Shyam is a 31-year old businessman who owns an electronics store in Gurgaon. He earned ₹22,00,000 from the sale of electronics in the financial year 2018-19. He had spent ₹12,00,000 on the purchase of electronic items and the maintenance of his store. This means he made a profit of ₹10,00,000 in that year. Assuming that Shyam had no other earnings in the year and incurred no other expenditure on his business, how much income tax he has to pay in the assessment year 2019-20 as per the provisions of the Income Tax Act, 1961?
Income tax slabs for the financial year 2018-19 are given below.
Income Tax Rate
Up to ₹2,50,000 Nil
₹2,50,001 to ₹5,00,000 5% of the
total income
exceeding
₹2,50,000
₹5,00,001 to ₹10,00,000 ₹12,500 +
20% of the
total
income
exceeding
₹5,00,000
Above ₹10,00,000 ₹1,12,500 + 30%
of the total
income exceeding
₹10,00,000
Answers
Answered by
0
Answer:
it is prasange sum of of 10% of the increase
Answered by
0
Given:
Total income of shyam= ₹2200000
To prove:
Income tax to be given in year 2019-2020
Solution:
According the question we know,
Income tax slabs rates:
Income Tax Rate
Up to ₹2,50,000
Nil
₹2,50,001 to ₹5,00,000
5% of the total income exceeding ₹2,50,000
₹5,00,001 to ₹10,00,000 ₹12,500 + 20% of the total income exceeding ₹5,00,000
Above ₹10,00,000 we get
₹1,12,500 + 30% of the total income exceeding ₹10,00,000
For income above ₹1000000,
Income tax to be given
= 112500 + 30% of total income
= 112500 + 30% of 2200000
= 112500 + 660000
= ₹772500
By calculating we get,
Income Tax to be given in the academic year 2019-2020 is ₹772500.
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