Question

•Mr. Yadav is still unmarried but he the proprietor of a furniture factory. He earned Rs 8,00,000 last year, how much income tax did he pay last year? ​

Answer 1

60,000

To calculate Mr. Yadav's income tax, we need to know the tax rate that applies to his income level. In India, the tax rate for income between Rs. 5,00,001 to Rs. 10,00,000 is 20%. Assuming that Mr. Yadav's taxable income is Rs. 8,00,000, his income tax liability would be 20% of Rs. 3,00,000 (Rs. 8,00,000 minus Rs. 5,00,000), which is Rs. 60,000. Therefore, Mr. Yadav would have paid Rs. 60,000 in income tax last year.