B's taxable income and tax liability, we need to consider his income, expenses, and eligible deductions.
Income: Expenses:
Business Income: ₹75,00,000 Gift to Wife: ₹4,50,000
Lottery Winnings: ₹19,00,000 Gift to Ex-Wife: ₹6,00,000 Maturity Amount from Life Insurance: ₹32,00,000 Tuition Fee: ₹50,000 Premium for Life Insurance: ₹50,000 Investment in PPF: ₹80,000 Medical Test: ₹6,000 Health Insurance Premium: ₹27,000 Family Trip Expenses: ₹15,00,000
Solution:
COMPUTATION OF TOTAL TAXABLE INCOME
Particulars Amount Business Income 75,00,000 Maturity Amount from Life Insurance Tax-Free Lottery Winnings 19,00,000 Gift to Wife Exempt Gift to Ex-Wife Exempt Investment in PPF 80,000 Medical Test 1,000 Tuition Fee (50,000) Premium for Life Insurance (50,000) Health Insurance Premium Exempt Family Trip Expenses Exempt Total Taxable Income 93,81,000
COMPUTATION OF TAX LIABILITY
Total Taxable Income other than Lottery income 74,81,000 General Tax Slabs for Individuals below 60: - Income up to ₹3,00,000: No tax - Income from ₹3,00,001 to ₹5,00,000: 5% - Income from ₹5,00,001 to ₹10,00,000: 20% - Income above ₹10,00,000: 30% TAX LIABLITY Total Taxable Income other than Lottery income 20,59,300 TAX on Lottery Income 5,70,000 Total Tax liability 26,29,300