Skip to content

CA Intermediate · Taxation · Salaries

Rahul, a resident employee of a private company, has opted for the default (new) tax regime for tax year 2026-27. His basic salary is Rs 8,00,000 and taxable allowances are Rs 1,40,000 for the year. He has no other perquisites. What is his income chargeable under the head Salaries?

Income under Salaries is Rs 8,65,000. Gross salary of Rs 9,40,000 is reduced by the standard deduction of Rs 75,000 available under the default new regime. The Rs 50,000 deduction applies only to the old regime, so Rs 8,90,000 is incorrect.

  1. ARs 8,65,000Correct
  2. BRs 8,90,000
  3. CRs 9,40,000
  4. DRs 9,15,000

Explanation

Gross salary is 8,00,000 + 1,40,000 = Rs 9,40,000. Under the new regime the standard deduction is Rs 75,000, so income from salaries is Rs 8,65,000. Rs 8,90,000 wrongly uses the old-regime deduction of Rs 50,000.

Did you get it right without looking?

One question tells you little. A timed set on Salaries shows your real accuracy, how long you take and where you lose marks.

Practise SalariesFree diagnostic mock

More Salaries questions