Based on Heads of Income

Illustration on computation of Gross Total Income

Mr. A submits the following particulars for the previous year 2016-17

In Rs.
I
1. Basic Salary 4,80,000
2. D.A. 1,20,000
3. HRA 80,000
4. Transport Allowance 42,000
5. Children Education Allowance reimbursement 36,000
II
1. Rent received from House being let out 1,20,000
2. Municipal Taxes paid during F.Y. 2016-17 9,000
III
1. Long Term Capital Gain 1,40,000
2. Short Term Capital Loss 20,000
IV
1. Profits and Gains frombusiness or profession 60,000
(computed)
V
1. Interest on Government Securities 6,000
2. Interest on bank deposits 14,000
3. Interest on deposits 4,000

Compute Gross Total Income of Mr. A and if Deduction u/s 80C is Rs. 1,60,000
compute Total Income and Income Tax thereon for A.Y. 2017-18
Question based on Income from Salary

Q.1 Mr. Netin, who is working in Central Govt. Department. He furnishes the
following particulars of his income for the previous year 2016-17

I
1. Basic Salary Rs. 35,000 p.m.
2. D.A. Rs. 15,00 p.m.
3. HRA Rs. 8,000 p.m.
4. Transport Allowance Rs. 36,00 p.m.
5. He has taken on rent an accommodation in Noida (U.P.) for which he pays
Rs. 10,000/- p.m. as rent.

II. He has let out his house property at Rs. 15,000/- p.m. and has paid Rs.
6,000/- as Municipal taxes.

III. He has earned the following income besides above-

(i) Interest on fixed deposits with a bank (gross) Rs. 20,000

(ii) Winnings from Card games (gross) and 12,000 lottery (gross) 28,000

Compute the total Income of Mr. Nitin and tax liability for A.Y. 2017-18