QuestionCompute Mrs. Bindhani's income from salary for 2023-24 based on her emoluments and allowances in 2022-23.

Studdy Solution

STEP 1

Assumptions1. The basic pay of Mrs. Bindhani from01-04-202 is ₹24,000 with an increment of ₹1,000 p.m. due on1st July each year. . The dearness allowance is100% of the basic pay.
3. She receives a children education allowance of ₹600 p.m.
4. She received remuneration from Calcutta University as an examiner amounting to ₹1,400.
5. She receives a medical allowance of ₹1,000 p.m. and a bonus of ₹15,000 p.a.
6. She is provided with a rent-free furnished accommodation in Kolkata with a fair rental value of ₹4,500 p.m. and furniture costing ₹50,000.
7. She is provided with a sweeper and a watchman whose monthly salaries are ₹3,000 and ₹4,500 respectively.
8. A free telephone is provided by the employer at her residence.
9. She contributes14% of her salary to a recognised provident fund and her employer also contributes14% of her salary to the provident fund.
10. Interest is credited at13% p.a. on the credit balance of the provident fund ₹6,500.
11. She has taken a life policy for ₹5,00,000 on her own life for which she paid a premium of ₹15,000 during the previous year.
12. Her employer paid her professional tax of ₹1,000 p.m.
13. She is provided with a14 H.P. car owned by the employer and used for both personal and employment purposes. All expenses are borne by the employer.

STEP 2

First, we need to calculate the total basic pay for the year. From April to June, the basic pay is ₹24,000 and from July to March, the basic pay is ₹25,000 due to the increment.
$Basic\, pay = (₹24,000 \times) + (₹25,000 \times9)$

STEP 3

Calculate the total basic pay for the year.
$Basic\, pay = (₹24,000 \times3) + (₹25,000 \times9) = ₹2,88,000$

STEP 4

Next, calculate the dearness allowance which is100% of the basic pay.
$Dearness\, allowance = Basic\, pay \times100\%$

STEP 5

Calculate the dearness allowance.
$Dearness\, allowance = ₹2,88,000 \times100\% = ₹2,88,000$

STEP 6

The children education allowance for the year is ₹600 p.m., so for12 months it is $Children\, education\, allowance = ₹600 \times12$

STEP 7

Calculate the children education allowance for the year.
$Children\, education\, allowance = ₹600 \times12 = ₹7,200$

STEP 8

The medical allowance for the year is ₹1,000 p.m., so for12 months it is $Medical\, allowance = ₹1,000 \times12$

STEP 9

Calculate the medical allowance for the year.
$Medical\, allowance = ₹,000 \times12 = ₹12,000$

STEP 10

The bonus for the year is ₹15,000.

STEP 11

The remuneration from Calcutta University as an examiner is ₹,400.

STEP 12

The value of the rent-free furnished accommodation is ₹4,500 p.m. for12 months, and the value of the furniture is ₹50,000.
$Value\, of\, accommodation = (₹4,500 \times12) + ₹50,000$

STEP 13

Calculate the value of the accommodation.
$Value\, of\, accommodation = (₹,500 \times12) + ₹50,000 = ₹,04,000$

STEP 14

The salaries of the sweeper and the watchman are ₹3,000 and ₹4,500 respectively for12 months.
$Salaries\, of\, sweeper\, and\, watchman = (₹3,000 + ₹4,500) \times12$

STEP 15

Calculate the salaries of the sweeper and the watchman for the year.
$Salaries\, of\, sweeper\, and\, watchman = (₹3,000 + ₹4,500) \times12 = ₹90,000$

STEP 16

The employer's contribution to the provident fund is14% of the salary (basic pay + dearness allowance).
$Employer's\, contribution = (Basic\, pay + Dearness\, allowance) \times14\%$

STEP 17

Calculate the employer's contribution to the provident fund.
$Employer's\, contribution = (₹2,88,000 + ₹2,88,000) \times14\% = ₹80,640$

STEP 18

The interest credited on the provident fund is13% of ₹6,500.
$Interest\, credited = ₹6,500 \times13\%$

STEP 19

Calculate the interest credited on the provident fund.
$Interest\, credited = ₹6,500 \times13\% = ₹845$

STEP 20

The professional tax paid by the employer is ₹,000 p.m. for12 months.
$Professional\, tax = ₹,000 \times12$

STEP 21

Calculate the professional tax for the year.
$Professional\, tax = ₹1,000 \times12 = ₹12,000$

STEP 22

Now, we can calculate the total income from salary by adding all the components.
$Total\, income = Basic\, pay + Dearness\, allowance + Children\, education\, allowance + Medical\, allowance + Bonus + Remuneration + Value\, of\, accommodation + Salaries\, of\, sweeper\, and\, watchman + Employer's\, contribution + Interest\, credited - Professional\, tax$

STEP 23

Plug in the values to calculate the total income.
$Total\, income = ₹,88,000 + ₹,88,000 + ₹7,200 + ₹12,000 + ₹15,000 + ₹1,400 + ₹1,04,000 + ₹90,000 + ₹80,640 + ₹845 - ₹12,000$

STEP 24

Calculate the total income from salary.
$Total\, income = ₹,88,000 + ₹,88,000 + ₹7,200 + ₹12,000 + ₹15,000 + ₹1,400 + ₹1,04,000 + ₹90,000 + ₹80,640 + ₹845 - ₹12,000 = ₹8,74,085$ The income from salary of Mrs. Bindhani for the assessment year2023-24 is ₹8,74,085.

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