Scribd
Upload
8 views1 page

Assignment

Uploaded by

Ayush Kashyap
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 views1 page

Assignment

Uploaded by

Ayush Kashyap
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/ 1

To calculate Mr.

B's taxable income and tax liability, we need to go through each transaction
and categorize them into taxable and non-taxable components

Income:

1. Business Income: ₹75,00,000 (fully taxable as business income)


2. Lottery Winnings: ₹19,00,000 (fully taxable as other income)

Total taxable income = ₹75,00,000 + ₹19,00,000 = ₹94,00,000

Exempted Income:

1. Gift from ex-wife: ₹6,00,000


2. Maturity proceeds from life insurance policy: ₹32,00,000
3. Medical reimbursement: ₹6,000

Total exempted income = ₹6,00,000 + ₹32,00,000 + ₹6,000 = ₹38,06,000

Deductions :

1. Life insurance premium: ₹50,000


2. Investment in PPF: ₹80,000
3. Health insurance premium: ₹27,000
4. Tuition fee for daughter: ₹50,000

Total deductions = ₹50,000 + ₹80,000 + ₹27,000 + ₹50,000 = ₹2,07,000

Calculating Taxable Income:

Taxable Income = Total taxable income - Total exempted income - Total deductions Taxable
Income = ₹94,00,000 - ₹38,06,000 - ₹2,07,000 Taxable Income = ₹53,87,000

Tax Calculation:

Now, let's calculate the tax liability based on the income tax slabs for FY 2023-24 :

 Up to ₹300000: No tax
 ₹3,00,000 to ₹5,00,000: 5% = 10,000
 ₹5,00,001 to ₹10,00,000: 20% = 1,00,000
 Above ₹10,00,000: 30% = ₹13,16,000

Therefore, Mr. B's taxable income is ₹53,87,000 and his tax liability for the year is
₹14,10,000

You might also like