FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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During the previous year, X (40 years) is employed by a private company. He gets `70,000 as basic salary and `20000 as dearness allowance (40 percent of which is considered for end term benefits), tiffin allowance Rs.2200 per month, medical allowance `.2000 per month; children education allowance `2100 per month for his three children; research allowance: `20,000 (out of which only `13000 is used in the year on research related work). Besides he gets a fix commission of `5000 per month. Company has provided a rent free accommodation at Nagpur (population as per 2001 census 20 lakh), company has provided him a watchman, salary of `4000 per month is paid by the company (`1000 per month is recovered from X), company has also provided him a car (1800cc) for both personal as well as official purpose. Cost incurred in running and maintenance of the car by the company is `97,000. Company contributes 14 percent of the “salary” towards recognized provident fund. A matching contribution is made by X. X also pays medical insurance premium of `20,000 per annum for self and spouse. He also made some donation to charitable institution, out of which only `25,000 is eligible for deduction under 80G. His income from other sources `2,50,000. Determine his net income and tax liability for the assessment year 2021-22.
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