Question

Mr. Vicky is 74 years old and earns ₹8,50,000 per annum. How much Income tax(along with Education cess and Secondary education cess) he has to pay according to the taxation table?

• A. ₹61,800
• B. ₹76,320
• C. ₹82,400
• D. ₹94,200

Answer 1

The correct option is C ₹82,400

Since Mr. Vicky is 74 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 ₹3,50,000
= ₹10,000 + $\frac{20}{100}\times 350000$
= ₹10,000 + ₹70,000
= ₹80,000
Educational Cess = 2% of Income tax = $\frac{2}{100}\times 80000$ = ₹1600
Secondary and Higher Education Cess = $\frac{1}{100}\times 80000$ = ₹800
Total Tax he has to pay = ₹80000 + ₹1600 + ₹800 = ₹82,400