A company pays a dividend of 15% on its ten rupee shares from which it deducts income tax at the rate 22%. Find the annual income of a man who owns one thousand shares of this company ?

Open in App

Solution

Nominal value of 1 share = Rs. 10
Nominal value of 1000 shares = 1000 $\times$ 10 = Rs. 10,000
∴ Dividend = 15 % of Rs. 10,000
= $\times$ 10,000 = 𝑅𝑠. 1,500
∴ Income tax paid = 22 % of Rs. 1,500
= $\times$ 1,500 = 𝑅𝑠. 330
His net income = Rs. 1,500 – Rs. 330 = Rs. 1,170

Suggest Corrections

Similar questions

A company pays a dividend of 20% on its ₹10 shares from which it deducts income tax at the rate of 18%. Find the annual income of a man after tax who owns one thousand shares of this company.

Q. A man has

300,

50

shares of a company paying

20 %

dividend. Find his net income after paying

3 %

income tax.

Q. A man has 300, Rs. 50 shares of a company paying 20% dividend. Find his net income after paying 3% income tax.

A man invests ₹60,000 in shares of a company which pays 12 % dividend at a time when a ₹100 share costs ₹120. Find :-

a) Number of shares he bought.

b) the annual income from his shares.

A company with a share of nominal value of ₹ 150 declares an annual dividend of 15 % . Calculate the annual income of a man who holds 88 shares in the company ?

Join BYJU'S Learning Program

A company pays a dividend of 15% on its ten rupee shares from which it deducts income tax at the rate 22%. Find the annual income of a man who owns one thousand shares of this company ?

Nominal value of 1 share = Rs. 10 Nominal value of 1000 shares = 1000 × 10 = Rs. 10,000 ∴ Dividend = 15 % of Rs. 10,000 =× 10,000 = 𝑅𝑠. 1,500 ∴ Income tax paid = 22 % of Rs. 1,500 =× 1,500 = 𝑅𝑠. 330 His net income = Rs. 1,500 – Rs. 330 = Rs. 1,170

Nominal value of 1 share = Rs. 10
Nominal value of 1000 shares = 1000 $\times$ 10 = Rs. 10,000
∴ Dividend = 15 % of Rs. 10,000
= $\times$ 10,000 = 𝑅𝑠. 1,500
∴ Income tax paid = 22 % of Rs. 1,500
= $\times$ 1,500 = 𝑅𝑠. 330
His net income = Rs. 1,500 – Rs. 330 = Rs. 1,170