Tax Book 2023

Chapter 21 ___Solved Past Papers Income Tax Numericals of CA Module C - (2001 to 2022)

Medical allowance (Rs. 66,000×9 = 594,000 – 5,400,000×10%) 54,000

Bonus (Received after year end) -

Company maintained car for:

• office use only -


• personal use only (1,900,000×10%×9/12) 142,500
  Free food provided in lunch - Taxable 125,000

30,000

390,000

Special allowance (Rs. 20,000×9=180,000–150,000) – [Taxable in excess of

actual expenses u/s 12(2)(c)]

Provident fund contribution by employer [60,000×9=540,000–150,000]

(Allowed limit is 1/10 of the basic salary or 150,000 whichever is lower)

Conceptual Approach to Taxes ___ 489

390,000

6,141,500

Exempt income

5,895,000

FTR income (Separate block of income)

750,000

Total income 12,786,500

(5,895,000)

(750,000)

(6,645,000)

6,141,500

Exempt income: Salary from DSL

FTR – Dividend income

(Allowed limit is 1/10 of the basic salary or 150,000 whichever is lower)

Provident fund contribution by employee has not been considered as the

same is already included in the gross salary as computed above.

Salary received from DSL (From July 18 to September 18) (US $ 15,000×3 =

45,000 @ Rs.131) – [Exempt u/s 51}

Dividend income from a listed company

Less:

6,141,500

Less: Deductible allowance

Zakat paid/deducted [u/s 60] (62,500)

Taxable income for the year 6,079,000

Less: Deductible allowance [U/S 60C] No more available

6,079,000

1,005,000

25,675

1,030,675

112,500

1,143,175

Tax on dividend income 112,500

Tax withheld from salary 1,300,000

Less: Tax already deducted

Taxable income for the year

Tax liability - as a salaried individual

Tax on Rs. 6,000,000

Tax on amount exceeding 6,079,000 [(6,079,000-6,000,000)×32.5%]

Tax under final tax regime

Tax on dividend received

Total tax liability

Tax withheld from salary 1,300,000

1,412,500

Net tax refundable (269,325)

Conceptual Approach to Taxes ___ 489