Question

The yearly income of a family was Rs. 5,00,000. Tax was exempted upto Rs. 1,50,000. If the tax for the first Rs 20,00,000 was 10 % and for the rest was 15%, find how much amount of income tax will be paid in a year?

Answer 1

Answer: Rs. 35,000

Explanation:

The taxable income is:

= Yearly income - Tax exemption

= 500,000 - 150,000

= Rs. 350,000

The tax on the first Rs. 2,000,000 is 10% which means that tax is:

= 350,000 * 10%

= Rs. 35,000