Note:-
Every employee have to submit a declaration in the beginning of the year in Form 12BB mentioning his HRA receipts and different savings and deductions
At the end of the year he submit actual bills
If he fills to submit bills, then tax is deducted in March
Q8.
| 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 | (He had given declaration that he would submit Rent receipts by march of 18000 but in March had failed to do so) |
CALCULATE TDS from April to Feb and in March
View answer
| APRIL TO FEB | MARCH | |||||
| PARTICULARS | AMOUNT RECEIVED | EXEMPT | TAXABLE | AMOUNT RECEIVED | EXEMPT | TAXABLE |
| Basic Salary | 40000 | 0 | 40000 | 40000 | 0 | 40000 |
| Lunch Allowance | 4000 | 0 | 4000 | 4000 | 0 | 4000 |
| Transport Allowance | 2500 | 0 | 2500 | 2500 | 0 | 2500 |
| Children Education Allowance | 4500 | 200 | 4300 | 4500 | 200 | 4300 |
| Variable Pay | 30000 | 0 | 30000 | 30000 | 0 | 30000 |
| HRA | 15000 | 14000 | 1000 | 15000 | 0 | 15000 |
| TOTAL | 96000 | 14200 | 81800 | 96000 | 200 | 95800 |
Working Note for HRA
| ACTUAL HRA | 15000 |
| RENT PAID-10%*(BASIC+DA) | 14000 |
| 40%*(BASIC+DA) | 16000 |
| MINIMUM IS EXEMPT | 14000 |
| Particular | April-Feb | March |
| GROSS SALARY | 96000 | 96000 |
| MONTHLY TAXABLE SALARY | 81800 | 95800 |
| Income from salries | 981600 | 1149600 |
| Less Standard Deduciton | 50000 | 50000 |
| Net Annual Income | 931600 | 1099600 |
| TAX | 98820 | 142380 |
| REBATE | 0 | 0 |
| NET TAX | 98820 | 142380 |
| CESS | 3953 | 5695 |
| TAX+ CESS | 102773 | 148075 |
| TDS | 8564 | 53871 |
| NET SALARY | 87436 | 42129 |
NOTE
He has not given receipts for the whole year hence we ll take 12 months
Working Note
| Particular | Amount |
| TOTAL TAX | 148075 |
| LESS: TAX ALREADY DEDUCTED | 94204 |
| BALANCE TAX | 53871 |
| BALANCE MONTHS | 1 |
| BALANCE TDS | 53871 |
Q9.
| 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 | (He had given declaration that he would submit Rent receipts by march of 18000 but in March submitted only of 13000) |
CALCULATE TDS from April to Feb and in March
View answer
| APRIL-FEB | MARCH | |||||
| PARTICULAT | AMOUNT RECEIVED | EXAMPT | TAXABLE | AMOUNT RECEIVED | EXAMPT | TAXABLE |
| BASIC SALARY | 40000 | 0 | 40000 | 40000 | 0 | 40000 |
| LUNCH | 4000 | 0 | 4000 | 4000 | 0 | 4000 |
| TRANSPORT | 2500 | 0 | 2500 | 2500 | 0 | 2500 |
| CHILDREN EDU. A | 4500 | 200 | 4300 | 4500 | 200 | 4300 |
| VARIABLE PAY | 30000 | 0 | 30000 | 30000 | 0 | 30000 |
| HRA | 15000 | 14000 | 1000 | 15000 | 9000 | 6000 |
| TOTAL | 96000 | 14200 | 81800 | 96000 | 9200 | 86800 |
| APRIL-FEB | |
| WORKING NOTE FPR HRA | |
| ACTUAL HRA | 15000 |
| RENT PAID-10%*(BASIC+DA) | 14000 |
| 40%*BASIC+DA | 16000 |
| MINIMUM EXAMPT | 14000 |
| MARCH | |
| ACTUAL HRA | 15000 |
| RENT PAID-10%*(BASIC+DA) | 9000 |
| 40%*BASIC+DA | 16000 |
| MINIMUM EXAMPT | 9000 |
Working Note for HRA
| Particular | April-Feb | March |
| GROSS SALARY | 96000 | 96000 |
| MONTHLY TAXABLE SALARY | 81800 | 86800 |
| Income from salries | 981600 | 1041600 |
| Less Standard Deduciton | 50000 | 50000 |
| Net Annual Income | 931600 | 991600 |
| TAX | 98820 | 110820 |
| REBATE | 0 | 0 |
| NET TAX | 98820 | 110820 |
| CESS | 3953 | 4433 |
| TAX+ CESS | 102773 | 115253 |
| TDS | 8564 | 21049 |
| NET SALARY | 87436 | 74951 |
Working Note
| Particular | Amount |
| TOTAL TAX | 115253 |
| LESS: TAX ALREADY DEDUCTED | 94204 |
| BALANCE TAX | 21049 |
| BALANCE MONTHS | 1 |
| BALANCE TDS | 21049 |