Question

Mr B aged 72 years, has earned rupees 75,00,000 out of his business . His ex- wife gifted him a car worth rupees 8 lakh. He spent a total of rupees 20 lakh during a family trip. He won a lottery of 16 lakh rupees. Out of happiness he gifted his wife a diamond set of rupees 450000. He bought a life insurance policy and paid a premium of 55000 annually. He paid tuition fee for his daughter for rupees 50000. He invested rupees 80000 in PPF. One of his existing life insurance policy got matured and he received a total of rupees 35 lakh. Seeing his health conditions the doctor adviced him a medical test of rupees 7000 and after which he bought a health insurance for rupees 28000. Calculate his taxable income and tax liability.

$7500000 - 2000000 + 1600000 - 450000 - 55000 - 50000 - 80000 + 350000 - 7000 - 28000 =$
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Answer 1

Concept Introduction: Everyone having a source of Income is liable to pay tax.

Given:

We have been Given: Total Earning

$7500000$

Family Trip expense

$2000000$

Lottery Won

$1600000$

Gifted Wife diamond set of

$450000$

Bought Life insurance of Annually

$55000$

Paid tuition fees of

$50000$

investment in PPF

$80000$

Matured Life insurance policy gave

$3500000$

Medical Test

$7000$

Health Insurance policy

$28000$

To Find:

We have to Find: Taxable Income and Tax liability

Solution:

According to the problem, The Taxable income is

$rs.7500000$

therefore Tax Liability is

$7500000 - 2000000 + 1600000 - 450000 - 55000 - 50000 - 80000 + 3500000 - 7000 - 28000 = 5880000$

Final Answer: The Taxable income is

$rs.7500000$

and the Tax Liability is on

$rs.5880000$

#SPJ2

Answer 2

Everyone has a source of income and is liable to pay tax.

We have been Given: Total Earning = 7500000

Family Trip expense = 2,00,000

Lottery Won = 1600000

Gifted Wife diamond set of = 450000

Bought Life insurance Annually = 55000

Paid tuition fees of = 50000

investment in PPF = 80000

Matured Life insurance policy gave = 350000

Medical Test = 7000

Health Insurance policy = 28000

To Find:

Taxable Income and Tax liability

Solution:

According to the problem, The Taxable income is 7500000

therefore Tax Liability is 5880000

Final Answer: The Taxable income is 7500000

and the Tax Liability is on 5880000