Question

Mr. Kartarsingh (age 48 years) works in a private company. His monthly income after deduction of allowances is Rs. 42,000 and every month he contributes Rs. 3000 to GPF. He has also bought Rs. 15,000 worth of NSC (National Savings Certificate) and donated Rs. 12,000 to the PM's Relief Fund. Compute his income tax.

Answer 1

Step-by-step explanation:

1. Annual income of Kartar Singh
2. $42000 \times 12 = 504000$
3. Income after savings
4. [tex]3000 \times 12 = 36000 \\ 36000 + 15000 + 12000 = 63000[/tex
5. income tax will be 7050

504000-63000

= 441000

Income tax =(441000 - 250000)×5%

= 191000×5/100

= 9550

cebbate = 2500

now income tax

= 9550 - 2550

= 7050 Rs