1. Good question for practice of
80CCD.
Just 1 hint, ex-gratia is taxable it is
given just like cash gift.
Correction - Age of Mr. Janak is 60 years
EQ. 872

2. =(9,000x7)
EQ. 185. Computation of total income of Mr. Janak for A. Y. 2013-14
Particulars ` `
Basic salary = `30,000 x 7 2,10,000
Dearness Allowance
Ex-gratia 15,000
Employers’ contribution to Pension Scheme
May July Aug OctSeptJuneApril
Professional tax paid by employer 3,000
Concessional accommodation
Salary for perquisite valuation = (30,000+8,000)x7 + 15,000= 2,81,000Lower of : (1) actual lease rental paid or payable = 63,000
(2) (2,81,000 x 15%)
= 150
150
Value of furniture = 10% p.a. of actual cost= 10% of 40,000 x 7/12= 2,3332,333
Value of concessional educational facility= (2,800 - 1,000) x 7= 12,60012,600
Gross salary 4,32,083
Less: deduction u/s 16(iii) : Professional tax 3,000
Net salary 4,29,083
`20,000 x 71,40,000
Without any obligation
`7,000 x 749,000
Basic
Salary
40% D.A. Ex-gratia
Salary x 15%
= 42,150
42,150 – (6,000 x 7)
Rent paid by
employee

3. Income from other sources
Net salary 4,29,083
Particulars ` `
Winnings from TV Game Show (42,000 + 18,000) 60,000
Gross total income 4,89,083
Less: Deductions u/ch VI-A
80C LIP (30000 + 20,000) 50,000
80CCDAssuming
employee’s contribution = employer’s contribution =7,000 p.m.Employee’s contribution to pension scheme
(to be restricted to 10% of salary) 26,600
Employer’s contribution to pension scheme (to be
Restricted to 10% of salary)=10% of [(30,000+8,000) x 7] 26,600
Total deduction under section 80C & 80CCD 1,03,200
Employer’s
contribution
Employee’s
contribution
80C
50,000
80CCD
26,600 26,600
80CCC
-
+ + = 80CCE
Max. 1,00,000
AmendmentExcluded from 1,00,000
80D (12,000 + 16,000) 28,000 1,31,200
Total income 3,57,883
Self Father
Game
show prize
Net
received TDS
Game show prize = 100
Less: TDS @ 30% = 30
Net received = 70
Now if Net received = 42,000
Therefore if Net received = 70
Then Game show prize = 100
Then Game show prize = 42,000 x 100/70
= 60,000

4. Computation of tax liability of Mr. Janak (60 yrs) for the A. Y. 2013-14
Particulars ` `
Tax @30% on winnings of ` 60,000 from game show 18,000
Section 115 BB Tax @ flat 30%
Tax on balance income of ` 2,97,883 4,788 22,788
Add: Education cess @ 2% 456
SHEC @ 1% 228 684
23,472
LESS: TDS 18,000
Tax liability 5,470
Rounded off 23,470