Question

Mr. Agarwal is 66 years old and earns ₹13,50,000 per annum. How much Income tax(along with Education cess and Secondary education cess) he has to pay according to the taxation table?

• A. ₹2,24,025
• B. ₹2,11,150
• C. ₹2,21,540
• D. ₹2,15,270

Answer 1

The correct option is B ₹2,11,150

Since Mr. Agarwal is 66 years old, his taxable income being greater than ₹10,00,000 he has to pay the following taxes :
Income Tax = ₹1,00,000 + 30% of ₹3,50,000
= ₹1,00,000 + $\frac{30}{100}\times 350000$
= ₹1,00,000 + ₹1,05,000
= ₹2,05,000
Educational Cess = 2% of Income tax = $\frac{2}{100}\times 205000$ = ₹4100
Secondary and Higher Education Cess = $\frac{1}{100}\times 205000$ = ₹2050
Total Tax he has to pay = ₹2,05,000 + ₹4100 + ₹2050 = ₹2,11,150