Jogen’s taxable income for 2010-11 is Rs. 5,00,000. The tax rates are (i) nil for first 1,50,000, (ii)…
The correct choice is: “Rs. 55000” Apply each rate only to its slab: First ₹1,50,000: nil = ₹0. Next ₹1,50,000 (₹1,50,001 to ₹3,00,000) at 10% = ₹15,000. Remaining ₹2,00,000…
Choose your answer
Jogen’s taxable income for 2010-11 is Rs. 5,00,000. The tax rates are
(i) nil for first 1,50,000,
(ii) 10% for 1,50,001-3,00,000, and
(iii) 20% for the remaining. His tax liability is:
Answer and explanation
Correct answer C
The correct choice is: “Rs. 55000”
Apply each rate only to its slab:
First ₹1,50,000: nil = ₹0.
Next ₹1,50,000 (₹1,50,001 to ₹3,00,000) at 10% = ₹15,000.
Remaining ₹2,00,000 (₹3,00,001 to ₹5,00,000) at 20% = ₹40,000.
Total tax = 0 + 15,000 + 40,000 = ₹55,000.
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CLAT UG