Question

Mr. Ahmed, a 62 year old senior citizen is employed in a private company. His total
annual income is Rs.6,20,000. He has contributed Rs. 1,00,000 to the Public Provident
Fund and paid a premium of Rs. 80,000 for the year for health insurance and a donation
of Rs. 10,000 to CM's Relief Fund. What is tax payable ?​

Answer 1

Answer:

Step-by-step explanation:

. total yearly income = 6,20,000

2) total deduction = (according to 80C)

(a) public provident fund = 1,00,000

(b) insurance = 80,000

(Add it)

= 1,80,000

(c) section 80c permits a maximum deduction of Rs. 1,50,000

(3) Amit give to CM's relief fund (accordingly to 80G) = Rs 10,000

(4) taxable income = (1) - [(2)+(3)]

=6,20,000-[1,50,000+10,000]

= Re 4,60,000

Hence, income tax = (taxable income -3,00,000) x 5/100

= (4,60,000-3,00,000) x 5/100

=1,60,000 x 5/100

= Rs 8,000

Educational cess is levide on income tax = 8,000 x2/100

=160

Secondary And Higher Education cess = 8,000 x1/100

=80

total income tax = 8000 +160 +80

=Rs 8,240

Hence,

Mr Ahmed will pay rupees 8,240