Question

Mr. Albert's gross annual income is Rs. $5,00,000$ for F.Y. $2012-13$. His annual savings in this year are as follows :
(a) L.I.C. premium Rs. $70,000$.
(b) Contribution towards P.F. Rs. $12,000$
(c) P.P.F. Rs. $30,000$
(d) N.S.C. Rs. $10,000$
Find his taxable income and income tax for F.Y. $2012-13$.

Answer 1

Total annual income of Mr. Albert $=$ Rs. $5,00,000$.
Annual savings :
(a) L.I.C. premium $=$ Rs. $70,000$
(b) Contribution towards P.F. $=$ Rs. $12,000$
(c) P.P.F. $=$ Rs. $30,000$
(d) N.S.C. $=$ Rs. $10,000$
Total savings $=$ Rs. $1,22,000$
Total taxable income $=$ Rs. $(5,00,000-1,22,000)$ $=$ Rs. $3,78,000$
Now, Income tax for F.Y. $2012-13$.
For income upto Rs.$2,00,000$ at $0\%=$ Rs. $00.00$
For income Rs. $(3,78,000-2,00,000)$
$=$ Rs. $1,78,000$ at $10\%$
$=\frac{178000\times 10}{100}=$ Rs. $17,800$
Total income tax $=$ Rs. $17,800$
Mr. Albert will have to pay income tax Rs. $17,800$.