Mr Kartar Singh age 48 years work in private company is monthly income after deduction of allowances is 42000 and every month he contribute 3000 rupees to GPF he has also what rupees 15000 of NSC and donated 12000 to the PM's fund compute his income tax
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Answer:
Step-by-step explanation:
Given monthly income is Rs. 42000.
So, the annual income will be 42000×12 = Rs. 504000
GPF contribution every month is Rs. 3000
So, annual GPF contribution will be 3000×12 = Rs. 36000
NSC purchase of Rs. 15000
Donations to PM's fund is Rs. 12000
Standard deduction claim is Rs. 40000 (At present)
So the total taxable income will be 504000-36000-15000-12000-40000 = Rs. 401000
Income tax upto 250000 is nil.
So, income tax for 401000-250000 = 5% of 151000
= 0.05×151000
= Rs. 7550
Step-by-step explanation:
Monthly Income = Rs 42,000
Gross annual income = Rs 42,000 × 12 = Rs 5,04,000
Applicable deductions:
Monthly GPF ( general provident fund ) contribution = Rs 3000
Annual GPF contribution = Rs 3000 × 12 = Rs 36,000
NSC = Rs 15,000
Donation in PM's relief fund = Rs 12000
Total applicable deductions = Rs 36,000 + 15,000 + 12,000 = Rs 63,000
Total taxable income = Gross annual income − total applicable deductions
= Rs 5,04,000 − Rs 63,000 = Rs 4,41,000
Now the Total taxable income falls in the slab of 2,50,001 to 5,00,000.
So, Income tax = (Taxable income − 2,50,000) ×5100 = Rs 9550
Education cess = 9550×2/100=Rs 191
Secondary and higher education cess = 9550×1/100=Rs 95.5
Total tax to be paid = Income tax +
education cess + secondary and higher education cess = 9550 + 191 + 95.5
= Rs 9836.5/-