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B) Mr. Hardeep furnishes you the following information for the previous year 2018-2019 Basic salary is Rs. 15000p.m. Dearness allowance is Rs. 6000 p.m. (60%)

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B) Mr. Hardeep furnishes you the following information for the previous year 2018-2019 Basic salary is Rs. 15000p.m. Dearness allowance is Rs. 6000 p.m. (60%) of which is part of salary) Entertainment allowance is Rs. 500p.m. [AUDC) HRA is Rs. 6000 p.m. Actual rent for a house in Delhi is Rs. 7000p.m. Education allowance for two children is Rs. 200p.m. per child Transport allowance for commuting from residence to office and back (is Rs. 1200 p.m. Medical allowance (he spends Rs. 5000 for his medical treatment) is Rs. 1000p.m. Lunch allowance is Rs. 200 p.m. Required: (a) Compute the taxable salary of Mr Hardeep for the assessment year 2018-19. (5 marks) (b) What is the difference between Perquisites and Allowances (2 Marks)

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