you will be voted according to your given Answer,

Compute taxable Entertainment allowance & net salary of Sri Hanuman Prasad from the following data: Basic salary 8,000 p.m.D.A. * 2,000 p.m. Taxable perquisite 35,000, Entertainment Allowance 4,000 p.m. Out of such allowance 20.000 is expended and balance amount is saved. Assuming he is: a. Government employee b. Non-Government em f32 Computation of taxable income of Sri Hanuman Prasad for the A.Y.2019.20 Non-Government Employee Particulars Government Employee Details (6) Amount () 96,000 Details (*) Amount(*) 96,000 24,000 24,000 48,000 48,000 35,000 35,000 Basic Salary Dearness Allowance Entertainment Allowance Taxable perquisite Gross Taxable Salary Less: Deduction u/s 16(a) Standard Deduction 16() Entertainment allowance Net Taxable Salary 2,03,000 2,03,000 40,000 40,000 5,000 45.000 NII 40.000 1,58,000 1,63,000 * Entertainment Allowance is exempted to the extent of minimum of the following a Actual Entertainment Allowance 48.000 b 20% of Basic Salary * 19,200 Statutory amount * 5,000 Tax on employment, profession, trade, etc. levied by a State under Article 276 of the Constitution will be allowed as deduction on cash basis, whether paid by employee or by employer (on behalf of employee) from gross taxable salary Note: If employer (on behalf of employee) pays Professional tax then: a. Firstly, it is to be included as taxable perquisite and b. Further, it is allowed as deduction u/s 16(1). a *2,000 pm ILLUSTRATION 35 Mr. Rohit a non-Government employee has the following salary details Basic Salary *5,000 pm b. DA C. Entertainment Allowance 300 pm d. Professional tax paid by employee e LIC Premium paid by employer 33,600 f. Income tax paid by employee g. Professional tax paid by employer on behalf of employee Find his taxable salary 600 32.000 1,600