Salaries – Test 3

Mr. Ajay is a partner in Ajay Vijay & Co. He is a working partner and as per the terms of partnership deed, he is paid a fixed monthly salary of Rs.30,000. In this case, such salary shall be charged to tax under the head ____.

Mr. Ram is a partner in Ayodhya & Co. Apart from being a partner, he is in part time employment with Sigma Ltd. In this case, remuneration received by him from Sigma Ltd. Shall be charged to tax under the head _______.

Mr. Aamir is an Indian citizen deputed as Branch Head of Infosys Ltd. in its UK office at a monthly
salary of 1,00,000$. Apart from that he is enjoying perquisites worth 30,000$. For the previous year under consideration, he was a non-resident in India. In this case, what will be his taxable salary in India assuming that salary was paid to Mr. Aamir in United Kingdom?

Mr. Mohsin is a CEO of AASSAM TEA Ltd. His monthly salary of Rs. 1,00,000. During the year, he surrendered salary of one month. In this case what will be his Gross Salary?

Which of the following is not eligible for relief under section 89?

The upper limit of relief under section 89 is ______.

Mr. Bhagat received arrears of salary of 2017-18 in the year 2018-19. He provides following
details :
• Tax on income of the year 2018-19, including arrears of salary : Rs. 85,000
• Tax on income of the year 2018-19, excluding arrears of salary : Rs. 65,000
• Tax on income of the year 2017-18, including arrears of salary : Rs. 64,000
• Tax on income of the year 2017-18, excluding arrears of salary : Rs. 44,000
Find out the relief under section 89(1) of the Act that Mr. Bhagat can claim for the year 2018-19.

Mr. Nrupesh is in receipt of travelling allowance of Rs. 48000 from his employer. He has spent Rs. 50,200 on account of travelling. Identify the correct tax treatment of travelling allowance in the hands of Mr. Nrupesh.

Mr. Naimesh received conveyance allowance of Rs. 24,000 from his employer. Out of which, he has spent Rs. 18,000 on account of conveyance for office purpose. Find out the taxable conveyance allowance.

Mr. Babu received helper allowance of Rs. 1,500 per month from his employer. He has deputed a servant at a monthly salary of Rs. 1,500 to help his wife in her domestic work. How much helper allowance will be taxed in the hands of Mr.Babu?

Mr. Yogi received research allowance of Rs. 1,20,000 from his employer. He had incurred an expenditure of Rs. 90,000 on account of research. How much research allowance will be exempt in the hands of Mr. Yogi?

Mr. Mahesh received uniform allowance of Rs. 24,000 from his employer. He had incurred expenditure of Rs. 10,000 on account of maintenance of uniform. What will be the tax treatment of uniform allowance in the hands of Mr. Mahesh?

Mr. Balram is working with Dwarika Ltd. During the year, his employer provided him a
unfurnished accommodation in Mumbai. The relevant details are as under:
• Basic salary for the year: Rs. 4,00,000.
• Dearness allowance forming part of salary: Rs.3,00,000.
• Employer’s contribution to Provident Fund : Rs. 40,000.
• Value of other perquisites : Rs. 2,00,000.
• The accommodation is owned by the employer.

What will be the value of accommodation provided by the employer?

Mr. Balram is working with Dwarika Ltd. During the year, his employer provided him a furnished
accommodation in Mumbai. The relevant details are as under:
• Basic salary for the year: Rs. 4,00,000.
• Dearness allowance forming part of salary: Rs.3,00,000.
• Employer’s contribution to Provident Fund : Rs. 40,000.
• Value of other perquisites : Rs. 2,00,000.
• The original cost of various furniture provided by the employer : Rs. 1,00,000.
• The accommodation and furniture are owned by the employer.
• The employer has recovered Rs. 5,000 p.a. from him salary towards rent of the
accommodation.
What will be the value of furnished accommodation provided by the employer?

Mr. Ramesh is an employee of Infotech Ltd. Infotech Ltd. maintains a school. The younger
brother of Mr. Ramesh is studying in the school of the employer. The annual school fees charged by the similar school in the locality amounts to Rs. 18,000. What shall be the taxable value of perquisite in the hand of Mr. Ramesh?

Mr. Ranbir is an employee of “Idea thought Ltd.”. His employer directly pays the school fees of
his child. Annual school fees paid by the employer to the school amounted to Rs. 28,000. The employer recovered Rs. 1,000 per month Ranbir’s from salary. What will be the taxable value of perquisite in the hand of Mr. Ranbir?

Mr. Roop received tax free salary from his employer. As per employment agreement, income tax on such salary shall be paid by his employer. In this case, what will be the taxable salary income?

Mr. Kumar is an Indian citizen. He is deputed in USA by the Government of India. During the previous year he received salary of Rs. 12,50,000 from Government of India. Apart from salary he also received various allowances and perquisites amounting to Rs. 2,50,000. In this case, what will be his taxable salary?

Employer’s contribution to superannuation fund for employee:

Employer’s contribution to unrecognized provident fund

If a domestic servant is engaged by the employer and salary is paid by him, the perquisite is

Assuming that the rate of Interest on employer’s contribution to Recognized Provident Fund is 12.5% p. a., then,

Meaning of term “Salary” is defined under section _____ of the Act.

The term “Salary” doe not include

As per section 15, salary shall be taxed on due basis or receipt basiss whichever is ______.

Under section 16(ia), salaried person is entitled to a standard deduction of _________.

Grautiy in the case of employees of _________ is fully exempt.

Uncommuted pension is ________ whether received by the Government employee or non government employee.

Commuted pension received by non-government employee who is in receipt of gratuity is exempt upto _____ of full value of commuted pension.

Commuted pension received by non-government employee who is not in receipt of gratuity is exempt upto _____ of full value of commuted pension.