2. Mr. Mhatre is 50 years old. His gross total
income is Rs. 12,00,000. He has invested in the following amounts in different
schemes.
(i) Insurance premium : Rs 90,000 (ii) Investment in provident fund : Rs 25,000
(iii) Investment in PPF: Rs 15,000 (iv) National Savings Certificate : Rs 20,000
Find out the permissible deductions, taxable income, and the income tax payable.
Answers
(1) Mr. Mhatre's gross total income
Total Yearly income = Rs. 12,00,000
(2) Total savings under section 80C
90,000 + 25,000 + 15,000 + 20,000 = Rs. 1,50,000
According to section 80C, a maximum deduction of Rs. 1,50,000 is permissible.
(3) Therefore the taxable Income
= Total Yearly income - Total savings
= Rs. 12,00,000 - Rs. 1,50,000
= Rs. 10,50,000
(4) Mr. Mhatre's taxable income = Rs. 10,50,000 > Rs. 10,00,000
From (2),
Income tax = Rs. 1,12,500 + 30% (of total income minus 10 lakh)
Rs.10,50,000 - Rs. 10,00,000 = Rs. 50,000
Therefore, the income tax = Rs. 1,12,500 + Rs. 50,000 × (30 /100 )
= Rs. 1,12,500 + Rs. 15,000
= Rs. 1,27,500
Inclusion of 2% education cess and 1% secondary and higher education cess, we get,
Education cess = Rs. 1,27,500 × (2 /100 ) = Rs. 2550
Secondary and higher education cess = Rs. 1,27,500 × (1 /100 ) = Rs. 1275
Therefore, the total income tax = Rs. 1,27,500 + Rs. 2550 + Rs. 1275
= Rs. 1,31,325
Mr. Mhatre’s tax payable = Rs. 1,31,325
Step-by-step explanation:
Answer Is Below In Photo
