Answer to Question #190698 in Economics for Kuldeep

Question

Mr. Samir Mehta is an employee in the Government law college who receives Rs 25000 per month as basic salary. Rs 200 per month as Dearness allowance and Rs 500 per month as entertainment allowance. Compute the salary income for the Assessment year 2021-22 a. Discuss the provisions regarding entertainment allowance and calculate the taxable entertainment allowance, if any b. If, he had paid the Medi -claim for his parents being the senior citizen Rs 35000 in cash, calculate the taxable salary post deduction, if any.

Answer 1

$$25000\times12=300000$$

$$(25000+500)\times12=306000$$

$$306000-35000=271000$$