INCOME FROM SALARIES | INCOME TAX | UNIT-2 | OU | SEM-4 | COMPLETE EXPLAINATION | @shivanipallela

Added: 2026-05-24

[00:00:01]Hello all, welcome back to our channel.

[00:00:03]So students in this video the most awaited uh video I can say that is income tax unit number two that is income from salaries problematic explanation. Okay. So by watching this video you can easily understand and finish whole chapters by watching this video and you can able to attempt 12 marks question and one short marks question. The total weightage is 16 marks. You can attempt by watching this video. Okay. If you having no idea about the unit also you can easily score. You can easily understandable this units.

[00:00:38]Okay. So let's get into the video. First I will display the question here. So you just pause the screen and make a note of the question or take a screenshot. Okay students. Here the question is Mr. Dr. Walahhai Patel is working as government employee in Telangana state and he is getting basic pay. So in our already in previous video we have already discussed the profile manoma in profile we will have salary side reading allowances per quicities deductions under section 16.

[00:01:12]In deductions under section 16 you will have three deductions that is standard deduction entertainment allowance professional tax standard uh deductions always 50,000 default default 50,000 question cases entertainment allowance and professional tax you if they have given in the question you can take it or else keep at nil okay so salaries all the stuff related to for example salary bonus pay, basic pay, okay, CPF, okay, employees contribution that all will come in the salaries. Coming back to the allowance in question, if you're finding any allowance, dear allowance, entertainment allowance, professional allowance, if you're finding allowance, then you need to write under allowances.

[00:02:04]Okay? And perusities is related to the personal thing. For example, electricity, club, billable, motor car, these all we will use for personal purpose. That type of personal purpose things you need to write in the here.

[00:02:17]And then whatever your amount you will get from that amount you need to deduct all the deductions under section 16. So here what they are saying Mr. Walabhai Patel is a government employee in Telangana state and he is getting a basic pay. It seems basic paid 24,000 per month. you need to convert it into a 12 months. So after drawing the profarma you keep the heading here working notes in final accounts final examination also. So prof,000 per month it seems. So 24,000 per month means for 12 months how it will be for 12 months it will be 288,000.

[00:03:04]Okay. So basic pay comes under salary.

[00:03:07]So here you need to write basic pay 288,000.

[00:03:14]Okay. Along with me you also do problem then you will also understand it. Okay.

[00:03:19]Next he's saying dear allowance. Dear allowance. Allowance means you need to write it here. Okay. Dear allowance. How much they are saying? Same 15,000 per month. So per month 15,000. So for 12 months it is 1 lak 80,000.

[00:03:39]Okay. So per month 15,000 12 months 1 lakh 80,000 that you need to write it here. You need to segregate.

[00:03:53]Okay. Now next you are having children hostel allowance. Allowance you are saying no in the propharma explanation video I have already said children hostel allowance how much they are saying they are saying 2,000 per month for two children so 2,000 per month means for 12 months how much it will be 24,000 right so for 24,000 for two children it will be okay so children host allowance per month 300 deduction will be there for one children per month 300ount 300.

[00:04:43]So into this per month will be default 300 default.

[00:04:53]So if you do 300 into 12 into 2 means 7,200 you need to deduct it. You are getting discount out of 24,000 I am giving discount of 7,200. Same like scholarship college fees 20,000 same like that. Okay. Now if you deduct this two means you will get 16,800.

[00:05:21]This 16,000 final amount you need to write it here. Children hostile allowance 16,800.

[00:05:28]Here I'm writing the shortcuts but in exam you need to write the full form of that. Okay students. Next here they are saying that he is provided rentree accommodation in Hyderabad. He is having a rental of the fixed government.

[00:05:44]Government aspace can the fixation 5,000 per month. Okay. But fair market value is 72,000 peranom. So government fixation the 5,000 per month into 12 converges. FM market value 72,000 peranom. So 5,000 12 months to convert just to 60,000 government fixation amount 60,000 and FM similar building for example you are having a building in Barara Hills it cost 2 crores and same three side three floors building same building you are having in Sundraad compared to Barara Hills and Sikindraad place value will be different amount will be different BA hills Uli 60,000 this only you need to do. Okay.

[00:06:49]So government amount fix.

[00:06:59]So here they are saying rentree accommodation right rent free accommodation is rent okay students personal right one person rent free accommodation will come here rentree accommodation 60,000 okay Next entertainment allowance.

[00:07:31]Allowance 5,000 per month. So 5,000 per month is for 12 months it will be 60,000 right? Allowance and allowance entertainment allowance 60,000.

[00:07:46]Got it students? So next he's also provided a small motor car.

[00:07:55]small motor car.

[00:07:59]So in introduction video I have already said that small motor car 1800 Kali big motor car mention you need to take 3600 per month per month you need they will not give amount they will not at all give any amount if they are mentioning small car means you need to take 1,800 per month if they are mentioning big motor car means you need to take 3600 here they have mentioned small car so that's 1,800 per month. 1,800 means for 12 months how how much it will be 21,600 motor car and personal motor car 21,600.

[00:08:47]Got it students? I hope you are getting.

[00:08:49]So understand you will get it. Okay. He is a medical reimbursement 50,000 medical expense reimbursement reimbursement soalenefit.

[00:09:21]So medical expenses 15,000 but reimbursement reimbursement transaction. Okay. So next he paid professional tax 200 per month.

[00:09:42]Professional taxation 200 per month. per month 200 12 months can it will be 2400 2,400 okay so this is 2400 okay students so this is the thing and next what you need to do is here he is a government employee ma okay so he is a government employee all The details we have deducted here. But coming back to the entertainment allowance under deductions under 16 mention entertainment how you need to do calculate entertainment allowance for deductions amount means this also I have discussed in our just I'm rubbing this you also make a note of it. Okay. So here I'm writing C in the first step you need to take 20% of salary second one actual amount third one default 5,000 is least we need to add it here salary is nothing but basic 2800 28% Okay. Next.

[00:11:16]Enterainment allowance actual amount 60,000 in the default 5,000 it will be out of these three whatever is the least amount you need to take it here. Got it students? So 20% on two 288,000 288,000 into 20%. It will be 57,600.

[00:11:56]Out of these three amounts whatever is the least amount this is the least amount. least amount why I am writing this in the brackets means income tax bracket minus symbol negative amount we should not keep the symbol like this instead of that you need to do brackets now you add everything 288,000 plus 1 lakh 80,000 plus 16,800 and 60,000 000 again 60,21,600 then you will get 62 lakhs sorry 6 lakhs 26,400 from this amount you need to deduct all this amount okay from 62 6 lakh 26,400 if you deduct 50,000 5,000 and 2,400 then 5 lakh 69,000 is the income from salary here income from salary.

[00:13:12]Okay. So like this you need to calculate it will be easy thing. First you need to remember the profarmama whether you are doing correct problem or wrong problem. If you are profited with the profarma out of 12 marks eight marks or seven marks will be allotted to your profarma. Profarma in the sense not the doing the uh lines here you need to mention whatever the things in introduction and propharma explanation video I have already explained everything. Okay. So try to check out that video in our channel after watching this video. If you watch this video it will be completely all right. You can easily understand this chapter. Now we will see next questions and I will give another important homework question for you all. You need to mention that answer in the comment section. Okay students.

[00:14:01]Next question. This questions you only need to do here. I will mention that question. Mr. Pratta an employee of public sector company furnishes the following information. Basic pay will comes here. Arers of salary will comes under section of salary. Advanced salary here. Small car was provided by the employer. Small car means 1,800 per month you need to take it. Okay.

[00:14:27]Professional tax they have given. Rent house rent allowance. House rent allowance they have given 25,720.

[00:14:36]In that exempted amount how much they have given? 12,500 means discount amount. From 25,720 you need to deduct 12,500.

[00:14:46]And medical expenses reimbured you will take that if it is mentioned reimbursement you should not take that amount okay entertainment allowance 42,620 they have given and also deductions under deductions also you will have entertainment allowance no directly they have given 5,000 okay you need to do that 5,000 okay employee paid club bill and electricity club bill and electricity is his personal thing it will comes under the section of perusities you need to write that Okay, this question is homework ma. And next question is compute income from salary of Mr. Gopy a private employee for the assessment year 2020 to 2021. Basic pay here. DA means dearance allowance.

[00:15:32]Allowances side. Entertainment allowance. Allowance side. Salaries will come commission. Commission will come under section of salaries. Medical allowances. Medical allowances.

[00:15:44]Allowance you are getting mean allowance. Okay. Next water, gas, electricity is personal. No, that's why here. Okay. Next. Employees contribution to PFF. Employees salary. Okay, house rent allowance. How much they are giving house rent allowance? That is professional tax. This also you should do. Okay students, if you're having any doubts, you can comment down in the comment section. Okay. So these are all important questions. If you practice these questions, this will be easy. Next question. Vervakar a government employee. basic pay, dear allowance, he's getting a years of salary, government fixed they have given and furniture and deputation allowance allowance you need to write in the allowance and uh own contribution to SPF you should not take this own contribution employee contribution to uh uh employee contribution to provident fund funds also you should not take it ma next uh uh interest on provident this is also you should not take whatever the in profile and reimbursement of medical expenses reimbursement you should not take it okay so this is also thing here they have mentioned government fixed 25,000 peranom okay and uh here 90% is cost of fixed asset so out of these two we need to do the calculation of out of these two government fixed 25,000 right so for 25,000 000 and cost of the asset is 90,000. So 10,ou 10% you need to do. So 90,000 10% means 9,000 you need to deduct that amount and whatever the amount you are getting that you need to enter here. 10% depreciation is default. Okay. Default 10%.

[00:17:38]Okay. Now next thing question Mr. an employee of private limited company basic payments bonus. Okay. employees thing everything this also you can do it okay next Mr. Barat is working as a personal assistant of a filling. This is also you can do. So I will mention all these questions per uh questions here.

[00:18:00]You need to do the answers. This is the format. After doing the answers, you need to mention that answers. Whatever the final answer you are getting, you can mention that uh answers in the comment section. Okay students. So let's see how many members will do the correct answer. I hope that this video is useful and uh this is all about the video students and unit number one I have already discussed the theory important questions you can follow that and do comment me in the comment section how you felt about the video do like and subscribe to our channel and share with all your friends and groups because and comments. Okay, now I'm waiting for all your comments and let's see how many people will comment. Okay, so see you all the next video. Bye-bye students.