QCM : Tax Planning and Salary Computation Strategies — 8 questions

Explication

Under the 115BAC column, the Chapter VI-A deductions such as 80C, 80D, and 80G were treated as not eligible, which increased taxable income. The non-115BAC column allowed them.

Explication

The donation deduction was computed as 50% of ₹10,000, which gives ₹5,000, and this was treated as the 80G deduction. The other options relate to different types of relief.

Explication

The computation used the standard deduction under section 16 of ₹50,000, being the lower of actual salary or the allowed limit. This was subtracted from gross salary in the optional regime case.

Explication

The perquisite was computed at 10% of salary, but only for 4 months because occupation began on 01.12.2025. It was not taken for the full year.

Explication

The bonus was equal to one month’s basic salary and was paid in November 2025, so it formed part of salary for A.Y. 2026-27. It was therefore included in the computation.

Explication

The problem states that employer’s contribution to the recognised provident fund was treated as a salary component. The employee’s own contribution was separate and did not change that treatment.

Explication

The stated figures were municipal value ₹1,80,000, fair rent ₹2,36,000, and standard rent ₹2,20,000. These values were used as the starting inputs for the house property computation.

Explication

The construction loan was taken on 1st September 2018, and the loan remained outstanding as on 31st March 2026. That fact was relevant to the house property interest treatment.