To calculate Swornima's annual income and the amount of tax she should pay, let's break down the information provided:
Monthly basic salary: Rs 48,000
Social security tax rate: 1%
Income tax rate on income up to Rs 5,00,000: 0% (no tax)
Income tax rate on income from Rs 5,00,001 to Rs 7,00,000: 10%
Dashain allowance: 1 month's salary
Deposit in Citizen Investment Trust (CIT): 10%
Rebate on income tax: 10%
(i) Annual Income:
Swornima's monthly basic salary is Rs 48,000, so her annual basic salary would be:
Annual Basic Salary = Monthly Basic Salary x 12
= Rs 48,000 x 12
= Rs 5,76,000
Additionally, she receives 1 month's salary as the Dashain allowance, which we can add to her annual income:
Annual Income = Annual Basic Salary + Dashain Allowance
= Rs 5,76,000 + Rs 48,000
= Rs 6,24,000
Swornima's annual income is Rs 6,24,000.
(ii) Tax Rebate:
Swornima receives a 10% rebate on her income tax. To calculate the rebate, we need to determine her income tax first.
(iii) Annual Income Tax:
First, let's calculate the income tax for the range of income from Rs 5,00,001 to Rs 7,00,000. The tax rate for this range is 10%.
Taxable Income in this range = Rs 6,24,000 - Rs 5,00,000
= Rs 1,24,000
Income Tax in this range = Taxable Income x Tax Rate
= Rs 1,24,000 x 0.1
= Rs 12,400
Now, let's calculate the total annual income tax:
Total Annual Income Tax = Income Tax in the range Rs 5,00,001 to Rs 7,00,000
= Rs 12,400
Next, we calculate the rebate on income tax:
Tax Rebate = Total Annual Income Tax x Rebate Rate
= Rs 12,400 x 0.1
= Rs 1,240
Swornima's annual income tax is Rs 12,400, and she receives a tax rebate of Rs 1,240.
To summarize:
(i) Swornima's annual income is Rs 6,24,000.
(ii) Swornima's tax rebate is Rs 1,240.
(iii) Swornima should pay an annual income tax of R