Question

Anu has $750$ shares of $Rs60$ each of ‘Tata Infotech’ paying $15\%$ dividend. Find her net income after paying $6\%$ income tax.

Answer 1

Given that,

Number of shares $=750$

Nominal value of each share $=Rs60$

So, face value of $750$ shares $=Rs60\times 750$

$=Rs45,000$

Rate of dividend $=15\%$

Therefore, total dividend $=\frac{45,000\times 15}{100}$

$=Rs6,750$

So, rate of income tax $=6\%$

Total tax $=\frac{6\times 6,750}{100}=Rs405$

Hence, net income $=Rs(6,750–405)$

$=Rs6,345$