17 Computation of Total Income
For Your Practice
P.1 Ms. Vaishali, employed in a private sector company, furnishes following information for the year
ended 31.03.2025
Particulars Amount
Income from salary (computed) 3,45,000
Bank interest (Fixed Deposit) 15,000
Tax on non-monetary perquisite paid by employer 20,000
Amount contributed by her during the year are given below :
Contribution to recognized provident fund 60,000
Health insurance premium-on self (paid by crossed cheque) 7,000
Medical expenditure for dependent sister with disability 20,000
Compute the total income of Ms. Vaishali for the A.Y 2025-26
P.2 Dr. Niranjana, a resident individual, aged 60 years is running a clinic in Surat. Her Income and
Expenditure Account for the year ending March 31st, 2025 is as under :
Expenditure Amount Income Amount
To Medicine consumed 35,38,400 By Consultation and medical 58,85,850
To Staff salary 13,80,000 charges
To Clinic consumables 1,10,000 By Income-tax refund (principal 5,450
To Rent paid 90,000 ₹5,000, interest ₹ 450)
To Administrative expenses 2,55,000 By Dividend from units of UTI 10,500
To Amount paid to scientific 1,50,000 (Gross)
research association approved By Winning from game show 35,000
u/s 35 on T.V. (net of TDS of ₹ 15,000)
By Rent 27,000
To Net profit 4,40,400
Total 59,63,800 59,63,800
i) Rent paid includes ₹30,000 paid by cheque towards rent for her residential house in Surat.
ii) Clinic equipments are :
> 1.4.2024 Opening W.D.V : ₹5,00,000
> 7.12.2024 Acquired (cost) by cheque : ₹2,00,000
iii) Rent received relates to residential house property situated at Surat. Gross Annual Value
₹27,000. The municipal tax of ₹2,000, paid in December, 2025, has been included in
"Administrative expenses".
iv) She received salary of ₹7,500 p.m. from "Full Cure Hospital" which has not been included
in the "consultation and medical charges".
v) Dr. Niranjana availed a loan of ₹5,50,000 from a bank for higher education of her daughter.
She repaid principal of ₹1,00,000, and interest thereon ₹ 55,000 during the P.Y. 2024-25.
vi) She paid ₹1,00,000 as tuition fee (not in the nature of development fees/donation) to the
university for full time education of her daughter.
vii) An amount of ₹28,000 has also been paid by cheque on 27th Mar, 2025 for her medical
insurance premium. From the above, compute the total income of Dr. Smt. Niranjana for
the A.Y. 2025-26 under the default tax regime and optional tax regime as per the normal
provisions of the Act.
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P.3 Calculate the income-tax liability for the AY 25-26 in the following cases :
Particulars Mr. A Mrs. B Mr. C Mr. D
(age 45) (age 62) (age 81) (age 82)
Status Resident NR Resident NR
Total income other than LTCG 2,40,000 2,80,000 5,90,000 4,80,000
Long-term capital gain 15,000 10,000 60,000
(Transfer after 23.07.2024) (From sale (From sale of (From sale of NIL
of vacant listed shares agricultural land
site) [STT paid] in rural area)
P.4 Mr. Y carries on his own business. An analysis of his trading and profit & loss for the year
ended 31-3-2025 revealed the following information:
1) The net profit was ₹11,20,000.
2) The following incomes were credited in the profit and loss account :
a) Income from UTI ₹22,000 (Gross)
b) Interest on debentures ₹17,500 (Gross)
c) Winnings from horse races ₹15,000 (Gross)
3) It was found that some stocks were omitted to be included in both the opening and
closing stocks, the value of which were :
> Opening stock ₹8,000.
> Closing stock ₹12,000.
4) ₹1,00,000 was debited in the profit and loss account, being contribution to a University
approved and notified under section 35(1)(ii).
5) Salary includes ₹20,000 paid to his brother which is unreasonable to the extent of ₹2,500.
6) Advertisement expenses include 15 gift packets of dry fruits costing ₹1,000 per packet
presented to important customers.
7) Total expenses on car was ₹78,000. The car was used both for business and personal
purposes ¾ this for business purposes.
8) Miscellaneous expenses included ₹30,000 paid to A & Co., a goods transport operator in
cash on 31-1-2025 for distribution of the company’s product to the warehouses.
9) Depreciation debited in the books was ₹55,000. Depreciation allowed as per Income-tax
Rules, 1962 was ₹50,000.
10) Drawings of ₹10,000 debited in the books.
11) Investment in NSC ₹15,000 debited in the books.
Compute the total income of Mr. Y for the assessment year 2025-26 under optional tax
regime as per normal provisions of the Act.
P.5 Mrs. Deepali (aged 40 years), working with M/s Good Company Ltd., a manufacturer of tyres
based at Mumbai, has received the following payments during the FY from her employer :
Basic salary ₹60,000 p.m.
Dearness allowance 40% of basic salary
Employer has taken on rent her own house on a monthly rent of ₹15,000 & the same has
been provided for residence of Mrs. Deepali. Co. is recovering ₹2,000 per month as Rent of
house. Mrs. Deepali has further furnished the following details:
i) She has paid professional tax of ₹6,000 during financial year
ii) She is owning only one house & payment of interest of ₹1,75,000 & principal of ₹1,00,000
was made for housing loan taken for purchase of house.
iii) She has also taken loan of ₹2,00,000 from her employer for study of her son. SBI rate for
such loan is 10%.
Her employer has recovered ₹10,000 as interest from her salary for such loan during the year.
Compute taxable income and tax liability for A.Y. 2025-26 assuming not opting for sec 115BAC
[Link] CA Vijay Sarda
[Link] CTI 17.2 askvjsir@[Link]
P.6 Balamurugan furnishes the following information for the year ended 31-03-2025
Particulars Amount (Rs.)
Income from business (₹1,35,000)
Income from house property (₹15,000)
Lottery winning (Gross) ₹5,00,000
Speculation business income ₹1,00,000
Income by way of salary ₹2,70,000
Long term capital gain u/s 112 ₹70,000
Compute his total income, tax liability and advance tax obligations under default tax regime
u/s 115BAC.
P.7 Mr. R a resident Individual age 35 furnish the following Information from P&L account for the
year Ended 31.03.2025 :
a) Net Profit was ₹6,50,000
b) The following income were credited to P&L :
> Interest on Govt Securities ₹25,000
> Dividend from Foreign Company ₹18,000
> Gold coins worth ₹55000 was received as a gift from his Father
c) Depreciation debited in the books of accounts ₹85,000 & depreciation as per IT is ₹80,000.
d) Interest on loan amounting to ₹68,000 paid in respect of capital borrowed for purchase of
new assets not been put to use till the year end.
e) General Expenses Included :
> An Expenditure of ₹20,500 which has paid by a bearer Cheque
> Compensation of ₹4,500 paid to an employee while terminating his service in business
Unit.
f) He contributed the following amount by Cheque :
> ₹45,000 in Sukanya Samriddhi Scheme in the name of minor daughter.
> ₹20,000 to Sawchhbharat kosh set up by central govt.
> ₹28,000 towards premium for health Insurance and ₹2,500 for preventive health checkup
for self and his wife.
> ₹35000 on account of medical exp of his father aged 82 years (no insurance scheme has
been availed on health of his father).
You are required to compute the total Income of Mr. R for the A.Y 25-26.
P.8 Rosy and Mary are sisters, born and brought up at Mumbai. Rosy got married in 1982 and
settled at Canada since 1982. Mary got married and settled in Mumbai. Both of them are
below 60 years. The following are the details of their income for the previous year ended
31.3.2025 :
No. Particulars Rosy ₹ Mary ₹
1. Pension received from State Government - 60,000
2. Pension received from Canadian Government 20,000 -
3. Long-term capital gain on sale of land at Mumbai 1,00,000 1,00,000
4. Short-term capital gain on sale of shares of Indian listed 20,000 2,50,000
companies in respect of which STT was paid
5. LIC premium paid - 10,000
6. Premium paid to Canadian Life Insurance Corporation at Canada 40,000 -
7. Mediclaim policy premium paid by A/c Payee Cheque - 25,000
8. Deposit in PPF - 20,000
9. Rent received in respect of house property at Mumbai 60,000 30,000
Compute the total income and tax liability of Mrs. Rosy and Mrs. Mary for the A.Y. 2025-26
and tax thereon assuming both exercised the option to shift out of the default tax regime.
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[Link] CTI 17.3 askvjsir@[Link]
