INDEX

NAME – AKSHAY
DAKHALE

STD. – T.Y B.COM

DIV. – B
ROLL NO. – 202032325
SUBJECT – AUDITING AND TAXATION

SR NO. TITLES DATES

1 To study any fraud case 24/08/2020

2 To study of an audit programme 3/10/2020
and vouching
3 To study the audit report of any ltd 20/11/2020
company, tax audit and
computerized audit
4 To study of tax system of india and 12/2/2021
income tax act 1961

5 To study computation of taxable 20/3/2021

income from salary
6 To study the comutation of tax 06/05/2021
liability of an individual assess.
 Name: Akshay Dakhale
Div: B
Std: T.Y.Bcom
Teacher’s Name: Mamta Shende.

INTRODUCTION OF CASE :

Here is a man accused of dumping thousands money of

people in promise of dream homes. Sachin Naik and
Sumanth Kumar both husband and wife is charged for
fraud of 1,500 crore through his company name Dreamz
Infra, TGS and Gruha Kalyan . Out of his 55 properties
17 of them are registered and other 38 properties are
fraudulent which was collected from investors but never
entered in agreements.

"In April, when a lots of victims of Dreamz Infra project

had approached the Chief Minister, handed the case to
the CID. Initially the chargesheet was not filled on them
and they expressed directly towards investigation.
Another affected person expressed his anger against the
course of the investigation.

“ We have lost our hard-earned money and got cheated

by the managing director of company “. However, CID
said the reason not for filling chargesheet on Sachin Naik
because he has a lot of political influences.

METHODOLOGY OF CASE :

Housing scam the case took place in Karnataka on 20

April 2017 of company name Dreamz Infra Ltd in source
of duping thousand crore of people’s money with
promise of dream homes. This fraud case is related to
husband and wife name Sachin Naik and Sumanth
Kumar Das, where the amount was involved about to
1,500 crore.

TYPE OF FRAUD :

It’s a type of Management fraud where the company is

forged and does not have any official documents of
company and properties. The company was having 55
properties where from that 17 was registered but the
problem lies in other 38 properties which was landed to
the people which was a major problem increased the rate
of white collar crime. .

CONCLUSION OF CASE –

In September he was bailed and the Karnataka CID not

yet filed chargesheet of case. However, the investigating
agency has submitted a list of properties owned by
Sachin Naik to the Karnataka Revenue Department,
and said that his 17 registered properties will be put for
online auction soon.
MODREN COLLEGE OF ARTS COMMERCE AND
SCIENCE.

Name: Akshay

Dakhale

Class: TY. BCOM (B)

Roll No: 202032325

Teacher Name: Mamta Shende

Practical No: 02

Title: study of an audit programme and vouching.

Objectives :

1. To study the meaning advantages, disadvantages

of an audit programme.
2. To study the contains of an audit programme with
the help of proforma of an audit programme.

3.To study the meaning of voucher and vouching and

types of voucher . To collect vouchers relating to any
five cashbook items.

Method of data collection: Textbook, collectins

of vouchers.

Introduction of audit programme:

Auditing is the methodical examination or a review a
condition or situation . Financial statement audit,
energy efficiency audit, email log audit, environment
audit etc. It may be so because it is more commonly
used by business organisation, for a review of
financial statement
DEFINATION OF AUDIT PROGRAMME:

Audit programme is a detailed plan of the auditing work

to be performed, specifying the procedures to be
followed in the verification of each item in the financial

statements and giving the estimated time required.

ADVANTAGES OF AUDIT PROGRAMME:

1. Work is completed: It ensures that, all the work is
necessary for the work has been done and nothing is
omitted.
2. Progress of work: An auditor can look in to the audit
programme to assess the progress of work. Thus he
can ascertain what part of the work is done and
what remains to be done.
 3. Fixing responsibility: In case any fraud or error has
remain undetected, the responsibility for negligence
can be fixed on the staff / clerk who had performed
the work. Thus, the work done may be traced back
to the individual staff members.
4. Uniformity: Uniformity of work can be attained as
the same programme, with needed amendments,
can be followed in the subsequent audit. The audit
programme provided basis for subsequent revision,
when changes take place in the internal control or
accounting system of the organisations.
5. Final review: It facilitates the final review before the
audit report is signed.

DISADVANTAGES OF AUDIT PROGRAMME:

1. fend these deficiencies in their own work on the
pretext of the absent of a matter in the audit
 programme. Each every detail can be written in
thMechanical : There is a danger that audit
programme may be followed mechanically year after
year though some changes in the routine or internal
check might has been introduced by the client.
2. Loss of initiatives: An efficient staff / clerk may lose
his initiative because his adheres to the programme
which has been fixed for him. He may not go beyond
the assigned work and suggestion to improve the
efficiency of the audit.
3. Rigidity: The audit assistants may rigidly follow what is
stated in the audit programme and may not change
the procedure etc.
4. Shields in inefficient staff: Inefficient audit assistants
may take shelter behind the programme, dee audit.
The audit programme, certain tasks are in implied.
5. Small concern: Small concerns do not need the
detailed audit programme. The time consumed in the
meeting the audit programme can be better invested
in the conduct of audit, on the basis of broad outline
of audit work.
`

MODERN COLLEGE OF ARTS,COMMERCE AND SCIENCEG

GANESHKHIND,411016.

Name: Akshay
Dakhale
Class: TY B.COM (B)
Roll No: 202032325
Teacher Name: Mamta Shende.

Practical No:03.

Title: Study of an audit report of an company, tax audit

and computerized audit.
Objective:
1. To study the meaning of audit report,
elements of audit report and types of audit report
2. To study the contains of audit report of any limited
company.
[Type text]

3. To study the meaning of tax audit and form no 3-

CA,3-CB,3-CD and meaning of computerized
auditing ,software used for computerized auditing

Methodology:1. Annual Report.

2. Text Book.
3.www.google.com
Practical Application
Meaning of Audit Report:
An auditor is examine any situation and is require to give
his opinion regarding the assertion made by
management etc. After examining he has a duty to report
in writing to his client regarding his findings search a
report by an auditor is called Audit Report.

Elements of Audit Report

1. Title
2. Address
3. Identification of financial statement
audited/Introductory paragraph
[Type text]
[Type text]

4. Scope paragraph
5. Opinion paragraph
6. Date of Report
7. Auditor signature

Types of Audit Report

Types of Audit
report

Desclaime
Qualified r
Unqualified Report Adverse
Report Desclaime Report
Adverse
r
Opinion

Reprt with
Standared emphasis Disacgreemen
Scope t
Unqualified of limitation
Report matterse with
paragraph managment

Contents of Audit Report of 7NR Pvt Retail Limited.

Type of Audit Report: Independent Audit Report.
Name of the company: 7NRRetail pvt Limited.
Financial year:2015-2016
Contents.
[Type text]
[Type text]

1. Title : To the Member of 7NR Private Retail Limited.

Address : To the members of 7NR pvt.Ltd.

2. Identification of financial statement audited: We have
audited the accompanying financial statements of 7NR
RETAIL PRIVATE LIMITED ("the Company"), which
comprise the Balance Sheet as at 31st March, 2015,
Statement of Profit and Loss ,the Cash Flow Statement
for the year then ended, and a summary of the
significant accounting policies and other explanatory
information.
3. Scope paragraph: The audit was conducted in
accordance with the standards on auditing issued by the
institute of chartered accountants of India. Those
standards require that we comply with ethical
requirements and plan perform the audit obtain
reasonable assurance about whether the financial
statement are free form material mistatement
5.Opinion: In our opinion and to the best of our
information and according to the explanations given to
us, the aforesaid financial statements, give the
information required by the Act in the manner so

[Type text]
[Type text]

required and give a true and fair view in conformity with

the accounting principles generally accepted in India;
Date of Report:29/08/2015.
Type of report: Unqualified report.

Meaning of Tax Audit

Tax Audit can be defined as an examination financial
records to assess the correctness of taxable audit to
ensure compliance with the provision of income tax act
1961 and also to ensure fulfillment of conditions for
claiming deductions under the act.

From the definition, the following feature of tax audit

can be drawn.
1. It is an examination of financial records
2. The purpose is to ascertain the correct taxable profits
as per the requirement of the Income tax act 1961.
3. Another purpose is to avail of the various tax
concessions and exceptions under the act.

[Type text]
[Type text]

Meaning of Form3-CA , 3-CB , 3-CD

1. Form 3-CA: It is applicable in case of compulsory

audit it refers to the fact that statutory report has
been conducted in accordance with the provisions of
the law.
2. Form 3-CB: It contains assertions of the auditor with
regard to truth and fairness of the accounts .
3. Form 3-CD: Statement of prescribed particulars to be
furnished under section 44AB shall we in the form
number 3CD.
Computerized auditing
Defined by weber’The process of collecting an
evaluating evidence to determine whether a
computer system safe guard assets maintains data
integrity achieves organizational goal effectively and
consumes resources efficiently

Software used for computerized auditing:

[Type text]
[Type text]

GENERALISED AUDIT SOFTWARE(GAS): Under this

method, an auditor need not prepare either input data
or the programmes. He can make use of generalized
audit software designed by computer manufactures,
software professionals and large firm of auditors.
The following function can be performed
 1 gas helps the auditor to test the accuracy of
compitations on client data files with greater
speed.
 2an auditor can compare data on recognize the
data of the client .
 3it can help in preparing and audit programme.
 4an auditor can summarise and recognize the data
of the client.

[Type text]
[Type text]

DSNT & ASSOCIATE

Chartered Accountants

F-211, TITANIUM CITY CENTRE,

NEAR IOC PETROL PUMP,
SATELLITE, Ahmedabad,GUJARAT380015

INDEPENDENT AUDITORS' REPORT

TO

THE MEMBERS OF

7NR RETAIL PRIVATE LIMITED

1. Report on the Financial Statements We have audited the accompanying

financial statements of 7NR RETAIL PRIVATE LIMITED ("the Company"),
which comprise the Balance Sheet as at 31st March, 2015, Statement of
Profit and Loss ,the Cash Flow Statement for the year then ended, and a
summary of the significant accounting policies and other explanatory
information.
2. Management's responsibility for the Financial Statements The Company's
Board of Directors is responsible for the matters stated in Section 134(5) of

[Type text]
[Type text]

the Companies Act, 2013 ("the Act") with respect to the preparation of
these standalone financial statements that give a true and fair view of the
financial position, financial performance ,the cash flows of the Company in
accordance with the accounting principles generally accepted in India,
including the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014.This
responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding of the assets of
the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting policies;
making judgments and estimates that are reasonable and prudent; and
design, implementation and maintenance of adequate internal financial
controls, that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view and
are free from material misstatement, whether due to fraud or error.

3. Auditor’s Responsibility Our responsibility is to express an opinion on these

financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and matters
which are required to be included in the audit report under the provisions
of the Act and the Rules made thereunder. We conducted our audit in
accordance with the Standards on Auditing specified under Section 143(10)
of the Act. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material
misstatement.

An audit involves performing procedures to obtain audit evidence about

the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk

[Type text]
[Type text]

assessments, the auditor considers internal financial control relevant to the

Company’s preparation of the financial statements that give a true and fair
view in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of the
accounting policies used and the reasonableness of the accounting
estimates made by the Company’s Directors, as well as evaluating the
overall presentation of the financial statements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion on the financial statements.

4. Opinion In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid financial statements, give the
information required by the Act in the manner so required and give a true
and fair view in conformity with the accounting principles generally
accepted in India;

a) in the case of the Balance Sheet, of the state of affairs of the Company as
at 31st March, 2015;
b) in the case of Statement of Profit and Loss, of the Loss for the year
ended on that date; and
c) in the case of Cash Flow Statements, of the cash flows for the year ended
on that date.

5. Emphasis of Matters We draw attention to the following matters in the

Notes to the financial statements: Our opinion is not modified in respect of
these matters.
6. Others Matter Our opinion is not modified in respect of these matters.
7. Report on Other Legal and Regulatory Requirements As required by the
Companies (Auditor's Report) Order, 2015 ("the Order"), issued by the
Central Government of India in terms of sub-section (11) of section 143 of
the Companies Act, 2015, we give in the Annexure a statement on the
matters specified in paragraphs 3 and 4 of the Order, to the extent
applicable.

[Type text]
[Type text]

As required by Section 143(3) of the Act, we report that:

a) We have sought and obtained all the information and explanations

which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as it appears from our examination
of those books .
c) The Balance Sheet, the Statement of Profit and Loss ,and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account .
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read
with Rule 7 of the Companies (Accounts) Rules, 2014
e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164(2) of the
Act
f) With respect to the other matters to be included in the Auditor’s
Report in accordance with Rule 11 of the Companies (Audit and
Auditors) Rules, 2014, in our opinion and to the best of our
information and according to the explanations given to us:
i) The Company does not have any pending litigations which
would impact its financial position
ii) The Company did not have any long-term contracts including
derivative contracts for which there were any material
foreseeable losses.
iii) There has been no delay in transferring amounts, required to
be transferred, to the Investor Education and Protection Fund
by the Company

[Type text]
[Type text]

DSNT & ASSOCIATES

Chartered Accountants

DAXESH R SHAH

Partner

Place: Pune Membership. No: Date:

Firm Reg. No.: 138

[Type text]
`
 MODERN COLLEGE OF ART, COMMERCE AND SCIENCE,
GANESHKHIND, PUNE 411016

NAME : - Akshay Dakhale

PRACTICAL NO. : - 04
TEACHER : - PROF. MAMTA SHENDE MAM
CLASS : - TY B.com “B”
ROLL NO. :- 202032325
SUBJECT : - TAXATION
TITLE :- STUDY OF TAX SYSTEM OF INDIA AND INCOME TAX ACT
1961.
 Objectives
1. To study the tax structure of India

2. To study the basic terms of Income Tax Act 1961.

3. To study the tax slab rates as the assessment year 2020-2021 and 2021-2022.

 Method of Data Collection

1. Internet {www.ivestindia.gov.in}

2. Books {Nirali Prakashan}

PRACTICAL APPLICATION

 Meaning of Tax
It is a compulsory charge imposed by the government without any expectation of direct return
in benefits.

In other words a tax is a compulsory payment or contribution by the people to the government
for which there is no direct return to the tax payers.

 TYPES OF TAXES IN INDIA

 Tax Structure
It is a compulsory charge imposed by the government without any expectation of direct
return in benefits.

In other words a tax is a compulsory payment or contribution by the people to the

government for which there is no direct return to the tax payers.
  FEDERAL TAX STRUCTURE IN INDIA

 MEANING OF INCOME TAX ACT, 1961

The income Tax Act is a comprehensive statute that focuses on the different rules and regulation that
govern taxation in the country. It provides for levying, administering, collecting and recovering income
tax for the Indian government. It was enacted in 1961.

 Meaning of Income
 INCOME [SECTION 2 (24)]:-
Income is understood to be a periodical monitory return with some sort of
regularity. Under Section 2(24) the term “income” is meant to include the
following:-
 1. Profit and gains.
2. Dividend.
3. Voluntary contribution received by the trust.
4. Capital Gains.
5. Insurance Profit.
6. Banking income of a co-operative society.
7. Winning from lottery.

 PERSON[SECTION 2 (3)]:-
A ‘person’ as defined under section 2(31) includes:-
1. An Individual:-
Individual means a natural person, i.e., human being. It includes minor
and persons of unsound mind.
2. A Hindu Undivided Family :-
It includes only Hindu families, if they are undivided including wives and
unmarried daughters.
3. A Company :-
It includes Indian companies, foreign companies and the companies in
which the public is substantially interested like – Government companies,
finance companies etc.
4. A Firm :-
A firm means a partnership firm. Although a firm does not have a
separate legal existence, it is treated as a person under the Income Tax
Act.
5. An Association of Person (AOP) or Body of Individuals(BOI) , whether
incorporated or not:-
AOP means a group of persons (individuals, HUFs companies, firm etc.)
who join together for common purposes. On the other hand, BOI means
a group of individuals who join together for a common purpose which
may be to earn income or otherwise.
6. Local Authority :-
A local authority means a municipal committee, district board,
Panchayat, Cantonment Board etc., who has been entrusted the control
and management of a municipal or local fund.
7. Artificial Juridical Person:-
Each Artificial Juridical Person not falling within any of the preceding sub-
clauses. Artificial juridical persons are entities which are not natural
persons, but have a separate existence in the eyes of law.
  Assessment Year (A.Y) Section 2(9):-
An assessment year means the period of 12 months commencing on the 1st day
of April every year. It is the year which immediately succeeds the relevant
previous year. The income earned in the previous year is charged to tax in the
assessment year.

 Previous Year (P.Y) Section (3):-

Section 3 of Income Tax Act defines previous year (P.Y) as the financial year
immediately preceding the A.Y. The income earned in this year is assessed for tax
in the A.Y. In the case of newly set-up business or profession, P.Y. shall be the
period of beginning with the date of setting up of the business or profession and
ending with 31st March of the said financial year.

 Assessee [Section 2(7)]:-

An assessee means a person by whim income tax or any other sum of money is
payable under the Act. It includes every person in respect of whom any
proceeding under the Act has been taken for the assessment of his income or
loss or the amount of refund due to him.

 Exempted Income [Section 10]:-

Income exempt from tax (tax – free income) are described in Section 10 of the
Income Tax Act. Out of which, some important provisions are described in brief
on the following page:-
 Sec.10 (1):- Income from agriculture is exempt. However, if the net agriculture income
exceeds 5000 – it is taken into account for slab purpose.
 Sec.10 (2):- Share of income of Hindu Undivided Family (HUF) for the member is
exempt.
 Sec.10(15):- Interest received from Post Office Saving Scheme and Govt. Relief Bond
 Sec.10 (16):- Scholarship received to meet out the Expenditure of Education.
 Sec.10 (20):- Income of local authority, i.e., Panchayats, Munnicipal Corporation etc., is
exempt.
 Sec.24 (4):- Income of Trade Union or Association of Trade Unions from House Property
or Income from other sources.
 Sec.13 (A):- Income of political party from Capital Gains, House Property and other
sources are tax free.
 Gross Total Income:-
 Gross income refers to the total income earned by an individual on a paycheck before
taxes and other deduction. The revenue sources may comprise income from selling
goods and services, intellectual properties, income from rental property, capital gains
from investments, etc.

 Tax Liability:-
Tax liability is the amount of money in the form of tax debt you owe to tax authorities. It
is the total amount of tax you are liable to pay to the government. It factors all the years
and all the types of taxes you are due to pay to the income tax authorities.
 MEANING OF PAN (PERMANENT ACCOUNT NUMBER)
PAN or permanent account number is a unique 10 digit alphanumeric identity allotted to each
taxpayer by the Income Tax Department under the supervision of the Central Board of Direct
Taxes. It also serves as an identity proof.

Obtaining PAN is compulsory not only for income-tax purposes but for also other transactions.

 Structure of PAN

 MEANING OF TAN (TAX DEDUCTION ACCOUNT NUMBER)

Tax deduction at source in India is a means of collecting tax on income, dividends
or asset sales, by requiring the payer to deduct tax due before paying the balance
to the payee.
The obligation to deduct tax at source is upon the person responsible for paying
the income/ amount, which is subject to TDS.

 Structure of TAN
 TAX SLAB RATES OF INDIVIUAL PERSON ASSESSMENT
YEAR 2020-2021

TAX SLAB RATES OF INDIVIUAL PERSON ASSESSMENT YEAR

2021-2022
 Conclusion

A feature of the Indian Tax system is the lack of administrative efficiency.

There is no coordination between the taxes to allow a well-organised,
planned and co-ordinated tax system to evolve. In India, the rate of direct
tax is very high, but the contribution to the total tax revenue is very low.
Steps must be taken to crub tax evasion and tax avoidance. The exemption
limit has been raised from time to time, but the levels of national and per
capita incomes have failed to increase proportionally. India’s new Goods
and Service Tax marks a significant step towards achieving the country’s
long-held goal of economic liberalization.
Practical No. 5

Title - To study computation of taxable from salary

Objectives –
 To study the meaning of salary and parts of salary

 To study the meaning of allowance and types of allowances

 To study the meaning of perquisites and types of perquisites

 To study computation of taxable income from salary.

Methodology – Refer to nirali publication textbook

Meaning of salary –
Salary is a fixed amout of money or compensation paid to an employee by an
employee ny an employer in return for work performed salary is commonly paid
in fixed intervals.

Parts of salary –
Computation of income from salary.
All cash receipts like salary, fees, commission bonus is combinated.

Allowances are added to the above after deducting the except amount, if any
under allowance tax free allowances are not added.
  Perquisites are valued as per the rules of income tax act and added with
rest of the salary.
 Employes combustion to RDF to the extent taxable is computed and along
with taxable amount of interest added in the salary.
 Profit of salary obtained from past and present employer as per service
agreement is added.
Taxability of different accounts, bonus, under the head “salary”.
 Basic salary, fees,, commission, bonus, advance, salary and fully taxable
 Allowances – for the purpose of tax, allowances salary are grouped as –
 Tax free allowances
 Fully taxable allowances
 Pa totally exempt allowances : these are future dividend into two
categories.
 Where exemption amount depends on the amount spent by the
employee.
 Where limit of exemption is started in the income tax act 1961 or rules.

Meaning of allowances –
An allowances is the fixed mount of money received by a salaried employee from
his/her employer to meet a particular type of expenditure over and above salary
fixed monetart payments.

Types of allowances –
For the purpose of the treatment the allowance are divided into three categories.
 Fully exempted allowances
 Partially exempted allowances
 Fully taxable allowances.

Types of Allowances :
 Taxable allowances Partially taxable Non taxable
allowances allowances

Deamess allowances HRA expect when it HRA upto 40% basic

Entertainment qualified as expert under salary 50% in employes
allowances section 10
Overtime allowances Fixed medical allowances Staying in
City compensalary Special aalowances delhi,Mumbai,channai
allowances and Bengal
Interim allowances Children hostel allowances Actual rent paid being
Project allowances more than plus 10% of
basic.
Water and electricity Convegance allowance Convegance allowance
allowances above rs 19200 peraanum Travelling allowances
under section 10 of income
tax act

Meaning of perquisties –
Perquisties may be defined as any casual emolument or monetary benefits or
facilities provided by an employer to the employee in addition to salary or wages.
It may be provided either in cash or in kind of services.

Types of perquisites –
1- Tax free perquisites
 Medical facilities
 Free meal
 Amount spend on education or training of employes or fees paid for
refreshment of management courses
 Refreshment provided by an employer to all employee during the working
office hours in houses premises
  Goods manufactured and sold by the employer to his employes of
concessional rates
2 - Taxable perquisites –
 The value of rent free accommodation
 The value of any accommodation provided at concessional rent
 Interest free loan or loan made available at concessional rate
 The value of any benefit or amenity granted or provided free of cost or at
concessional rate
5 – Aproval superannuation fund
6 – the value of other facility provided by an employer valuation = actual
expenditure to employer.
Problem -

Mr. guru a managing director of Alfa India Ltd. Delhi receive the following salary
and perquisities from his employer during the previous year 2019-20
 Basic pay of Rs 6,60,000 p.a.
 Profit bonuspf Rs 18,000.
 D.A of Rs 2,000 p.a.
 Commission on sale at 4% of turnover of Rs 18,50,000.
 Advance salary of april 2019 Rs 55,000.
 Employer contribute towards recongised provident fund Rs 9000.
 A rentfree furnished house in delhi centered of unfurnished house paid by
employer of Rs 1,08,000 rent of furnished of Rs 18,000.
 He has been provided free services of a garden salary Rs 14,000 p.a free
services of cook salary Rs 19,600.
Solution –
Computation of income from salary of Mr. Guru for the A.Y 2020-21

Particulars Rs Rs
Basic pay 6,60,000
Profit 18,000
D.A (2,000 x 12) 24,000
Commission on sales at 4% 74,000
Advance salary 55,000
Employer contributed to RPF 90,000
(-) exempted amount (12% of salary) 90,960 -
Rent free furnished accommodation 1,26,000
Watchmen 19,000
Cook salary 13,600
Garden salary 14,000
Elec. Bill 3,000
Hospital bill 17,000
Education facility 19,200
Motor car (900 x 12) 10,800
Free lunch (250 x 50) 17,500
(-) exempted amt (250 x 50) 12,500 5,000
Gross salary 1,05,860
(-)deduction v/s ib
(-)standard deduction 50,000
(-)professional tax paid 2,500
Net salary 1,00,610
Working Note –

1- Basic pay = D.A = Commission on sales at 4%

6,60,000 + 24,000 + 74,000 = 7,58,000
7,58,000 X 12% = 9,09,600
2- rent free furnished accomdation
15% of salary
Basic pay + D.A = 4% commission + profit bonus
6,60,000 + 24,000 + 74,000 + 18,000
7,76,000 X 15% of salary
=11,64,000
3- rent paid by employer = 1,08,000
+ rent of furniture = 18,000
= 1,26,000
4- education facility = 28,000 X 12 X 2 =
67,200 (-) exempted amount = 1,000 X 12x 2 =
24,000 (-) exempted amount = 1,000 X 12 X 2=
24,000
= 19,200 /-
5- car owned by employer, running and maintainces exp. Are paid by employee
Above 1600cc (900 X 12) = 10,800
PRACTICAL NO. 6