During the P.Y. 2018-19, XYZ Ltd. pays Mr. Vishal ₹ 60,000 per month as salary and ₹ 10,000 per month as Dearness allowance forming part of salary. The employer provided him a rent free accommodation at Delhi, the employer also paid tax on perquisite value. What amount is deductible or not deductible u/s 40(a)(of the Income Tax Act, 1961 for P.Y. 2019-20 in the books of XYZ Ltd.
A. ₹ 13,696
B. ₹ 13,294
C. ₹ 12,600
D. ₹ 13,104
Answer:B
During the P.Y. 2018-19, XYZ Ltd. pays Mr. Vishal ₹ 60,000 per month as salary and ₹ 10,000 per month as Dearness allowance forming part of salary. The employer provided him a rent free accommodation at Delhi, the employer also paid tax on perquisite value. What amount is deductible or not deductible u/s 40(a)(of the Income Tax Act, 1961 for P.Y. 2019-20 in the books of XYZ Ltd.
A. ₹ 13,696 B. ₹ 13,294 C. ₹ 12,600 D. ₹ 13,104