Me.John(age54 years). Total annual income: Rs.1150000.
His investments
1.insurance premium: Rs8000 per month
2.Prime Minister's relief fund: Rs25000
3.Provident fund: Rs5000 per month
4.National savings certificates: Rs2000 per month.
Find the income tax payable by Mr. John.
Answers
Answered by
1
Answer: 111800
Explanation:
Investment under 80C = Insurance Premium + PF + NSC ▪️
= 8000 * 12 + 5000 * 12 + 2000 * 12
= 96000 + 60000 + 24000
= 180000
Max Saving considered under 80 C = Rs 150000
Prime minister relief fund is eligible for 100% = Rs 25000 deduction
Taxable income = 1150000 - 150000 - 25000
= Rs 975000
Tax as per Income tax Slab for Male
= 250000 - 50000 = 5% = (5/100)*250000 = Rs 12500
500000 - 975000 = 20% = (20/100) *475000 = Rs 95000
Tax Amount = 95000 + 12500 = Rs 107500
Education cess = 4% = (4/100) * 107500 = Rs 4300
Total Tax to be Paid = 107500 + 4300 = Rs 111800
Therefore, Income tax payable by Mr john = Rs 111800
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