Paper-Income Tax Salaries

Max. Marks- 50 Time 1 hour

Q-1: From the following information, compute the exempted amount of earned leave u/s 10(10AA) for the A/Y 2011-12: Mr. Ramesh retired on 1-1-2011 after serving for 34 years & 9 months in PQR ltd. Delhi. His particulars as under: i. ii. iii. iv. v. vi. B.S from 1-1-2010 to 31-12-2010 D.A 20% of salary (10% of salary is taken for retirement benefits) Leave entitlement for every year of service ------------------------------Leave availed while in service ------------------------------Leave to his credit at the time of retirement ------------------------------Leave salary received at the time of retirement ------------------------------Rs. 12,000 p.m Rs. 2,400 p.m 1.5 months 30 months 21 months Rs. 2,77,200 (10) Q-2: Mr. A.K Sharma retired from service on 1st May, 2010 & started getting pension of Rs. 6,000 p.m. he got his 2-3rd pension commuted on 1st Dec.2010 & received Rs. 3,60,000. Compute taxable amount of commuted & not commuted pension for the assessment year 2011-12 if Mr. Sharma (i) received gratuity, (ii) did not receive gratuity. (7) Q-3: Mr. X is entitled to children education allowance @Rs. 80 p.m. per child for 3 children amounting to Rs. 240 p.m. What will be exempt & taxable amount? (3) Q-4: Compute Mr. Pyarelals income under the head Salary for the assessment year 2011-12 from the following information: Rs. Basic salary ------------------------------------------------------------ 20,000 p.m. D.A (60% of which is part of retirement benefits) -------------------------------------------------8,000 p.m. Children education allowance (for 2 children) ---------------------------------------------------250 p.m (per child) Uniform allowance (40% of which spent for private purposes) ------------------------------10,000 Free lunch for 200 days in the office during office hours ----------------------------------------- 90 per meal Gift of Guitar ---------------------------------------------- 15,000 Rent free unfurnished accommodation at Delhi, the fair rent value of which is Rs. 90,000 p.a Motor car of 1.6 ltr with driver both for official & private purposes He contributes 15% of his salary to RPF & employer contributes 10%. Interest accrued on RPF @11% is Rs. 22,000. Watchman facility by the employer. Wages of watchman paid by employer 1,000 p.m Telephone facility at his residence. The employer incurred expenses of Rs. 20,000 for the same.

(20)

Q-5: Mr. X who was working with Y ltd. Died on 30-11-2010 in an accident while going back from office. His emoluments before death were as follows: B.S Rs. 15,000 p.m w.e.f. 1-1-2010, D.A 100% of B.S (20% of which forming part of retirement benefits) HRA Rs. 9,000 p.m He paid Rs. 3,000 p.m as rent. Compute his taxable HRA? (10)

Prepared by: Manoj Tanwar