Question

Mr jhon (age 54years). Total annual income:R's.115000
His investments:
1) Insurance premium: Rs 8000per month
2)prime minister's relief fund: Rs25000
3) providental fund : Rs 5000 per month
4)National savings certificates: Rs 2000 per month
Find the income tax payable by Mr Johan.

Answer 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