Atul receives various emoluments as an employee and shareholder of Tarak Engineering Limited including a salary, Dearness Allowance, provident fund contributions, leave salary, free lunch, holiday home facilities, membership fees paid by the company, use of a company car for personal use, reimbursement of overseas travel expenses, and directors sitting fees. His income from salaries is computed to be Rs. 42,600 for AY 2010-11.
Mr. Lal owns a house with two units, one of which is self-occupied and the other let out. Details of municipal rates, taxes paid, land revenue, loan interest, and insurance are provided. His income from house property is computed to be Rs.
Atul receives various emoluments as an employee and shareholder of Tarak Engineering Limited including a salary, Dearness Allowance, provident fund contributions, leave salary, free lunch, holiday home facilities, membership fees paid by the company, use of a company car for personal use, reimbursement of overseas travel expenses, and directors sitting fees. His income from salaries is computed to be Rs. 42,600 for AY 2010-11.
Mr. Lal owns a house with two units, one of which is self-occupied and the other let out. Details of municipal rates, taxes paid, land revenue, loan interest, and insurance are provided. His income from house property is computed to be Rs.
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Atul receives various emoluments as an employee and shareholder of Tarak Engineering Limited including a salary, Dearness Allowance, provident fund contributions, leave salary, free lunch, holiday home facilities, membership fees paid by the company, use of a company car for personal use, reimbursement of overseas travel expenses, and directors sitting fees. His income from salaries is computed to be Rs. 42,600 for AY 2010-11.
Mr. Lal owns a house with two units, one of which is self-occupied and the other let out. Details of municipal rates, taxes paid, land revenue, loan interest, and insurance are provided. His income from house property is computed to be Rs.
Copyright:
Attribution Non-Commercial (BY-NC)
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Download as DOCX, PDF, TXT or read online from Scribd
Project done by Group 2, Class - SYBMS, KC College
Bhavika Jain – 03 Nikita Desai – 13 Priyanka Kale - 23 Bhagyashree Lokhande - 29 Jidnyasa Malvankar – 32 Nisha Tawde - 53 Atul is a shareholder in Tarak engineering limited, holding 60%of it equity share capital which makes him a substantially interested share holder. He is also employed by the company as manager. The particulars of his emoluments during the year ended 31st march, 2010 are as under: 1. Salary rs 2000 per month 2. D.A. Rs 300 per month 3. Contribution to recognized provident fund: a. By the company rs 100 per month b. By Atul rs 80 per month 4. Salary in lieu of leave rs 4000 5. Provision of free lunch during office hours in the office premises costing rs 3600 6. The monetary value of the facility given to him and his family during the year at the companies holiday home rs 3000 7. Membership fees of Atul foundation paid by the company on his behalf rs 2000 8. Leave travel allowance received rs 5000 out of which rs 3000 is exempt u/s10(5) 9. Provision of a car with driver for office as well as for personal use, the perquisite value being rs 4000 10. During the year he travelled to Europe on behalf of the company and spent rs 52000. The company reimbursed rs 40000 on account of the same 11. Mr. Atul who is also director in the company receives rs 3000 as directors sitting fees during the year. Q1. You are required to compute his income from salaries for A.Y. 10-11 SOLUTION
Computation of income from salary
Particulars Rs Rs
A] (1) salary (2000 x 12) 24000
(2) D.A. (300 x 12) 3600
(3)leave salary 4000 31600
B] Allowances:
Leave travel allowance 5000
Less: exempt 3000 2000
C] Perquisites:
(1) Holiday home facilities 3000
(2) Membership fees paid by the employer 2000
(3) Motor car use 4000 9000
GROSS SALARY 42600
Less: deductions Nil
INCOME FROM SALARIES 42600
Mr. Lal owns a house having 2 residential units. The construction of the house was completed on 1st April, 2007. These two units are A and B ant the relevant particulars are: Particulars A B
Self occupied Let out
Area occupied 1/3 2/3
Municipal rate able value 85000 110000
Municipal taxes paid 2500 5000
Land revenue 1200
Interest on loan taken for constructing house 24000 Fire insurance premium 1500 Collection expenses 500 Unit B was vacant up to 30th June, 2009 Ascertain his income from house property for a.y. 10- 1 Particulars A B LOP SOP Fair rent Municipal value Increasing Standard rent (Dec)reasonable 82500 85000 letable value Actual rent (inc) gross annual 82500 85000 value
-Municipal tax -5000 -2500
Net annual value 77500 Nil -30%standard 23250 deuction -interest 16000 8000 House property 38250 8000 income