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Law of Direct Taxation

Unit III
Problem Set 2

1. Mrs. Amrisha whose date of birth is 30th March 1956 has a total salary income of Rs.
9,78,000 for the previous year 2016-17. She has income from other sources of Rs.
18,142 from her savings bank account. Her only investments are contributions to
Recognised Provident Fund account which are 12% of her basic salary of 40,000 per
Month. She also made a contribution of Rs. 30000 to the Prime Minister's Relief fund.
Find her tax liability for AY 2017-18.

2. Azaad, aged 45 years, was awarded a car of market value Rs. 6,50,000 by his credit
card company in a draw on 20th December 2016. There was no TDS by the company.
He has total income from salary of Rs. 8,45,000 in the previous year 2016-17. Azaad
contributed Rs. 1,00,000 to his public provident fund account and invested Rs. 1,00,000
in National Savings Certificates. He also took a health insurance policy on himself of Rs.
50000. Find his tax liability for AY 2017-18?

3. Mukil, a lawyer, earned profits of Rs. 10,00,000 from his practice in 2016-17. Mukil made
the following investments/ contributions in 2016-17:
a. Rs. 200000 as LIC premium for his Life insurance
b. Rs. 20000 each for medical insurance for his father, mother, wife, son and
c. Rs. 10000 as interest on educational loan taken for his LL.M.
d. Rs. 10000 as contribution to his local political party in cash.
e. Rs. 20000 as premium on National Pension Scheme
f. Rs. 100000 as contribution to Association of Law Universities, an unregistered
g. Rs. 200000 as contribution to the Tamil Poetry Development Society, a
registered charity.
h. Rs. 40000 as donation to the Prime Minister's Relief Fund.
Find his tax liability for AY 2017-18?