Prooie

304
PROBLEM 16
of the income of a
The following
are the particulars
lecturer of Vik
month from which
University 40,000 per 5 is deduct
Salary 7 which the University
fund to contributes 12 eM
provident
allowance 7
1,00,000.
Wardenship
2 bungalow. Rent paid by
the employeris ?
Rent-free
from a domestic company 7 800
4 Dividend received
on Government Loan of 7 5,00
S per cent interest
property 7 12,000.
6Rent from house
7Interest on Postal Savings Bank Deposit 7 500.
&Long-tem Capital
Gain on sale of old car ? 2,50 and jewelery
Short-icm Capital Gain 9,000.
9 remuneration T4,500.
10. Examinership
F 6,O00 in Public Provident Fund. He ah
During the year. he deposited
purchased books worth 7 650 during the same year.
2019-20.
Find out his total income for the Previous Year
Solution
Statement of Total Incomee

for the Previous Year 2019-20)

1. Incomefrom Salary
0Salary 4,80,000
) Wardenship Allowance 1,00,000
(ii) Value of rent-free bungalow
(15% of Salary) or 7 60,000,
whichever is less 60,000
6,40,000
50,000 5,9000
Les: Standard deduction
2. Income
from House Property
Rent Received (A.V.) 12,000 8400

: k of A.V. 3,600
. Capital Gains Long-tem 8,000 17,00

Short-term 9,000
4. Income
from Other Sources:
i) Dividend & Interest on Exempt
P.O.S.B.A/c
u) Examinership remuneration 4,500 490

ii) Int. on Govt. Loan 400 6.20

30

Gross Total Income 7800

Less:
Deduction
( ws 80C 542 0
72,0) + 6,000) t ot

ne Total Income e n o tc h a r g e a b l e

The car in non a

capital anet. It 1sis aa personal
per* asset. Hence,8
 Computation of Total Income of Individuals
305
PROBLEM 17
nitte the total income
of Shri R.
Shankar
who is working as
er of Z Co. Ltd., Assessment Year 2020-21. Sales
Mumbai for the
Le received the following income and perquisites in the
ended on 31lst March, 2020: accounting year
(i) Salary
(i) Dearness Allowance asper terms of employment,
7,000 p.m.
it enters into computation of retirement benefits
3,000 p.m.
ii) Employer's contribution to a Recognized Provi-
dent Fund. Shri R.Shankar also contributes a like
amount each month
(iv) Interest credited on Shri R. Shankar's balance in
1,300 p.m.
the Provident Fund@9.5% p.a.
(v) Entertainment Allowance
2,520
12,000 p.a.
(vi) Rent-free unfurnished accommodation, rent paid
by the employer
18,000 p.a.
(vii) Free use of a large motor-car for private and
official purposes. Running and maintenance ex-
penses wholly incurred by the employer
(vii) Dividends from a Co-operative Society 1,200
Shri R. Shankar was resident for the Previous Year 2019-20.
Solution
Computation of Total Income of Shri R. Shankar
for the Assessment Year 2020-21)
Income from Salary
Salary 84,000
Dearness Allowance 36,000
Entertainment Allowance 12,000
Employer's Contribution to R.PF.
in excess of 12% of salary 1,200
Interest on R.P.F. Nil
Value of unfurnished
house 18,000
(15% ofT 84,000+36,000+ 12,000) or
rent paid by employer, whichever is less
Value of car T 2,400x 12) 28,800
Gross Salary 1,80,000
50,000 1,30,000
Less: Standard deduction
ncome from Other Sources 1,200
Dividends from Co-operative Society 1,31,200
Gross Total Income
15,600
Less: Deduction:
u/s 80C Total Income
71,15,600