Mr. Rishabh, a salaried employee in a private company, provides you with the following information for the year ended on 31-03-2025: Basic salary -…

Computation of taxable salary of Mr. Rishabh for the A.Y. 2025-26 Particulars Particulars ₹ Basic Salary [(₹ 75,000 x 10) + (₹ 85,000 x 2)] 9,20,000 Dearness allowance [50% of basic salary] 4,60,000 Employer's contribution to recognized provident fund [18% x 9,20,000] 1,65,600 Less: Exempt upto 12% of basic salary and D.A. forms part of retirement benefit [12% x 11,04,000] 1,32,480 33,120 Taxable allowances House rent allowance 1,92,000 Less: Least of the following exempt under section 10(13A) 93,600 98,400 (i) HRA received 1,92,000 (ii) Rent paid (-) 10% of salary [₹ 2,04,000 – 10% x 11,04,000] 93,600 (iii) 40% of salary [40% x 11,04,000] 4,41,600 Taxable Perquisite Professional tax paid by the employer [Perquisite includes any sum paid by the employer in respect of any obligation which would have been payable by the employee] 1,800 Interest on loan [Not a perquisite, since loan is for medical treatment of his brother for tuberculosis treatment] - Leave travel concession 45,000 Less: Exempt u/s 10(5) 45,000 - [Mr. Rishabh can avail exemption on the entire amount of 45,000 reimbursed by the employer towards leave travel concession since the leave travel concession was availed for himself, wife and three children and the journey was undertaken by economy class airfare. The restriction imposed for two children is not applicable in case of multiple birth which take place after the first child.] Gross Salary 15,13,320 Less: Deduction under section 16 Professional tax paid 2,200 Standard Deduction, lower of salary or - 50,000 (Since Mr. Rishabh has opted out of section 115BAC) 50,000 52,200 Taxable Salary 14,61,120