INCOME TAX MANAGEMENT

COURSE : 

CASE STUDY : 1

Mr Bhatnagar an employee of private limited company is drawing Rs 20,000 p.m. as basic salary, Rs 10,000 p.m. as DA (Forming part), Rs 3,000 p.m. as CCA, Rs 2,000 p.m. as lunch allowance and Rs 25,000 p.a. towards leave travel concession (LTC), Professional tax of Rs 1,000, LIC Premium of Rs 2,000 and Club bill of Rs 3,000 are paid by the employer. The employee was provided with a motor car (big car), expenses

met by the employer. Calculate Income from Salary in the following cases.

Question :

1) Mr Bhatnagar as specified employee working in Chennai.

2) Mr Bhatnagar as unspecified employee working in Ahmedabad.

3) Explain the provisions and exemptions available U/s 10 for Income from Salaries.

4) State the perquisites which can be taxed only in the case of specified employees.