R was in service of G ltd. since 1-1-1990 as medical officer. He dies on 1-2-2010.
The following information is available:
Basic Salary Rs 20000 p.m,DA Rs 6000 p.m(40% of which is included for the purpose of determining retirement benefit),transport allowance Rs.3800 p.m(only 600 used),entertainment allowance Rs.1000 p.m.He contributes 15% of basic pay towards RPF & G ltd also makes a matching contribution.
After death of R ,his wife & children get the following payments from G ltd.
(i)Salary for the month of January 2010.
(ii)Family pension Rs.10000 p.m
(iii)Encashment of leave standing to the credit of R on 31-1-2010 .Rs 240000(R was entitled for 45 days leave for each year of service)
(iv)Provident fund balance Rs. 390000.
(v)Gratuity Rs 260000(R is not covered by the Payment of Gratuity Act nor is there any agreement with the employer to receive gratuity)
R also runs a small clinic near his rescidence which is discontinued after the death of R.His income from clinic for 1-4-2009 to 31-1-2010 is Rs.49000.
After discontinuance of clinic ,Mrs recovers Rs76000 by 31-3-2010 against outstanding bills issued by R.Mrs R does not have any other income.On 30-3-2010 Mrs R withdraws Rs.140000 being the balance in account of R in National Saving Scheme 1987.
Assuming that salary ,allowances & pension become due on the last day of the month.
Compute total income & tax liability of Mr & Mrs R.
I'm facing certain problems in this question :
1.The unavailed balance of leave isn't given in question.
2.Mrs recovers Rs76000 by 31-3-2010 against outstanding bills issued by R.Mrs R does not have any other income.On 30-3-2010 Mrs R withdraws Rs.140000 being the balance in account of R in National Saving Scheme 1987. What will be the treatment of these two?
Please help.
CAclubindia
