For Allowances,we need to remember how much amount is exempt
Some allowances given are fully exempt,while others are exempt upto some limits
Those allowances which do not fall in this list are fully taxable
Folllowing is chart of Important Allowances
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Q1
| Particulars | Amt | Remarks |
| Basic Salary | 100000 | |
| Dearness Allowance | 4000 | |
| Special Pay | 2000 | |
| Uniform Allowance | 5000 | (Bill Submitted for 4000) |
| Academic Allowance | 4000 | (No Bill Submitted but declaration given of amount spent) |
| Travelling Allowance | 6000 | (Bill Submitted for 6500) |
| Daily Allowance | 6000 | (200*30 days,he came to work for 26 days) |
What is Gross Salary,TDS and Net Salary
View answer
| PARTICULARS | AMT RECD | EXEMPT | TAXABLE |
| Basic Salary | 100000 | 0 | 100000 |
| Dearness Allowance | 4000 | 0 | 4000 |
| Special Pay | 2000 | 0 | 2000 |
| Uniform Allowance | 5000 | 4000 | 1000 |
| Academic Allowance | 4000 | 4000 | 0 |
| Travelling Allowance | 6000 | 6000 | 0 |
| Daily Allowance | 6000 | 5200 | 800 |
| TOTAL | 127000 | 19200 | 107800 |
| Particular | Amount |
| GROSS SALARY | 127000 |
| Monthly Income | 107800 |
| Annual Income | 1293600 |
| Less Standard Deduction | 50000 |
| Net Annual Income | 1243600 |
| TAX | 185580 |
| REBATE | 0 |
| NET TAX | 185580 |
| CESS | 7423 |
| TAX+ CESS | 193003 |
| TDS | 16084 |
| NET SALARY | 110916 |
Q2.
| Particulars | Amt | Remarks |
| Basic Salary | 40000 | |
| Lunch Allowance | 4000 | |
| Transport Allowance | 2500 | (No Bill Submitted) |
| Children Education Allowance | 4500 | (1500*3 children) |
| Variable Pay | 30000 |
What is Gross Salary,TDS and Net Salary
View answer
| PARTICULARS | AMT RECD | EXEMPT | TAXABLE |
| Basic Salary | 40000 | 40000 | |
| Lunch Allowance | 4000 | 4000 | |
| Transport Allowance | 2500 | 2500 | |
| Children Education Allowance | 4500 | 200 | 4300 |
| Variable Pay | 30000 | 30000 | |
| Total | 81000 | 200 | 80800 |
| Particular | Amount |
| GROSS SALARY | 81000 |
| Monthly Income | 80800 |
| Annual Income | 969600 |
| Less Standard Deduction | 50000 |
| Net Annual Income | 919600 |
| TAX | 96420 |
| REBATE | 0 |
| NET TAX | 96420 |
| CESS | 3857 |
| TAX+ CESS | 100277 |
| TDS | 8356 |
| NET SALARY | 72644 |
Q3.
| Particulars | Amt | Remarks |
| Basic Salary | 40000 | |
| Lunch Allowance | 4000 | |
| Transport Allowance | 2500 | (No Bill Submitted) |
| Children Education Allowance | 4500 | (1500*3 children) |
| Variable Pay | 30000 | |
| HRA | 15000 | (Rent receipts submitted of 18000 of gurgaon,he lives in gurgaon and works in delhi) |
What is Gross Salary,TDS and Net Salary
View answer
| PARTICULARS | AMOUNT RECEIVED | EXEMPT | TAXABLE |
| Basic Salary | 40000 | 0 | 40000 |
| Lunch Allowance | 4000 | 0 | 4000 |
| Transport Allowance | 2500 | 0 | 2500 |
| Children Education Allowance | 4500 | 200 | 4300 |
| Variable Pay | 30000 | 0 | 30000 |
| HRA | 15000 | 14000 | 1000 |
| TOTAL | 96000 | 14200 | 81800 |
| Particular | Amount |
| GROSS SALARY | 96000 |
| Monthly Income | 81800 |
| Annual Income | 981600 |
| Less Standard Deduction | 50000 |
| Net Annual Income | 931600 |
| TAX | 98820 |
| REBATE | 0 |
| NET TAX | 98820 |
| CESS | 3953 |
| TAX+ CESS | 102773 |
| TDS | 8564 |
| NET SALARY | 87436 |
Working Note for HRA
| Particular | Amount |
| Actual Amt Received | 15000 |
| Rent paid -10% of basic | 14000 |
| 40% of basic | 16000 |
| Amount Exempt | 14000 |
Q4.
| Particulars | Amt | Remarks |
| Basic Salary | 40000 | |
| Lunch Allowance | 4000 | |
| Transport Allowance | 2500 | (No Bill Submitted) |
| Children Education Allowance | 4500 | (1500*3 children) |
| Variable Pay | 30000 | |
| HRA | 15000 | (Rent agreement of 18000 of gurgaon,he lives in gurgaon and works in Delhi, no rent receipts) |
What is Gross Salary,TDS and Net Salary
View answer
If no rent receipts submitted, HRA will be fully taxable
| PARTICULARS | AMOUNT RECEIVED | EXEMPT | TAXABLE |
| Basic Salary | 40000 | 0 | 40000 |
| Lunch Allowance | 4000 | 0 | 4000 |
| Transport Allowance | 2500 | 0 | 2500 |
| Children Education Allowance | 4500 | 200 | 4300 |
| Variable Pay | 30000 | 0 | 30000 |
| HRA | 15000 | 0 | 15000 |
| TOTAL | 96000 | 200 | 95800 |
| Particular | Amount |
| GROSS SALARY | 96000 |
| Monthly Income | 95800 |
| Annual Income | 1149600 |
| Less Standard Deduction | 50000 |
| Net Annual Income | 1099600 |
| TAX | 142380 |
| REBATE | 0 |
| NET TAX | 142380 |
| CESS | 5695 |
| TAX+ CESS | 148075 |
| TDS | 12340 |
| NET SALARY | 83660 |
Working Note for HRA
| Particular | Amount |
| ACTUAL HRA | 15000 |
| RENT PAID-10%*(BASIC+DA) | 0 |
| 40%*(BASIC+DA) | 16000 |
| MINIMUM IS EXEMPT | 0 |
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