Question

Mr. Grover is 62 years old and earns ₹7,50,000 per annum. How much Income tax(along with Education cess and Secondary education cess) he has to pay according to the taxation table?

• A. ₹62,400
• B. ₹61,800
• C. ₹64,840
• D. ₹60,400

Answer 1

The correct option is B ₹61,800

Since Mr. Grover is 62 years old(Senior Citizen), his taxable income being greater than ₹5,00,000 he has to pay the following taxes :
Income Tax = ₹10,000 + 20% of ₹2,50,000
= ₹10,000 + $\frac{20}{100}\times 250000$
= ₹10,000 + ₹50,000
= ₹60,000
Educational Cess = 2% of Income tax = $\frac{2}{100}\times 60000$ = ₹1200
Secondary and Higher Education Cess = $\frac{1}{100}\times 60000$ = ₹600
Total Tax he has to pay = ₹60000 + ₹1200 + ₹600 = ₹61,800