1) Mr Shah retires on 31/10/2013, voluntary from ABC limited as per the

scheme approved u/s 1010C of IT Act. He furnishes the following

particulaRs. Salary: 5000 pm, Pension: 3000 pm, DA forming a part of the
basic pay Rs 1000 pm. Compensation on retirement Rs 200,000. Gratuity
Rs 1,20,000,.Commuted pension of 70%, Rs 42000 on 31/1/2014. Leave
salary Rs. 30,000. Completed years of service: 20 years, 8 months. Leave
availed while in service, 25 months. But for the voluntary retirement Mr.
Shah would have retired only after 40 months. The last increment he
received was in 2012. Compute his taxable salary income.
2) Mr Gandhi receives the following emoluments during the previous year
ending 31.3.14.
Basic pay

Rs 40,000

D.A.

Rs 15,000

Commission Rs 10,000
Entertainment allowance Rs 4000
Medical expenses reimbursed Rs 25,000
Profession tax paid in PY Rs 3000 (Rs 2000 paid by the employer)
Free car facility for Mr Gandhi for which expenditure of the employer
was Rs 20,000
Mr Gandhi contributes Rs 5,000 towards provident fund. He has no other
income.
(Mr Gandhi is a State Government employee)
3) Ms Anita is employed by ABC Ltd as process controller. His salary
emolument during the year
ending 31-03-14 were:
Basic Salary:
Apr Sep Rs 12000 p.m
October to March Rs 14,000 p.m.
1. Dearness allowance Rs 2000 p.m.
2. City Compensatory allowance Rs 1,000 p.m
3. Overtime Allowance Rs 21,000 p.m.
4. Night shift allowance Rs 13,000 p.m
5. Medical allowance Rs 2,000 p.m.
6. Lunch allowances Rs 1,000 p.m
7. Paternity allowance Rs 20,00 p.m
8. Additional high cost of living allowance Rs 4,000 p.m. for Dec to Jan
9. Childrens Education allowance Rs 500 p.mm
10.Childrens hostel expenditure allowance Rs 1000 pm(Mr. Mani has 2
children and both study in residential school in panchgani)

11.House rent allowance Rs 4,000 (exemption u/s 10 (13A) Rs 36,400)

12.Entertainment allowance Rs 2000 p.m.
13.Expenses incidental to employment:
a.books purchased on pneumatic process methods Rs. 21,000.
b.Professional tax Rs 300 p.m
c.Railway pass and sector petrol etc. Rs 13,400
You are required to calculate income from salary of above employee for A.Y. 1415
4) Mr. Dhanraj who is employed as chief purchase manager ,gives following info.
Regarding his salary income in the P.Y. 13-14
1.Basic salary Rs 10,000 p.m. upto 31 Aug
2.Rs 12,000 p.m from September
3.Inflation allowance Rs 3000 p.m
4.Monthly allowance for lunch Rs 1000(lunch expenses Rs 17,000)
5. Medical allowance Rs 2000 p.m (amount saved Rs 3,400 only)
6. Motor car allowance Rs 3,000 (Rs 26800 out of this for office purposes)
7.Commision earned Rs 40,000 but rcvd Rs 26,000 only
8.Bonus demanded Rs 50,000 but rcvd only Rs 40,000
9.He has been allotted a 1000 sq. Ft concessional rent bunglow at Vasai along
with air conditioner ,furniture etc. The perk visits value acc to the income tax
rules is Rs 2,100 only
10. He has taken a life insurance policy (with profit) for some assured of Rs
5,00,000 with quarterly premium of Rs 4,000 with the condition that all the
premiums are to be paid by his employer.All the premiums are paid by the
employer.
11.His employer has also paid his childrens school fees amounting to Rs 13,000
and his electricity ,water and gas bills amounting to 13,000 Rs
12.Employer has also paid professional tax of 6,000
13. Mr. Dhanraj is also a partner in a marketing consultancy firm where he gets a
salary of Rs 5,000 p.m.
You are required to calculate his salary income for A.Y. 13-14

5)

Mr. Lloyd gives following info regarding his salary income

1. Basic salary Rs 4,000 p.m
2. Dearness allowance Rs 2,000 p.m. (part of salary)

3.
4.
5.
6.
7.
8.

Bonus Rs 2,000
Turnover commission 2% (turnover being Rs 4,00,000)
Lloyds contribution to provident fund Rs 1,000 p.m.)
Employers contribution to provident fund 1,000 p.m.
Interest credited to provident fund @ 11% Rs 5,500
He has paid professional Rs 60 p.m.
Calculate his income from salary a.y. 13-14 if the provident fund is:
1.Recognized provident fund(RPF)
2.Statutory /Govt provident fund(SPF/GPF)
3.Unrecognized provident fund (URPF)

6) Ms. Vidya, working in a private company draws a basic salary of Rs.

10,000 pm. She gets the following further benefits: Rent free
accommodation at Bangalore, Sweeper/Cook/And Watchman provided at a
salary of Rs. 500 pm each. Medical Facility in hospital, belonging to the
employer, value of facility availed Rs. 24,000. Education for her child,
provided in the school run by employer, cost of such education in similar
institution is Rs. 13000. Gas, Water and Electricity Bills, Amounting to Rs
18,250 for her personal use, settled by the employer. Compute taxable
salary.