help plzz

let me know about the income of the person (income tax)(salaries)

education allowance for two children(expenditure being Rs600)                             3600rs

hostel expenditure allowance for one child(expenditure being Rs7000)                 6800rs

what will be the gross total income and how plz let me know ...........:-)

Replies (4)
Interest on investment will be admissible or inadmissible in business/profession.....?

education allownace is 100 p.m p.c or actual exp which ever is less is exempted . hostel allowance is 300 p.m p.c or act exp which is less is xmpted from tax

edu allo 100*12*2=2400 act exp 600 so 600 is exempted . so taxable income = 3000

hostel allo 300*12*1=3600 act exp 7000 . so 3600 is exm. so taxable income  =3200

                                                                                                                                           ---------------

                                                taxable income                                                                = 6200

                                                                                                                                        -----------------------

interst on investments is admissable only if such investments are held ae stock in trade . otherwise they r taxable under d head othersourses

Education allowance exempt=100*12*2=2400 ( irrespective of exp ) or

hostel allow exempt -300*12=3600

Income from non trade investment taxable under other sources
 and TRADE investment  Admissible under B&P

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