The following particulars of income are submitted by Smt. Suman Garg for the assessment year 2022-23. She lives at Delhi. i) Basic pay 10,000 p.m. ii) Dearness allowance @ 10% of salary iii) HRA 30% of basic salary. iv) Medical allowance Rs 200 p.m. (amount actually spent on her own treatment is Rs. 2,000). v) Warden ship allowance 400 p.m. vi) Rent from house Property Rs. 3,000 p.m. vii) Contribution to RPF 10% of basic salary. viii) House rent paid Rs. 6,000 p.m. ix) Donation to approved charitable institution Rs. 20,000 Compute her total income for assessment year 2022-23.
Ans – To compute Smt. Suman Garg's total income for the assessment year 2022-23, we need to calculate the income under various heads and then determine her total taxable income.
1. Income from Salary:
i) Basic Pay: ₹10,000 × 12 months = ₹1,20,000 ii) Dearness Allowance: 10% of ₹1,20,000 = ₹12,000 iii) House Rent Allowance (HRA): 30% of ₹1,20,000 = ₹36,000 (Assuming HRA is fully taxable since rent paid is less than 10% of salary) iv) Medical Allowance: ₹200 × 12 months = ₹2,400 (However, only ₹2,000 can be claimed as it is actually spent)
Total Income from Salary = Basic Pay + Dearness Allowance + HRA - Medical Allowance Total Income from Salary = ₹1,20,000 + ₹12,000 + ₹36,000 - ₹2,000 = ₹1,66,000
2. Income from House Property:
Rent from House Property: ₹3,000 × 12 months = ₹36,000
3. Deductions:
i) Contribution to RPF: 10% of Basic Salary = 10% of ₹1,20,000 = ₹12,000 ii) Donation to Approved Charitable Institution: ₹20,000
Total Deductions = Contribution to RPF + Donation Total Deductions = ₹12,000 + ₹20,000 = ₹32,000
Calculation of Total Income:
Total Income = Income from Salary + Income from House Property Total Income = ₹1,66,000 + ₹36,000 = ₹2,02,000
Taxable Income:
Taxable Income = Total Income - Deductions Taxable Income = ₹2,02,000 - ₹32,000 = ₹1,70,000
Conclusion:
Smt. Suman Garg's total taxable income for the assessment year 2022-23 is ₹1,70,000. It's important to note that the tax calculation provided is based on the information provided and the prevailing tax laws at the time. Tax laws and regulations may vary, so it's recommended to consult a tax professional or refer to the latest tax guidelines for accurate calculations.
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