 Hi and welcome to the session, let's work out the following question. The question says the monthly income of Ruchi aged 30 years is Rs 18,200 excluding HRA. She donates Rs 8,400 towards Prime Minister Relief Fund, Relief 100% and Rs 12,000 to an Orphanage Relief 50%. She contributes Rs 4,500 per month towards Providence Fund and Rs 2,500 per quarters LIC Premium. She purchases National Saving Certificates worth Rs 8,000. She pays Rs 900 per month as income tax for the first 11 months, calculate her income tax liability for last month of the year. Let's start with the solution to this question. You see that Ruchi's monthly income is equal to Rs 18,200. Therefore, annual income will be equal to Rs 18,200 multiplied by 12 that is equal to Rs 218400. Now, let us calculate amount of donation and savings. First of all, it is given Prime Minister Relief Fund as a relief of 100% on it. So, this is Rs 8,400. Now, given in the question that she donates Rs 12,000 to an Orphanage, So, to Orphanage, relief is given to be 50%. So, that will be 50% of Rs 12,000 that is Rs 6,000. Next will be the PF that is the Providence Fund that will be Rs 4,500 into Rs 12,000 and that is Rs 54,000. Also, she purchases National Saving Certificates worth Rs 8,000. So, next will be NSC that is Rs 8,000. She also pays Rs 2,500 per quarters LIC premium. So, LIC premium will be Rs 2,500 multiplied by 4 because in one year there are 4 quarters. So, this is equal to Rs 10,000. Now, if we sum them all we get the total amount of donation and savings is Rs 86,400. Now, let this be the step 1 and let this be the step 2. So, now what we do is we subtract the amount obtained in step 2 from the gross salary in step 1. So, subtract 2 from 1 and we get taxable income is Rs 2,18,400 minus 86,400 and that is equal to Rs 1,32,000. Now, we see that for women employees if the taxable income is up to Rs 1,35,000 and rate of tax is 0. So, here it is less than Rs 1,35,000 so rate of tax will be 0. But she has been paying Rs 900 for 11 months that is equal to Rs 9,900. But her income tax is nil so she will be refunded Rs 9,900. So, this is our solution to this question. I hope that you understood it and enjoyed the session. Have a good day.