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Mr B aged 63 years, has earned rupees 75,00,000 out of his business. His ex- wife gifted him cash in account worth rupees 6 lakh. He spent a total of rupees 15 lakh during a family trip. He won a lottery of 19 lakh rupees. Out of happiness he gifted his wife cash of rupees 450000. He bought a life insurance policy and paid a premium of 50000 annually. He paid tuition fee for his daughter for rupees 50000. He invested rupees 80000 in PPF. One of his existing life insurance policy got matured and he received a total of rupees 32 lakh. Seeing his health conditions the doctor adviced him a medical test of rupees 6000 following he bought a health insurance for rupees 27000. Calculate his taxable income and tax liability.

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Mr B's annual income = 75,00,000 .

Gift cash = 6 lakh.

Family trip = 15 lakh.

lottery = 19 lakh rupees.

he gifted his wife cash = 450000.

life insurance policy = 50000

tuition fee for his daughter= 50000.

Investment in PPF= 80000 .

existing life insurance policy got matured =32 lakh.

medical test = 6000

health insurance = 27000.

To find:

His taxable income and tax liability


Taxable income = Revenue gift cash-Family trip Lottery money-gift-Life insurance premium -tution fee for daughter - PPF investment Life insurance matured - Health insurance

= 7500000 600000 - 1500000 1900000-4500000-50000-50000-80000 3200000-6000-27000


Tax liability = 30% of 11137000 = Rs. 33,41,100

Health cess = 4% of 33000 = 1320

Educational cess = 2000

Total tax liability = Rs. 33,44,420

Hence, taxable income is Rs. 1,11,37,000 and tax liability is Rs. 33,44,420.

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