Question 2:

You are required to compute the total income and tax payable by Mr. Josh, aged 48 years, from the following information provided by him for the Assessment Year 2021-22. Mr. Josh does not want to opt for section 115BAC for the A.Y. 2021-22:

Basic Salary @ Rs. 51,000 per month, Dearness allowance @ Rs. 10,000 per month (Part of salary for retirement benefits), House rent allowance Rs. 4,000 per month and rent paid for house in Chennai is Rs. 7,000 per month.

He owns a commercial building at Mumbai, which is let out on 1.7.2020 at a monthly rent of Rs. 46,000 to ABC Ltd. He paid municipal taxes of Rs. 27,000 and Rs. 25,000 for the financial year 2019-20 and 2020-21 on 31-3-2021 and 20-4-2021, respectively. Fair rent of the building is Rs. 33,000 p.m.

Interest from saving bank account with SBI Bank Rs. 15,000 and lottery winnings (Net of TDS@30%) is Rs. 21,000.

He paid the following amounts during the P.Y. 2020-21:

Deposits in Public Provident Fund Rs. 1,50,000.

Medical insurance premium paid for health of his wife Rs. 19,000 and for health of dependent son Rs. 12,000 through cheque.

(10 marks)