Answer to Question #260025 in Finance for Ritu

Question

Following emoluments are received by Ms Sangeeta during the previous year ended on 31.3.2021:

1. Basic salary 250000
2. Dearness Allowance 10000
3. Commission 2500
4. Entertainment allowance 2000
5. Medical expenses reimbursed 25000
6. Professional taxes paid 2000(Rs1000 paid by employer)
7. Ms. Sangeeta contributes Rs 2000 towards the Recognized Provident Fund

She has no other income.

Compute the income from salary for A.Y 2021-22, and give reasons and explanations

wherever required, If Ms. Sangeeta is a Government employee

Answer 1

Income from salary

Salary = Basic + Entertainment allowance + Dearness Allowance + Commission – Provident Fund – Income Tax – Professional taxes paid.

=250000+2000+10000+2500-2000-1000

Thus; Gross Salary =264500

Net Salary = 264500 - (2000+1000)

=261500

Therefore; According to Ms. Sangeeta's net pay, she is a governmental worker.