Answer to Question #248523 in Accounting for Abhijeet

Question

(P4). X(age 26 years) is an employee of a co-operative society at Varanasi. During the previous year 2020-21he gets Rs. 45.000 per month as basic salary, Rs. 10,000 per month as bonus and Rs. 1,500 per month as dearness allowance (32 per cent of it forms part of salary for computation of retirement benefits) and Rs 3,000 per month as medical allowance (medical expenditure is, however, more than Rs 3,000 per month). He is a member of a recognised provident fund to which the employer contributes Rs. 89,000 (X also makes a matching contribution) X gets an interest-free loan (repayable within 8 years) of Rs. 200,000 from the employer for purchasing a house (581 lending rate: 10.40 percent). Besides, he gets Rs. 205.700 an interest on company deposits from a private sector undertaking Determine the taxable income and tax liability of X for the assessment year 2021-22 assuming he deposits Rs. 60,000 in his PPF account during the previous year 2020-21.

Answer 1

The answer to your question is provided in the image: