1,16,00

PROBLEMS BASED UPON SIMILAR UNSOLVED EXERCISES GIVEN

IN STUDENTS GUIDE TO INCOME-TAX
PS.13 [72-E1]* Mrs. X (age : 22 years) has occupied two housesfor her residential purposes, particulars of which areasfollous
House I House II
Rs Rs
Municipal valuation (MV) 8,00,000
Fair rent (FR)
11,00,000
9,00,000 10,00,000
Standard rent under the Rent Control Act (SR) 6,00,000
Municipnl tares paid
10,50,000
75,000 73,000
Interest on borrowed capital (amount borroued
during December 2017, construction
completed uwithin 2 years)
6,00,000 80,000
Repairs Nil 600
Business income of Mrs. X is Rs. 25,60,000. Besides Mrs. X is
She contributes Rs. 1,20,000 touards employed by a private limited company on annual salary of Rs. 5,60,00
public provident fund during the previous year 2021-22. Determine the taxable income and ta
linbility of Mrs. Xfor thhe assessment year 2022-23. Ignore section 115BAC
Solution: Mrs. X has occupied two houses for her own residential pertaining to alternative tax
regime.
and income will be calculated as follows purposes. These houses will be treated as self-occupied

Annual value of two houses Rs

Less: Deduction under section 24 Nul
Standard deduction
Interest on borrowed capital N
(Rs. 6,00,000 + Rs. 80,000, but subject to maximum of Rs.
Income from House 1 and House 2 2,00,000) 2,00,00
Salary income (Rs. 5,60,000 Rs. 50,000) -)2,00,00
Business income 5,10,00
25,60,00

Number given in the bracket

represents similar unsolved Problem No. of Students' Guide
Alernative tax regime provisions of section 115BAC are discussed to Income-tax, 67th Edition.
in this book in
Chapter 13.
113 Problem P5.14
Solved problems
Rs.
Gross total income
28,70,000
Less: Deduction under section 80C
1,20,000
Net income
Tax on net income 27,50,000

Income-taxt
Add: Health and education cess 6,37,500
Tax liability (rounded off 25,500
6,63,000
P5.14 lz-E4j A (age 64 years), salaried emplovee (draving Rs.
:
a
residential purposes, particulars of which are as 8.38.983 as annual salary) has occupied three houses
Jor s

follows:
I I III
Standard rent under the Poona Rent Control Act Rs. Rs. Rs.
Municipal valuation (MV) (SR) 63,000 11,85,000 73,000
Fair rent (FR) 70,000 11,90,000 69,000
Municipal taxes paid 53,000 11,78,000 71,000
Repairs 4,000 42,000 6,000
Ground rent due but
outstanding Nil Nil Nil
Insurance premium due but 600 800
X borrows jrom a relative Rs.outstanding 900 2,000 1,200
40,00,000@ 9 per cent per annum for construction
repayment of loan May 31, 2021). of House II (date of borrowing June 1, 2018, ante of
Construction of all the houses is
2022-23 on the completed August 2020. Determine the taxable income and tax
in
assumpion that X contributes Rs. liability of X for the assessment year
46,000 towvards statu tory providentfund and Rs. 8,000
Ignore section 115BAC towards National Relief Bonas.
pertaining
to alternative tax regimet.
Solution:X has occupied 3
be treated properties for his own residential
purposes. Only two houses (according to the choice
as
self-occupied properties. Other remaining property will be "deemed to be let out". He has the ot X)
will
options following
Different options Housesto be treated as
Option 1 self-occupied Houses deemed to be let out
House 1 and House 2
Option 2 House 3
House 1and House3
Option 3 House 2
House 2 and House 3
House 1
In order to minimise taxable income
(and maximise loss
Step 1-Find out income of 3 houses as if these are treatedtoasbe
carried forward), one
may proceed as follows
"self-occupied
Step 2- Find out income of 3 houses as if these are "deemed to be let out". property".
Step 3- Find out the difference between income of each house
Step 4-Two computed under Step 1 and Step 2.
houses (reporting highest
house will be "deemed to be let out"
difference as per Step 3) may be taken as
"self-occupied properties". Other remaining
Pre-construction period is June 1, 2018 to March 31, 2020. Interest
Rs. 6,59,836 [i.e., Rs. 40,00,000 x 0.09 x liability of this period on Rs. 40,00,000@ 9% comes to
(1 year and 304 days)|. Annual instalment of deductible interest
construction period comes to Rs. 1,31,967. Besides, interest
of April 1, 2021 to May 31, 2021 which comespertaining
to pre-
Rs. 40,00,000 0.09 60+365 to Rs. 59,178
x x
days) is further deductible. The aggregate amount comes to Rs. (i.e.,
1,91,145.
House 1 House 2
Rs. Rs.
House 3
Rs.
Step 1 Computation of income if these are self-occupied properties-
Net annual value
Nil Nil
Less: Interest on borrowed capital Nil
Nil 1,91,145
Income from property Nil
( Nil-1,91,145 Nil
Step2-Computation oftincomeifthese aredeemedto beletout -
ross annual value (being municipal value or fair rent, whichever is lower
but
subject to maximum of standard rent) 63,000 11,85,000
Less: Municipal tax 71,000
4,000 42,000
Net annual value 6,000
59,000 11,43,000 65,000
*N
tRhetgven in the bracket represents similar unsolved Problem No. of Studente' Guide to Income-tax, 67th Edition.
nfate under section 87A is not available as income of the assessee is more than Ks. 5,00,000. Surcharge on income-tax is not
the assessee does not exceed Rs. 50 lakn. applicable as inconme
ne
Al
a t v e tax regime provisions of section 115BAC are discussed in this book in Chapter 13.
 Problem P.18 Income under the head "Income fron house property"
l14
House 1 House 2
Rs. Rs.
House 3
R
Less: Deduction under section 24
,700 3,42,900
Standard deduction Nil 1,91,145
19,500
Interest on borrowrd capital Nil
41,300 6,08,955
Income fnm property (6) 45,500
Step 3- Shp I minus Step 2 [(a) - (6)1 (-41,300-8,00,10-45500
Shep 4- Selecton: House 2and House 3 (to be taken self-occupied properties)
as
(-)1,91,145 Nil
Income of House 2 and House 3 (self-occupied properties)
41,300
Income of House 1 (deemed to be let out property)
41,300 (-1,91,145
Income from properties Nil
Computatnon ofincomeof X-
Rs,
788,983
Salary (Rs. 8,38,983 -Standard deduction: Rs. 50,000)
Income from house property (Rs. 41,300- Rs. 1,91,145) 149345
Gross total income
not eligible for
6,39,138
in National Relief Bonds is deduction) 46,000
Less: Deduction under section 80C (investment
Net income (rounded off) 5,93,140
Tax on net income
Income-taxf 28,628
Add: Health and education cess 1,145
Tax liability (rounded off) 29,770
P5.15[72-E3J* X(age:31 years) ounsfour houses (outside the jurisdiction ofthe Rent Control Act) particulars ofuwhich areasfolots
House I House Il House II House IV
Rs Rs. Rs. Rs.
Mumcipal valuation (MV) 2,00,000 16,000 86,000 5,00,000
Fair rent (FR) 2,50,000 22,000 92,000 5,55,000
Rent (ifproperty is let out throughout the year) 5,72,000
Unrealised rent
90,000
Municipal taa paid by X 17,000 800 3,000 45,000
Date of completion of construction June 6, June 5, June 14, March 31,
1991 1974 1997 1998
Repairs Nil 2,000 950 Nil
Collection charges 400
Land revenue 800 230 900
Interest on capital borroued for repairs of house property 32,000 800 810 0,0
Interest on capital borrowed for construction of house property
Interest on apital borrouved for payment of municipal taxes 200 600 100
Nature of occupation Self Let out for
Self Self
residence
Occupied for occupied for OCcupied for
residence business residence
House 1V renmains vacant for the month ofJanuary 2022. Business incomeofX for the previous year 2021-22 is Rs. 12,86,790 (iths
becen computed as per the provisions of lncome-tax Act). Determine the taxable income and tax liability of X for the assessment
2022-25 on the assumption that he could not occupy House Ilfor 2 months during the previous year and X pays insurance premun
ofRs. 85,000 on is insurance policy of Rs. 9,00,000. He also deposits Rs. 50,000 in his public providentfund account. Ignore sectt
115BAC pertaining to lternative tax
regimet.
Solution: The taxpayer for the purpose of carrying on his business uses House ll. Nothing is taxable in respect of HoU
II under the head "Income from house
property".

umber given in the bracket represents similar unsolved Problem No. of Students' Guide to Income-tax, 67th Edition.
asincome
.ae is more tharn Rs. 5,00,000. Surcharge on income-tax is not aplicabie
of the underse tion 87Aexceed
notavailable as incomeof the
is assessee
does
assessee not Rs. 50 lakh.
Alternative tax regime provisions of section 115BAC are discussed in this book in Chapter 13.
 115 Solved problems Problem P5.16
House 3 House Iand House are used by X for his residerntial purposes, These houses will be treated as self-ccupiea
Rs.\ House IV is let out. Income of these houses will be proper
calculated as follows -

19,5Nil00 Municipal value (MV)

House l
Rs.
House I
Rs.
House IV

Rs.
45500
-)45,500
Fair rent (FR)
Standard rent (SR)
5,00,000
5,55,000
Annual rent
N.A.
Unrealised rent 5,72,000
Ni 90,000
Loss due to vacancy (i.e., 1/12 of Rs. 5,72,000) 47,667
NiT Computation of annual value
Step I- Reasonable expected rent of the
whichever is higher, but property [MV or FR,
subject to
maximum of SR] 5,55,000
Rs Step II Rent received/ receivable after
-

788,983 but before adjusting loss due to deducting unrealized rent

vacancy 4,82,000
14945 Step IlI- Amount computed in Step I or
Step I1, whichever is higher 5,55,000
6,39,138 Step IV- Loss due to vacancy
V Gross annual value is
47,667
46,000 Step Step Ill minus Step IV Nil Nil 5,07,333
,93,140 Less: Municipal taxes
Net annual value
Nil Nil 45,000
Nil Nil 4.62,333
Less: Standard deduction (30% of
28,628 Less: Interest on borrowed
net annual value) Nil Nil 1,38,700
1,145 capital 30,000 Nil 10,000
Income from property
29,770 Computation of income and tax liability-
(-30,000 Nil 3,13,633
ollows Property income (Rs. 3,13,633 Rs. 30,000)
Rs.
2,83,633
se IV Business income
Rs. 12,86,790
Gross total income
Less: Deduction under section 80Cc 15,70,423
,000 1,35,000
5,000 Net income (rounded off)
14.35,420
,000 Tax on net income
,000 Income taxt
2,43,126
,000 Add: Health and education cess
9,725
31, Tax liability (rounded off
2,52,850
1998
P5.16 Mrs. X (age: 51 years) submits the follouing particulars of her income relevant for the previous year ending March 31, 2022
Vi Business income:
400
Profit of business A Rs. 2,40,000
900
Loss of business B Rs. 3,000
000
Loss of busincss C Rs. 7,500
A esidential house property: Municipal valuation: Rs.8,00,000.fair rent: Rs. 8,10,000, standard rent under the Delhi Rent Contro!
100 Act: Rs. 9,00,000, municipal taxespaid : Rs. 78,00, repairs : Rs. 47,000, interest on capital borrowed for purpose ofconstructio of
for house property (amount borrowed: Rs. 8,00,000, rate ofinterest: 11 per cent, date ofborrowing June 30, 1998, dateofrepaymentofloan
June 20, 2021, date ofcompletion ofconstruction June 30, 2011), and annual charge not created by Mrs. X: Rs. 4,000. Besides, on May
24, 2019, Mrs. X borrous Rs. 75,000 @ 10.5 per cent per annum for tie purpose of reconstruction ofhouse property. The house is self
occupiedfrom April 1, 2021 to March 15, 2022. from March 16, 2022 itis let out on monthly rent ofRs. 11,000. During the previous
year, Mrs. X is employed by a company on monthBy salary ofRs. 70,000. Determine the taxable income and tax liability of Mrs. X for
theassessment year 2022-23. Slhe contributes Rs. 80,000 towards Indira Vikas Patra. Ignore section 115BAC pertaining to alternative
tax regimet
Solution:
RS.
Couputation of gross annual value
whichever is higher, but subject
Step 1- Reasonable expected rent of the property [MV or FR,
to

maximum of SR] 8,10,000

l - Rent received/receivable after deducting unrealized rent but before adjusting loss due
Tep
to vacancy 5,500
is more than Ks. 3,00,00U. Surcharge on income-tax is not applicable a s in
af
nder section 87A is not available as income of the assessee ome

the assessee does not exceed Rs. 50 lakh.

Altern
Ve tax regime provisions of section 115BAC are discussed in this book in Chapter 13.
 Problem P5.17 Income under the head "Income from house property"
116
Rs
ep l11- Amount computed in Stepl or Step 1, whichever is higher
Step 1V- Loss due to vacancy
8,10.000
N
tep V-Gross annual value is Step 1lI minus Step IV 8,10,000
Less: Municipal tax
Net annual value
78,000
Less: Deductions under section 24 -
7,32,000
Standard deduction 30%
Interest on borrowed capital -
2,19,600
- Pre-construction period's interest (deductible only in first 5 years after completion of construction) Nil
- Current year interest on Rs. 8,00,000 up to June 20, 2021 (ie., Rs. 8,00,000 0.11 x 80 + 365) Nil
- Current year interest on Rs. 75,000 10.5% 19,288
7875
Income
Computation of inconne of Mrs. X-
4,85,237
Salary (Rs. 70,000 x 12-Standard deduction: Rs. 50,000)
Income from house property
7,90,000
Business income (Rs. 2,40,000 - Rs. 3,000 - Rs. 7,500)
485,237
Gross total income
2,29,500
Less: Deduction under section 80C (ndira Vikas Patra is not a qualifying investment)
15,04,737
Nil
Net income
15,04,740
Tax on net income
Income-taxt 2,63,922
Add: Health and education cess
10,557
Tax liability (rounded off)
2,74,480
P5.17 [72-E4]* X (age :40 years) owrns a big house (erection completed on March 1, 2015). The house has threeindependentresiden
units. Unit 1 (50 percent ofthe floor area) is let outfor residential purposes on monthly rent ofRs. 27,000 (this unit is, however, used
by X from January 15, 2022 to March 31, 2022 for his residential purposes). A sum of Rs. 3,000 could not be collected from the tenan
Lnit 2 (25 per centof the floor area) is used by Xfor the purpose of his residence, while Linit 3 (the remaining 25 per cent) is used u
him for the purpose of his business. Other particulars of the house are : municipal valuation : Rs. 5,06,000; municipal taxes (pai
Rs. 42,000: repairs: Rs. 60,000; ground rent: Rs. 7,000;land revenue (paid): Rs. 8,000, insurance premium : Rs. 20,000, and interes
on capital borrowed for paymentofmunicipal tax : Rs, 16,000. Incomeof Xfrom business is Rs. 10,87,690 (without debitinghouserent
and other incidental expenditure including admissible depreciatiom ofRs. 40,000 on the one-fourth portion of house used for busines,
Determine the taxable income and tax liability of Xfor the assesment year 2022-23. X contributes Rs. 1,45,000 towards Home Lom
Account ofthe National Housing Bank. Ignore section 115BAC pertaining to alternative tax regimet.
Solution
R
Income from house property (see Note 1] 1,62,730
Business income [see Note 2] 10,09,40
Gross total income 11,72,190
Less: Deduction under section 80C 1,45,00
Net income 10,27,190
Tax on net income
Income-taxt 1,20,657
Add: Health and education cess 482

Tax liability (rounded off 1,25,48

Number given in the bracket represents similar unsolved Problem No. of Students' Guide to
Income-tax, 67th Edition.
fRebate under section87A is not available as income of the assessee is more than Rs. 5,00,000. Surcharge on income-tax is notapplicable
applicaoie as inco
of the assessee does not exceed Rs. 50
lakh.
TAlternative tax regime provisions of section 115BAC are discussed in this book in Chapter 13.
 Problem P5.18
Solved problems

property
-

house
house

Nafrom frm

Anome
Unit 2
I. Unit 1
Rs.
Rs.
al value (MV) 2,53,000
Municipar
Fairrent(FR) NA
Standardrent (SR) NA
Gandarcnnable expected rent ot the property [MV or FR, whichever
ubject
maximum of SR]
to n
is higher, 2,53,000
but
received/receivable
p l l -R e n t r e c e after
deducting
unrealized rent but before
tingloss
due tovacancy
(i.e., Rs. 27,000 x 9.5 months Rs. 2,53,500
adjustnount 3,000)
ll-
ster
computed
computed in St
Amount Step I or Step
I1, whichever is higher 2,53,500
due to vacancy
Nil
Stp1V-Loss
'Gross annual value is Step IlI mimus Step IV Nil
2,53,500
Sten
Ls: Municipal tax
21,000
Net annual value
2,32,500
under section 24
lsDeductions
Standard deduction 30% 69,7750
borrowed capital Nil
Interest on
Nil
Income 1,62,750
2. Business mcome

Rs.
10,87,690
Net profit
Less:
Municipal tax 10,500
Repairs 15,000
Ground rent 1,750
Land revenue 2,000
Insurance premium 5,000
Interest 4,000
Depreciation 40,000
Business income 10,09,440
PS.18 [72-E5]* For the assessment year 2022-23, X (age : 46 years) submits thefollouwing information
ncome from business Rs. 7,37,000
Interest on debentures Rs. 2,25,000
Contribution to public provident fund 60,000
noestment in NSC VIII issue 1,30,000
Property income:
House I House II
Rs. Rs.
Fair rent (FR) 4,50,000 6,90,000
Municipal valuation (MV) 4,55,000 7,10,000
Amnual rent 7,80,000 9,00,000
Mtunicipal taxes paid 25,000 70,000
Standard rent (SR) 4,23,000 12,00,000
Repairs 37,000 74, 000
Land revenue 6,000 80,000
Insurance 4,000 18,000
dnrealised rent of 2020-21 26,000 12,000
Unrealised rent of 2021-22 17,000 5,80,000
Interest on 12,000
capital borrowed for purchase ofhouse property 1,90,500
Repayn
ayment of loan taken
vicant from afriend for the purpose ofpurchasing
House I 3,000
period (number of nmonths) (2) (3)

Number given No. of Students' Guide to Income-tax, 67th Edition.

in Dracket
the represents similar unsolved Problem
119 Solved problems Problem P5.20

Income from other sources [see Note 21 Rs.

Gross total income )9,167
edS: Deduction under section 80C 24,63,583
deduction in the next year) (investment after the end of the previous
year is eligible ror
Net income (rounded off) Nil
Tax on net income 24,63,580
Income-taxt
Add: Health and education cess 5,51,574
Tax liability (rounded off 22,063
5,73,640
Notes
1. Income from house property -
Municipal value (MV)
Fair rent (FR) 9,00,000
Standard rent (SR) 9,05,000
Step 1- Reasonable expected rent of the 9,03,000
maximum of SR] property [MV or FR, whichever is higher, but subject to
Step II- Rent 9,03,000
received/receivable after deducting unrealized rent but before
to vacancy [(Rs. 9,82,000 Rs.
76,000) (12 months h month) 12 months] adjusting
x
loss due
+
8,68,250
-

Step Il1- Amount computed in I or Step Step II, whichever is higher 9,03,000
Step 1V- Loss due to vacancy
Nil
Step V- Gross annual value is Step III minus Step IV
Less: Municipal tax 9,03,000
Nil
Net annual value
Less: Deductions under section 24 9,03,000
Standard deduction@ 30%
Interest on borrowed capital
2,70,900
1,350
Income
6,30,750
Recovery of unrealised rent [Rs. 60,000 30%]
42,000
House property income chargeable to tax
6,72,750
2. Income from other sources -
Amount actually collected from the tenant on account of maintenance of lift and garden
(Rs. 76,000 minus h of / of Rs. 76,000) 72,833
Less: Lift maintenance including depreciation 58,000
Less: Salary of gardener
24,000
Balance 9,167
P5.20 [72-E6]* In problem 72-P6, assume that instead of X, the houses are owned by Mrs. X (age 66 years) and rent ofHouseI is
Rs. 35,000 per month and rent ofHouse II is Rs. 9,000 per month (all other data remains the same), find out net incomeand tax liability
for the assessment year 2022-23.
Solution
House I House II
Rs. Rs.
Computation ofannual value -

whichever is higher, but

Step I- Reasonable expected rent of the property [MV or FR, 66,000
Subject to maximum of SR] 1,00,000
unrealized rent but before adjusting
Step I1- Rent received/receivable after deducting 1,05,000
loss due to vacancy 81,000
whichever is higher 1,05,000 1,00,000
ep l - Amount computed in Step I or Step I1, Nil Nil
Step 1V- Loss due to vacancy
Step V-Gross annual value is Step II minus Step 1 1,05,000 1,00,000
Less: Municipal tax 10,000 17,000

Guide to Income-tax, 67th Edition.

Problem No. of Students'
tD.er given in the bracket represents similar unsolved more than Rs. 5,00,000. Surcharge
on income-tax is not applicable as
income
income of the assessee is
of the aaer section 87A is not available as
assessee does ot exceed Rs. 50 lakh.
 Problem P5.19 Income under the head "Income from house propertyv"

House I
Rs. House I
Loss on account of vacancy 1,30,000
Nature of occupation Let out for 2,25,000
et out for
residence of
the managing profession
director
of A Ltd.
Date of completion of construction March 31, 2016
May 15, 1977
Determine the taxable income and tax liability of X for the assessient year 2022-23. Also calculate the amount ofunrealised rent o.
can be claimed as deduction in the assessment year 2023-24. whid
Solution:
Property income [see Note]
Business income 5,13,60
Income from other sources 7,37.000
Gross total income 2,25,00
Less: Deduction under section 80C 14,7560
Net income 1,50,00
Tax on net income 13,25.600
Income-taxt
Add: Health and education cess 2,10,180
Tax liability (rounded off) 8,408
Note - Income from house property - 2,18,590

House I House II
Rs. Rs.
Step Reasonable expected rernt of the property [MV or FR, whichever is
I-
but subject to maximum of SR] higher,
II Rent 4,23,000 7,10,000
Step -

received/receivable after deducting unrealized rent but before

adjusting loss due to vacancy
Step ll- Amount computed in Step I or Step IL, whichever is higher 7,63,000 3,20,000
Step IV- Loss due to vacancy 7,63,000 7,10,000
Step V Gross annual value is Step IlI minus Step IV 1,30,000 2,25,000
Less: Municipal tax 6,33,000 4,85,000
Net annual value 25,000 70,000
Less: Deductions under section 24 - 6,08,000 4,15,000
Standard deduction 30%
Interest on borrowed capital 1,82,400 1,24,500
12,000 1,90,500
Income
P5.19 [72-E7]* X (age: 28 years) is owner
4,13,600 1,00,000
ofa house property in Chennai which is let
for maintenance of lift and garden). Municipal valuation : Rs. 9,00,000; Fair rent: Rs. out for Rs. 9,82,000 (which includes Rs. 76,0
hmonth could not be collected (1/24 of 9,05,000; Standard rent: Rs. 9,03,000; rente
the tenant las undertaken to
Rs. 9,82,000) : Rs. 40,917. The local taxes,
payable by the owner, amounts to Rs. 59,200
pay it. The tenant has also undertaken to bear cost of
during the previous year 2021-22 repairs. However, X bears the following expenáiue
Annual charges : Rs. 6,000; insurance
of house : Rs. 10,000; ground rent : Rs. 7,500; lift maintenance (including
Rs. 58,000;
salary of gardener : Rs. 24,000; interest on borrowed capital : Rs. 1,350. depreciato
Assuming that business income is Rs. 18,00,000, determine the income (and tax
construction of the house was completed on March 31, 2014. thereon) for the assessment year 2022-23.
of unrealised rent of Rs. 80,000. On March 10, 2022, X recovers During the previous year 2012-13, X had claimed and allowed a dediuct
Rs. 60,000 from the
ofrent Rs. 43,000]. X contributes Rs. 81,000 towards National Savings defaulting
Certificates, VII Issue on tenant 2022.expenditure
April 1,[legal Ignore section reco
on 115D*

pertaining to alternative tax regime.

Solution: Rs
Property income [see Note 1] 6,72,750
Business income 18,00,000
Number given in the bracket represents similar unsolved Problem No. of
Students' Guide to Income-tax, 67th Edition.
fRebate under
section 87A is not available as income of the assessee is more than Rs. 5,00,000.
of the assessee does not exceed Rs.
50 lakh. Surcharge on income-tax is not applicaoe as inco
t Alternative tax regime provisions of section 115BAC are discussed in this book in Chapter 13.
 Problem P5.20 Income under the head "Income from house property"

House I
12
Rs. House I1
Net annual value
95,000 Rs
Less: Deductions under section 24 -
Standard deduction@ 30%
83,000
Interest on borrowed capital 28,500
Income
2,000 24,900
64,500 40,000
Computation of income and tax liability -
Income from house property
18,100
Business income
Gross total income 82,600
Less: Deduction under section 80C 12,80,000
Net income 13,62,600
Tax on net income 1,50,000
Income-taxt 12,12,600
Add: Health and education cess
Tax liability
(rounded off) 1,73,780
951
1,80,730

TKebate under section87A

of the assessee is not
does not exceed available as income of the
Rs. 50 lakh. assessec is more than Rs.5,00,000.
Surcharge on income-tax is not asincont
applicao