 Hello and welcome to the session. The given question says, Madan Lal has an annual income of Rs. 330,000 exclusive of HRA. He contributes Rs. 5000 per month towards his GPF and pays an annual LIC premium of Rs. 15,000. He has invested Rs. 10,000 in NSCs. He pays Rs. 4,500 as income tax per month for the first 11 months, find the income tax liability for the last month of the financial year. So, let's start with the solution and we shall be solving this question by following the following procedure to calculate the tax and this is for the financial year 2005-2006. First step is to find the gross income of the SSC. In the question we are given that the annual income of Madan Lal is Rs. 3,30,000. So, this gross income is equal to Rs. 3,30,000. This is the first step. Next step is find the amount of donations if any eligible for deduction and here since Madan Lal did not make any donations therefore, we move on to the third step which says find the amount of total savings maximum to Rs. 1,00,000. So, the third step is to find the total savings. Now, we are given that contribution to GPF as Rs. 5,000 per month therefore, Rs. 5,000 into 12 per year. This is equal to Rs. 60,000. Also, we are given that he pays an LIC premium of Rs. 15,000 annually. Therefore, further we have payment sorry to LIC and this is equal to Rs. 15,000 and also he invested Rs. 10,000 in NSCs therefore, contribution to NSCs is equal to Rs. 10,000. Therefore, his total savings is equal to Rs. or adding these three we have Rs. 85,000. Next in the fourth step we have to subtract the sum of amounts obtained in step 2 and 3 from the amount of a step 1. So, in the fourth step to find the taxable income we shall subtract Rs. 85,000 from Rs. 3,030,000 since second step that is the amount of donation is nil. Therefore, to calculate the taxable income we have Rs. 3,030,000 minus 85,000 and this is equal to Rs. 245,000 and then the next step is round of the amount if not to the nearest multiple of 10 and get the taxable income and here since the amount we got in step 4 was already a multiple of 10. So, let's move on to the next step which says compute the income tax on the amount obtained in step 5 round of the amount of tax to the nearest rupee and let us call it as I and to compute the income tax we shall be using the following table and here we are given the rates of income tax that is if the taxable income does not exceed Rs. 1 lakh the income tax is nil. If the taxable income exceeds Rs. 1 lakh and is less than Rs. 1,050,000 then the amount of tax is 10% of the amount by which the taxable income exceeds Rs. 1 lakh and so on. Let's see what is the taxable income here we have here the taxable income is Rs. 2,45,000 which lies in this lap here we have the taxable income between Rs. 1,050,000 and Rs. 2,050,000 so here the tax is Rs. 5,000 plus 20% of the amount by which the taxable income exceeds Rs. 1,050,000 therefore in the sixth step income tax is equal to Rs. 5,000 plus 20% of the amount exceeding Rs. 1,050,000 so we have Rs. 2,45,000 minus Rs. 1,050,000 and this is equal to Rs. 5,000 plus 20 divided by 100 into Rs. 95,000 and thus on further simplifying gives Rs. 5,000 plus on simplifying we have here 19,000 which is equal to 24,000 so the amount of income tax is Rs. 24,000 in the seventh step we have to calculate the surcharge on I at the applicable rate and added to the amount of income tax which we have obtained in step number 6 and to get the total taxable income. Let us denote the income tax obtained in step 6 by I and the rate of surcharge is 10% of the amount of taxable payable if the taxable income exceeds Rs. 10,00,000 and here since the taxable income is not more than Rs. 10,00,000 therefore moving on to the next step which says calculate the amount of says payable on the amount obtained in step number 7 and the rate of says is 2% of the amount of taxable so here the eighth step is to calculate the says which is 2% of the income tax and income tax is Rs. 24,000 so we have 2 divided by 100 into 24,000 which is equal to Rs. 480 now the next step is at the amount obtained in step 7 and step 8 and since step 7 was not applicable so we shall be adding the amount obtained in step number 8 to the amount obtained in step number 6 to get the taxable so the taxable is equal to Rs. 24,000 plus Rs. 480 and this is equal to Rs. 24,480 the question further says he pays Rs. 4500 as income tax per month for the first 11 months therefore tax deducted which is also called TDS for 11 months is equal to Rs. 4500 into 11 and this is equal to Rs. 49,500 and since here the TDS is equal to Rs. 49,500 is greater than the tax payable which is Rs. 24,480 therefore he has no liability for the last month of the financial year thus we can find the tax refundable in the 12th month and this is equal to Rs. 49,500 minus Rs. 24,480 and this is equal to Rs. 25,020 hence our answer is mother laws income tax liability is equal to Rs. 0 so this completes the session by intake care