Tanvi pandit (28 Points)
31 August 2020Kashyap received basic salary of 20,000 p.M. From his employer. He also received children education allowance of 3,000 for three children and transport ` allowance of 1,800 p.M. The amount of salary chargeable to tax for p.Y. 2018-19 ` is.
Can someone plz explain how the answer is 212600
Deepak Gupta
(CA Student)
(15922 Points)
Replied 31 August 2020
| Basic Salary | 20000x12 | 2,40,000.00 | |||
| Children Education Allowance | |||||
| Child-1 | Child-2 | Child-3 | |||
| Received | 1000 | 1000 | 1000 | 3000 | |
| Exempt | -1000 | -1000 | 0 | -2000 | 1,000.00 |
| Rs. 100 p.m. per child, upto 2 children is exempt | |||||
| Exemption cannot be over receipt amount | |||||
| Always calculate child wise to avoid error | |||||
| Generally mistake happens in this part only | |||||
| Some may do 3000-(100x2x12)=600 taxable | |||||
| Transport allowance | 1800x12 | 21,600.00 | |||
| 2,62,600.00 | |||||
| Standard deduction | (50,000.00) | ||||
| Salary PY 19-20 | 2,12,600.00 | ||||
abhay garg
(Senior auditor)
(110 Points)
Replied 31 August 2020
Deepak Gupta
(CA Student)
(15922 Points)
Replied 31 August 2020
| Originally posted by : abhay garg | ||
 |
Standard deduction for the financial year 2018 -2019 was 40000 hence taxable salary will be 222600 |  |
Yes.
But i presumed the querist as a student and this MCQ is given in the study material of ICAI for May/Nov 2020 where answer is 212600 as per PY 2019-20. So i solved accordingly.
CAclubindia
