Question
Mr. Kamal, resides in Chennai provides his income details for the previous year 2020-21 1. Salary details Basic Salary Rs 45,000 p.m Dearness Allowance of
Mr. Kamal, resides in Chennai provides his income details for the previous year 2020-21 1. Salary details Basic Salary Rs 45,000 p.m Dearness Allowance of Rs 16,000 (40% goes for retirement benefits) Receives House Rent Allowance Rs 20,000 p.m and pays Rs 22,000 p.m as Rent He owns a big car worth of Rs 12,00,000 and employer has reimbursed Rs 75,000 and as per the company records 40% is used for personal purpose Free lunch was provided for all employees for 250 days worth of Rs 120 per meal On 30 th March 2021, Employer sold motor vehicle to Mr Kamal for Rs 2,00,000. Actual cost of the car is Rs 5,00,000 (bought on 30th March 2018) He has taken a loan of Rs 6 laks from employer for construction of House on 1 st November 2020 at the rate of 4%. SBI rate on 1 st April 2020 is 7.5%. Helper allowance of Rs 3000 p.m and employee has spent only Rs 2,200 p.m
2. Income from all other sources (Computed) Rs 15,00,000 As a tax consultant, compute his tax liability under both old and new tax regime by giving an appropriate suggestion.
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