Question

Compute the income tax payable by following individuals.

(i) Mr. Kadam who is 35 years old and has a taxable income of Rs. 13,35,000.

(ii) Mr. Khan is 65 years of age and his taxable income is Rs. 4,50,000.

(iii) Miss Varsha (Age 26 years) has a taxable income of Rs. 2,30,000.

Answer 1

(i) Taxable income = Rs 13,35,000
Income tax = Rs 1,12,500 + 30%(Rs 13,35,000 $-$ Rs 10,00,000)
Rs 1,12,500 + $\frac{30}{100}\times 3,35,000$
= Rs 1,12,500 + Rs 1,00,500
= Rs 2,13,000

(ii) Taxable income = Rs 4,50,000
Income tax = 5%(Rs 4,50,000 $-$ Rs 3,00,000)
$$\begin{gathered} =\frac{5}{100}\left(1,50,000\right) \\ =\mathrm{Rs}7500 \end{gathered}$$

(iii) Taxable income = Rs 2,30,000
The tax payable is 0 as the taxable income is less than Rs 2,50,000.