Question

The gross income of a person is Rs. 25,000. 20% of his income is exempted from income-tax and the rate of income tax is 5%. His net income is.

Your answer


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Answer 1

exempt income=20% of 25,000 =5000

taxable income= 25,000-5000=20,000

tax on 20,000= 5% of 20,000

=1000

net income= gross income - tax

=25,000-1000

=24000

his net income is equal to 24000

Answer 2

Given; The gross income of a person is Rs. 25,000. 20% of his income is exempted from income-tax and the rate of income tax is 5%.

To Find; His next income

Solution; It is given that The gross income of a person is Rs. 25,000. 20% of his income is exempted from income-tax and the rate of income tax is 5%.

The gross income=25,000

Income for tax=25000-20%of 25000

=25000-5000=20000

Income tax =20%of 20000

=1000

Net income=Gross income-tax=25000-1000=24000

Hence, Net income is 24000