PROBLEMS ON TAXABLE INCOME AND TAX LIABILITY

TAX LIABILITY
The amount of tax owed; calculated by applying the tax rate to the tax base).
DEDUCTIONS FROM 80C TO 80U
80C (Investment in schemes like LIC)
80CCC (Pension Fund)
80CCD (New Pension Scheme)
80CCF (Infrastructure Bonds) (Not Applicable for A.Y. 2013-14) e
80CCG (Equity Saving Schemes)
80D (Mediclaim)
80G (Donation)
80GG (Rent Paid)
80 TTA (Saving Bank A/c Interest)
Others Deductions 1. The following are the particulars of Mr. Vimal for the PY 13-14. You are required to
compute his taxable income and tax liability for the AY 14-15.
Winning from Kerala state lottery Rs 100000.
Life Insurance Premium Paid Rs 20000.
Casual Income from crossword puzzles Rs 2400.
Business Income Rs 693800.
Rent of Property Rs 20000.
Municipal Tax on Property Paid Rs 2000.
Long-term Capital Gain Rs 30000.
2. Mr. Raju has the following details of his income for the P.Y 2013-14.
Being a tax consultant
Receipts- Consultation fees-Rs 2,10,000.
- Arbitration fee charges-Rs 60000
Payments
-Rent of building Rs 36000(1/3 of the portion used for residence).
-Electricity and water charges for the building Rs 10000.

- Salary to staff Rs 24000

- Stationary and other expenses Rs 20000
Taxable income from house property Rs 35000.
During the year he had sold 500 equity shares at Rs 45 each which were purchased by
him during the year 1995 and 1996 at Rs 12 each (CII are 1995-96 =281 13-14=939).
Taxable income from other sources Rs 30000.
Mr Raju has paid the following amounts
- LIC premium Rs 12000.
- Purchase of NSC worth Rs 6000.
- Donations to charitable trust recognised educational institution Rs 6000.
- Health insurance premium paid Rs 2000
Compute his taxable income and tax liability for the assessment year 14-15.

3. From the following particulars of Mr. Gopal. Calculate his Tax Liability for the AY-14-15.
Particulars
Rs
Salary
1,29,000
Business income
70,000
Royalty on books for colleges
30,000
Rent from house property
20,000
Dividend income
15,200
Bank interest
8,800
Long term capital gains
30,000
Contribution to P.P.F.
30,000
Life insurance premium paid
10,000
Health insurance premium paid
8,000
Donation to National Defence Fund
5,000