1 Mr. Arun is covered under Payment of Gratuity Act, 1972, receives Rs.

3,32,000 as
gratuity. He has retired on 15th February, 2022, after rendering services of 30 years and 6
months. His last drawn salary per month including DA was Rs.5,980. What will be the
amount of exempted gratuity?
2 Mr. Basu, an employee of a statutary corporation, retires on 31 st December 2021, after
completing the service of 24 years and 10 months and gets Rs.5,00,000 as gratuity. His
monthly basic salary of calendar years 2020 and 2021 amounted to Rs.8,000 and
Rs.8,400 respectively. What will be the amount of exempted gratuity?
3 Mr. Chirag, a non government employee, gets Rs.1,20,000 as commuted pension in
addition to gratuity at the time of retirement. The above commuted pension has been
given to him @50% of total commutable pension. What will be the taxable amount of
commuted pension received by him?
4 Mr. Gautam, a specified employee, has been provided a 1.7 litres cubic capacity car by
his employer. The annual maintenance cost of Rs.1,44,000 (inclusive of drivers salary)
has also been paid by the employer. The assessee has been using the car (to the extent
of 40% of its total use for personal purposes. The company recovers Rs.28,000 from his
salary to provide this perquisite. Compute the value of motor-car?
5 Annual basic salary of Mr. Ivan is Rs.3,60,000. His contribution to RPF (calculated @15%
of salary + DA) is Rs.81,000. The employer has also contributed an equal amount. The
employer has also contributed an equal amount. The employer has also provided him
rent free furnished house in Ahmedabad. The cost of furniture provided is Rs.2,70,000.
Find out taxable salary for the A.Y 2022-23.
6 Mr. Kantilal retires on 15th February 2022, after completing the service of 30 years and 3
months and gets Rs.2,54,000 as gratuity. His monthly basic salary of calendar years 2020
and 2021 amounted to Rs.10,000 and Rs.11,000 respectively. What will be the amount
of exempted gratuity?
7 Shri Pravin receives basic salary of Rs.3,00,000, DA Rs.50,000(of which 50% is considered
for retirement benefits), BONUS Rs.30,000 and House Rent Allowance Rs.39,000. He has
actually paid Rs.46,500 as rent at Dhandhuka. Compute the taxable HRA.
8 Ms. Trupti, a specified employee, gets an annual salary of Rs.7,20,000. She is provided a
car (engines cubic capacity exceeding 1600 cc) for which all of the running and
maintenance expenses of Rs.48,000 (to be met or reimbursed by the employer) and
annual depreciation, of Rs.32,000 by the employer. What will be the value of perquisite
motor car.
9 Ms. Babita was employed on 1st April, 2015 in the salary scale of 15,000-500-17,000-
1,000-25,000. What would be the basic salary of Ms. Babita for the P.Y. 2021-22
10 Mr. Alpesh joined X Ltd. on 1st December 2019 in the salary grade of Rs.6,000-400-8,000-
500-10,000 with three additional increments. An additional increment was also granted
to him on 1st December 2021. His contribution to RPF is 15% of his basic salary
(employers contributes @17%). What would be his taxable salary for A.Y. 2021-22?
11 Mr. Dharmesh retires from statutory corporation after 20 years of service. He has
received Rs.1,20,000 as 100% commuted pension in addition to gratuity on his
retirement. What would be the taxable amount of pension received by him?
12 Mr. Chetan has presented some of the details of his salary income:
Basic salary Rs.1,80,000
D.A (not considered for PF) Rs.90,000
Education allowance (for 3 children) ?
Value of rent-free unfurnished house (in Rs.14,940
a city having a population of 8,00,000)
What would have been the total amount of education allowance received by him?
13 Mr. Hardik has presented some of the details of his salary income:
 Basic salary ?
Salary for domestic servant paid by the 6,000
employer
Rent-free furnished house (city having ?
population 18 lakhs)
Gross salary 3,49,200
What would be the amount of basic salary and value of accommodation?
14 Shri Prashant (a private sector employee) receives Rs.2,40,000 as salary and Rs.12,000 as
entertainment allowance during the year 2021-22. He had joined the present employer
on 1-4-2008 and at that time entertainment allowance was allowed at Rs.800 per
month. Calculate the deductible (if any) amount of entertainment allowance from gross
salary.
15 Ms. Puspa is employed in Gujarat Sachivalay. Her basic salary during the P.Y. 2021-22
was Rs.64,000 p.m. She was getting entertainment allowance of Rs.1,000 p.m. Calculate
the exempted amount of entertainment allowance.
16 The total gross income of Shri Kalpesh for the accounting year 2021-22 amounts to
Rs.3,50,000. Compute the amount of deduction U/c 80C available from total gross
income.
a. Employees contribution towards RPF (@15% of salary) Rs.14,500.
b. Premium paid on life insurance policy taken before 1-4-2-14) of Rs.40,000 is Rs.9,000
c. Paid into PPF A/c Rs.70,000
d. Contribution under ULIP of LIC Rs.12,000
e. Investment in eligible shares of power sector company Rs.43,000
f. Deposit placed with SBI (for 5 years period) Rs.16,000

Long Numericals:

1. Mr. Karvey is a sales manager employed in Bangalore. The details of his salary and other
emoluments received during the P.Y. 2020-21 are as under.

i. Basic salary Rs.4,20,000 p.a.

ii. D.A. (treated as part of salary for retirement benefits) Rs.42,000 p.a.

iii. commission on sales Rs.1,75,000

iv. HRA Rs.60,000 p.a. (actual rent paid Rs.8,000p.m.)

v. Transport Allowance Rs.24,000p.a.

vi. uniform allowance Rs.900p.m., actual amount spent at an average Rs.750p.m.

vii. Children education allowance Rs.9,000 (for two children)

viii. entertainment allowance Rs.6,000p.a.

compute his taxable salary for A.Y. 2021-22.

2. Shri Bhanu serves as head of sales department of a company. The details of his remuneration for
F.Y. 2020-21 are as follows:

i. Basic Salary Rs.4,32,000

ii. Bonus Rs.24,000

iii. Commission on sales @0.25% Rs.19,000

iv. D.A. (not considered for provident fund benefits) Rs.48,000

v. Education allowance (for hostel expenses and education expenses of two children) Rs.15,600

vi. the company has provided him rent free accommodation owned by the company in Ahmedabad,
whose annual fair rent is Rs.72,000.

Determine the taxable value of perquisite of rent free accommodation.

3. Annual value of Shri Kamal is Rs.6,12,000. The company has provided him furnished house in a city
(having population of 12 lakhs) and Rs.1,000 p.m. is deducted from his salary as a token rent . the
company pays the rent of Rs.1,44,000p.a. for the house. furniture and other appliances costing
Rs.3,69,000 are also provided to him. The written down value of the furniture on 1-4-2020 is
Rs.3,33,023.

Compute value of perquisites.

4. Kumari Rupal is employed with the firm and is receiving following benefits

i. Annual salary Rs.4,20,000

ii. She contributes Rs.42,000 annually to a RPF and the employer contributes Rs.62,000.

iii. interest credited to his fund at 11% p.a amounted to Rs.22,000.

Compute her taxable salary.

5. From the following information of Shri Vivek, compute his taxable salary and deduction U/s 80C
for the A.Y. 2021-22.

Vinayak Chemicals Ltd.

Gandhi Road, Ahmedabad
Basic salary @ Rs.45,000 x 10 months 4,50,000
DA @ Rs.12,000 x 10 months 1,20,000
Bonus 24,000
Education allowance including hostel allowance for three 18,000
children for 10 months
Gross salary 6,12,000
Less: deductions:
1. Own contribution to RPF 54,000
2. Life Insurance Premium 12,500
3. Income Tax (TDS) at source 28,540
4. Profession tax 2,000 97,040
Net salary 5,14,960
Additional information:
1. Employer contributes Rs.63,000 to RPF

2. Interest credited on 31-1-21 to RPF A/c @ 10%p.a. is Rs.56,000

Other perquisites:

1. rent free accommodation

2. 1.4 litres c.c motor car for both personal as well as office purpose. All the expenses of motor car
are paid by the employer

Shri Vivek retired on 31st January,2021 after completing 26 years of service and received Rs.6,67,000
as gratuity and Rs.4,72,000 as accumulated balance of RPF A/c on 15 th March, 2021 of which he has
deposited Rs.1,50,000 in Public Provident Fund A/c.

6. Compute the salary income of a specified employee, Rutvik for P.Y relevant to A.Y 2021-22from
following data:

1. Basic salary- he joined on 1-7-2016 in the grade 10,000-1,000-13,000-2,500-28,000, the increment

falling due on 1st July every year.

2. DA Rs.85,200

3. Bonus and commission Rs.16,000

4. Entertainment allowance Rs.1,000 p.m.

5. Children education allowance Rs.600 p.m. (for one child)

6. The employer has provided him flat (+ furniture) for which the employer pays rent of Rs.8,000
p.m. the employer has spent Rs.2,92,000 on its furnishing

7. The employer has provided a chauffer driven car, all expenses are borne by the employer. The car
is for office and private use and has capacity of 1.8 litres c.c.

8. the employer contribute @14% of basic pay towards his RPF.

9. Interest credited to his RPF A/c @ 9.5% is Rs.10,450

10. The employer has made the following deductions from his pay:

i. Employees provident fund contribution 14% of basic pay

ii. Professional tax Rs.2,400 annual

iii. Recovery of token rent for the accommodation @10 % of basic pay.

iv. Recovery of excess commission paid during the year Rs.2,000

7. Manan is Director employee of a Mumbai based company. Following information is aavailable for
A.Y. 2022-23.

1. Basic pay Rs.15,000 p.m., which was increased to Rs.18,000 w.e.f. 1-7-2021

2. DA calculated @ 50% of basic pay

3. Other allowances:
i. Education allowance Rs.400 p.m. (for two children)

ii. Hostel allowance Rs.1,000 p.m. (for one child studying in hostel)

iii. Entertainment allowance Rs.800 p.m.

4. A motor car (engines cubic capacity 1.4 lts.) is also provided to him which is used for both the
purposes. All its expenses are borne by the employee.

5. He has been provided a residential flat, for which the company is paying rent of Rs.9,000p.m. The
company has provided household appliances costing Rs.3,00,000 and further has hired the furniture
for which the company is paying monthly rent of Rs.5,000

6. He retired on 31-12-2021 after completing 34 years and 9 months of service. On the retirement
the company has paid him gratuity of Rs.5,60,000 and refund of RPF balance Rs.4,29,736

7. the following deductions were made from his salary:

i. Recovery of loan Rs.24,000 (taken for construction of house)

ii. professional tax Rs.1,800

iii. Income tax Rs.16,000

iv. PF contribution (15% of basic salary)

v. LIC premium Rs.9,600

vi. Token rent for accommodation provided per month Rs.1,500

On 1-2-22, he joined another company at Pune at a consolidated salary of Rs.30,000 p.m.

Professional tax deducted Rs.400.

Compute his taxable Salary of the A.Y. 2022-23.

8. on 1-1-2017, Shri Kundan (specified employee) joined a company at Ahmedabad ( having

population of more than 25 lakhs) as its sales manager, in the grade of Rs.12,000-750-18,000-1,500-
30,000. From the following information, calculate his total taxable income for A.Y. 2022-23.

1. The company revises during the year DA in the months of January and July:

2021: for first 6 months 24% of basic salary and for next 6 months 28% of basic salary

2022: for first 6 months 34% of basic salary and for next 6 months 38% of basic salary

2. The company pays bonus of 12% of basic salary

3. The company has provided him motor car (of 1600cc) for his personal as well as official use and
the company paid Rs.84,000 as its maintenance charges including salary of a driver.

4. The company contributes 14% of basic salary in his RPF, while Shri Kundan has paid 15% of basic
salary

5. Interest credited to RPF (date of credit 31-12-2021) is Rs.37,500 at the rate of 12.50%

6. the company has provided a residential house for which the company has paid the rent of
Rs.9,000 p.m. The company also provided furniture of Rs.2,40,000 in the house
7. The company has paid the following on his behalf:

a. salary of house servant Rs.18,000

b. Salary of gardener Rs.6,000

c. Salary of sweeper Rs.3,600

d. Salary of watchman Rs.24,000

8. He has made following savings and investments:

a. Life Insurance Policy premium (taken in 2010) of Rs.40,000 : Rs.9,000

b. Unit linked Insurance premium Rs.3,000

c. National Saving Certificates (VIII Series) Rs.60,000

d. Deposited in Public Provident Fund Rs.75,000

9. shri Bharat is a purchase officer in a company in Jaipur. He furnished following particulars

regarding his income for P.Y. 2021-22

1. Basic salary Rs.17,000 p.m.

2. Bonus Rs.5,000
3. DA Rs.3,000 p.m.
4. Travelling allowance Rs.45,000. He spends Rs.30,000 for official purposes
5. He lived in a bunglow belonging to the company. Its fair rent is Rs.15,000 p.m. The company
has provided on this bunglow the facility of watchman and a cook each of whom is being
paid a salary of Rs.250 p.m. The company paid in respect of this bungalow Rs.5,000 for
electricity bill and Rs.3,000 for water bill.
6. He has been provided with 1.5ltr. engine capacity car for official and personal use. The
maintenance and running expenses of the car (including driver) are borne by the company.
7. The following amounts were deposited in his providend fund account.
i. own contribution Rs.24,000
ii. company’s contribution Rs.30,000
iii. interest @12% p.a. Rs.12,600
8. Rent of house recovered from Bharat Rs.21,600
Compute his taxable income from salary for the A.Y. 2022-23. Assume the population of
Jaipur is 26 lakhs as per 2001 census.

10. Mr. Zakir has the following income during the P.Y. 2021-22

1. Salary Rs.3,10,000

2. D. A. (forming part of salary for retirement benefits) Rs.72,000

3. Medical Allowance (actual expenditure Rs.28,000) Rs.30,000

4. Education Allowance ( for three children) Rs.5,200

5. rent free house in Delhi for which X Ltd. the employer, paid Rs.5,000 p.m. as rent. The company is
equipped with rented furniture. The rent of the furniture is Rs.3,000 p.m.
6. The employer had provided her a domestic servant, a sweeper and a watchman. The employer
paid Rs.500 p.m. to each.

7. Professional Tax paid by Zakir Rs.1,200.

Compute his taxable income from salary for the A.Y. 2021-22.