employed with a company in Delhi. He isin the grade, 18,000-500-22,000-1,000-30,000 since 1.12015. He is Paid 20% of salary as deamess allowance and %5,000 pam. as house rent allowance. He has hired an acsemimodaton cas ‘monthly rent of %6,500, He contributes 17% of his sala ry and deamess allowance to the Recognised Provident Fund towards which the employer contributes an equal amount. He has been given a car of 1.6 ltr. engine capacity which is used by him for his personal purposes also. The drivers salary and all the expenses relating to the official use of the car are incurred by the employer. His personal Gas and ‘Telephone bills 1,200 and 22,000 respectively have been paid by the employer.132 Simplified Approach to Income Tax oe 4 Compute his Income from salary for the assessment year 2024-25, Assume R: (a) opts to be taxed under the old regime. . . ff fault, he is under the new regime, }©-+ section IISBAC(IA), (b) does not exercise any option and hence by 4 ‘Ans.: (a) 23,19,660 (b) 23,65,620 (See Problem No. 4.6 of Practical Approach) 4. The following are particulars of Mrs. Sheetal Bhandari's income: @ (i) (ii) tiv) 0) wi (vi) (vii) () & ‘Compute taxable “Income from Salary” for the assessment e2 Salary 21,14,000 per annum. Dearess allowance (under the te Education allowance (for three children) 25,700 per annum. Medical allowance (actual expenditure 8,000) 27,200 per annvin, Eo io tacan Rent free house (in Ghaziabad population 15 lakhs) for which the company Pale Sr sre 1, house is furnished and the rent of the furniture is 2,000 per annum. aa ‘A domestic servant, a sweeper and a watchman paid £250 per month each by the company. The company spent 24,000 onherreftesher courses, Her contribution to R-P-F. 28,000 and employer's contribution 26," 7 ; “The company has provided a free telephone at Mrs- ‘Bhandari’ residence and paid bill amounting 19 3.000, Professional tax 81,000 paid by Mrs. Sheetal. «ms of employment) 212,000 per annum 2024-25. Assume Mrs. Sheetal Bhandari’s (a) b) Ans he is em 8. Mr. Lal is employed in Bharat Textiles Ltd. Mumbai on & monthly salary opts to be taxed under the old regime. : : ‘does not exercise any option and hence by default, he is under the new regime, ive, section 115BAC(IA). : 1.4.1 of Practical Approach) s.: (2) 818,494 (b) £18,494 (See Problem No. 4.7 0 PF fit BNE fea 2 5 ‘Salary, vied tos conemsion @ 5% onthe sales made by him. During the previous yeat 2023-24, he had received followin, allowances and amenities from his employer: rances and amenities from his employer: him under the terms of employment and counted o wo i) w C) co) i) (it @) ) Deamess allowance (82,000 per month which is granted fo retirement benefits ‘Bonus equal to two months basic salary. House rent allowance @ 85,000 per month. Entertainment allowance @ &250 per month. ‘The company paid 21,000 as his Income-tax penal In September 2023 during leave he went on a visit to Kashmir with his family. The expenditure amounting », 216,000 as passage money by air were pad to him by employer as leave travel assistance. He had been provided with the amenities of gas, electricity and water, the expenses of which ‘amounting to 212,09) ‘were paid by the company. Commission on sales of 210,00,000 @ 5%. He was given titan watch worth €9,000 by is employer on the foundation day of the company. He and his employer each contributed 12.5% of his salary to recognised provident fund. The interest credited tots fand for the previous year at 13.5% rate of interest amounted to 27,000. Compute the taxable income from salary of Mr. Lal for the assessment year 2024-25 keeping in mind that he spew 6,000 @ (b) ppm. as rent of the house hired by him. Assume Mr. Lal: ‘opts to be taxed under the old regime. does not exercise any option and hence by default, he is under the new regime, ie., section LISBAC(IA). ‘Ans.: (a) &3,52,970 (b) %4,09,570 (See Problem No. 4.8 of Practical Approach) 9. Usay furnishes the following details of his salary income for the financial year 2023-24 Particulars 1. _ Salary z 2. Deamess Allowance 10,000 pm. 3.__Entertainment allowance 1.00pm. ,000 p.m.Income under the Head "Salaries" ey Employer's and his own contribution to the recognized provident fund i Eales ie recognized provident fund is 10% of] Interest on the accumulated balance of recognized provident fund @13% pa. 20m City Compensatory Allowance 100 p.m. Medical Allowances 5,000 He is provided with a car of 1.8 ltrs. engine cuble o a ne cubic capacity rating by his employer. lis expenses excluding driver's salary are met by him. The car is used for official as well as for private purposes. 9. He is also provided with an unfurnished accommodation in Delhi for which is employer charges 2500 p.m. The fair rent of house is 24,000 Per annum. The house is owned by the employer. 10, The employer has also engaged for him a swee; ZL 2200 p.m. and gardener @ 2150 p.m. per @ 2150 p.m., a watchman @ 200 p. He has also been given a loan of 21,00,000 @ 7% paa. on 1.5.2023 for construction of his hhouse. SBI rate for such loan as on 1.4.2023 is 12% pa ‘Compute his taxable income from salary for the assessment year 2024-25, Assume Uday: (a) opts to be taxed under the old regime. (@) does not exercise any option and hence by default, he is under the new regime, ie., section 11SBAC(1A). ‘Ans: (a) €1,50,083 (b) 21,50,083 (See Problem No. 4.9 of Practical Approach) 10, From the following information submitted by A compute his taxable salary for the assessment year 2024-25. Basic salary 210,000 p.m. D.A. 81,000 p.m. (60% of which forms part of the salary for retirement benefits). CCA 2100 p.m. HRA 22,000 p.m. He pays &3,000 p.m. as rent for a house situated in Delhi. CEA %120 p.m. for 3 children (i.e. €40 p.m. per child), Hostel expenditure allowance 2700 p.m. for 2 children. Medical allowances %500 p.m. He spends 23,000 during the year on his own medical treatment and 22,000 on the medical treatment of his brother not dependent on him. He was also provided with the facility of a watchman, sweeper and gardener X Ltd., the employer, pays wages @ 21,000 p.m. each to said persons. He has also been provided with a motor car of 1400 cc engine cubic capacity rating with driver which he uses partly for his official purposes and partly for his personal purposes. His professional tax of %300 is paid by employer. He contributes %600 p.m. to his recognised provident fund to which his employer contributes equal amount. The interest @11% amounting to £22,000 was credited to his provident fund for year ending 31.3.2024. Assume A: (@)_ opts to be taxed under the old regime. (b) does not exercise any option and hence by default, he is under the new regime, ic., section 11SBAC(IA). Ans.: (a) 21,63,000 (b) 21,94,740 (See Problem No. 4.10 of Practical Approach) 11, A, an Indian citizen is an employee of the Govemment of India. He was transferred to London in Indian High Commission on 1.1.2023. During the previous year 2023-24 he did not come to India at all. He was entitled to the following emoluments in London: 1. [Basic Salary 317,000 p.m. 2._ [Overseas Allowance 20,000 p.m. /Rent-free furnished accommodation at London, whose FRV is 21,20,000 p.a. and cost of| furniture provided is %1,00,000. His elder son was studying in London School of | Economics and he was 212,000 p.m. as education allowance for his education. His younger son was studying in a school run by Indian High 3. allowed Commission in London. He was provided with a car of 1800 ce engine cubic capacity which he drives himself and uses the same partly for official purposes and partly for personal purposes. He has also been provided with the services of a gardener, watchman, sweeper and a cook; the salary of each being 22,500 per month, ‘Compute his income from salary for the assessment year 2024-25. Assume A: (@)_ opts to be taxed under the old regime. (®)_ does not exercise any option and hence by default, he is under the new regime, ice., section 11SBAC(IA). ‘Ans.: (a) 21, 54,000 (b) 21,54,000 (See Problem No. 4.11 of Practical Approach) 12, Rohan, an Indian citizen is an IFS officer of Government of India. On 1.9.2023 he was transferred to the Indian sbassy in Japan. On 1.11.2023 he was called back to India for an urgent official work. On 1.2.2024 he was again sent back Japan. The particulars of his income for the year ended 31.3.2024 are as under: 1. Salary %40,000 p.m.‘Simplified Approme he is working in I Tokyo, whi 134 2. 3 ry whi Dearness Allowance 50% of sa ‘India and in jee house in Delhi whi hi was 21,000 pum. as per Government Mr Peas been provided with a free ear of 2000 both in purposes as well as for commuting form residence to th He pot entertainment allowance of £4,000 He Eat getting overseas alfowance of £40.00) Fr in Japan. ae es aon of India reimbursed €80:000 medical expenses members in Tokyo. Compute the taxable income ur the month, Assume Rohan: (a)_ opts to be taxed under (b) does not exercise any "Ans. (a) &5,98,000 (0) £598,000 ( JB. A Lid. has offered you a job in 4 Del 5 6. 7 dr the head "Salaies” for the assess the old regime. ‘option and hence by defaults he ‘see Problem No. 4.12 0 ‘Delhi at a basic salary oF is und Practical sp to Income TAX ler the new regimes 211,500 per mon et pan was provided 10 him. The rent of 5 Pre eyo wis 280,000 p.m, “Phy, Metin Tokyo, which 18 DEINE used 4, and Mine car is driven by Rohan hime, 3 te sncursed on te treatment oF himself ang, year 2024-25. Salary I8 UC On the jy? ment i.e, seotion 11SBAC(IA), “Approach) ih and an option to choose a Y one following two packages: Package Package 2 HRA %4,500 24,500 p.m.) Education allowance €300 pam, (fOr one child) Telephone allowance 21,000 Pm. Medical Allowance &1,500 p.m. [Conveyance allowance €1,500 P valued at &18, for private user) ‘The company also offers you the Gervioes of watchman, sweeper and each employee is £500 P™ ‘Which package will you choose ‘Assume A Ltd. (Gq opis be axed under the 6 BIN (does not exercise any option and hence vans. (a) Income under package | 22,11,600; Income under package 7 Z1,58,675. Hence, pacl Practical Approach to Income T3X"] 14, Mr. Brown is employed with 7 years Brown has been regularly visiting In 120 days every year. Compute his income 2024-25: ‘pm (Rent to be paid 354,000 pa. Education fa Medic: fo that your tax liability is mini by default, he is under X Limited, an Indian ‘under the head salary from ‘onthe while abroad received there only ‘Company owned unfurnis! ‘owned by employer valued at & Free telephone faci al reimbursement upto %18,000 P. ‘Motor Car facility for priv 3,000 141,70,200; Income under package age 2 is better in both the cases. [See Problem No, 41! . 4! 4 company having tha for export promotion of company’s nod accommodation FRV me child ia an institut 300 p.m. ao slty at residence upto €1,000 p.m ility for 0} fie use with expenditure gardener in both the above packages. The Th , Fi imum? the new regime, ie., section 11SBAC(1A). 2. 21,58,675. (b) Income under manufacturing unit in Keny uring U ya. Fe goods in India. He has stayed eae the following particulars for the assessm, me 20,000 p.m. Salary for 8 Salary for 4 months during his tay in Rent free accommodation abroad where he and his During his tour in India, he stays in the Company's guest house and of £20,000 for such facilites, He has been provided with motor car 0 private purposes during his sty there, However, India, The monthly expenses on car (including normal India received in India f 1600 ce in Kenya, which elder. ‘son is studying in India for which his employer sp stays in the hostel. Mr. Brown gets Assume Mr. Brown: (@) opts to be taxed under the old regime. B : : (b) does not exercise any option and hence by default, he is under th 20,000 pm. family members stay for which his employer pays €15,000 eee Pm. gels five food. The company incurs an expen he uses partly for official purposes and The car is used exclusively by family membe ‘wear and tear calculated @ 10% not Me nmwe wiley wnt 215,000 per year whereas his younger son is studyi 2700 p.m. as allowance both for education and een ane! Utes saving in of the cost of the car) is 26,00) e new regime, ie., section 11SBAC(1A).Income under the Head "Salaries" i coap4 ‘ans (2) £2,16435 0) 82,81,815 (See Problem No. 414 of Practical Approach) 15.8 is employed with X Limited since 2013. He is entitled to the following from his employer: Particulars [ers isan ce ‘Basic salary 9,000 p.m. Dearness allowance (part of salary for retirement benefits) 2,000 P. See Children education allowance for three children 4,800 p.a. Hostel ‘expenditure allowance for three children 100 p.m. per child ‘House rent allowance upto 31.10.2023 3,000 p.m. Rent paid for a house in Delhi 24,500 p.m.) : ‘Medical allowance upto 31.10.2023 500 p.m. ‘Gntire amount was spent on his medical treatment) ‘Commission 3% of tumover upto 31.10.2023 30,000 (Actual tumover %10,00,000) | with effect from 1.11.2023, he was given rent free accommodation in Delhi which was ‘owned by employer. Fair rent ate is £1 20,000 pa. He was also provided 1500 ce motor car with driver w.ef. 111.2023 to be used partly for partly for private purposes. The expenses of running and maintenance of ear were met by Rhimself. 1023. The salary of each employee was value of h offical an fc ‘He was also given facility of watchman, sweeper and gardener right from 1.4.2 3300 p.m ‘Compute hs taxable income under the head Salaries forthe asessment year 2024-25. ‘Assume R: (@)_optsto be taxed under the old regime. does not exercise any option and hence by default, he is under the new regime, “Ans. (a) 21,43,250 (b) &1,69,050 (See Problem No. 4.15 of Practical Approach) 16, Mr. R was a Manager in a factory in Mumbai. He got £14,000 pam. ‘asic pay, %1,400 per month as deamess allowance (not included for retirement benefits) and 22,500 p.m. as house rent allowance. He resides in his own house. He ot 240,000 as travelling allowance fr tou and medical allowance of 280,000. red on 11.2024 and got 21,40,000 as gratuity and 1,50,000 as accumulated balanc ive., section 11SBAC(1A). 1c in his Unrecognized He reti provident Fund. His own contribution and that ofthe factory to this fund wes ‘equal. He also received %2,60,000 being the Provint of salary for 20 months’ earned leave to his credit at the time of retirement Leave accrued at 40 days per year of actual service. He was allowed to get pension of %4,000 per month, three-fourth of which was commuted for 21,20,000. He commenced service ofthe factory on 1.8.1990 and his average salary during the ten ‘months immediately preceding his retirement was 213,000. ‘Compute the: taxable income from salary of Mr. R for the assessment year 2024-25. ‘Assume Mr. R: (2) opts to be taxed under the old regime. (6) does not exercise any option and hence ) 84,78,167 (b) %4,78,767 (See Problem No. 4.16 of Practica! Approach) by default, he is under the new regime, ie, section 115BAC( 1a). Ans: 17. A bas been employed with PQR Ltd, since 1.52008. He retired from his service w.e-f. 112.2023 and received the following from the company. Particulars z Basic salary 6,000 p.m. since 1.1.2022 Deamess Allowance (60% is part of salary for retirement benefits) 1,000 p.m. (Commission 2,000 p.m. mny which it had taken on a rent of 86,000 p.m. He free accommodation in Delhi by the compat fund to which his employer contributed an equal amount 24,000 for 120 days leave standing to his eredit and &1,20,000 from sy of Gratuity Act and was entitled to 35 days leave for each He was provided with rent contributed 15% of his salary to a recognised provident Besides the above, he received 270,000 as gratuity, recognised provident fund. He was covered under PaymeIN completed! year a aerviee, He Simplified Approach to Income Tax was also entitled to pension of 22,000 pm we vomited wef 12,2024 and received n sum af £ 21,20,000 as commuted pension Lad, on the following terme Chap, f 112.2023. He got 0% OF the per itn Wood 1.2.2024 he took employment with ¥ rayne’ artlewtars are - se ral Rasio Salary PPEPaee renee | 10,000 p.m. DA (not forming part of salary for retirement benefits) 1,000 p.m. HRA, Ho hs been paying rent fo his former employer @ &6,500 pam. wert 112.2023 as he did not vacate the house tll date Conte his income under the head salary forthe assessment year 2024-25, Assume A (a) opts to be taxed under the old regime {b)_ doesnot exercise any option and hence by default he is under the new ret No. 4.17 of Practical Approach) ‘Anny (a) &1,35,832 (b) 21,358,832 (See Problem Delhi, retired from service om 1B, Re Genotal Manager of a limited company in penses reimbursed by the company during submitted the following particulars of his income Satary 212,000 pum,, House Rent Allowance 23,000 pm Medical Ex M going to his home town, Mumbai on eave reimbursed by the compan, previous year £17,000, Leave travel assistance for or Maat and pero 8 8 oa cece PMU A nr af 16 lite engine capacity is provided by the come veial use are bore by the company: contributes 14%. Tuning and maintenance inchiding salary of driver for of He vonributes 20% of his salary to recognised provident fund 10 which company He received &1,80,000 gratuity and 81,20,000 for enenshment of 10 months earned leave not availed by him. As per rulg ft the company Mr, X sas entitled fo one months leave for every Year mp rerviee. He was drawing a salary of 812,000 pg, ‘month sinee 11,2023, ve invested 824,000 in National Savings Certificates (VII Issue) 24,000 towards Life Insurance Premium on a policy ised on 5.4 2023 Hig other incomes were; Interest on debentures 280,000 (Gross), He donated 310,000 to Prime Ministers National Relief Fund, Compute the total income of Me, R for the assessment year "3924.25 and deduction allowed under section BOC. Assum, Mr Ri ()_ opts to be t gime, Le. section 11SBAC(1A) 11.2024 after 32 years of service ang and 215,000 in Public Provident Fund Ale. He pig for a sum assured for %30,000. ed under the old regime, (b)_ does nat exereise any option and henoe by defbult, be is under the new regime, is "Ansa (a) £124,060 (b) 22,05,660 (See Problem No, 4.18 of Practica! Approach) 19, Ris employed on parttime basis with two employers, R Ltd. and G Ltd, From cc, section |1SBAC(IA). the following particulars, compute bi, income under the head salary for the assessment year 2024-25, [ Particulars RLtd. Gta. Basie salary 75,000 pm. | 5,000 p.m. [ DAA. 1,000 p.m. 20% [Ee forming part Fa of salary Medical allowance 300 ptm. = Medieal reimbursement = 20,000 HRA 1,000 p.m. = Date of joining 1.8.19 | __1.10.2004 | Fiective date of retirement 16.11.2023 | _ 16.11.2023 | Gratuity received _ 2,50,000 1,20,000 Leave encashment 1,80,000 90,000 He was e tenant Nes ented to 40 ays Teave for each completed year of service from R Td and availed 600 days leave durin only 25 vice, Whereas he was entitled to 25 days leave for each completed year of service Goma Lid end a . i days ley 8 leave dur during his tenure,Fe Income under the Head "Salaries" urd Lid. provided a rent-free unfurnished accommodat fi ion in Delhi to R during his service with the company. The house is by the employer and its fair rental value is 210,00 Ico mp “ 0 pam, “Compute his income under the head salary for the assessment year 2024-25. Assume R: (2) opts to be taxed under the old regime. (b) does not exercise any option and hence by default, he is under the new regime, i.e. section I1SBAC(IA). ‘Ans. (8) £450,050 (b) ®4,50,050 (See Problem No. 4.19 of Practical Approach) 20, R is employed in G Ltd., w.e.f. 1.5.2021 in the grade of £15,000 — 500 — 17,000 — 600 — 20,000 and his salary on the date of joining was fixed at 216,500. Besides the above he was entitled to the following allowance/perquisites, et. [CEA 120 p.m. for3 el Medical allowance iren 500 p.m. entire amount was spent on medical treatment Bonus 3 months of basie salary ‘Commission 1,000 p.m. ‘Motor car both for private and official use (1.8 ltr. engine capacity), official expenses met by employer but expense for personal purposes met by employee himself. W.c.f. 1.11.2023 the employer provided the rent free furnished house owned by the employer to R along with the facility of watchman, sweeper, and gardener, salary of each being 2600 p.m. Fair rental ‘yalue of the house was 21,00,000 p.a., its municipal valuation was %80,000 but the standard rent was fixed at 290,000 per annum. The house is situated in Delhi. Cost of furniture provided is €1,50,000. ‘Compute his income under the head salary for assessment year 2024-25. Assume R: (@ opts to be taxed under the old regime, (b) does not exercise any option and hence by default, he is under the new regime, i.e,, section 11SBAC(1A). Ans.: (a) €2,69,544 (b) 22,70,544 (See Problem No. 4.20 of Practical Approach) ANSWERS TO MULTIPLE CHOICE QUESTIONS A (C): 6 © un. © B (Cc) 74), 12, (A) 3. (BD & (© 13. (A) 4. (B) & -e 14, (A) . (B) 10. (©) 15. GO,