Question

Mr. Kale $(52$ years old$)$ has taxable income of Rs. $5,05,000$ in financial year $2012-13$. Calculate the net income tax payable.

Answer 1

According to taxation rule, income upto Rs. $1,80,000$ is non taxable income from Rs. $1,80,001$ to Rs. $5,00,000$ is charged at $10\%$ p.a. $=\frac{3,20,000}{100}\times 10$
$=$ Rs. $32,000$
Income above Rs. $5,00,001$ to Rs. $8,00,000$ is charged at $20\%$ p.a.
$=\frac{5,000\times 20}{100}$
$=$ Rs. $1,000$
Total income tax payable $=$ Rs. $(32,000+1,000)$
$=$ Rs. $33,000$