Computation of Taxable Income (Illustration)

Computation of Taxable Income (Illustration)

Computation of Taxable Income (Illustration) Illustration: Mr. Rajat’s GTI for the P.Y. 2012-13 was Rs. 5, 00,000. He made the following d... 11:09 PM

Computation of Taxable Income (Illustration)
Illustration: Mr. Rajat’s GTI for the P.Y. 2012-13 was Rs. 5, 00,000. He made the following donations by cheques.

• a)     Maharashtra Chief Minister’s Earthquake Relief Fund – Rs. 10,000
• b)    National Foundations for Communal Harmony – Rs. 15,000
• c)     Municipal Corporation for promotion of family planning – Rs 40,000
• d)    Minority Community Corporation(notified) – 25,000
• e)     Rs. 10,000 to an Educational Institution of National Eminence

Compute his taxable income for the A.Y. 2013-14.

Solution:

Computation of Taxable Income

                                                                                                   Rs.                   Rs.

              Gross Total Income                                                                    5,00,000

                 Less: Deduction u/s 80G:

1)    Deduction allowed (100%)

a)  M C M E RF                                            10,000

b) N F C H                                                     15,000

c)  E I N E                                                      10,000

2) With limit donation (40,000+25,000)

Qualifying amount 10% of GTI is 50,000

a)  Deduction for Family planning(100%)       40,000

b) Deduction for minority Community(50%)  5,000    82,500

                           Taxable income                           4,17,500