No Questions SALARY-KYC KNOW YOUR CONCEPTS

1. Interest credited to RPF is Rs 31200. It is @ 12.5 %. Taxable perquisite is

2. Education allowance for three children Rs 65 per month per child. Actual
expenditure of Mr. Kumar is 3500.

3. Conveyance allowance for official work Rs 23000 p a. Actual expenditure is Rs

18500.

4. Transport allowance for commuting between office and residence Rs 1715 p.m.
Actual Expenditure is Rs 15400.

5. Medical Bills of Rs 31000 were reimbursed by the Company.

6. In addition a medical allowance of Rs 300 pm was also given

7. Tiffin allowance Rs 200 p m

8. Research allowance of Rs 300 p m. actual expenditure is Rs 4800

9. Free holiday home facility Rs.17600

10. Free use of the employer’s laptop, which was costing Rs 65000.

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11. Free use of music system from 1st October 2021. Cost of the system is 34000 and
its WDV is Rs 15880.

12. Subsidized Use of telephone at the residence. Cost to the employer Rs 9500

13. Leave Travel concession given Rs 24600. Cost on traveling incurred by the
employee Rs 19800.

14 Leave Travel concession given Rs 24600. Cost on traveling incurred by the

employee Rs 34800.

15 Hostel allowance for 2 children Rs 250 per child per month. Actual expenditure
of the employee Rs 8400 p.a. for two children.

16 Free cook and sweeper provided at employees residence. Salary of cook Rs 2000
pm and sweeper Rs 2500 p m

17 Lunch Allowance Rs 800 p m. Actual expenditure on Lunch incurred by the

employee Rs 400 p.m

18 In case lunch allowance is not provided and lunch facility is provided at the office
for Rs 10 per meal. Cost of per meal to the employer Rs 65 per meal. Such facility
is provided for 290 working days.

19 Medical facility for employee and family members in government hospital. Cost
to the employer Rs 5600 for the year.

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20 Uncommutted pension is ------------- (Taxable / not taxable) in the hand of the
employee.
21 Leave encashment during employment is ---------- (Taxable / not taxable) in the
hand of the employee.

22 What is salary for the purpose of HRA

23 Employee’s contribution to Recognized Provident Fund

24 Employee’s contribution to Statutory Provident Fund

25 Employer’s contribution to Statutory Provident Fund

26 Subsidized tea and snacks provided at office. Cost to the employer Rs.1,800

27 Employer provided free use of car with driver for official & personal use.
Expenses of employer Rs.88,000.

28 Free use of Maruti 800 for official use. Car can be also be used for journey
between office and residence and other domestic purpose

29 Free meal (at work place) Rs.14,700 (Rs. 70 per day for 210 days)

30 Net Salary Rs.90,000. TDS Deducted Rs.10,000.

31 Employer provides Maruti Alto car for personal use of employee. Employer’s
expenses Rs.1,37,800 and depreciation of car @ 10% Rs. 12,600.

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32 On October 15, 2021, the company gives its music system to Mr. Y for domestic
use ownership is not transferred. Cost of music system to employee in 2009 was
15000.

33 Employee has taken a loan from RPF (maintained by employer) Rs. 60,000

34 Lunch provided by the employer during office hours. Cost to the employer Rs.
24,000/-

35 Medical Insurance premium of Rs. 8,000 paid by the employer to effect an

insurance on the health of the employee

36 Value of free lunch facility Rs. 2,200 treated as exempt assuming value does not
exceed Rs. 50 per meal.

37 Mr. X received Rs. 6,00,000 as accumulated balance of RPF

38 X is employed on 1 st Dec 2022 in scale of 40000-2000-50,000 what will be his

salary for P Y 22-23

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