Chapter 7: Income Tax

Exercise -11

[Note: - Reader’s are adviced to consult the tables of saving, donation and income tax as it is given in the starting of the chapter.]

1. Gautam earns an annual salary of Rs. 18,6000. He contributes Rs. 3000 per month to his provident fund and pays an annual premium of Rs.20,000 towards L. I. C. calculate the income tax he has to pay in the last month of the year, if his earlier income tax is deducted for the first 11 month at the rate of Rs. 300 Per month.
2. The annual salary of a male person is Rs. 2,36,786. He contributes Rs. 900 per month to P. F. and pays Rs.3200 as L. I. C. premium. He purchased NSCs for Rs. 40,000 and invested Rs. 1200 in mutual fund. He donates Rs. 3000 owards the Prime Minister Relief fund (eligible for 100% deduction). If his advance tax is deducted at the rate of Rs. 400 per month for first 11 months. Calculate his taxable income in the last month.
3. Mr. Rajan’s income from his salary is Rs. 3,25,000. He contribute towards P. F. Rs. 40,000 annually and his annual premium towards LIC is Rs.25,000. He invested Rs. 15,000 in NSCs and donates Rs. 10,000 to Prime Minister’s relief fund (eligible for 100% tax exemption) and Rs. 8000 to a religious institution (eligible for 50% tax exemption). Calculate the income tax he has to pay in the last month if a sum of Rs. 1800 per month was deducted from his salary for 11 months.
4. The annual income of Mrs. Shoba is Rs.3,26,680. She contributes Rs. 6,500 per month to her PF account and pays an annual premium of Rs. 22,000 towards her L.I.C account calculate the income tax Mrs. Shoba has to pay in the last month of the year, if her earlier deduction as income tax for first 11 month were at the rate of Rs. 1,500 per month.
5. The annual income of Mrs. Jaya Kar is Rs. 3,73,070. She donates Rs.20000 to a charitable Trust (eligible for 50% exemption in tax). She contributes Rs. 2400 per month to her P. F. account and pays an annual insurance of premium of Rs.16,500. Calculate what amount of refund will she get from Income Tax Department? Her earlier deduction as income tax for 12 months were at the rate of Rs.4000 per month.
6. Mr. Bhargava is a senior citizen of age 67 years. He gets consolidated salary of Rs. 2,40,000 annually. He contributes Rs. 30,000 to PPF and donates Rs. 40,000 to PM relief fund (eligible for 100% exemption) and Rs. 3000 in a charitable Hospital (eligible for 5% exemption). Calculate income tax to be paid by him during the year.
7. 7. A retired officer of 66 years of age gets a pension of Rs. 16,885 per month and gets Rs. 25,000 per month as salary from a private company. He contributes Rs. 45,000 to PPF and invests Rs. 25,000 in National saving certificates. He donates Rs. 15,000 to Prime Minister’s Relief fund (eligble for 100% exemption) and Rs. 10,000 to an institution (eligible for 5% exemption). What income tax will he pay at the end of the year.
8. Annual income from salary of Mr. Chauhan is Rs. 3,89,765. He contributes Rs. 3800 per month to P. F. and Rs. 25,000 to PPF and invests Rs. 20,000 in NSCs. He donates Rs. 10,000 to National Defence Fund, eligible for 100% exemption. If Rs. 3500 per month is deducted from his salary for 12 months. Find the amount he will get as refund from income tax department.
9. Mr. Pramod gets an annual salary of Rs. 364785. He contributes Rs. 2190 per month towards his PF and invests Rs. 24180 annually as life insurance premium and invests Rs. 10000 in NSCs. He donates Rs. 9000 to a charitable trust (eligible for 50% exemption). He pays Rs. 3500 per month as income tax from his salary for first 11 month. What amount will be deducted from the salary of his last month to settle his income tax?
10. Mrs. Meera Agarwal has the income statement as given below:

(In Rs.)

(i) Basic Pay (ii) Dearness Allowance (iii) House Rent Allowance (iv) Honorarium (v) Children’s Education Allowance (vi) Savings:       (a) Contribution to PF       (b) LIC Premium       (c) Investment in NSCs       (d) Contribution to ULIP       (e) Investment in CTD (vii) Donation: Rs. 12000 to a charitable trust (eligible for 50% exemption US 80G) (viii) Tax deducted at source: Rs. 37000 What refund will Meera get?

1,89,600 45,240 51,000 35,000 12,000 23,980 8,050 9,500 5,600 5,000