Look at the solution with me, Karash has done what we have
done, he took out the actual rent, Rs 1,80,000, then he
took out the excess, that the rent he is paying is more
than 10%.
How much did he pay for the rent? He paid Rs 16,000 per
month.
How much did he pay for 12 months?
How much did he pay for 12 months? Rs 1,92,000 and 10% of
the salary. What is the salary? Basic salary plus dearness
allowance.
He did not take the commission. Why did he not take it?
Because it is not on the basis of turnover.
Next, 40% of the salary. Why 40%? Because where is the
house? In non-metro cities, only in Kolkata, Chennai,
Delhi, Mumbai.
Out of the remaining 5%, he got 40%. So, how much did he
get? Now, make it less by 3. It was Rs 1,80,000, Rs
1,36,000 and Rs 2,20,000.
Rs 1,36,000 is the lowest. So, you will get Rs 1,36,000 as
an exemption and the rest that you have received, minus Rs
1,36,000 from that, the rest will be taxable.
How much did you receive as an HRA in that case? HRA was Rs
15,000 per month, Rs 1,80,000 per year and you got Rs
1,36,000 as an exemption. Rs 43,200 is taxable in the hands
of employee.
Did you understand or not? Master is working hard.
Sir, you are working so hard.
Why won't he understand?
Are you getting the point? What I am trying to say is that
some allowances are taxable and some are exempt.
There are some people in the middle category who don't
support taxable, but exempt some. They put a limit. If you
go above that limit, then it is taxable. If you go below
that limit, then it is exempt.
HRA also comes under the same category.
Friends, what happened? Sir, what happened to you? My
throat hurts while speaking.
Sir, why don't you take a day off?
Son, what to do? I don't feel like leaving you even for a
day.
I have fallen in love with you.
What to do of seeing that moon? Now even the moon seems
empty in front of you.
What will be the comparison of that moon in front of this
moon?
Friends, let's do one more illustration. This is Mr.
Srikant. He has two children. He gets Children's Education
Allowance of Rs 150 per month. I gave you the example of
peon. In that case, I told you how much is exempted. Rs 100
per month per child.
In this case, the minister is receiving Rs 150 per month
for two children. So, Rs 100 is exempted. If you subtract
Rs 100 from Rs 150, Rs 50 will be taxable. If you have two
children, then do it according to two.
First, he gets Children's Education Allowance. In this
case, he is saying that Rs 150 is for the elder and Rs 70
is for the younger. This is also there. So, don't multiply
by two. Rs 50 will be taxable for the elder. And Rs 70 is
below Rs 100. So, Rs 70 will be exempted. Only this will be
taxed.
Both his sons are going to school. And apart from this, he
gets Transport Allowance. I had told you what Transport
Allowance is. What is Transport Allowance? You go from your
office to your home and come back to office.
In between, the money you spend on conveyance is given to
you by your employer. This is called Transport Allowance. I
had told you that it was taxable. But I had also told you
that there was a blind man or deaf man. He was so deaf that
he still used to go to work.
So, in that case, the government had said that Rs 3200
should be exempted for this man every month. So, is there a
blind man or deaf man here? I don't think so. So, if you
don't think so, will all this be taxable? If there was a
blind man or deaf man here, Rs 3200 would have been
exempted.
Tribal Area Allowance. I had read about this allowance in
between when we were shuffling. I think it had a limit of
Rs 200. So, let's see what the answer is. Let's see if our
answer is correct or not.
Out of Rs 3200, Rs 100 was deducted. Children's Education
Allowance for Rs 100. Rs 600 for 12 months. I had also told
you that this is correct. So, one point is correct. Younger
son, Rs 70 is exempted. Because you had to exempt up to Rs
100. If you get Rs 70, it is exempt. This is also correct.
Transport Allowance. I had told you that Transport
Allowance is taxable. If there is no blind man or deaf man
here. So, in this case, everything is taxable. My answer
here is also correct. Very good.
My God! Tribal Area Allowance. I was taking Rs 500 per
month. I had told you that Rs 200 is exempted. Rs 200 was
exempted by the government. Rs 300 was taxable for 12
months. Rs 3600. Total taxable allowance is Rs 25,800.
Friends, my answer is correct. Did you see, friends? We
finished the topic of Tribal Area Allowance. So, our
answers started to be correct automatically. That is why I
keep saying, do not be a root cause of wrong practices,
Sujan.
Friends, there is a diver who dives into the water. You
must have seen, when you go to Haridwar or somewhere else,
people throw coins there. What does the diver do? He goes
into the water, swims and brings something. He does not
come empty-handed, even if he brings Rs 1.
The diver is so much superior to the person who is just
sitting on the shore and watching the spectacle. The diver
will get something. If he works hard, he will get something.
You can get everything by searching. So, what is the value
of success? If you work hard, you may get the result a
little late, but you will definitely get it. This is my
personal experience. I am sharing it with you. Keep working
hard, friends.
So, in this case, our allowances were taxable. See, I was
saying, this person got a salary. He got all the
allowances. Could the employer give allowances to his
employee? Yes, he could. He could give anything.
But what I was saying was, what is taxable and what is
exempt? If you remove the exempt, the rest will be taxable.
The employee will pay income tax on those allowances and
salary.
So, friends, with this, our topic of allowances is over. We
have already covered the topic of exempt. We will cover the
next topic of annuity pension in the next lecture. I hope
you have started enjoying this chapter.
You don't have to do anything in this chapter.
First, you have to ask yourself, can the employer give
anything to his employee? Yes, he can give anything.
He can give a house, he can give the whole neighborhood.
He can give a car, he can give the whole showroom.
So, in that case, you have to see that he can give
everything.
What is taxable and what is exempt?
You have to do this calculation in this entire chapter.
This is the point, friends. Don't be afraid to work hard.
Hard work will give you your rights. Don't be afraid of
hard work. Revise this in the next lecture. See you in the
next lecture. Till then, stay healthy and stay happy.