Question

Q. 2. Annual salary of Navin during financial year 2013-14 is Rs7,20,000. He pays Rs.4,000 yearly towards general provident fund.He invests Rs. 30,000 in NSC and pays Rs.20,000 yearly the LIC premium. He donates
Rs. 15,000 to a charitable trust, eligible for50% deduction.Calculate the income tax, Navin is topay
at the last of the year.
Rate of income tax is as follows :​

Answer 1

Answer:

Answer is Rs. 54,487

Step-by-step explanation:

Annual income of Navin = Rs, 7,20,000

Amount of donation in charitable trust

= 50% of 15,000 = Rs. 7,500

∴ The remaining annual income

= 7,20,000 - 7,500 = Rs. 7 ,12, 500.

Amount invested to rebate :

(i) Invested in GPF = 4,000 ╳ 12 = Rs. 48,000

(ii) Invested in NSC = Rs. 30,000

(iii) Invested in LIC = Rs. 20,000

∴ Total invested amount = Rs. 98,000

Hence, the taxable income

⟹ 7,12,500 - 98,000

⟹ Rs. 6,14,500.

This amount is between Rs. 5,00,000 to Rs. 10,00,000 so, on first Rs. 5 lac, conditions (1) and (2) will apply and on remaining 6,14,500 - 5,00,000 = 1,14,500 condition (3) will apply.

Thus, On first 2,00,000 : No tax.

∴ On first 5,00,000;

Remaining 1,14,500,the income tax is 20%

$\: \: \: \: \: \: \: \: \: ➯20\% \: of \: 1,14,500$

$\: \: \: \: \: \: \: \: \: ➯ 1,14,500 \times \frac{20}{100}$

$➯ Rs. 22,900$

∴ Total income tax = 30,000 + 22,900

= Rs. 52,900

Education cess on payable income tax

$= 3\% \: of \: 52,900$

$=52,900 \times \frac{3}{100}$

$= Rs. 1,587.$

∴ Total income tax = 52,900 + 1,587

Rs. 54,487

Answer 2

ᗩᑎՏᗯᗴᖇՏ:-

Annual income of Navin = Rs, 7,20,000Amount of donation in charitable trust= 50% of 15,000 = Rs. 7,500∴ The remaining annual income= 7,20,000 - 7,500 = Rs. 7 ,12, 500.

Amount invested to rebate :-

★ Invested in GPF = 4,000 × 12 = Rs. 48,000

★ Invested in NSC = Rs. 30,000

★Invested in LIC = Rs. 20,000

∴ Total invested amount

= Rs. 98,000

Hence, the taxable income

⟹ 7,12,500 - 98,000⟹ Rs. 6,14,500.

This amount is between Rs. 5,00,000 to Rs. 10,00,000 so, on first Rs. 5 lac, conditions (1) and (2) will apply and on remaining 6,14,500 - 5,00,000 = 1,14,500 condition (3) will apply.

Remaining 1,14,500,the income tax is 20%

$= 20 \: percent \: of \: 114500$

$= 114500 \times 20 \div 100$

Education cess on payable income tax

Education cess on payable income tax= 3% of 52,900

= 3/100×52,900

= ʀs 1587

∴ Total income tax = 52,900 + 1,587

∴ Total income tax = 52,900 + 1,587Rs. 54,487

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