Answer :
To calculate the Income Tax for each individual based on the given rates, follow these steps. Each step will help in figuring out the tax according to the income brackets provided:
Taxable Income & Income Tax Brackets:
- The first ₹250,000 of taxable income is exempt from tax.
- The next ₹100,000 is taxed at 12%.
- Any income above ₹350,000 is taxed at 20%.
Calculate Tax for Each Individual:
- For each person, determine their taxable income from the given data.
Break Down the Tax Calculation:
Narain's Taxable Income: ₹120,000
- ₹120,000 is less than ₹250,000, so the tax is ₹0.
Mohan's Taxable Income: ₹350,000
- Income up to ₹250,000: Not taxed.
- Income from ₹250,001 to ₹350,000 (₹100,000): Taxed at 12%
- Income tax = ₹100,000 * 0.12 = ₹12,000.
Abdul's Taxable Income: ₹320,000
- Income up to ₹250,000: Not taxed.
- Income from ₹250,001 to ₹320,000 (₹70,000): Taxed at 12%
- Income tax = ₹70,000 * 0.12 = ₹8,400.
Ramesh's Taxable Income: ₹520,000
- Income up to ₹250,000: Not taxed.
- Income from ₹250,001 to ₹350,000 (₹100,000): Taxed at 12%
- Income above ₹350,000 to ₹520,000 (₹170,000): Taxed at 20%
- Income tax for ₹100,000 = ₹100,000 * 0.12 = ₹12,000
- Income tax for ₹170,000 = ₹170,000 * 0.20 = ₹34,000
- Total Income tax = ₹12,000 + ₹34,000 = ₹46,000.
The calculations show how to compute income tax based on the rates provided for varying taxable incomes, providing a clear and step-by-step breakdown.
