Laptop given to Mr. Mayank by the employer, partly for official purpose and partly for personal or private purpose,  What would be the value of benefit?

If employee covered under Payment of Gratuity Act 1972, salary for the purpose of gratuity calculation, Salary include -

Mr. Shikhar has the following receipts from his employer :

1. Basic Pay  -  Rs. 60,000.


2. Dearness allowance (part of Retirement benefit)  -  Rs. 12,000


3. Commission on performance   -   Rs. 9,000


4. House Rent Allowance  -  Rs. 15,000

He paid rent of Rs. 1,500 p.m. for his accommodation at Delhi.  Find out the amount of HRA eligible for exemption.

Where unfurnished accommodation is owned by employer and provided to employee. (No rent is paid by employee)

Choose incorrect option from below.

Value of benefit when interest free or concessional loan made available to employee.

A) No value, if such loan are made available for medical treatment in respect of prescribed diseases.

B) No Value, when the amount of loans are not exceeding in the aggregate Rs. 50,000.

Advance against salary is different from advance salary.

Deduction of entertainment allowance u/s 16 is allowed only to Government Employee.

Mr. Akshay, as an employee,  has completed service of 25 years 7 months in Bollywood Ltd. For calculation of gratuity, number of completed year shall be taken as :

a) if covered under Payment of Gratuity Act, 1972.

b)if not covered under Payment of Gratuity Act, 1972.

Any commuted pension received by an individual out of annuity plan of the Life Insurance Corporation of India from a fund set up by that Corporation will be Taxable.

Any sum paid by the employer in respect of any expenditure actually incurred by the employee on his medical treatment or treatment of any member of his family to the extent of Rs. ........ in the previous year.

Statement 1 -  Advance salary is taxable in the year of receipt.

Statement 2 - Relief u/s 89 is not available if advance salary is taxable in the year of receipt.

A) Gratuity received during the period of service is fully taxable.

B) Where gratuity is received from 2 or more employers in the same year then the aggregate amount of gratuity exempt can exceed Rs. 10,00,000.

Any gift received by an employee or member of his household on ceremonial occasions or otherwise from the employer is taxable as perquisite if value of such gift exceed Rs. 5,000 in aggregate during previous year.

True or False

Virat was employed with Royal Challenger LTD. at a salary of Rs. 30,000 pm, and took advance salary from company for the month of March and April 2018 along with salary of Feb 2018 on 01.03.2018.

Ascertain Gross Salary of Virat for AY 2018-19.

A) Uncommuted pension is fully exempt in the hand of Government employee and non-government employee.

B) Commuted pension is fully exempt in the hand of government employee and also in the hand of non-government employee to certain extent as specified in section 10(10A).

Where the accommodation is provided by employer in a hotel and such accommodation is provided for a period not exceeding 15 days on his transfer from one place to another, there would be no perquisite.

Following amount received by Mr. Gagan (Normal Individual)  from employer -

1. Children education allowance  -  Rs. 250  per month for daughter and Rs. 80 for son.


2. Transport Allowance - Rs. 2,000 per month

Compute his taxable allowance.

Employer`s contribution to superannuation fund during the previous year 2017-18 is –

True or False :

MP or MLA is a Government employee and remuneration received by him is taxable under the head Salary.