Question

Mrs. Hinduja's age is $50$ years. Last year her taxable income was $₹16,30,000.$ How much income tax has she to pay?
[4 Marks]

Answer 1

Mrs Hinduja's taxable income is in the bracket of $₹10,00,000$ and above.
Let us use table I to compute her income tax. Accordingly, for income greater than $₹10,00,000.$
Income tax$=₹1,12,500+30\%$ (of total income minus ten lakh).
Mrs. Hinduja's income minus ten lakh
$=16,30,000-10,00,000$
$=₹6,30,000$.

[1 Mark]

Income tax $=1,12,500+6,30,000\times \frac{30}{100}$
$=1,12,500+30\times 6,300$
$=1,12,500+1,89,000$
$=₹3,01,500$.
[1 Mark]

On this we compute
$1\%$ secondary and higher education cess$=\frac{1}{100}\times 3,01,500=₹3015$
$2\%$ education cess $=\frac{2}{100}\times 3,01,500=₹6030$

[1 Mark]

total income tax payable $=3,01,500+3015+6030=3,10,545$
total income tax payable is $₹3,10,545$

[1 Mark]