Dear All,
Please provide the solution for the following query:-
X Ltd. contributes 20% of basic salary to the account of each employee under a pension scheme specified u/s 80CCD. Total salary debited to profit and loss account is Rs. 70 lacs. The company also has policy to pay dearness allowance @ 40%, 50% of which form part of retirement benefit. Mr. A, an employee, received Rs. 20,000 pm as basic salary.
Provide
a) Deduction available to X Ltd. and
b) Total Income of Mr. A, if Mr. A also contributes 20% of his basic salary to the scheme and has other investment by Rs. 80,000 eligible for 80C deduction.
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