Question

If Raman earns ₹251000 per annum, and his age is 22 years, how much income tax(Including Education cess and Secondary education secc) does he pay? [3 Marks]

Answer 1

Tax exemption is till ₹2,50,000
He has to pay tax on ₹1000.
Income tax = 5% of ₹1000 = $\frac{5}{100}\times 1000$ = ₹50 [1Mark]
Educational Cess = 2% of Income tax = $\frac{2}{100}\times 50$ = ₹1 [1Mark]
Secondary and Higher Education Cess = $\frac{1}{100}\times 50$ = ₹0.5
Total Tax he has to pay = ₹50 + ₹1 + ₹0.5 = ₹51.5 [1Mark]