Linked PYQ
(a) Mr. X is a Government employee at Ludhiana and is getting following emoluments: (i) Salary - Rs.30,000 per month; (ii) Dearness Allowance (enters) - 60% of salary; (iii) Contribution in Notified Pension Scheme - Rs.3,000 per month; (iv) Employer's contribution to Pension Scheme - Rs.3,000 per month; (v) Transport Allowance for commuting between home and office - Rs.2,800 p.m.; (vi) Deputation Allowance (for 2 months) - Rs.3,000 per month; (vii) Entertainment Allowance - Rs.2,000 per month (During the year, he spent Rs.12,000 on entertainment of official guests); (viii) He has been provided with a rent-free accommodation. The licence fee for the accommodation has been fixed at Rs.2,000 per month. The government has also provided him with furniture items costing Rs.1,00,000 (WDV - Rs.75,000) for his personal use; (ix) He has been provided with the facility of a servant and watchman w.e.f. 01.10.2018 and the government is paying Rs.3,000 per month to each of these servants; (x) A laptop costing Rs.50,000 has been given to him for his official as well as personal purposes; (xi) On 01.10.2018 he took a loan of Rs.2,00,000 from his employer to buy a car at a concessional rate of interest of 6.25%. The repayment of loan started w.e.f. 01.01.2019 @ Rs.10,000 per month. SBI rate of interest as on 01.04.2018 was 9.25%; (xii) During the year savings made by Mr. X were: (a) LIC Premium: For Self Rs.10,500 (sum assured Rs.2,00,000); For Spouse Rs.12,000 (sum assured Rs.1,00,000); For Mother Rs.8,000 (sum assured Rs.1,00,000); For Major Son Rs.8,000 (not dependent on him but is suffering from disability) (sum assured Rs.50,000). All life insurance policies were taken in the previous year 2014-15. (b) PPF Deposits: Rs.5000; (c) Tuition Fees of Second Son studying in a College Rs.6,000; (d) Repayment of Housing Loan from LIC (Principal Portion) - Rs.36,000. Calculate: (i) Salary Income; (ii) Qualifying amount for deduction U/S 80 C.