25 August 2011
a MLA gets Rs. 120000/- as basic salary, Rs. 480000/- as allowances and his business income is Rs. 250000/-. he pays Rs. 25000/- as LIP in FY 2010-11. his age is 50 years. what will be the tax liability for the AY 2011-12.
26 August 2011
1) MLA's salary is taxable under the head 'income from other sources'. 2) Allowance of MLA's are exempt from income tax under section 10(17)(i) and (ii) of the IT Act,1961. 3) Therefore, taxable income is Rs. 3,45,000/-.
26 August 2011
A MLA gets120000/- as basic salary,480000/- as allowances and his business income is250000/-. he pays25000/- as LIP in FY 2010-11. his age is 50 years. what will be the tax liability for the AY 2011-12.
Thanks ! for reply but please tell me also the section under which salary received by a MLA will be taxable.
26 August 2011
No section as such. My observation can be seen in page 13 of "Taxation of salaried employees, pensioners and senior citizen" a publication of INCOME TAX DEPARTMENT.
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