Question

Mr John age 54 years total annual 1150000 his investment insurance premium 8000per month prime minister relief fund 25000 provident fund 5000 per month national saving certificate 2000per month find the income tax payable by Mr john​

Answer 1

Answer

Income Tax payable by Mr.John is Rs.1,11,800/-

Step-by-step explanation:

Insurance premium per annum = 8,000 x 12 = 96,000

Provident Fund per annum = 5,000 x 12 = 60,000

National Saving Certificates per annum = 2,000 x 12 = 24,000

These three savings cover u/s 80C, 80CCC & 80CCD which is limited to 1,50,000/- under Income Tax Act.

PM Relief Fund Rs.25,000/- u/s 80G.

Income Tax Calculation:-

Total Annual Income = 11,50,000

(-) Deductions u/s 80C, 80CCC & 80CCD = 1,50,000

(-) Deduction u/s 80G = 25,000

Net Annual Income = 9,75,000/-

Income Tax = 1,07,500

(+) Health & Education Cess = 4,300/-

Total Income Tax payable = 1,11,800/-

(Since IT Rates are 5% on Income from 2,50,000 to 5,00,000

20% on Income from 5,00,001 to 10,00,000

30% on Income above 10,00,000 for AY 2019-20)

Answer 2

Answer:

Income tax payable by Mr john​ =  Rs 111800

Step-by-step explanation:

Mr John age 54 years total annual 1150000 his investment insurance premium 8000per month prime minister relief fund 25000 provident fund 5000 per month national saving certificate 2000per month find the income tax payable by Mr john​

Annual income = Rs 1150000

Age 54 Years - so not senior citizen

Mr. John - Male

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 (not senior citizen)

0 - 250000  = 0

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

Income tax payable by Mr john​ =  Rs 111800