Question

Mr. Jeevani is 43 years old. His gross total income is ₹10,00,000. He has invested the following amounts in different schemes :
(i) Insurance premium = ₹80,000
(ii) Investment in PF = ₹45,000
(iii) Investment in PPF = ₹4,000
(iv) National Saving Certificate = ₹11,000
Find out the income tax payable.

Answer 1

Total Amount coming under 80C in this case = ₹80,000 + ₹45,000 + ₹4,000 + ₹110,00 = ₹1,40,000
According to section 80C, a maximum of ₹1,50,000 is applicable.
Hence, the taxable income = ₹10,00,000 - ₹1,40,000 = ₹8,60,000
Tax slab is for 0 to 60 years.
Income tax payable = ₹12,500 + 20% of ₹8,60,000
= ₹12,500 + $\frac{20}{100}\times 8,60,000=₹1,84,500$