Question

Mr. Katarsingh age 48 yrs works in a private company. His monthly income after deduction is RS 42000 and every month he contribute RS 3000 to GPF. He has also bought RS 15000 worth of NSC and donated RS 12000 to the PM's Relief Fund. Compute his income tax.

Answer 1

Income tax is Rs. 9550.

To find : His income tax

Given :  

His monthly income after deduction is RS 42000 :

Mr. Katarsingh monthly income = Rs. 42,000

Gross annual income = Rs. 42,000 × 12 = Rs. 5,04,000

Every month he contribute RS 3000 to GPF :

Monthly he contribute to GPF = Rs. 3000

Annual GPF contribution = Rs. 3000 × 12 = Rs. 36,000

He has also bought RS 15000 worth of NSC and donated RS 12000 to the PM's Relief Fund :

NSC worth = Rs. 15,000

Donated to PM's relief fund = Rs. 12,000

Total deduction = Rs. 36,000 + Rs. 15,000 + Rs. 12,000

                           = Rs. 63,000

Total income tax = Gross annual income - Total deduction

                            = Rs. 5,04,000 - Rs. 63,000

                            = Rs. 4,41,000

Total income tax falls from 2,50,001 to 5,00,000.

$So, Income \,tax = (Taxable \ income - 2,50,000) \times\dfrac{5}{100}$

                  $= (4,41,000 - 2,50,000)\times\frac{5}{100}$

                   = $191000 \times \frac{5}{100}$              

Income tax  = Rs. 9550.

Therefore, the income tax is Rs. 9550.

To learn more...

1. Mr. Kartar Singh age 48 years work in a private company his monthly income after deduction of allowances is Rs 42,000 and every month he contributed rupees 3000 to GPF he was also bought rupees 15,000 worth NSE and donate 1200 the PM's relief fund. Compute his income tax      

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2. Mr Kartar Singh age 48 years work in private company is monthly income after deduction of allowances is 42000 and every month he contribute 3000 rupees to GPF he has also what rupees 15000 of NSC and donated 12000 to the PM's fund compute his income tax

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