12. A B C D E F G H 1 J K Mr. Bhavin Kumar is employed in Kenter Cables Limited, Mumbai. Following information is available relating (10 marks) 2 to F.Y. 2019-20: 3 4 As on 31.3.2020, his basic salary was Rs. 60,000 p.m. (With effect from 1.1.2020 he receives an increment of 5 Rs. 10,000 p.m. in his basic salary). He is also entitled to a dearness allowance of 50% of basic salary 6 (70% of which was considered for retirement benefits). The company gives him house rent allowance 7 Rs. 30,000 p.m. However he was staying with his parents till 31.10.2019 without payment of rent but 8 from 1.11.19 he takes an accommodation on rent in Mumbai and pays Rs. 25,000 p.m. as rent for the 9 accommodation. He has received uniform allowance Rs. 8,300 (Actual expenses incurred by him on 10 buying uniform was Rs. 7,000). Mr. Bhavin received Diwali bonus from his office Rs. 50,000. The 11 company also provided telephone facility and a domestic servant at the residence of Mr. Bhavin for which company 12 paid Rs.6,000 and Rs. 24,000 respectively. During the year he went on a personal tour to Manali with family, for 13 the first time, and the expense of Rs. 42,000 (Rs. 12,000 towards three tire air-conditioned railway fare and 14 Rs. 30,000 hotel bill) was reimbursed by the company. Professional tax Rs. 2,500 deducted by the employer from 15 his salary. 16 17 Bank account of Mr. Bhavin shows that he has received dividend Rs. 9,600 from Reliance Industries Ltd., interest 18 on saving bank account Rs. 12,000. On occasion of birthday he receive gift Rs. 51,000 from his NRI friend. It is 19 also known that on 1.4.2019 Mr. Bhavin closed his National Pension System (NPS) account and NPS trust has 20 returned him Rs. 1,00,000 on closer of this account. During the year he paid Rs. 1,30,000 as premium on life 21 insurance (Policy amount Rs. 12,00,000) and Rs. 27,500 as premium for medical insurance policy of his family. 22 23 You are required to determine total income of Mr. Bhavin Kumar for the A.Y. 2020-21. 24 25 L M Solution: 26 27 28 29 30 Instructions & CII Question 1 & Solution Question 2 & Solution Question 3 & Solution Question 4 & Solution Type here to search Ei W