Answer to Question #265432 in Economics for Vishal

Question

Following emoluments are received by Ms Sangeeta during the previous year ended on 31.3.2021

Basic salary 250000

Dearness Allowance 10000

Commission 2500

Entertainment allowance 2000

Medical expenses reimbursed 25000

Professional taxes paid 2000(Rs1000 paid by employer)

Ms. Sangeeta contributes Rs 2000 towards the Recognized Provident Fund

She has no other income.

Compute the income from salary for A.Y 2021-22, and give reasons and explanations wherever required, If Ms. Sangeeta is a Government employee.

Answer 1

The income from salary for A.Y 2021-22 is:

$Income = 250,000 - 10,000 - 2,500 - 2,000 - 25,000 - 1,000 - 2,000 = 207,500.$

Ms. Sangeeta may be a Government employee as he pays all the official payments required.