Question

Mr. Singh is 32 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. ₹2,20,045
• B. ₹2,22,075
• C. ₹2,24,025
• D. ₹2,23,050

Answer 1

The correct option is C ₹2,24,025

Since Mr. Singh is 32 years old, his taxable income being greater than ₹10,00,000 he has to pay the following taxes :
Income Tax = ₹1,12,500 + 30% of ₹3,50,000
= ₹1,12,500 + $\frac{30}{100}\times 350000$
= ₹1,12,500 + ₹1,05,000
= ₹2,17,500
Educational Cess = 2% of Income tax = $\frac{2}{100}\times 217500$ = ₹4350
Secondary and Higher Education Cess = $\frac{1}{100}\times 217500$ = ₹2175
Total Tax he has to pay = ₹2,17,500 + ₹4350 + ₹2175 = ₹2,24,025