Flashcards: Tax Planning and Salary Computation Strategies — 8 cards

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1Question

Deductions — section 80C limit?

Answer

₹1,50,000 maximum deduction.

2Question

Salary under optional regime — deductions?

Answer

No Chapter VI-A deductions allowed.

3Question

Default regime — salary components?

Answer

Includes basic, DA, bonus, employer PF, profession tax.

4Question

House property income — starting point?

Answer

Based on municipal value, fair rent, or standard rent.

5Question

Section 115BAC — effect on deductions?

Answer

Disallows Chapter VI-A deductions, increasing taxable income.

6Question

Perquisite value — rent-free accommodation?

Answer

10% of salary for occupation months, here 4 months.

7Question

Car perquisite — valuation method?

Answer

Cost minus depreciation, then value on sale date minus amount received.

8Question

House property — municipal taxes?

Answer

Paid at 10% of municipal value during the year.

Test yourself with the quiz

Test your knowledge with 8 questions on Tax Planning and Salary Computation Strategies.

1. What was the main effect of choosing the 115BAC regime on the Chapter VI-A deductions shown in the computation?

2. Which deduction was calculated as 50% of a ₹10,000 donation in the shown computation?

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