Course Code: BSL301 Course Title: Income Tax Law

Course Instructor: Jasdeep Singh walia

Academic Task No.: CA 03 Academic Task Title: BSL Assignment

Date of Allotment: November 20, 2021 Date of submission: November 27, 2021

Student’s Roll no: RQE366A04 Student’s Reg. no: 12000889

Evaluation Parametars:

Learning Outcomes: (Student to write briefly about learnings obtained from the academic tasks)

Declaration:

I declare that this Assignment is my individual work. I have not copied it from any other student’s work
or from any other source except where due acknowledgement is made explicitly in the text, nor has any
part been written for me by any other person.

Student’s Signature: Kumar Harshwardhan

Evaluator’s comments (For Instructor’s use only)

General Observations Suggestions for Improvement Best part of assignment

Evaluator’s Signature and Date:

Marks Obtained: _______________ Max. Marks: ______________

Computation of Tax for individual as per income tax for AY 2020-21(Working in Private Firm)
Basic Salary       600000
Commission       100000
Dearness Allowance     50000  
Overtime Allowance     50000  
Fully Taxable allowance       100000
Patially Taxable allowance: HRA     24000  
Tax emeption     21750  
Tax able HRA       27000
Rent free accomodation        
15 % OF BASIC Cities with Population of more than 25 Lakh Residents       131550.6
Total Income from salary       958550.6
income from House property       493000
Income from Long term Capital Gains        
Cost of acquisition × Cost inflation index of the year of transfer of capital asset        
Cost of acquisition 300000      
cost inflation index notified for the year 2005-06 is 117      
cost inflation index notified for the year 2020-01 is 201      
300000 *301/117      
Cost of Long term asset sold   771795    
         
Sale Price   1000000    
Capital Gain   228205    
         
Cost of residential house purchased in same year   900000    
         
Section 54F Exemption Amount   205385    
(900000*228205/100000)        
         
Taxable on capital gain   22821    
         
Income From other sources        
         
Interest 15000      
Commission/Other Income 15000      
Winnings from Lottery, Crossword Puzzles, etc. 15000      
         
         
Net Taxable Income       1519371
         
Deducttions        
Standard deduction 50000    
Deducttions under 80c        
Contribution to provident fund 50000      
Life insurance preimum 50000      
Fixed deposit for more than 5 years 80000      
Maximum exception under 80c   150000    
Total deductions       200000
         
Income Liable to Tax at Normal Rate -       1281550.6
         
         
Tax salab        
0- 250000 0%     0
250000-500000 5%     12500
500000-1000000 20%     100000
1000000-169540 30%     84465
Long Term Capital Gains (Charged to tax @ 20%) 20%       4564
Winnings from Lottery, Crossword Puzzles, etc) 30%       4500
Total Tax       206029
Health and Education Cess       8241
Total Tax Liability       214270

Assumption: In case of transfer the dependent staying in company accommodation and employee
staying in rented accommodation

MONTHLY HRA COMPUTATION

HRA RECEIVED 24000
Rent paid 28000
10% of Salary 6250
Rent paid -10% of Salary 21750
50%of SALARY(Assumed as Metro) 31250
Exempted HRA(Minimum of above 3) 21750
Taxable portion of HRA 2250
SALARY(BASIC+DA+COMMISSION) 62500

RFA COMPUTATION PER MONTH

RFA (Assumption population of the city more than 25 lacs) 15% Of Salary
Basic Pay 50000
DA 4167
Commission 8333
Taxable portion of all allowances 10583
Salary(Basic + DA + Commission + Taxable portin of allowance) 73084
RFA for unfurnished accomodation witn nil contribution 10963

Income chargeable to tax under the head “house property”

 Rental income from a property being building or land appurtenant
thereto of which the taxpayer is owner is charged to tax under the
head “Income from house property”.

Rental income from a property, being building or land appurtenant

thereto, of which the taxpayer
is the owner is charged to tax under the head “Income from house
property”. To tax the rental
income under the head “Income from house property”, the rented
property should be building or
land appurtenant thereto. Shop being a building, rental income will
be charged to tax under the
head “Income from house property”

Meaning of Fair Rent It is the reasonable expected rent which the

Note property can fetch. It can be determined on the basis of rent fetched
1 by a similar property in the same or similar locality

Meaning of Municipal Value- For collection of municipal taxes,

local authorities make periodic survey of all buildings in their
jurisdiction. Such value determined by the municipal authorities in
Note respect of a property, is called
2 as municipal value of the property.
Meaning of Standard Rent It is the maximum rent which a person
can legally recover
from his tenant under the Rent Control Act. Standard rent is
Note applicable only in case of properties
3 covered under Rent Control Act.

Example 1  
Fair Rent 80000*12 960000
Municipal Value (70000*12) 840000
Standard rent (60000*12) 720000
Actual Rent Rs 100000 per month 1100000
House Let out for 11 months and Vacant for 1month  
Unrealised Rent 100000
Municipal Tax 10000
Interest Paid/Payable on Housing Loan for Current Financial Year 150000
Total interest for Pre-Construction Period - Rs 250000 (Interest paid
during construction period/5) 50000
 COMPUTATION OF INCOME FROM HOUSE
PROPERTY        
Property Vacant for 2 months in a year      
It is the rent, a similar property in the same or
Fair Rent 80000*12   960000 similar locality can fetch.
It is the valuation by the Municipal authorities
Municipal Value (70000*12)   840000 for charging taxes on house property.
Higher of A & B   960000  
It is fixed under the Rent Control Act where a
higher rent than the standard rent cannot be
Standard rent (60000*12)   720000 expected by the owner.
Expected Rental Value (Lower of C and D)   720000  
110000
Actual Rent (100000*11) one month Vacant   0  
110000
Gross Annual Value (higher of E or F)   0  
  Let out  
110000
GAV   0 in case of self occupied property GAV is NIL
PROPERTY/Municipal Taxes Paid During the
Year)   10000  
Less:Unrealized Rent   100000  
Net Annual Value (1-(2+3)---NAV   990000  
Less: Deductions from Net Annual Value      
Standard Deduction @ 30% of Net Annual Value   297000  
Interest Paid/Payable on Housing Loan for Current
Financial Year   150000  
Total interest for Pre-Construction Period(Interest
paid during construction period/5)   50000  
Income from self-occupied house property      
Income from Let-out House Property   493000  
Total Income from House Property 493000    

..................The End Of Report..................