Mr Ahmed, a 62 year old senior citizen is employed in a private company. His total annual income is Rs 620000.He has contributed Rs 100000 to the public provident fund and paid a premium of Rs 80000 for the year for health insurance and a donation of Rs 10000 to CM's relief fund. What is tax payable?
Answers
contributed rupees 100000 to public provident fund and premium rupees 800004 health insurance and donation rupees 10000 to CM relief fund
payable tax 34000
Answer:
Step-by-step explanation :
solution:
1). 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
Hope this will help you