Question

In a financial year 2019-2020, the annual income of Mr. Rohit (age 30 years) was Rs

8,85,400 (exclusive of HRA). He deposited Rs 85000 in NPS, Rs 38000 in LIC and

invested Rs 30000 in NSC. He paid Rs 18000 as tuition fee for his daughter’s

education. Calculate the income tax paid by him at the end of the financial year.

Income Tax Slab for FY 2019-20 (A.Y.2020-21)

(For individual tax payers below the age of 60 years)

Taxable income

Upto Rs.2,50,000 NIL

Rs.2,50,001 to Rs.5,00,000 5% of taxable income exceeding

Rs.2,50,000

Rs.5,00,001 to Rs.10,00,000 Rs. 12,500 + 20% of taxable income

exceeding Rs. 5,00,000

Above Rs. 10,00,000 Rs.1,12,500 + 30% of taxable income

exceeding Rs.10,00,000​

Answer 1

Given,

The annual income of Mr. Rohit for 2019-2020 = Rs.885400

The amount deposited in NPS = Rs.85000

The amount deposited in LIC = Rs.38000

The amount invested in NSC = Rs.30000

The amount paid as daughter's tuition fee = Rs.18000

To Find,

The income tax paid at the end of the financial year.

Solution,

The amount that is deductible for tax saving = 85000+38000+30000+18000

⇒ 171000.

But the total of amount that can be deducted for tax saving under 80c is only 150000.

Standard deduction is 50000.

Thus net taxable income = $885400-(150000+50000)$

⇒ 685400

Tax payable for the slot Rs.500001 to 1000000 is Rs.12500+20% of taxable income exceeding Rs.500000.

⇒12500+[$\frac{20}{100}$×(685400-500000)]

⇒12500+37080

=49580.

Henceforth the total tax payable for the given year is Rs.49580.