Question

ABC Ltd. has a turnover of INR 40 Crores in FY 2018-19. The Tax Rate applicable would be?
O 0.3
O 0.4
00.2
O 0.25​

Answer 1

Answer:

0.3.

Explanation:

Tax slab of 2018-19 was 30% for income above 10 lakhs.

Answer 2

The tax rate applicable would be 0.3 (option 1).

Let us first know the chart of income slab and tax rates applicable in FY 2018-19:

• Taxable income= Upto Rs 2,50,000

         Tax Rate = Nil

• Taxable income = Rs 2,50,001 to Rs 5,00,000

        Tax Rate= 5 %

• Taxable income = Rs 5,00,001 to Rs 10,00,000

       Tax Rate = 20 %

• Taxable income = Above Rs. 10,00,000

       Tax Rate = 30 %

• As it is given, that ABC Ltd. has turnover of Rs 40 crore (4,00,000,000) the tax applicable would be 30 % as the taxable amount is greater than 10,00,000.

         30 % = 30 ÷ 100

                  = 0.3 rate

Hence, tax rate of 0.3 would be applicable to ABC Ltd in FY 2018-19.