SUM: 1

FROM THE FOLLOWING PARTICULARS COMPUTE GROSS ANNUAL

VALUE
MRV: 18000
FRV: 21000
ARV:36000
SRV: 24000
URR{IN MONTHS}: 2 MONTHS

SOLUTION
COMPARE MRV AND FRV WHICH EVER IS HIGHER 21000
WITH 21000 COMPARE SRV WHICH EVER IS LOWER 21000
ARV – URR
36000-6000{36000/12*2}
=30000
GAV= COMPARE 21000 AND ARV WHICH EVER IS HIGHER
= 21000 OR 30000
GAV= 30000
SUM 2
From the following calculate the gross annual value
MRV 68000
FRV 72500
SRV 71000
ARV 7000PM
URR(in month) 35000
Vacancy period 3 months
SOLUTION
ERV =MRV/FRV which ever is high
= 68000/72500 WEH 72500
ERV= WEL TO 72500
=72500/71000 =71000
ARR= 84000-35000(URR) =49000
GAV=71000/49000 WEH =71000
GAV =71000
Actual GAV = 71000-21000(3*7000)
GAV=50000
SUM 3
MR vijay received the following from xy ltd Chennai during the py 2021-2022
basic salary 8000 p.m DA 4000(form in part of retirement benefit) bonus 10000
commission 3%( turnover is 300000) HRA 6000 P.M (actual rent paid 6500pm
in Chennai) find out taxable house rent allowance
PARTICULARS AMOUNT AMOUNT

HRA received 72000

Less least of the

following
Actual HRA 6000*12 72000

50% salary 76500

Rent -10% of salary 62500 (62500)

9300

WORKING NOTES
Particulars Amount

Basic 8000*12 96000

DA 4000*12 48000

Commission 300000*3/100 9000

total 153000
SUM 4
Mr ravi retired on 15.04.22 after seving 30 years and 11 months his basic salary was 18000
p.m during 2021 and 20000 during 2022 his DA WAS 6000P.M which has been increased
from 4000 on 01/102/2021 50% of DA entered into service benefit he received 400000 as
gratuity which was not covered under the payment of gratuity act compute taxable garuity
SOLUTION
Not covered under gratuity payment act
10 month average salary 20000*3 + 18000*7 = 186000
3000*6 + 2000*4 = 26000
Total = 212000
Average 212000/10 = 21200

Working note
Particulars amount

Half of 10 month average salary *no of 318000

years completed
Maximum limit 2000000

Actual gratuity 400000

Which is least 318000

CALCULATION OF TAXABLE GRATUITY

Particulars Amount

Gratuity received 400000

Less exemption (318000)

Taxable gratuity 82000