Question

Mr. Khan is 65 years of age and his taxable income is Rs. 4,50,000. Compute the income tax payable by individual.

Answer 1

Answer:

Rs 7800

Step-by-step explanation:

Mr. Khan is 65 years of age and his taxable income is Rs. 4,50,000. Compute the income tax payable by individual.

For senior citizens (aged 60 years or above but less than 80 years), income up to Rs 3 lakh is exempt from tax. Income from Rs 300,001 to Rs 5 lakh is taxed at 5 per cent

0 - 300000    Tax = 0

300000 - 450000    Tax = (5/100)*150000  = Rs 7500

Health & Education cess 4% = (4/100)*7500 = Rs 300

Total income tax to be paid = 7500 + 300 = Rs 7800