Income from Salary

The maximum ceiling limit for exemption under section 10(10) in respect of gratuity for employees covered by the Payment of Gratuity Act 1972 is

The maximum ceiling limit for exemption under section 10(10C) with respect to compensation received on voluntary retirement is –

The HRA paid to an employee residing in Mumbai is exempt up to the lower of actual HRA excess of rent paid over 10% of salary and –

Rahul stays in New Delhi. His basic salary is 10000 p.m. D.A. (60% of which forms part of pay) is 6000 p.m. HRA is 5000 p.m. and he is entitled to a commission of 1% on the turnover achieved by him. Anirudh pays a rent of ` 5500 p.m. The turnover achieved by him during the current year is 12 lakhs. The amount of HRA exempt under section 10(13A) is –

Where there is a decision to increase the D.A. in March 2020 with retrospective effect from 1.4.2018 and the increased D.A. is received in April 2020 the increase is taxable –

Suresh is provided with a rent-free unfurnished accommodation which is owned by his employer AB Pvt. Ltd. in New Delhi. The value of perquisite in the hands of Rajesh is –

Anand is provided with furniture to the value of 90000 along with house from February 2020. The actual hire charges paid by his employer for hire of furniture is 5000 p.a. The value of furniture to be included along with value of unfurnished house for A.Y.2020-2021 is-

For the purpose of determining the perquisite value of loan at concessional rate given to the employee the lending rate of State Bank of India as on __________ is required

Employer’s contribution to superannuation fund during the previous year 2019-20 is –

The entertainment allowance received by a Government employee is exempt up to the lower of the actual entertainment allowance received 1/5th of basic salary and –

The maximum exemption under section 10(10AA) in case of leave encashment is –

For the purpose of calculation of average salary in case of exemption of leave encashment the average
salary drawn during the period of 10 months immediately preceding the _________ of retirement.

What is the annual leave entitlement specified in the Income Tax Act?

The amount of exemption for leave encashment in case of Government employee is-

Salary received in lieu of unavailed leave during service shall be-

Mr. Bansal was employed in M/s. ABC & Associates. After completing 40 years and 7 months of service
he retired on 31 st October 2016. The particulars are as under-
(i) Salary as the time of retirement – Rs. 10,000 p.m.
(ii) Average monthly salary for 10 months ending on 31 st October 2016- Rs. 9,500 p.m.
(iii) Leave entitlement – 1 1/2 months for each completed year of service.
(iv) Leave encashment received for 20 months on basis of salary at the time of retirement – Rs.
2,50,000.

Mr. Kamal was employed in M/s ABC & Associate. He received Rs. 2,80,000 as earned leave
salary. He retired on 16 th February 2017 after rendering 24 years and 7 months of service. His
basic salary was Rs. 15,000 p.m. His dearness allowance was Rs. 10,000 p.m. (forms part of
retirement benefit) at the time of retirement. Leave entitlement – 1 1/2 months for each completed
year of service. The amount of taxable earned leave salary: (Assuming he has taken 400 leave)

Mr. Deepanshu has the following receipts from his employer:
(1) Basic pay ` 4,000 p.m. (2) Dearness allowance (D.A.) 600 p.m. (3) Commission ` 6,000 p.a.
(4) House rent allowance ` 900 p.m.
Find out the amount of HRA eligible for exemption to Mr. Raj Kumar assuming that he paid a rent of 1,500 p.m. for his accommodation at Kanpur.
DA forms part of salary for retirement benefits

Salary for the purpose of computation of Taxable HRA is:

The HRA paid to an employee residing in Jaipur is exempt up to the lower of actual HRA, excess of rent paid over 10% of salary and –

Shreevardhan stays in New Delhi. His basic salary is ` 10,000 p.m., D.A. (60% of which forms part of pay) is ` 6,000 p.m., HRA is 5,000 p.m. and he is entitled to a commission of 1% on the turnover achieved by him. Anirudh pays a rent of 5,500 p.m. The turnover achieved by him during the current year is ` 12 lakhs. The amount of HRA exempt under section 10(13A) is –

The HRA paid to an employee residing in Mumbai is exempt up to the lower of actual HRA, excess of rent paid over 10% of salary and –

Sushant, a resident of Meerut, covered under payment act receives 38000 per annum as basic salary,12000 per annum D.A. which forms part of retirement benefits. Turn over 5 Lac (commission is 5%). He receives 7000 per annum HRA and pays 8000 per annum as house rent. Find out the Taxable HRA.

Mr. Sunil is a private sector employee. He received Rs. 12,00,000 as gratuity. He retired on 16th February 2017 after rendering 25 years and 7 months of service. His basic salary was Rs. 30,000 p.m. His dearness allowance was Rs. 15,000 p.m (40% forms part of retirement benefit) of from last 12 Months. He is not covered under Payment of Gratuity Act, 1972. The amount of gratuity exempt will be-

Mr. Raj is a Central government employee. He received Rs. 25,00,000 as gratuity. He retired on 16th February 2017 after rendering 25 years and 7 months of service. His basic salary w.e.f. 01-10-2016 was Rs. 30,000 per month (prior to that Rs. 25,000 p.m.). His dearness allowance was Rs. 15,400 p.m. The amount of gratuity taxable will be-

Mr. Kalicharan is a private sector employee. He received Rs. 18,00,000 as gratuity. He retired on 16th February 2017 after rendering 25 years and 7 months of service. His basic salary was Rs. 30,000 p.m. His dearness allowance was Rs. 15,000 p.m. He is covered under Payment of Gratuity Act, 1972. The amount of gratuity Taxable will be-

Mr. Pran is a private sector employee. He received Rs. 15,00,000 as gratuity. He retired on 16th February 2017 after rendering 26 years and 7 months of service. His basic salary was Rs. 30,000 p.m. His dearness allowance was Rs. 20,000 p.m (40% forms part of retirement benefit) and 1% commission on 1 cr turnover for 12 months. He is not covered under Payment of Gratuity Act, 1972. The amount of gratuity taxable will be-