Example:-During the previous year ending 31st March, 2013, X, a salaried employee received ₹ 10,67,000 as basic salary and ₹ 20,000 as arrears of bonus of the financial year 1992-93. During the previous year 1992-93, X has received ₹ 50,000 as salary. X deposits ₹ 1,500 (during 1992-93) and ₹ 10,000 (during 2012-13) in PPF.

Particulars

Taxable income and tax liability on “receipt basis”

Taxable income and tax liability on “receipt basis”

2013-14

1993-94

2013-14

1993-94

Salary

10,67,000

50,000

10,67,000

50,000

Arrears of Salary

20,000

-

-

20,000

Gross Salary

10,87,000

50,000

10,67,000

70,000

Less: Standard deduction us/ 16(i)

Nil

12,000

Nil

12,000

Gross Total Income

10,87,000

38,000

10,67,000

58,000

Less: Deduction us/ 80C

10,000

Nil

10,000

Nil

Net income

10,77,000

38,000

10,57,000

58,000

Tax on net Income

1,53,100

2,000

1,47,100

6,800

Less: Rebate u/s 88

Nil

300

Nil

300

Tax

1,53,100

1,700

1,47,100

6,500

Add: Surcharge

Nil

-

Nil

-

Tax and Surcharge

1,53,100

1700

1,47,100

6,500

Add: Cess & SHEC

4,593

-

4,413

-

Tax Liability

1,57,693

1700

1,51,513

6,500