Question

The monthly income of a couple is Rs50000. If 1% social security tax is levied up to the annual income of Rs400000 and 10% tax should be paid for the remaining income. How much tax should the couple pay in a year?

a) Rs41000
b) Rs45000
c) Rs50000
d) Rs55000

Answer 1

The couple should pay Rs24000 in taxes in a year.

Step-by-step explanation:

To calculate the tax that the couple should pay in a year, we need to determine the annual income and then calculate the taxes based on the given tax rates. The monthly income of the couple is Rs50000, so their annual income would be 50000 x 12 = Rs600000.

The tax is levied at 1% up to the annual income of Rs400000. So, the tax on the first Rs400000 would be 400000 x 0.01 = Rs4000.

The remaining income is Rs600000 - Rs400000 = Rs200000. The tax rate for the remaining income is 10%, so the tax on this amount would be 200000 x 0.10 = Rs20000.

Therefore, the total tax that the couple should pay in a year is Rs4000 + Rs20000 = Rs24000.