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    Assignment 2

    Uploaded by

    rahullal11122

    Copyright:

    © All Rights Reserved
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    Assignment 2

    Uploaded by

    rahullal11122
    5 views2 pages

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    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    5 views2 pages

    Assignment 2

    Uploaded by

    rahullal11122

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Assignment 2

    By sarthak kumar
    Date: 04-07-24

    To calculate Mr. B’s taxable income and tax liability

    Particulars Total
    income from Business 7500000

    income from other sources


    Gift from ex wife 600000
    Lottery 1900000 2500000
    gross income 10000000

    Deductions
    under section 80D medical insurance 27000
    Medical checkup 6000 5000
    Investment under 80C
    Life insurance 50000
    Tution fees 50000
    PPF contribution 80000
    18000
    Total rebate 0 150000 182000

    Total Taxable income 9818000

    Note:

    Max investment allowed under 80C is 150000 and on medical checkup max exemption is 5000.

    Tax liability

    Note:

    The tax liability will be calculated separately as Gift received outside of blood relation more than
    50000 will be completely taxable at 30% and income from lottery is taxable at 30%.

    So, the taxable income =Total taxable income - Gift – Lottery

    =9818000-600000-1900000=7318000

    So, the taxable income on which slab rate will be applied to will be 7318000.
    Slap rate tax rate income Tax
    0-3L 0 300000 0
    3-5L 5% 200000 10000
    5-10L 20% 500000 100000
    above 10L 30% 6318000 1895400
    Total tax liability 2005400 2005400

    Tax liability on income from other


    sources Tax rate income tax
    Gift from ex wife 30% 600000 180000
    Lottery 30% 1900000 570000 750000
    Total tax liability of Mr X 2755400

    So, Mr. B’s taxable income is 9818000 and tax liability is 2755400.

    Not included in calculation

    Expenses on family trip = 150000

    Gift his Wife = 450000

    Life insurance matured =3200000

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