Case Study 1
Details available:
During the financial year Mr Raj Gopal earned salary income of Rs.11,25,000 and he has repaid his housing loan Rs.4,25,000 (Interest portion 3,00,000 and principle amount 1,25,000). The house is being used for personnel use.
He has made investment in following;
- Life Insurance Premium in the name of Mrs Raj – Premium is 50,000 whereas sum assured is Rs.5,00,000
- Invested in FD for lock in period of 5 years – 50,000
- Tuition Fees Paid to his two children – 60,000
- Received interest from bank on Savings Account – Rs.15,000
Income Tax Login Details for payment of Self-Assessment Tax:
- Username: BKSPA2348L
- Password: Fin@123
Solution:
Computation of taxable income of Mr Raj Gopal:
Computation of Tax Liability:
Note:
- Rebate is not applicable because total income under New regime is > 7,00,000 and under old regime is > 5,00,000
- Interest paid on housing loan is subject a maximum limit of Rs. 2,00,000 / –
- Deduction u/s 80C is subject a maximum limit of Rs. 1,50,000 / –
- Deduction in respect of interest income on deposits in savings account with a bank assuming the assessse is not a senior citizen