INCOME FROM SALARIES

ENTERTAINMENT ALLOWANCE:
Problem.No.1
Mr. Y a government employee gets Rs.80,000 per annum as basic pay . In addition he
receives Rs.20,000 as EA. Calculate exempted E.A.
Problem.No.2
Mr. A works in Government of Karnataka. He gives the following details.
Basic salary

Rs.5,000 p.m

DA [forming part]

Rs.1,000 p.m

DA [not forming part]

Rs.750 p.m

HRA

Rs.600 p.m

EA

Rs.250 p.m

He claims that he pays a rent of Rs.200 p.m and he has spent Rs.3,000 p.a towards E.A.
calculate
a. Exempted HRA
b. Exempted EA
Problem.No.3
Shri.Shankar receives the following emoluments during the previous year 2015-16.
Basic pay
Commission 60% of basic pay
Entertainment allowance (E.A)
Dearness allowances (D.A) (forming part of salary)
Determine the deduction of EA from salary if

Rs.
90,000
54,000
12,000
10,000

a. Shri. Shankar is a government employee since 1976.

b. Shri. Shankar is an employee of RBI since April 1955 and receiving Entertainment
allowance since then;
c. He is an employee of Karle Ltd. Since 1954 and receiving Entertainment allowance since
then.
HOUSE RENT ALLOWANCE:

Problem.No.4
Mr Y is employed at Amritsar on a salary of Rs. 3,000 p.m. The employer is paying HRA
of Rs. 350 p.m. but the actual rent paid by him (Employee) is Rs. 500p.m. He is also getting 2%
commission on turnover achieved by him and turnover is Rs. 1,50,000.
Problem.No.5
Mr Z who lives in Dharwad with his family in his own house is employed in a private
company and gets basic salary of Rs. 2,000 p.m, DA Rs. 500 P.m, (30% is not considered for
retirement benefits), CCA Rs. 200 p.m, HRA Rs. 4,500 p.m, From 1.12.2012 he lives in a
rented house paying a rent of Rs. 5000 p.m.
Problem.No.6
Mrs A, a resident individual, residing in mysore is a government employee and gets the
following emoluments in previous year 2012-13; Basic salary Rs. 50,000 p.a; D.Pay Rs.
30,000 p.a; Bonus Rs. 10,000 p.a, Medical allowance Rs. 2,800 p.a; HRA Rs . 2,500 p.m.
She is residing in a house, for which no rent is paid by her throughout the year.
Problem.No.7
Compute gross salary from information given below for each situation separately:
a) Salary @ Rs.3,500 p.m; (b)D.A@ RS.1,000 p.m; (c) C.C.A @ Rs.200 p.m; (d) House Rent
Allowance @ Rs.1,000 p.m; (e) Commission on turnover achieved by him is Rs.6,000
Situations:
(a) Living in own house
(b)Living in rented house at Delhi as D.A enters into pay for retirement benefits and rent paid is
Rs.1,500 p.m
(c)Living in rented house at Chandigarh as D.A does not enter into pay for retirement benefits
and rent paid is Rs.1,000 p.m
Problem.No.8
Mrs.kalpana chawla (resident) an employee of software company in bangalore submits the
following information compute her gross salary for the P.Y. 2015-16.
Basic salary rs. 40,000 per month.
DA 30% of basic (60% enters)
HRA rs.3,500 per month
Annual bonus rs.30,000
Rent paid by kalpana is rs. 72,000.

Problem.No.9
Mrs. Ranjitha (resident) working in a company and getting a basic pay of rs. 8,000 p.m, D.A at
20% of basic pay , HRA at 12% of basic pay and bonus equal to two months of basic pay. She is
residing in a rented house at rs.1,800 p.m. determine her exempted amount of HRA, for the P.Y
2015-16.