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Assignment

The document calculates Mr. B's taxable income and tax liability by considering his income from business, lottery winnings, and life insurance along with eligible expenses and deductions. It shows his total taxable income is ₹93,81,000 and total tax liability is ₹26,29,300.

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46 views1 page

Assignment

The document calculates Mr. B's taxable income and tax liability by considering his income from business, lottery winnings, and life insurance along with eligible expenses and deductions. It shows his total taxable income is ₹93,81,000 and total tax liability is ₹26,29,300.

Uploaded by

fzm6vfrpv7
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Question: To calculate Mr.

B's taxable income and tax liability, we need to consider his income, expenses, and eligible deductions.

Income: Expenses:

Business Income: ₹75,00,000 Gift to Wife: ₹4,50,000


Lottery Winnings: ₹19,00,000 Gift to Ex-Wife: ₹6,00,000
Maturity Amount from Life Insurance: ₹32,00,000 Tuition Fee: ₹50,000
Premium for Life Insurance: ₹50,000
Investment in PPF: ₹80,000
Medical Test: ₹6,000
Health Insurance Premium: ₹27,000
Family Trip Expenses: ₹15,00,000

Solution:

COMPUTATION OF TOTAL TAXABLE INCOME


Particulars Amount
Business Income 75,00,000
Maturity Amount from Life Insurance Tax-Free
Lottery Winnings 19,00,000
Gift to Wife Exempt
Gift to Ex-Wife Exempt
Investment in PPF 80,000
Medical Test 1,000
Tuition Fee (50,000)
Premium for Life Insurance (50,000)
Health Insurance Premium Exempt
Family Trip Expenses Exempt
Total Taxable Income 93,81,000

COMPUTATION OF TAX LIABILITY


Total Taxable Income other than Lottery income 74,81,000
General Tax Slabs for Individuals below 60:
- Income up to ₹3,00,000: No tax
- Income from ₹3,00,001 to ₹5,00,000: 5%
- Income from ₹5,00,001 to ₹10,00,000: 20%
- Income above ₹10,00,000: 30%
TAX LIABLITY Total Taxable Income other than Lottery income 20,59,300
TAX on Lottery Income 5,70,000
Total Tax liability 26,29,300

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