Mr. X has Basic salary of ₹ 90,000 and D.A @ 20% of salary forming part of salary. The commission was fixed @ 2% of the turnover achieved by him. The turnover achieved by him during the year was ₹ 50,00,000. He also received a bonus of ₹ 20,000. The employer contributed ₹ 25,000 towards recognised provident fund. What is the amount of employer’s contribution taxable under the head Salaries.
A. ₹ 40
B. ₹ 24,160
C. Nil
D. ₹ 24,960
Answer:A
Mr. X has Basic salary of ₹ 90,000 and D.A @ 20% of salary forming part of salary. The commission was fixed @ 2% of the turnover achieved by him. The turnover achieved by him during the year was ₹ 50,00,000. He also received a bonus of ₹ 20,000. The employer contributed ₹ 25,000 towards recognised provident fund. What is the amount of employer’s contribution taxable under the head Salaries.
A. ₹ 40 B. ₹ 24,160 C. Nil D. ₹ 24,960