Law. &Practice :A.

Y
IncomeTax Theory,
0 Fromthefollowinginfomation, computethe total income of Mr. Yue for he
1R22 13.73
Deductions from Gross Total Income
AsesmentYear2023-24. Qualifying amount is: Rs. 20,500.
Salary at Rs.7,000permonth Least of: Actual donation : Rs.25,000 (or)
() fundto whichemployer
of hissalary to PE.
(n) He

(m)
contributes
cqualamount.
Interest
14%

credited to the PF. at

9,5%p.a. Rs.l,.200. Conitributesan 10?% of adjusted income: Rs.20.500 : 1%n (2,45,000 40,00

(LTCG).Amount deduct1ble is = Rs 20.500%5% - Rs. 10.250

insurance premiumpaidRs.5,000. fully
(iv) Life institution (3) Donation to clean ganga fund and swachh Bharath Kosh are
Rs.8,000 as donation to aCharitable
(v) Hepaid deductible.
2022-23
incomeRs.20.000 ycar
(v) Other 32. Sri Anand eamed gross total income of Rs.5,00,000 in the previous
[Periyar, B.Com., Apr. 2006]
JAns : Total income:
and made the following donation during the year :
Rs. (a) Rs.10,000 to Chief Minister's Earthquake Relief Fund.
36970;
LICpremium.
(35,680+20,0 -1 ,760-5,0 -1,950)1|
Hint : (1)Employeesown contributionto RPFis deductible uw's. 80-C along with
(b) Rs.I5,000 to National Foundation for Communal Harmony.
(c) Rs.40,000 to Municipal Corporation approved for promotion of family
planning.
acharitableeinstitution comes under:
(2) Amount of donationto Least of aactual restricted (d) Rs.25,000 to approved institutions.
doantion : Amount qualifyingis Rs.8,000. donation (e) Donations :Clean ganga fund Rs. 12,000
Rs.3,900x 10/ Swachh Bharath Kosh: 8,000
Rs.8,000 (or) 10% of adjusted income
(35,680+20,000-11,760-5,000).Amount deductible is 50% of National fund for control of Drug Abuse : 15,000
Rs.8,000 Compute the amount of deduction admissible to
him w's 80-G for the AY 2023-24.
- Rs.4,000.
is Exempt up to 12%. [Madras, B. Com, (CS) Apr. 2006]
(3) Employer's Contribution to RPF (Madras, B.Com., (CS) Nov.
2006)
9.5%.
(4) Interest on RPF is exempt up to [Madras, B.Com,, Nov. 2006)
2022-23, Kumar has the following income and
31. During the previous year [Periyar, B.Com., Nov 2006)
expenditure : Rs.3,95,000;
Rs. [Ans : Taxable income
(5,00,000-10,000-15,000--12,000-8,000-15,000-40,000-5,000)|
1,50,000 foundation
(a) Business profit Quake Relief Fundand National
55,000 Hint: (1) Donation to CM's Earth
(b) Winning from lotteries for Communal Harmony is fully
deductible.
40,000 institutions
(c) Long term capital gain of family planning and approvedis least of =
(2) Donation for promotiondonations.
Fund 10,000 Qualifying amount
(d) Donation to PM National Relief come under restricted (40,000-+25000) (or) 10% of
Rs.50,000 or Actualdonation: Rs.65,000
(e) Donation to a temple approved for the purpose
25,000 Rs.50,000 (5,00,000x )Amount deductible is
of section 80-G income =
50% ofRs. 10,000.
() Donation to clean Ganga Fund: Rs.5,000 Rs.40,000 of Family Planning and Kosha and National fund
Rs.2,000 ganga fund Swachh Bharat
(g) Donation to swachh Bharath Kosh: (3) Donation to Clean fully deductible.
Compute his total income for the Assessment Year 2023-24. for control ofDrug Abuse are respect of donationsmade by
him
the following information is
[Madras, B.Com, (G) and (A&F), Apr. 2008] 33. Mr. Raghul furmishes 2022-23.
for the previous year
|Ans : Taxable income : Rs.2,17,750
(2,45,000-17,000-10,250))
Hint: (1) Donation to PM National Relief Fund is fully deductible.
(2) Donation to temple approved for purpose of Section 80-G comes
under restricted donation :
 Law& Practice:A.Y,;
Income TaxTheory,

Fund
Rs.
5,000
2013-2024 Deductionsfrom Gross Total Income
|Ans : Taxable Incocome: 6.49.500
(7,50,000-100500|
13.75

NatonalDefence as deduct1ble
Dnatonto Contribution)Fund 7,000 Hint : () Pension fund is deductible w's 80-CCC. med1cla1m
(Publ1c us. 80-D. (Rs.5000+5000)
DnatxontoAfhca Foundaton 8,000
KUJ
DnatonnttoRayv
Gandh1
studies S00 (2) Donation to Gujarat Earthquake Fund is fully deductble u's
por boyforhygher (3) Donation to Rajiv Gandhi foundation, Drought Rel1ef
Fund and
Dnaton toa
Chantabletrust 40,000
to approved 1,000 J.N. Memorial Fund are 50% deductible u/'s. 80-G
Donaton fall underrestr1cted
party
Donatxontoapolitical Rs.2,10,000 whichinchudes dividend from an (4) Donation to repair a temple and minonity community
His grosstotal
incomeis Indian category u/'s. 80-G (54000m=R 2700)
toRs.10,000.
companyanOunting
allowableu's. 80-G under section 80-G
CulculateDeducton
(Madras, B.Com., Apr 207 15 Calculate the amount deductible Rs.
|Ans: Deduction u/s 80G: 3,00,000
(5000 +7000 +4000 Rs.26,450; () Gross Total Income

Hint : (1)Donations to
NDF &Affica Fund are fully deductible +10,450) (ü) Deduction u's. 80-C to 80-U except
(i) Donation :
Sec.80-G 50,000

Gandhi Foundation isseligible for deduction upto 30,000

(2) Donation to Rajiv (1) PM National ReliefFund
50% of theamount given. (2) Allahabad University- National Eminence
20,000

(3) Donation toapolitical

party is deductible w's 80-GGC 10,000
Charitabletrust comes under restricted donation, (3) Technology Development &Application Fund 10,000
(4) Donation toapproved (4) PM's Drought Relief Fund
QualifyingamOunt is :Rs.19,900 (5) Charitable Society 10,000
Least of:Actual amount donated Rs.40,000 (or) (6) Family Planning
1S,000
(2,10,000-1,000) 20,000
10% ofIncomeRs.2,09,000 (7) Sports Association
Rs.10,450 (Madras, B. Com, Nov. 2007]
Amount deductible is 50% of 20,900=
deduction u/'s 80-.G JAns : Deduction w's 80G
Rs.85,000;
(5) Donation to apoor boy does not qualify for (30,000-+20,000+10,000-+5,000-+15,000+5,000)|
(6) Dividend from Indian Company is fully taxable.
Rs.7,50,000. AIlahabad University and Technology
34. Mr. Kaushik submits his gross total income for the previous year as his taxable Hint : (1) Donation to PM NRE, deductible.
Calculate Development Fund are fully
He has contributed for the following fund, donations etc.
Fund is Dedutible at 50%.
Income. (2) Donation to PM's Drought Relief
Rs. Family Planning are under restricted
(3) Donation to Charitable Society, andRs.25,000. Least of : Actual amount
Payment towards Oriental Insurance Mediclaim 5,000 category. Amount qualifying is
(Or) 10% of income
Pension Fund of LIC 5,000 donated Rs.25,000 (10,000+15000)
deductible is entire
Rajiv Candhi Foundation 15,000 Rs.25,000:on x(3,00,000-50000). Amount
Gujarat Earthquake Relief Fund 20,000
(2500-1500).
Prime Minister's Drought Relief Fund 50,000 family planningRs.I5,00and Rs.5,000.
Jawaharlal Nehr1 Memorial Fund 22,000 respect of Donations
furmishes the following information in
Towards repair work for temple 45,000 36. Mr. Seetharam Shetty ending of 3Ist March, 2023.
Donation for promoting minority comunity 50,000 made by him in the previous year
His gross total income includes LTCG of |2,00,000
[Madras, B. Com., (CS) Apr. 201
(B.Com., (CS)Old, Now.201]
 Law& Practice :A.Y.
Income Tax Theory,
.2023-2024
Rs.
Deductions from Gros Total Income 1377
(2) Income for 25% or 10% is adjusted income (Le income minus L1C
DefenceFund 4,000 STCG subject to STT,iincome from AOP and other deduction w's 80C
Donation toNational contribution)fund
DonationtoAfica
(Public 3,000 to 80U).
Gandhifoundation 2,000 8. Ifaprofessional man has his gross taxable income (ie, Income before allowing ths
DonationtoRajiv ReliefFund deduction) of Rs.25,000 and pays rent of Rs 600 p.m. at Varanas, calculate the
PrimeMinister'sNational S,000 amount of deduction w's.80-GG
Donationto
charitableinstitution 10,000
Donation to approved [Madras, B.Com., (CS) Nov.2011|
Donation toapproved
lnstitution 5,000 (Madras, B.Com,, (G) and (A&F) Apr. 2010]
highereducation 500 |Ans : Deduction u/'s. 80-GG = Rs.4,700:
Donationto Poorboy for school.
a local recognised (Least of : Rs.5,000 p.m. or Rs.6,250 or Rs.4,700]
Donated books worth Rs. 300 to particular
guest house for a Hint : (1) Deduction w's. 80-GG is in resepct of rent paid.
Donation for the construction ofa
1,000 (2) Amount of deduction is least of RS 5.000 D.m. or 25% of ncome or rent
religiouscommunity,.
S00 paid minus l0% of income.
Donation for aPolitical party (3) Income for 25% or 10% is adjusted income (e. income minus LTCa
includes sIncomefromoother
is Rs. 1.47,000which
His grosstotal income Calculate deductions allowable Under Sectionsources STCG on shares, subject to STT, income from AOP and other deductions
amounting Rs. 10,000. 2022-23
80G Ws. 80-C to 80-U).
premium of Rs. 10,000 during
Mr. seetharam has paid amediclim 29. Calculate deduction allowable u's. 80-GG to an assessee having the gross total
[Mangalore, 2000) income of Rs.60,000 for the assessmentyear 2023-24. Rent pad by him for a
house
JAns: Net Income Rs.1,16.675 occupied by him for the purpose of his residence is Rs.1,250 per month.
(1,47,000 - 10,000 19,825 500): |B.Com,, (CS) Apr. 2009/
Rs.9,000
Deductions U/S 80 G: Rs. 19,8251 JAns : Amount deductible u's. 80-GG =
Rs.9,000|
Least off Rs.60,000. (5,000×12) or Rs.15,000, or
Hint : 1. Deduction U/s 80GGC (Donation for apolitical party) is allowed and
Hint: (1) Deduction u's. 80-GG is in respect of rent paid.
then QA is ascertainedUs 80G (60,000) or 25% of
2. Deduction U S80 G:100%: Rs. 12000;
50%: Rs 1000; Restricted. (2) Amount of deduction is least of Rs.5.000 p.m.
income or rent paid minus 10% of income.
o3650=6825). income minus LTCi
(3) Income for 25% or 10% is adjusted income (Le.
and other deductions
STCGsubject to STT, income from AOP
I(H) Deduction U/S 80 GG us. 80-C to 80-U).
80-GG assessee having the follwing
37. Compute the amount of deduction u's. Rs. 40. Calculate the deduction allowable u's. 80-GG
to an
income for the previous year 2022-23. Rs.
6,12,300
Total Income 1,10,000
80,000 Business Income
Payment of rent 10,000
Deductions u's. 80-C to 80-U NIL Interest on Securities
by him for the purpose of his residence is
(Madras B. Com (CS) April 2012] Rent paid by him for house occupied
[Madras, B. Com, (CS) Apr. 2010) Rs.I,250 p.m.
(Madras, B.Com.,Apr. 2008/
|Ans : Amount deductible u's. 80-GG= Rs.18,770 |Ans : Deduction w/'s. 80-GG
= Rs.3,000
Least of : Rs.60,000 (or) Rs.1,53,075 (or) Rs.18,770| (Least of R.60,000 (5,000×12),
or 30,000, or 3,000|
Hint : (1) Deduction u's. 80-GG is in respect of rent paid. Amount of deduction
is least of (a) Rs. 5,000 p.m. (b) 25% of income (c) Rent paid minus -
10% of income.
 &Praclice. Deductions
Inome Ta Theory, LaW
tnn u s N0-( Is inreport of rent pand 023-2024 ID
Deduction,US 80 GGA
gthe previoussyear 2022-23 Shri. Santhosh makes the
13.79

Mie ())Aaa
Amt ofddutkonslkastofRs 60.000(5,0012) or 25°% of fincome During

10", ofincome
43. contributionto an
(a) .:Rs. approved Scientific Research associationfollowing
for
contributions
research in Natural
rentpasdminus sCicnces 8,000; and(b) Contribution to National Rural
purposcof2 and|10%1s adjusted income Development fund
i Iaume
munus hor
LTCG theSICG
(ie.income
on shares subycct to STT, Income from AOP and
N0-Cto80-U)
Rs.
10,000 Determine taxable income of
Santhosh if he has (a) House
income(computed) Rs. 80,000 (b) Income from Business (without deducting
aforesaid payment) is Rs. 80,000.
Property
the
otherdeducthons us
rented house at
Rs 3,60,000 He lvesin a
4 M \sosstotalincon is
pm Heis enttledlo deduction under scction
Chennai andof |Ans : (1) Net Income Rs. 62,000 (80,000 - 18,000)
pas a rent of Rs4000
of a burld1ng which is
stuated at Mumbai
and
80-D
let
Deduction Under 80GGA: Rs. 18,000.
Rs 9000 He s the owner out. (2) Net Income Rs. 62,000 (80,000 - 18,000)
deductible u's. 80-GG If any
Conpute the amount
(Madras, B.Com, Nov. 2007 Deduction Under 80GGA-Nl]
JAns : Deduction u's 80GG Rs.12.900 Hint : (1) For.assessees with business income, contributions are reduced from
business income. Contribution to scientific research is deductible
(Rs.60,000 (or) Rs.81,750 (or) Rs.12,900)1 @100% of amount donated.
respect of rent paid.
Miat : )Amount of deduction w's. 80-GG is in (2) For assessees not having business, the contributions specified are
(2) Amountt of deduction is least of Rs. 60,000 (5,000 x12) or 25% of deductible uw's 80GGA. Actual amount only is deductible.
Income or rent paid minus 10% of income. 44. Sundar providesthe following details for the previous year 2022-23.
(3) 25% of ncomeand 10% of income is adjusted income. Contribution made to aUniversity for Statistical Research Rs. 40,000. Contribution
ue Income minus LTCG STCG on shares subject to STT, income to Rural development fund Rs. 50,000.
from AOP and other deductions w's. 80-Cto 80-U). Detemine his taxable income if(a) He is asalaried employee, drawing Rs. 1,90,000
42 MrS.anon-res1dent cla1ims the following deductions from his gross total income nf as Salary p.a. (b) He is abusinessman whose income from business (without deducting
Rs 6.95,000 He has made the lollowing payments during the year. the aforesaid payment) is Rs. 1,90,000.
Rs JAns : (a) Net Income Rs. 50,000 (1,90,000- 50,000 -90,000)
() Med1cal insurance for himself andhis mother Deductions Under 80GGA Rs. 90,000.
of 70 years age 20,000 (b) Net Income Rs. 1,00,000 (1,90,000- 90,000)|
(u) Depos1t with LIC pension fund 15,000 Hint : (1) Contribution to University for Statistical research is deducted at 100%
(u) Annual rent paid for the residential house 72,000 from Business Income.
Compute his total income for the assessment year 2023-24. (2) For assessees not having business, the contributions specified are
deductible w/s 80GGA. Actual amount only is deductible.
(Madras, B.Com, Nov. 2006
I) Deduction US80 U
JAns: Total íncome: Rs.6,54,000
45. Mr: Xwho is handicapped has the following infomation. Compute his taxable income.
(6,95,000-15,000-20,000-6,000) Rs.
Hint: (1) Medical insurance u's. 80D is Rs. 20,000.
(Least of 50,000 or 20,000)
() Salary (per annum) 80,000
(ü) Rent received (per annum) 1,00,000
(2) Deposit with LIC pension fund is deductible u's. 80-CCC
(3) Deduction u's. 80-GG is in respect of rent paid. (ii) Dividend from aCo-operative Society 2,000
(4) Deduction u's. 80-GG is least of Rs.60,000 or 25% of adjusted income (iv) Interest on Saving Bank Deposits 9,000
or rent paid minus 10% ofincome. (v) Interest on Govt. Securities 4,000
(vi) Winnings from Lotteries 50,000
1,20,000
(vii) Long term Capital gain on sale of(unlisted) shares
(vii) LIC premium paid Rs. 15,000
(Policy value Rs. 1,50,000)
 Incomelax Iheory, Law &l'TaCice:A.Y

|Ans: Net Income:

(2,85,000- I5,000 - 75,000
Rs. 023-21,8062,M40N, DeductionsfromnGross Total Income
(2) Since nothing is mentioned, 80U is not taken as severe disability
1381

s deduct1ble
Hint:()Deduction Us 80UfornormalI handicapped assessce is! Rs.15,00% (3) Ifpermanent polio is taken as severedisabiltyRRs 1,25,00 disab1l1ty)
income is w/s 80U (above 80% extent of disab1lity is taken asSsevere
house property subject lo 25,000) and
) Rent receved
deductonat30%
under
) Deduction us 80TTAfor interest on Bank deposits Rs, \0,000 or
slandard (4) Deduction uws 80D is Rs. 25,000(least of Rs. 40,000 or
aged parents i.e., senior citizens Rs, 4,000 or 50,000.
whicheveris least. 48. Shri Raja provides
tollowing information. Compute histaxable Income.
actualunterest Rs.
d1sab1l1ty). The following are the
blhnd(severe
4o Mr istotallypreviousyear2022-23: particulars of his Taxable salary income (after standard deduction)
8,00,000
|16,00,000
Incomeforthe Rs. Income from Business
Income from other sources:
1,50,000 4,00,000
Salary Lottery income
2,00,00 Interest on Saving Bank deposits
80,000
Interest Income
5,300 60,000
society Interest on Co-op deposits
DIdends from aCo-operative
DIIdends from Sri Gancsh Following are the payments made during the year:
Industrnes Limited
2,300 1. Mediclaim Insurance for himself, spouse and
Compute X's Taxable Income. MR. Xhas invested Rs. 6,000 in NSC during Children: Rs. 30,000
2022-23. Mr. Xalso paid Rs. 30,000 towardss mediclaim premium for him sself and 2. Mediclaim Insurance for his parents 68,000
Interest ofRs. 60,000 andI he is senior citizen. who are senior citizens
spousc.Interest Income includes bank
|Punjabi University, 2000| Compute his taxable income :
- 25,000 - 50,000 10,000)
JAns : Net Income : 1,01,600 JAns: Taxable income : Rs. 28,55,000 (29,40,000
Gross Total Income Rs. 29,40,000)
3.07,600 -6,000 - 1,25,000 25,000 50,000)
Rs. 25,000
taxable. Hint: 1. Deduction u's 80D for Raja and his family
Hint : (1) Dividends from Indian companies is (30,000 or 25,000 W.E.L)
(2) Deduction u's 80 Ufor severe disability is Rs. 1,25,000. 2. Deduction u's 80D for parents who are
of senior citizens is Rs. 50,000
(3) Deduction u's 80D is enhanced to Rs. 25,000 and 50,000 in the case of
(Rs. 68,000 or 50,000 W.E.L)
senior citizens.
3. Deduction u/s 80TTA is Rs. in respect
of Interest on deposits with Bank,
(4) Deduction u's 8077B, inrespect oflnterest on bank deposits for senior allowed is Actual interest or
citizen's is least of Rs. 50,000or actual interest.
Co-op society and post office) The amount
Rs. 10,000 whichever is less.
47. Mr. A, sufers from pemanent Polio. He is employed in a Bank in Punjab. 49. Shri Venu has furnished the following details:
His income particulars for the AY: 2023-24 are as under:
Rs. Taxable Salary Rs. 8,00,000
(After standard deduction)
Salary Income 6,50,000
Bank interest
Business Income Rs. 16,00,000
20,000 Income from other sources:
Donation to National Defence Fund Rs. 9,000.Compute his total income for the
year 2021-22. MR. Ahas contributed Rs.12,000 to RPF during the year.Mt. Aalso Interest on Bank deposits :1,65,000
62 years)
paid Rs. 22,000towards mediclaim premium of his own health, Rs. 18,000 towards Various payments made by Mr. Venu (who is of
(No mediclaim was taken) Rs. 70,000
mediclaim policy of spouse health and his aged parents health of Rs. 4,000. 1. Medical expenditure of his father
and his spouse and children Rs. 80,000
[Punjabi Uniersity, 1999) 2. Mediclaim premium of himself
|Ans: Net Income : Rs. 4,85,000 3. Savings u's 80C Rs. 4,00,000. Rs. 22,65,000
(Ans: Taxable Income:
(6,20,000 9,000 - 12,000 75,000 - 25,000 - 4,000 10,000)) 50,000)|
(25,65,000 - 1,50,000- 50,000 - 50,000
Hint: (1) RPF contribution is deductible ws 80C. (Rs. 4,00,000 or 1,50,000 W.E.L)
Hint: Deduction w's 80C restricted to Rs. 1,50,000
 Income Tax Theory, Law&) Practice: A.Y.2
(Itt Deductions from Gross Toal |Income 13,83
of parentsisallowed ormediclaim is not t
2
ependiture
Medical
(Senior citizen) (Rs. 50,000 70,000 W.E.L)
uptoRs.50,000
taken) is aloA Dividendon 100 preference sshares at Rs. 8per share.
interest on Bank deposits is Dividend collection charges paid Rs. 25. Mr. Ravi has paid LIC premium of
80TTBin respect of
3 Deduction u's 1,65,000 W.E.L) Rs. S0, Rs. 90,000 and PPF of 1,00,000.
(Seniorcitizens)(Rs. 50,000 or You are askedto calculate his gross total income for the assessment year r2023-24.
I. Comprehensiveproblems : afiliated to the
teacher, University of
[Madras, B. Com.(CS) April 2006]
L Mc Jayasankar, a college
following details of his income.
(Madras, gives the. JAns : Total income : Rs. 1,80,700 (3,40,700 - 10,000 1,50,000))
Hint : Dividends trom Indian companies are taxable.
Rs. Standard deduction w's l6(ia) is upto Rs. 50,000
Deduction us 80TTA is Rs. 10,000.
Salary 15.000 p.m.
Warden allowance 1.200 p.m. 2 Chandru furnishes you with the fllowing information in respect of his income for
the vear ended 31st March 2023. You are requested to compute his total income for
Examinership remuneration 6,000 the relevant Assessment year.
Income from books 18,000 Rs.
Card games income 6,600 Rent from Sub-letting 24,000
Income from Lottery 25,000 Interest on Saving Bank deposits 9,000
Purchase of Lottery ticket 10,000 Income from Royalty 5,000
Interest received 7,000 Income from Let out house (computed) 12,000
Calculate total income. Mr. Chandru has contributed Rs. 9,000 towards PPF during the year.
Madras, B. Com. March 1997]
He has savings in the from of PPF 80,000.
[Madras B. Com Nov 2015] JAns : Gross Total Income : Rs. 50,000 (12,000 +38,000)
Net Income Rs. 32,000 (50,000 9,000 - 9,000))
(Madras, B.Com. Nov. 2006]
JAns: GTI:Rs. 1,27,000 (1,80,000 +14,400 +6,000+ 18,000 Hint: (1) Rent from subletting is income from other sources. Hence standard
deduction w/s 24 is not allowed.
+6,600 +25,000 +7,000 -50,000- 80,000)1
(2) Deduction w's 80TA for Interest on bank deposits Rs. 9,000 being Rs.
Hint: Expenditure on purchase of lottery tickets is not deductible. 10,000or actual interest whichever is least.
Standard deduction w's 16(a) is least of Rs. 50,000 or Salary Income. of Mr. Karthik for the
4. From the following information, compute the total income
Deduction ws 80Cis least of Rs. 1,50,000 or Actual savings. A.Y. 2023-24.
2. Mr. Ravi is employed in AB Limited, as the General Manager. He received the
(0) Salary at Rs. 10,000 per month.
following incomes during the financial year 2022-23: which employer contributes
Rs.
() He contributes 14% of his Salary to RPF fund to
an equal amount.
Salary 8,000 p.m. () Interest credited to the P.F at 9.5% p.a. Rs.
1,200.
Dearmess allowance 625 p.m
Interest on fixed deposit with a Bank 2,00,000 (iv) LIC premium paid Rs. 8,000.
charitable institution.
(which includes interest on saving (v) He paid Rs. 12,000 as donation to a
Rs. 4,000.
bank deposits of Rs. 15,000) (vi) Other incomes Rs. 20,000 including LTCG 64,420
|Ans : Taxable Income: Rs.
Remuneration for valuation of general
(92,400 -16,800 - 8,000 -3,180)
knowledge exams 6,400
LIP)
Prizes from crossword puzzles 25,000 (Gross) Hint: Deduction w's 80C: Rs. 24,800 (RPF +
Casual income
27,000
Royalty from books Rs. 30,000; he has spent Rs. 3,000 in
DIvidend on I,000 equity shares of Rs. 10 each (@ 10%. preparing the book.
 Income laN B85
Deductionsfrom Gross Total Income
B84 10
50 63,600x
6,360 100 Or 12.0 iNN Donation to National Defence Fund S,000
Deuctionws
80G:Rs. |100 ) Contribution to SPF Rs. 40,000, PPF 80,000,
College Tution fee of children 60,000.
6,360=],380 (Mudras, B. Com., Nov. 20071
2
|Ans:TTaxable income: Rs. 4,95,000 (8,00,000 - 1,50,000- 25,000
-
63,600(92,400- 4,000 16,800 - 8,000) 1,25,000 -5,000)|
Income.for 80G: 2022-23,)
Rs.6,00,000forrthe previous year fint : (1) Premium paid by cheque for hcalth insurance is deductible w/s. 80-D.
MrX' sgrosstotalincomeis He paid fux
5. thefollowingitems: (2) Amount spent for medical treatment of dependent with severe disab1lity
Rs. in deductible u's. 80-DD.
towards medical insurance Amount of deduction is Rs.I.25.000 without reference to actuai
) Hecontributed expenditure.
premiumbycheque 16,000
(3) Donation to National Defence Fund is fully deductible.
towards pension fund of
(ü) He contributed (4) Deduction u/s 80Cis least of actual amount or as 1,50,000.
LIC oflndia 12,000
for the
loan taken for 1. From the following information, compute the total income of Mrs.X
(i) He repad interest on assessment year 2023-24.
I5,000
pursuing his higher study in management Rs.
Defence Fund
(iv) He donated to National () Gross total income (includ1ng long tern
compute his total income 10,000 capital gain Rs.1,00,000). S,00,000

() He has deposited Rs. 60,000 in PPF. (0 Mrs.X's dependent son affected by cancer.
Rs. 70,000.
(vi) He has paid college fee ofhis children she spent medical treatment for her
.Madras, B.Com., Now. 20071 dependent. 75,000
JAns : Taxable income: Rs.4,17,00 (üi) He deposited in pension fund of LIC of India. 6,000
(6,00,000-12,000-16,000-15,000-10,000- 1,30.00M (iv) He donated to the National Foundation for
Hint: (1) Contribution towards pension fund of LIC is deductible u's. 80-CCr Communal Harmony. 5,000
(2) Contribution towards medical insurance premium is deductible (vi) LIC premium Rs. 50,000 RPF contr1bution Rs. 60,000.
ws. 80-D. (Least of Rs. 16,000 or 25,000)
(Madras, B. Com, &(A&F), Nov. 2009)
(3) Interest on loan taken for higher education is deductible u's. 80-E. (Madras, B. Com, Apr. 2007|
(4) Donation to national defence fund is fully deductible u/s. 80-G
|Ans : Taxable income: Rs.339,000;
(5) Deduction ws 80C is least of actual amount or 1,50,000.
(5,00,000 - 6,000 - 40,000 -5,000 - 1,10,000)|
6. Compute taxable income of Mr:Xfrom the details given below:
Rs. Hint : (1) Deposit in pension fund is deductible u's. 80-CCC.
(0) Gross total income (including long term (2) Medical treatment for son is deduct1ble w's. 80-DDB as least of Rs 40,000
(or) actual amount spent.
capital gain Rs.60,000) 8,00,000
(3) Donation to the National Foundation for Communal Harmony is
(1) Amount spent for medical treatment of deductible u's. 80-G
dependent who is affected by severe
(4) Deduction u's 80C is least of Rs. I,50,000 or actual arnount.
d1sability 60,000
(in) Payment of insurance premium by cheque
towards the heal:h of himself 35,000
 13.0)
Income lax
Mr.Raman from the following if the Deductions.from Gross Total| Income
1386
the taxable income of gross tota |Ans : Taxable Income:
Rs.60,962
8 Calculate 250,000. Rs. (52,400+1,550+19.000+10,000-15,000-16,983)1|
incomeis Rs.
Raman 900 Hint : (1) Deduction u/s. 80-Cis allowed for deposit in PPF A/c.
premiumofMrs. (2) Deduction w's. 80-GG is allowed in respect of rent paid.
Lifeinsurance LICPension
Fund 1,000
Contributiontowards 1,000 (3) Amount of deduction is least of Rs.60.000 (or) 25% of income (or)
income minus LTCG
MedicalInsurance rent minums 10%ofincome. (Income is gross total and other
ExpenditureonMedical
treatmentfor STCG on sale of shares subject to STT, income from AOP
14,500 deductions uws. 80-C to 80-U).
disabledrelative
Any
5,000 (4) Standard deduction u's l6 from Salary is upto Rs. 50,000 or Salary
Donation toIndian income whichever is less.
of Indiafor
Donationto Government Shyam has the following income and
25,000 10. During the previous year 2022-2023 Mr.
familyplanning [Madras,, B. Com, (CS-Old) expenditure:
[Periyar, B. Com, Apr:Nov.2007]
2011] Rs.
Income from business 6,80,000
|Ans: Taxable income
:Rs.1,49,890;
(2,50,000-900-1,000- 1,000-75,00-5,000-17,210)1 Capital gains 14,000
1,700
Winning from camel race
Premium paid is deductible w/s. 80-C Wining from horse race
2,000
Hint: (1) Life Insurance
deductible uw's. 80-Ccr 1,600
(2) Contribution towards LIC pension fund is Wining from lottery
10,000
deductible u's. 80-D. Income from other sources
(3) Medical insurance premium is 30,000
(4) Treatment of disabled relative is
deductible u/s. 80-DD. Amount of Payment of medical insurance premium 70,000
deduction is Rs.75,000 (Rs.1,25,000 for severe disability) withot Contributions to public provident fund
90,000
reference to actual amount. Payment made for sons school fee
and 80-D.
w's.
(5) Donation to Indian Amy is assumed to NDF, hence fully
deductible Compute his total income and deduction w's 80-C
(Madras, B.Com., Apr. 2009)
ws. 80G
|Ans : Taxable Income :Rs.5,34,300;
(6) Donation to Govemment for family planning comes under restricted 25,000 1,50,000)
donation. Qualifying amount is least of actual amount (or) 10% of (6,80,000 +14,000 +1,700 +2,000 +1,600 + 10,000
premium is deductible u/'s. 80-D (upto
Hint : (1) Payment of medical insurance
adjusted income Rs.25,000 (or) Rs.1,72,100(on*2,50,000-900 Rs. 25,000 or 50,000)
80-C. Amount deductible is least
1,000-1,000-75,000). (2) Contribution to PPF is deductible ws.
9. Mr. Metha a Chartered Accountant, is living at Kanpur and is carrying on his of Rs. I,50,000 or actual amount.
particular of his income and expenditure
profession there for the year 2022-23, he has supplied the following paticulars. I1. M:.I, an Indian citizen, gives the following
Compute his total income for the assessment year 2023-24. of previousyear 2022-23. Rs.
(a) Professional gain Rs.52,400 I1,05,500
(b) Rent received from house at Delhi Rs. 18,000 p.a. Business Income
1,04,500
(0) Municipal taxes Rs.1,500 pa. Winning from lottery
Contribution towards PPF 70,000
(d) Long-term capital gain Rs. 10,000. 51,000
Donation to National Relief Fund
(e) Part-time salary as lechurer in tax laws Rs.25,000.
Donation to Govt. of India for promotion of
(0) Rent paid at Kanpur Rs.2,000 p.m. 33,000
(g) Interest on Govt. securities Rs. 19,000 family planning
Donation to a Public Charitable Institute
He deposited Rs.15,000 in PPF Alc. Sec.80-G) 1,12,000
(being an approved institution for
(Madras, B. Com, (0ld) Nov. 2010] Determine the net income of Mr.l
 Income lax lheory, Law &'actce AY
(Madras, B.Com.,((S), Deductions from Gross Total Incomge B89
|Ans:Net
N lncome: 10,
(1,05,500+1,04,500 70,000 S1,000 3 (d) Long term capital gain Long term
(0) From land |000
PPsdedutible w's OC Deduction s
Mint : () ontributonto () From Jewcllery 8,000
aount or l,50,000
is (c) He paid Rs 2%,(000 as life insurance premium on his own ife on apolicy of
(2) Donation to national elhef fund fully deduc tble Rs 2,00,000
() onation for tamily planning and publie chaitable
(0 He gave Rs 20,00 as donation lo aapprovod charitable unstitution
restricted doantions Qualitying amount is least of ctual
Rsl,45,000 (3,000+1,12,000) (o) 10% of () During the year he deposted Rs 20,00 in an cquty lnked saving scheme
R,14,000 Amount deductible is Rs 3},000 for family adjusted notufied w's 80.C

s0% ofbalance004,000 3,(00) Rs 40, 500

planning n (h) le deposted Rs 12,500 in National Saving Scheme, 1992
(0) Interest accrucd on NSC VIl suepurchased in Nov 2022 for Rs 30,000 1s
Rs2,260
12 M Vivick submmits the following details of his income fo the
2023-24 Asesument Ye Compute his total uncome
Rs Madras, B. Com, (CS) No% 2011|
Interest on saving bank depoit Madras, IB. Com,(CS) Nov. 2009)
I,40,000
Interest on Govt Securities 40,000 |Ans: GTI: Rsl19,500 (70,000+-60,000+1,000+%,000+ 500)
Tnable Income : Rs.54,600
Kent received from let out house (per month) 2,000
(139,500 20,000-20,000- 12,500 30,000 2,400)|
Municipal taxes paid 2,000
Hint : (1) IC premium, Deposit in saving scheme, NSC and interest on NSCIs
Royally income I,50,000 deductible w's 80C
Expenses allowed tiom royalty 20,000 (2) Donation to approved charitable trust falls under restricted category
LICGon sale of unlisted equity shares on IK21 25,000
ws 80 QA is 70,00 +0,(00+ s00+ 9,00+ 2. 260
STCG on sale of land 10,000
20,000 9,000 20,000 12,500 32,260) Rs 4800or 20,000
Winnings from lottery 20,00%
(0) LIC premium deductible is 10% of policy value Rs 20,00
He has depoted Rs 50,00 in PPt during the pre vious yewr Compute the taulk 14 The following are the particulars of the income of Mrt Xwork1ng in acompany at
income of Mr Vivek Mumbas
Madras, B.(om, (C5) Apr. 0)
|Ans: Taxable Income Ra320,400 10,000 p m
Salary
(I5400+10,00+25,00+1,40, 00+40,000+1,4,000+ 20,000 0, 0 DA
4,000 pm
Mint: ) LICG on ale of unl1sted shares s taxable HRA
2,500 pm
4000
(2) Depost in PPF is deductible u's MO Dvidend receved
10000
0) Deductn ws OTTA for Interest on Bank depoait being ctual o Rent from bou property
15000
Interest on postal saving Bank Accoaunts
|} Ihe following te particulars of income f Mr Bellfor the Asesunent Yar Winn1ng from loteries
2023-24 10000
Long lerm capital gain on sale of old car
fa) Iome from hrase prperty (hot term captsl ain on eale of uhare
(h) hsnes Incone
o Dvdend ((ss) frum atop
vriety
 Law&Practice :
IncomeTaxTheory, A.Y. 20 1391
JAns : Taxable Income : Deductionsfrom Gross Total Income

rentpandisnotgiven
R sl51,
(1,48,0 0+7,0 0+6,0 0+20,50-20,M0
HRAIsfully
taxable 5M Taxable Income : Rs. 1,47,900 (1.68,300-- 18,000 - 2,400))
Hint: (1) Share from firm is exempled.
Hint : () Since befromIndian companies andthey (2)Contribution to National relief fund is qualifying deduction w's 80G
areassumedto are
() Diidends
saleofoldcar
Captialgain
(4)Interest
(3)
on
used| for personal purpose i
onpostalsavingbankaccountis exempt upto Rs..3500.
taxale (3) Employees contribution to PF is deduchible w's 80C.
(4) Interest on RPF is exempt up to 9.5%.
(5) REA value is least of: 15% of salaryor rent paid by the employer.
RPFisdeductible
u's. 80-c
contributionto 11 Shri Aggarwal is employed at Lucknow in Railways. He fumishes the following
(6)Own
(5) Deductionw/s80TTAis forsavingbankinterest ofRs. 10,000 or actua information for the year ended 31.3.23.
amount whicheverisless. (a) Salary (@ Rs. 7,500 p.m.
1S. The following are the details off Mr. Narayanas income for the year ending (b) Bonus cqual to 4months salary.
(c) Conveyance allowance Rs. 800 p.m. which is fully spent in fullflnent of
313/2023. Rs. official duties.
90,000 (d) House rent allowance @500 p.m. He paid Rs. 2,000 p.m. as rent of the house
(a) Salary 10,000 where he resides.
and also
(b) Bonus
9,000 (e) The employer reimbursed his personal medical bills of Rs. 5,000 each
(c) CCA gave educational allowance in respect of his two children @Rs. 300 p.m.
1,200
(d) Specialallowance (0 The Railway Co. contributed to statutory provident fund (@ 10% whereas
15% ofsalary the assessees contribution was 20%.
(e)Employecs contribution to RPF
sources 10,000 (g) Interest on Govemment securities Rs. 6,000
() Income from other
S,000 (h) Interest on saving bank deposit Rs. 12,000
(g) Shorttermcapitalgain 10,000 () Income from units ofUTI Rs. 4,000.
(h) Longlem capitalgain Narayanan for the.assessment year.
He incurred the following expenses :
Compute the total income of Mr. 2023-2024, (0) He paid premium of Rs. 8,000 on his life policy.
[Madras, B. Com., B. Com, () Donation to Gorakpur Zila Sakasharta Samiti Rs.
5,000. This Samithi has
Gand (A&F), Nov. 09) been constituted under the presidentship of the District collector.
JAns: Taxable Income:Rs.71,700 (85,200-13,50) () He paid Rs. 500 as tax on employement.
deductible w/'s. 80-C. Compute the total income of Aggarwal for the AY 2023-24.
Hint : Employees contribution is [Madras, B. Com.(CS) April 2006]
amonthly salary of Rs. 15,000 nm
16. Sh. S.K. Basu is in service in Calcutta drawing the rent of which is Rs. 1,000 nm [Ans : GTI:Rs. 1,01,300(79,300 +22,000);
He is also provided with afree unfurnished flat - 5,000))
provident fund. The interest at 8% Taxable Income : Rs. 60,300 (1,01300 - 10,000 26,000
He contributed 10% of hissalary to arecognised
March 2023 amounted to Rs. 2,800
on his provident fund for the year ended 31st Hint : (1) Deduction w's 80Cis Rs. 26,000.
monthly rent of Rs. 2.500
He is also the owner of the house which is let out at a (2) Deduction w/s 80G is Rs. 5,000.
His expenses for house were : (3) HRA exempted is Rs. 6,000.
() Municipal taxes Rs. 3,000 (4) Educational allowance exempted Rs. 2,400. deposits is Rs. 10,000 or
(ü) Interest on loan for construction of the house
Rs. 6.600 (5) Deduction w's 80TTA for Interest on bank
(ui) Repairs Rs. 500 actual Interest (WEL)
taxable.
He has also interest on govt. securities amounting to Rs. 14,000. He
has also received (6) Income from units ofUTI is the financial
the particulars of the income of Dr. Muthuvel for
ashare from afim assessed as firm of Rs. 5,000. He paid Rs. 200 p.m. to National 18. The following are
2023.
year ending 31st March, provident fund to
Relieffund.
Salary Rs. 10,000 p.m. from which 15% is deducted for
Compute total income of S.K. Basu. (a)
(Bharathiar, B. Com. Nov. 2004) which the colege contributes 12%.
1,200 p.m.
(b) Wardenship allowance Rs.
[Ans : GTI:Rs. 1,68,300 (1,42,000 +12,300 +14,000)
 Income Tax Theory, Law& Practice
L
192
letting
(c) Annual
valueofrentfreehouseis
800
receivedRs.
(d) Dvidend GovemmentloanofRs.5.00)
on
Rs. 20,00
:A.y,290232%4 Deductions.from Giros Taal Income
o Examincrship remunerat1n Rs. 6,00)
Duringtheycar he pasd ks 2,4)as life inurance<premiumon um lite policKs and
spentRs. 1,000 on books purchaved for his own uw.
39

(e) 8%interest propertyRs. 12,000

house |Mudras, B. Com(CS) Aprl 2006|
() Rentfrom savingsBank
AccountRs, S00
postal |Am :Gross total income :Ra. 33,944
(a) Intereston JewelleryRs, 8(M%
LTCG on sale of oldCarRs. 2,500and (19,340 +19 00+ 34,140)
(b) 9,000 Taxable Income : Rs. 24,140;
of shares Rs.
() STCGonsaleremuneration
Examinership Rs.3,700 (33,944 -5,40-2,400 -200)|
) 12,000.
Interest on Bank SavingAccount Rs. Hint : (1) Deduction ws 80Dis Rs. 2000
(k)
yea, he depositedRs. 6,00in NSC. (2) Deduction u's 0C is Rs. 7 200
Duringthe
books worth Rs. 650 (3) REA Is 7.5% of salary
He alsopurchased (4) Intercst on postal savings account is exermpted uptro to. 3,50)
for theAY2023-24.
Compule his total income a mnthly
(Madras, B. Com.(CS). 0 Vinod is employed in Ind1a United Mills Ld. as General Marnager on
JAns: GT1:Rs. 1,36,780(94,480 + 8,400 +17,000
(1,35,980- 18,000-
No+1y6.,29%006) | salary of Rs. 5,00 along with DA. of Rs 1,000 per month During purchaw
incurred Rs, 2,000 on entertainrnent of the custores and Ps. 1,200) on
the year he
of
TaxableIncome Rs.1,02,780 6,000-100,9)1 books. His other incornes are as follows:
Hint :(1) Deduction u's 80CRS.24,000(18,000 +6,00) Interest on saving deposit in State Bank of India Ps, 1 200
savings is expemted upto Rs.
(2) Interest on postsal 3,500,. Remuneration for examining answer books from Calcutta (Univers1ty Rs 46,00)
Books purchased is ignorcd, since it is personal cxpenditure
(3) REA value of house OWned by ermployer is 7.5% of salary. Since place Won aprize of Rs. 25,000 in weekly journalcrossword puzles, Caual uncone of
is assurmed as not Rs. 23,000 was carned.
ofcmployment is not given population excoding clairs
10 lakhs. RFA is Rs. 10,080. Royalty received in respect of abook on acountancy Rs. 11,800 He
exempted. expenditure of Rs. 3,025. [Dividend on 1,009 equity shares of Rs 10 cach at 10%
(4)Capilal gain on salc of old car is
Dividend in respect of 100 preference shares at Rs. per share. He has pad
(5)Dividends recived aretaxable. Rs. 25 as collection charges to his bankers.
(6) Deduction u's 80TTA is allowed upto to Rs.
10,000 or actual
bank interest whichever is less.
SsAving, You are required to calculate his gross total income for the current asessment
year

(71) Standard deduction u's l6 is Rs. 50,000. Vinod has the following savings during 2022-23 Housing loan repayment
Rs. 60,000 (Principal Armounty, LIC premium Rs. 20,00, PPF Rs. 30000.
(Madras, B.Com. Oct 2002;
19. From the following particulars of Dr. Aakash, find out his total income, for the Madras, B. Com. April 1999)
previous year, 2022-23 :
|Ans: Gross Total Income : Rs. 1,28,375 (2,000 +1,06,375)
(a) Salary Rs.4,500 per month from which 1% is deducted for statutory provident
fund.
Net Income :16,575 (1,28,375 - 1,11,800))
laxable.
(b) Rent free house of the annual value of Rs. 4,000 Hint : (0) It is assumed that dividends are from Indian companies and
deduction
(c) Wardenship allowancc Rs. 1,200per annum. Housing loan repayment (principal amount) LIP, PPF qualify for
1,50,000 or Actual armount
(d) 12% interest on government loan of Rs. 65,000 up w's 80C. maximum amount deduct1ble is Rs.
which ever is less.
(e) Income fom house property (computed) Rs. 4,800 deposits is lcast of Rs
(ü) Deduction u's 80TTA in respect of interest on bank
() Received Rs. 3,500 for writing articles in aJournal. 10,000 or actual interest.
(g) Paid Rs. 2,00 by Cheque to GIC under medicaim. whether he can avoid paying
21. An Individual has RS. 25 Lakh as income, advise him,
(h) Interest on postal savings account Rs. 800 no tax.
(9) Interest (gos) Rs. 2,500
 Income Tax Theory, Law&. Practice:A.Y,
1394
deductions w's80Cupto
Rs. 1.50,000and other Deductions.from Gross Total Income 13.95

.Rs.84d00eEd,M,u8c04ioT0nTA
Yeshecan save
andavail or,
Rs.50,000. Rs. taken 1,25,000 w/s 80DD,
Ans: 75,000 Solution
ifeligiblew's80DuptoInterrest on loan for highereducation Ws
1,00,000w's80DDB, Computation of Taxable Income
75.000or
Interest on Bankdepositsdeductions carn be I,25,000 for
and Rs.

22.
or80TTBfor
assessee and
laxable
balance of Income after
Incomeis nil.(Donations
donatcd us
to100% deductible institutions) h800andicapsoed
Aperson hasincome of Rs. 75,00,000canyou:advise the individual to save in
tha
away
Particulars

GrossTotal Income
Od tax regime Alternative tax

14,00,000
regime
14,00,000
Less:Deductions:
tax.
that he would not be paying
Individual can avail deduction w's 80Cto80Uass follows: lfeligible: 80C:
60,000
Ans: An Rs. NSC:

1,50,000 LIC: 40,000

80C Savings NPScontribution
50,000
80D 25,000 +25,000 byemployee:L0000 2,00,000 (or)

50,00 +50,000 (1,20,00

75,000 -x10 1.50,000 1,50,000
80DD 75,000 or 1,25,000 12
80DDB 40,000 or 1,00,000 80CCD:
80E Interest on loan
Addiionalcontribution
80GG Rent paid by employce 50,000
80TTA or TTB 10,000 or 50,000 10,000
75,000 Employet's contibuion
80U 75,00 or 1,25,000
1,20, 000
4,00,000.
Total of above deductions other than 80G is Rs. toNPS x10
12
Balance ofIncome(75,00,000- 4,00,000) Rs. 71,00,000. I,00,000
1,00,000
To avoid tax he can donate Rs. 71,00,000 to 100% deductions tocligible Institution
u's 80G so that income is Nil, and no tax is payable. 80TTA 10,000
Interest on savings
bank 3,10,000
WORKED OUT PROBLEMSUNDER OLD TAX REGIME&
ALTERNATIVE TAX REGIME 3,00,000
Taxable Income 10,90,000
1. Compute the taxable income under old regime and new tax regime from the following
details:
tax reg1me.
Note 1: Deductions U/s 80C Is not avalable under altemat1ve
Gross tolal Income: Rs. 14,00,000
contrnbution to NPS is ava1lable under
(which includes Rs. 15,00 from interest on savings bank and Rs. 1,20,000 being Note 2: Deduction U/s 80CCD for employer's
employers contribution to NPS) altemative tax regime
under alternat1ve tax reg1me.
Contributions and Investments Note 3: Deduction U/s 80TTA IS not ava1lable
NSC:60,000
LIC: 40,000
NPS contribution by employee Rs. I.20,00 beingemployee's contr1bution (a 12%
of salary and add1tional contr1bution by employe Rs. 50,000
 Income Tax Theory, Law&Practice : A.Y. Deductions from Gross Total Income
1397

under old regime and altenative tax regime

1396 Less:Deductions:
taxable income
2 Computethe (Age of assessive65years) Sec80C
followingdetails: Rs.
Particulars HousingLoan 80,000
8,00,000 Childrencducation
Gross Salary Income
contribution
(which includesemployers fee 60,000
salary
of72,000being 12% of 60,000
InterstonSavingBank 10,000
1,40,000
M1nors income NPScontribution
Contribution and Investments by employee:
80,000
Housing loanRepayment: 72,000
x 10 60,000
(Principalamount)
12
Children cducation fee: 60,000
Employees contribution: 72,000 2,00,000
lo NPS (12% of Salary) ormaximum 1,50,000 1,50,000
Additional contribution by: 50,000
employee to NPS Additional contribution 50,000
25,000 by employee
Mediclaim premium:
Contribution by
Computation of Taxable Income employer to NPS
(Assessee is aSenior Citizen)
72, 000 60,000
Solution -x10 60,000
Particulars Old regime Alternative tax 12
regime 80D: Mediclaim 25,000
Gros Salary 8,00,000 8,00,0 80TTB: 50,000
Less: Standard
50,000 3,35,000
deduction (Lnterest on SavingBank)
4,84,500 8,10,000
Taxable salary 7,50,00 8,00,00 Taxable Income
altemative tax regime.
Add: Income from Note 1: Deductions U/s 80C is not available under
contribution is available under alternative
other sources: Note 2: Deduction U/s 80CCD for employer's
tax regime also. is not
Interest on savings interst on savings bank for senior citizens
bank 60,000 60,0 Note 3: Deduction U/S 80TTB for
available under altemative tax regime.
Minors Income 10.000
Les Exempted 15,00 8,500

Gross Total income 8,19,500 8,70,000

 Law &Practice:
IncomeTaxTheory, AN.
Note4: Standard deduction andexemptionfor minor's Income IS hot avalable und
398
altemat1vetax regime.
2023-2NA Deductions from Gross Total|IIncome
1399

taxable income of n
3 Fromthe
Assessee)
folowingdetailscomputethe asscs ee (Handicapea 84,000

12
x10 |2,30,000
Rs.
Particulars Or
10,50,000
Gross Salary Maximum 1,50,000 1,50,000
40,000
bank Additionalcontribution 50,000
Intereston savings 50,000
Incomeofminorchild to NPS
70,000
15,00,000 Employers contribution 70,000
Income ofother sources
Contributions and Investments 84,000
1,60,000, NPS contribution -x10
infrastructure company debentures
to NPS
Interest in 12
and employee Rs. 84,000
12% ofsalary by employer 80D: Mediclaim premium 20,000
Aditional contribution by employee Rs. 50,000 80DD: Handicapped Department 75,000
Mediclaimpremium: Rs. 20,000 80DDB: Specifieddecease
for medical treatment, of dependentwith disability Rs. 1,00,000 Treatment 40,000
Expenses
decease Rs. 50,000
Mediclaim treatment ofspecified 80E: Educational loan
(Interest
Rs. 60,000 Payment) 60,000
Repayment ofeducational loan (interest) 1,00,000
1,00,000 80G: Donation
Donation US 80G (100%) Rs.
Computation of Taxable Income 80TTA: Saving Bank Interest 10,000
80U: Handicapped assessee 75,000
Solution 6,50,000
Particulars 0d regime Alternative
tax regime
19.38,500 25,70,000
Gross Salary
10,50,000 10,50,000 Taxable Income
Less: Standard deduction - 50,000
80DD, 80DDB, 80E, 80TTA, 80TTB
and 80G are not
Deduction U/s 80C, 80D,
Note 1: Similarly under 80CCD employees
10,00,000 10,50,00 available under alternative tax regime.
Taxable Salary contribution to NPS is not available. NPS is available
Income from other sources Deduction U/s 80CCD in respect of employerscontribution to salary) under
Note 2: central Govt employees upto 14% of
Interest on Savings bank 40,000 40,000 up to 10% (and for state and
50,000 altemative tax regime available
Income of minor 50,000
Deduction U/s l16i.e. standard deduction and for minor's income is not
Less: Exempted -1,500 48,500 Note 3:
under alternative regime. under altemative tax
Other Income IS,00,000 15,88,500 15,00,000 15,90,000
Deduction U/s 80CCD, 80JJAA and 80M is available
Note 4:
regime
Gross total income 25,8,500 26,40,000
Les: Deduction U/s:
80C: Debentures 1,60,000
80CCD: Employee's 70,000
Contribution to NPS