8/29/2019 Topic No.

1 Salary

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Question 1  Mr. Jhon is Manager of Rolex & Co., Delhi Since 1987. He has submitted
Not answered the following particulars of his income for the assessment year
Marked out of
20010-11.Calculate his income from salary.
Basic Salary= Rs. 45,000
1.00 Dearness Allowance = Rs 15,000 (40% of DA forms part of retirement
benefits)
Education Allowance for two children = Rs.200p.m. per child
Commission on sales = 2% of turnover of Rs. 5,00,000
Entertainment Allowance = Rs. 800 p.m.
Travelling Allowance = Rs. 800 p.m.
A company owned bungalow has been provided to him. The rent of
the bungalow is Rs. 5000 p.m.
Employer’s contribution to RPF is 9,000
Rent of house recovered from Mr. Fernando = Rs. 4000

Select one:
a. Rs. 90630

b. Rs. 85630

c. Rs. 81030

d. Rs. 81630

The correct answer is: Rs. 90630

Question 2 Mr. Sukesh retired from service on 20th March 2010 from a private sector
Not answered after serving for a period of 24 years. According to service rules he is
Marked out of
entitled for 20 days of leave for every completed year of service.
1.00 During his service period he availed and encashed leave of 150 and
30 days respectively. Salary and D.A. paid to Mr. Sukesh is as follows:
Period Basic Salary Per Month D.A
1-4-2008 to 31.12.2008 10000 200
1-1-2009 to 20.03.2009 12000 300
He has been paid Rs. 1,50,000 at the time of retirement. Find out the
amount of leave salary chargeable to tax?

Select one:
a. Rs.1,28,000

b. Rs.22,000

c. Rs.3,00,000

d. Rs.1,50,000

The correct answer is: Rs.22,000

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8/29/2019 Topic No. 1 Salary

Question 3  Mr. Mayank Gupta a piece rated employee of Reliance Infrastructure Ltd.
Not answered received gratuity of Rs.2,95,000 on March 31, 2010 at his retirement
Marked out of
after serving for a period of 18 years and 5 months. He has been
1.00 paid total wages of Rs.75,000 for the period 1-1-2010 to 31-3-2010.
What will be the taxable amount of gratuity?

Select one:
a. Rs.295000

b. Rs.35385

c. Rs.259615

d. Rs.350000

The correct answer is: Rs.35385

Question 4  On the basis of the following information compute the taxable income
Not answered of Mr. Shiraj under the head “Salaries” for the assessment year 2010-
Marked out of
11.
Basic Pay = 10,000 p.m.
1.00 Dearness Allowance = 2,000 p.m.
Entertainment Allowance = 800 p.m.
His own contribution towards Statutory Provident Fund = 1000 p.m.
Employers contribution = 1000 p.m.
Interest credited to SPF@ 10% p.a. = 13,000
House Rent Allowance = 2000 p.m.
Hill Area compensatory allowance = 600 p.m.
Tribal Area Allowance = 300 p.m.
Mr.Shiraj is a Government employee. He is employed at a place at a
height of 1100 mtrs. Above the seal level. He is paying Rs. 2000 p.m
as house rent.

Select one:
a. Rs. 1,65,400

b. Rs. 1,60,800

c. Rs. 1,70,400

d. Rs. 1,60,400

The correct answer is: Rs. 1,65,400

Question 5  Mr. Shyam Kumar is employed with SRS Labs Ltd. on a monthly salary of
Not answered Rs. 50,000 p.m. The following benefits in addition to salary are also
Marked out of
provided.
1.00 The company owned accommodation has been provided to him in
Mumbai. A Housing Loan of rs.8,00,000 is given to him at an interest
rate of 5% p.a. The entire loan amount is outstanding and SBI
charges 12% interest rate on housing loan. The company pays the
telephone bills of Rs.24000 for the telephone installed at the
residence of Mr. Kumar The company sold camera to Mr. Kumar for
Rs. 40,000 on 2-5-2008 which has written down value of Rs.75000
The company sold a car to Mr. Kumar for Rs.2,25,000 on 15-7-2008
which has written down value down value of Rs. 3,00,000 Compute
the gross income from salary of Mr. Kumar for the assessment year
2010-11.

Select one:
a. Rs. 12,00,000

b. Rs. 8,90,000

c. Rs. 8,56,000

d. Rs. 8,00,000

The correct answer is: Rs. 8,56,000

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8/29/2019 Topic No. 1 Salary

Question 6 WWIL Ltd. has advanced an interest an free loan of Rs. 6, 00, 000 to
Not answered Pratap for purchase of car on 1-5-2009. Pratap has been regularly
Marked out of
repaying the loan in installments of Rs. 10,000 p.m. at the end of
1.00 each month.
Compute the value of perquisite on account of interest assuming the
interest charged by SBI is 15% p.a.

Select one:
a. Rs. 66,000

b. Rs. 7,92,000

c. Rs. 0

d. Rs.1,32,000

The correct answer is: Rs. 66,000

Question 7  Mr. Pragun an employee of XYZ Ltd. was paid a basic salary and D.A. of
Not answered Rs. 16600 p.m. and 1800 p.m. The salary was credited in his account
Marked out of
on the 7th of next month. Due to some emergency he has told his
1.00 employer to pay him his salary for the month of April, 2010 in the
month of March. Calculate the salary chargeable to tax in the
assessment year 2010-11 if Mr. Pragun joined XYZ Ltd. on 1/4/2009?.

Select one:
a. Rs.2,39,200

b. Rs.2,20,800

c. Rs.2,52,220

d. Rs.2,68,000

The correct answer is: Rs.2,39,200

Question 8  Aakash, an employee of XYZ Infra Ltd. is paid as follows :

Not answered Basic salary = Rs. 18,000 p.m.
Marked out of
Dearness Allowance = Rs. 5000 p.m.
1.00 Lunch Allowance = 500p.m.
Medical allowance = Rs.1000 p.m.
City Compensation allowance = Rs. 300 p.m.
Children education allowance = Rs. 500 p.m. (per child for two
children)
During the previous year 2010-11, he has been allotted a rent free
unfurnished flat at Mumbail taken on rent by the company at Rs.
4,500 p.m. The cost of the furniture provided is Rs. 2,00,000 and an
air conditioner which has been taken on hire by the company is also
provided with the accommodation. The hire charges of air
conditioner is Rs.3000 p.a. Determine the value of the perquisite for
the A.Y. 2010-11 if he pay Rs. 1000 p.m. as rent to the company?

Select one:
a. Rs.50,870

b. Rs.2,68,000

c. Rs.57,080

d. Rs.50,780

The correct answer is: Rs.57,080

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8/29/2019 Topic No. 1 Salary

Question 9  Ms. Sonu is employed with Hexaware Ltd., Delhi. Her salary information
Not answered is given below:
Marked out of
Basic salary = Rs. 10000 p.m.
1.00 Bonus = Rs. 19,200 p.a.
Conveyance Allowance = Rs. 2000 p.m. (70% is spent for official use)
Medical Allowance = Rs. 500 p.m.
The employer has provided rent free accommodation in Delhi which
is owned by the company.
Calculate the taxable value of Rent free accommodation to be
included in Gross Salary

Select one:
a. Rs.22,680

b. Rs.15,240

c. Rs.0

d. Rs.22,860

The correct answer is: Rs.22,860

Question 10  Mr. Shahrukh, an employee of Central Government, gets Rs.10,000 p.m.

Not answered as basic salary and is also entitle to Entertainment allowance of Rs.
Marked out of
2000 p.m. Compute the deduction u/s 16(ii) from gross salary in
1.00 respect of entertainment allowance.

Select one:
a. Rs.24,000

b. Rs.0

c. Rs.5,000

d. Rs.10,000

The correct answer is: Rs.5,000

Question 11  Mr. Sameer is employed with Jose Ltd. on basic salary of Rs.8000 p.m. He
Not answered is also entitled to dearness allowance of 20% of basic salary. 60% of
Marked out of
D.A. forms part of retirement benefits. The company gives him a
1.00 HRA of Rs. 5000 p.m. With effect from 1st December, he received an
increment of Rs.2000 in his basic salary. He was staying with his
parents till 30th September. From 1st October he takes an
accommodation in Kolkata on rent pay Rs. 3500 p.m. as rent.
Calculate the tax exempted HRA for the previous year?

Select one:
a. Rs.17,428

b. Rs.14,728

c. Rs.45,272

d. Rs.45,722

The correct answer is: Rs.14,728

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