Scribd
Upload
8 views2 pages

Assignment 2

Payslip example ppt

Uploaded by

poonamu139
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
8 views2 pages

Assignment 2

Payslip example ppt

Uploaded by

poonamu139
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
You are on page 1/ 2

Taxable Income and Tax Liability

Calculation for Mr. B


1. Income from Business
Business Income: ₹75,00,000

2. Other Incomes
Lottery Winnings: ₹19,00,000 (Taxable at a flat rate of 31.2%)

Maturity amount from Life Insurance: ₹32,00,000 (Exempt under Section 10(10D))

3. Gifts
Cash gift from ex-wife: ₹6,00,000 (Exempt from tax)

Gift to wife: ₹4,50,000 (Clubbing provisions apply, added to taxable income)

4. Deductions
Life Insurance Premium: ₹50,000 (Eligible under Section 80C)

PPF Investment: ₹80,000 (Eligible under Section 80C)

Tuition Fee for daughter: ₹50,000 (Eligible under Section 80C)

Health Insurance Premium: ₹27,000 (Eligible under Section 80D)

Medical Test: ₹6,000 (Claimable under Section 80D)

5. Non-deductible Expenses
Family Trip Expenses: ₹15,00,000 (Not deductible)

Taxable Income Calculation


Particulars Amount (₹)

Business Income 75,00,000

Lottery Winnings 19,00,000

Gift to wife (Added back due to clubbing) 4,50,000


Total Income 98,50,000

Less: Deductions (Section 80C and 80D) 1,83,000

Net Taxable Income 96,67,000

Conclusion
Mr. B's net taxable income is ₹96,67,000 after accounting for eligible deductions. The tax on
lottery winnings will be calculated separately at a flat rate of 31.2%. The rest of the income
will be taxed as per the applicable income tax slab rates.

You might also like