Mr. Rajeev is working as a General Manager at Zenith Pvt. Ltd. in Mumbai. He has shared the following information for the financial year 2024-25:…

CA Intermediate · Taxation · MTP · September 2025
Mr. Rajeev is working as a General Manager at Zenith Pvt. Ltd. in Mumbai. He has shared the following information for the financial year 2024-25: (i) Basic salary of 56,000 per month. (ii) Medical treatment facility received in the company's own hospital - 9,000 (iii) On his work anniversary, he received a gift voucher worth - 4,500 from the company. (iv) A four-seater dining table was provided to Mr. Rajeev at his residence. This was purchased by the company on 1.5.2022 for 90,000 and sold to Mr. Rajeev on 1.8.2024 for 50,000. (v) Personal expenses of 10,000 made using the company credit card were paid by the company. No part of the amount was recovered from Mr. Rajeev. (vi) A Maruti Suzuki car which was purchased by the company on 16.7.2021 for 2,50,000 was sold to Mr. Rajeev on 14.7.2024 for 80,000. Other income received by the assessee during the previous year 2024-25: Particulars ₹ (a) Interest on Fixed Deposits with a company 5,000 (b) Income from specified mutual fund 3,000 (c) Interest on bank fixed deposits of a minor married daughter 3,000 Compute the gross total income of Mr. Rajeev for the Assessment year 2025-26 assuming he opts out of the default tax regime under section 115BAC. Mr. Rajesh's wife is a housewife. (5 Marks)

Suggested Answer and Working Notes:

Computation of gross total income of Mr. Rajeev for the A.Y. 2025-26 under normal provisions of the Act Particulars ₹ I Salaries Salary [₹ 56,000 x 12] 6,72,000 Medical facility [in the hospital maintained by the company is exempt] - Gift given on the occasion of work anniversary - 4,500 is exempt, since its value is less than - 5,000 - Perquisite on use of dining table for 4 months [₹ 90,000 x 10/100 x 4 /12] 3,000 Perquisite on sale of dining table Cost 90,000 Less: Depreciation on straight line method @ 10% for 2 years 18,000 Written Down Value 72,000 Less: Amount paid by the assessee 50,000 22,000 Purchase through credit card [covered by section 17(2)(viii) read with Rule 3(7)] 10,000 Perquisite on sale of car Original cost of car 2,50,000 Less: Depreciation from 16.7.2021 to 15.7.2022 @ 20% 50,000 2,00,000 Less: Depreciation from 16.7.2022 to 15.7.2023 @ 20% 40,000 Value as on 14.07.2024 - being the date of sale to employee 1,60,000 Less: Amount received from the assessee on 14.07.2024 80,000 80,000 Gross Salary 7,87,000 Less: Standard deduction under section 16(ia) 50,000 Taxable Salary 7,37,000 II Income from Other Sources Interest on fixed deposit with a company 5,000 Income from specified mutual fund 3,000 Interest on Fixed Deposit received by minor daughter (₹ 3,000 -1500) 1,500 9,500 Gross Total Income 7,46,500

Topics: Paper 3A: Income Tax Laws, Paper 3B: Goods and Services Tax

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