CS Executive · Tax Laws and Practice · Income under the Head Salary
Rohan, a salaried employee of a Pune firm, has gross salary of Rs 9,20,000 for the tax year. Assume a standard deduction of Rs 75,000 and professional tax paid of Rs 2,400 (deductible from salary, as it is taxed on employment). What is his income chargeable under the head Salary?
His salary income is Rs 8,42,600. Start with gross salary of Rs 9,20,000, subtract the standard deduction of Rs 75,000 and the professional tax of Rs 2,400. Omitting professional tax would give Rs 8,45,000, which is incorrect.
- ARs 8,42,600Correct
- BRs 8,45,000
- CRs 9,17,600
- DRs 8,20,000
Explanation
Income from salary = 9,20,000 - 75,000 - 2,400 = 8,42,600. Option B ignores professional tax. Option C ignores the standard deduction. Option D wrongly subtracts a larger amount.
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