Question

Yash has $1200$ shares of $Rs150$ each of ‘Honeywell Corporation’ paying $18\%$ dividend. Find his net income after paying $8\%$ income tax.

Answer 1

Given that,

Number of shares $=1200$

Nominal value of each share $=Rs150$

So, face value of $1200$ shares $=Rs150\times 1200$

$=Rs1,80,000$

Rate of dividend $=18\%$

Therefore, total dividend $=\frac{1,80,000\times 18}{100}$

$=Rs32,400$

So, rate of income tax $=8\%$

Total tax $=\frac{8\times 32,400}{100}=Rs2,592$

Hence, net income $=Rs(32,400-2,592)=Rs29,808$