Question

Mr. Mhatre is 55 years old. His gross total income is Rs. 12,00,000. He has
invested the following amounts in different schemes.
1) Insurance premium Rs. 95,000
ii) Investement in Provident Fund Rs. 30,000
ill) Investment in PPF Rs. 20,000
iv) National Saving Certificate Rs. 25,000
Find out the permissible deductions, taxable income and the income tax payable.​

Answer 1

Answer:

Step-by-step explanation:

Mr. Mhatre is 55 years old. His gross total income is Rs. 12,00,000.

Total savings

95,000 + 30,000 + 20,000 + 25,000 = Rs. 1,70,000

Therefore the taxable Income

= Total Yearly income - Total savings

= Rs. 12,00,000 - Rs. 1,70,000

= Rs. 10,30,000

Mr. Mhatre's taxable income = Rs. 10,30,000 > Rs. 10,00,000

Income tax = Rs. 1,12,500 + 30% (of total income minus 10 lakh)

Rs.10,30,000 - Rs. 10,00,000 = Rs. 30,000

Therefore, the income tax = Rs. 1,12,500 + Rs. 30,000  × (30 /100 )

= Rs. 1,12,500 + Rs. 9,000

= Rs. 1,21,500

Taxable income is 1,21,500