Question

There are two slabs of income tax,
9% tax for income apto 3 lakhs
and 12.5% for income above 3 lakhs. Arun tried to evade
tax by hidiing some
income, to fall in the 9% tax slab. The amount hid by Arun is 9/44 of the original taxable income. If Arun paid ₹ 25,200 tax. What is the original amount of tax he had to pay?​

Answer 1

Answer:

30 per cent on income above Rs 15 lakh."

Currently, annual income up to Rs 2.5 lakh is exempt from income tax. While a 5 per cent tax is charged for income between Rs 2.5 and 5 lakh. 20 per cent for income between Rs 5 lakh and Rs 10 lakh and 30 per cent for those earning above Rs 10 lakh."The new tax regime shall be optional for taxpayers," she said.Sitharaman accepted the demand of the industry to reverse the taxability of dividends back to the recipients, making equity investment more attractive. Now, dividends will be taxed in the hands of recipients, a move that will cause Rs 25,000 crore dent to her coffers.

Answer 2

Given:  There are two slabs of income tax, 9% tax for income up to 3 lakhs and 12.5% for income above 3 lakhs. Arun tried to evade tax by hiding some income to fall in the 9% tax slab. The amount hidden by Arun is 9/44 of the original taxable income. Arun paid ₹25,200 tax.

To find: The original amount of tax he had to pay.

Solution:

• Let the original taxable income be x.
• So, the amount hid by Arun is calculated as,

        $\frac{9}{44} * x = \frac{9x}{44}$

• The amount he paid income for is calculated as,

        $x - \frac{9x}{44} = \frac{35x}{44}$

• Now, the tax (9%) paid by him for the unhidden income is given by the formula,

        $tax = \frac{9}{100} * (income)_{unhidden}$

• On substituting the values,

        $25200 = \frac{9}{100} * \frac{35x}{44}$

        $x = 3,52,000$

• Hence, his original taxable income is ₹ 3,52,000.
• The tax (12.5%) to be paid for this amount is calculated as,

        $tax = \frac{12.5}{100} * 3,52,000$

        $tax = 44,000$

Therefore, the original amount of tax he had to pay is ₹44,000.