ILLUSTRATION 4

How much of the following incomes will be taxable? 1. Income from property owned by a widow. Annual Rental Value of the property is Rs. 30,000. 2. Interest received a scheduled bank

Rs. 1,800. on Saving Bank Account in 3. Dividend amounting to Rs. 22,000 received from profit and loss

sharing account in a bank.

4. A non-professional artist received Rs. 30,000 for his artistic work.

An employee has received Rs. 8,000 from his employer asutilities allowance. His basic salary is Rs. 60,000 per annum.

Solution

S.No. Exempt          Taxable                  Remarks

The property owned by a widow is fully exempt as the amount is below taxable limit,  1.Rs. 1,50,000.

2. Rs. 30,000         Such interest is fully taxable with effect from 1992-93 (separate block of income).

3. Rs. 1,800            Fully taxable with effect from 1992-93

4. Rs. 22,000         Fully taxable with effect from 1992-93

5. Rs. 30,000        Income of non-professional Dfa Ho writer is

Rs. 8,000              taxable with effect from 1997-98.

Utilities allowance is taxable with effect from tax year 2007.