DT MCQ PROBLEM

My answer is : 530920 (tax 510500 + cess 20420)
out of total tax of 510500 ...tax of 30500 is @ normal tax rate and tax of 480000 is @ 30% on anonymous donation of 16 lakh.

Originally posted by : Monika
	My answer is : 530920 (tax 510500 + cess 20420)out of total tax of 510500 ...tax of 30500 is @ normal tax rate and tax of 480000 is @ 30% on anonymous donation of 16 lakh.

Kindly elaborate your answer related to tax part as you calculated i.e. Rs.  30,500/-

As per Book Answer is Option C i.e. Rs. 543,400/-

Kindly explain me so that i understand concept related to THIS SPECIFIC PROBLEM

Thanks With Regards

Ravi SADhiyan 

Answer is different because as per VG sir's book anonymous donation which is not taxable under normal tax rate is not eligible for 15% deduction ...which means whole anonymous donation is deducted before calculating 85% taxable income
whereas in BB sir's book anonymous donation which is taxable under normal tax rate is made eligible for 15% deduction which means before calculating 85% taxable income only that part of anonymous donation which is taxable under section 115 BBC is deducted
and my answer is as per method of BB sir ...if you solve this as per VG sir's method you'll get 543400.
In ICAI module it's written "it's possible to take any of these two views to solve problem"