Taxable income

Per month Total Note Working

Basic salary 80,000 960,000

Bonus - 138,462 (960,000/312*45) with assumption that 312 working days in a year
Efficiency honorarium 60,000
Cost of living allowance 12,000 144,000
Conveyance allowance - 5,000 1
Entertainment expense reimbursed - 6,000 2
Rent free furnished accomodation 432,000 3
Special additional allowance 6,000 72,000
Total taxable salary income ###

Income from property 500,000

Security deposit 20,000 4
Total taxable income from property 520,000

Total taxable income ###

Less: taxable income from porperty (to be tax as separate block of income) ### 5
Taxable income (at normal slab rates) ###

Notes
1) Conveyance allowance
It is included in the income on the following basis
Conveyance provided Amount to be included
5% of the cost of vehicle to
Partly for personal and business use employer or 5% Fair Market Value
of vehicle at the commincement
of lease
10% of the cost of vehicle to the
For personal use employer or 10% of Fair Market
Value of vehicle at the
commencement of lease

Our case is partly for personal and business use. So total cost of the vehicle is 100,000 so 5% of this is 5,000 taken as salary part.

2) Any amount reimbursed by the employer to employee will be considered as salary part. If the same is incurred for business purpose
then it will be exempt.

3) Rent free accomodation will be taxed on the following numbers. Whichever number of the following is higher, it will be included in salary.

Actual rent amount 240,000

45% of basic salary 432,000

45% of the basic salary is higher so it will be added in the income.

4) Under income tax, if security depost is given and it can not be adjusted against the rent of the property then it will be charge to tax over 10 years.
in our example, total security deposit is 200,000 so each year 20,000 will be charge to tax.

5) For presentation purpose (to show total taxable income from all sources income from property is added). Income from property is taxed on different
basis. It is taxed at specific percent basis not on slab rate basis like salary that is why it is considered as separate block of income.