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| Covering Chapters |
1. |
Ratio and Proportion |
15. |
Compound Interest With Formula |
2. |
Circumference and Area of a Circle |
16. |
Heights and Distances |
3. |
Surface Area and Volume of Cylinder, Cone and Sphere |
17. |
Sales-Tax |
4. |
Matrices |
18. |
Arc, Tangent and Chord Properties of Circles |
5. |
Linear Inequations |
19. |
Trigonometrical Identities |
6. |
Quadratic Equations |
20. |
Compound Interest Without Formula |
7. |
Problems on Quadratic Equations |
21. |
Shares and Dividend |
8. |
Relations and Functions |
22. |
Income-Tax |
9. |
Remainder and Factor Theorems |
23. |
Reflection |
10. |
Distance and Section Formulae |
24. |
Equation of a Straight Line |
11. |
Graphical Representation |
25. |
Symmetry |
12. |
Measures of Central Tendency |
26. |
Similarity |
| 13. |
Construction of Circles |
27. |
Locus |
| 14. |
Banking |
28. |
Cyclic Properties of Circles |
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| Questions |
| Questions 6 |
The annual income of Ms Sharma (excluding HRA) is Rs 1,68,000. She contributes Rs 4,500 per month to her P.F. account and pays an annual insurance premium of Rs 8,000. Calculate the income tax including surcharge Ms Sharma has to pay in the last month of the year if her earlier deductions as income tax for the first 11 months were at the rate of Rs 600 per month. |
Assume the following for calculating income tax. Standard deduction: 1/3rd of the total annual income subject to a maximum of Rs 20,000
Rates of income tax: |
|
Slab |
|
| Up to Rs 50,000 |
No tax |
| From Rs 50,001 to Rs 60,000 |
10% of amount exceeding Rs 50,000 |
| From Rs 60,001 to Rs 1,50,000 |
Rs 1000 + 20% of the amount exceeding Rs 60,000 |
| From Rs 1,50,001 and above |
Rs 19,000 + 30% of the amount exceeding Rs1,50,000 |
| Rebate in tax |
20% of the total savings subject to maximum of Rs 12,000 |
| Surcharge |
10% of the total tax payable after rebate |
| Special Tax Rebate |
Women (below the age of 65 years) are allowed
tax rebate at the rate of 100% of the income
tax chargeable or Rs 5000, whichever is less. |
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| Questions 5 |
| A man invests Rs 13,500 partly in shares paying 6% at Rs 140 and partly in shares paying 5% at Rs 125. If his total income is Rs 560, how much has he invested in each? |
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| Solutions Tips and Guidelines |
| Solution : |
| Gross income |
= |
Rs 1,68,000 |
| S.D. |
= |
Rs 20,000 |
| Taxable income |
= |
Rs 1,68,000 - Rs 20,000 |
| |
= |
Rs 1,48,000 |
| Income Tax |
= |
Rs 1,000 + 20% of Rs 88,000 |
| |
= |
Rs 1,000 + Rs 17,600 |
| |
= |
Rs 18,600 |
| Savings |
= |
P.F. = Rs 4,500 x 12 |
| |
= |
Rs 54,000 |
| |
|
LIC = Rs 8,000 |
| |
|
Total = Rs 62,000 |
| Rebate on saving |
= |
20% of Rs 62,000 = Rs 12,400 |
| |
= |
(subject to maximum of Rs 12,000) |
| Permissible rebate |
= |
Rs12,000 |
| Net income tax |
= |
Rs 18,600 – Rs 12,000 |
| |
= |
Rs 6,600 |
| Surcharge |
= |
10% of Rs 6,600 |
| |
= |
10/100 x Rs 6,600 |
| |
= |
Rs 660 |
| Net payable tax |
= |
Rs (6,600 + 660) |
| |
= |
Rs 7,260 |
| Rebate in tax,
being a woman = Rs 5,000
Actual tax |
= |
Rs 7,260 – Rs 5,000 = Rs 2,260 |
| Tax deducted at source |
= |
Rs 600 ´ 11 = Rs 6,600 |
| Refund |
= |
Rs 6,600 – 2,260 = Rs 4,340 |
| Mrs Sharma will get refund |
= |
Rs 4,340 |
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| Formulae/Tips : |
In order to compute the income tax of an individual, proceed as follows : |
| Calculate |
: |
Gross annual income (income from salary,profession and other sources) |
| Deduct |
: |
Standard deduction and other eligible donations from gross income as per given data to get taxable income. |
| Calculate |
: |
Tax on taxable income as per given rate of taxation. Tax rebate on savings and eligible investments as per given data. |
| Deduct |
: |
Tax rebate from total tax to get net income tax. |
| Calculate |
: |
Surcharge, if any, at the given rate. |
| Add |
: |
Surcharge to net income tax to get income tax payable. |
| Deduct |
: |
Total tax deducted at source, if any, from income tax payable to get the balance tax or refund. |
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