Question

mrs ahmed does not pay taxes for the first Rs. 4500, she pays 29% tax on the next Rs. 3200 and 25% on the rest of her earnings. in one year Mrs. ahmed earns rs. 12500. calculate the amount of tax paid by mrs ahmed

Answer 1

Mrs. Ahmed's income = 12500
amount on which taxes are not payed= 4500
∴ amount on which taxes are payed = 12500-4500
                                                          =  8000
∴ rest of her earnings = 8000-3200
                                   = 4800
Tax on 3200 = 29% of 3200
                    = 29/100 × 3200
                    = 29 × 32
                    = 928
Tax on rest of salary = 25% of 4800
                                = 25/100 × 4800
                                = 4800/4 or 25 × 48
                                = 1200
∴ total amount of tax paid = 1200 + 928
                                          = 2198

Ans. ∴ Mrs. Ahmed  pays Rs. 2198 as tax