Answer :
Alright, let's understand how to calculate the income tax step by step. We'll use the given income slabs and rates, and we'll break down the calculations for the given different incomes:
### Tax Slabs and Rates
1. Income up to Rs 2,50,000: 0%
2. Income from Rs 2,50,001 to Rs 5,00,000: 5%
3. Income from Rs 5,00,001 to Rs 10,00,000: 20%
4. Income above Rs 10,00,000: 30%
### Example Calculations:
#### (a) A single individual earns Rs 8,00,000 in a year. How much income tax does he need to pay?
1. For the first Rs 2,50,000: 0% tax
2. For the next Rs 2,50,000 (i.e., Rs 2,50,001 to Rs 5,00,000):
[tex]\[ \text{Tax} = 2,50,000 \times 0.05 = Rs 12,500 \][/tex]
3. For the remaining Rs 3,00,000 (i.e., Rs 5,00,001 to Rs 8,00,000):
[tex]\[ \text{Tax} = 3,00,000 \times 0.20 = Rs 60,000 \][/tex]
Total tax:
[tex]\[ \text{Total Tax} = Rs 12,500 + Rs 60,000 = Rs 72,500 \][/tex]
#### (b) Calculate the income tax for a single individual earning Rs 10,00,000 in a year.
1. For the first Rs 2,50,000: 0% tax
2. For the next Rs 2,50,000 (i.e., Rs 2,50,001 to Rs 5,00,000):
[tex]\[ \text{Tax} = 2,50,000 \times 0.05 = Rs 12,500 \][/tex]
3. For the next Rs 5,00,000 (i.e., Rs 5,00,001 to Rs 10,00,000):
[tex]\[ \text{Tax} = 5,00,000 \times 0.20 = Rs 1,00,000 \][/tex]
Total tax:
[tex]\[ \text{Total Tax} = Rs 12,500 + Rs 1,00,000 = Rs 1,12,500 \][/tex]
#### (c) A single individual earns Rs 15,00,000 in a year. Determine the tax liability.
1. For the first Rs 2,50,000: 0% tax
2. For the next Rs 2,50,000 (i.e., Rs 2,50,001 to Rs 5,00,000):
[tex]\[ \text{Tax} = 2,50,000 \times 0.05 = Rs 12,500 \][/tex]
3. For the next Rs 5,00,000 (i.e., Rs 5,00,001 to Rs 10,00,000):
[tex]\[ \text{Tax} = 5,00,000 \times 0.20 = Rs 1,00,000 \][/tex]
4. For the remaining Rs 5,00,000 (i.e., Rs 10,00,001 to Rs 15,00,000):
[tex]\[ \text{Tax} = 5,00,000 \times 0.30 = Rs 1,50,000 \][/tex]
Total tax:
[tex]\[ \text{Total Tax} = Rs 12,500 + Rs 1,00,000 + Rs 1,50,000 = Rs 2,62,500 \][/tex]
#### (d) Calculate the total income tax for a single person who earns Rs 25,00,000 annually.
1. For the first Rs 2,50,000: 0% tax
2. For the next Rs 2,50,000 (i.e., Rs 2,50,001 to Rs 5,00,000):
[tex]\[ \text{Tax} = 2,50,000 \times 0.05 = Rs 12,500 \][/tex]
3. For the next Rs 5,00,000 (i.e., Rs 5,00,001 to Rs 10,00,000):
[tex]\[ \text{Tax} = 5,00,000 \times 0.20 = Rs 1,00,000 \][/tex]
4. For the next Rs 10,00,000 (i.e., Rs 10,00,001 to Rs 20,00,000):
[tex]\[ \text{Tax} = 10,00,000 \times 0.30 = Rs 3,00,000 \][/tex]
5. For the remaining Rs 5,00,000 (i.e., Rs 20,00,001 to Rs 25,00,000):
[tex]\[ \text{Tax} = 5,00,000 \times 0.30 = Rs 1,50,000 \][/tex]
Total tax:
[tex]\[ \text{Total Tax} = Rs 12,500 + Rs 1,00,000 + Rs 3,00,000 + Rs 1,50,000 = Rs 5,62,500 \][/tex]
### Summary of Taxes:
- Rs 8,00,000 income: Rs 72,500
- Rs 10,00,000 income: Rs 1,12,500
- Rs 15,00,000 income: Rs 2,62,500
- Rs 25,00,000 income: Rs 5,62,500
### Tax Slabs and Rates
1. Income up to Rs 2,50,000: 0%
2. Income from Rs 2,50,001 to Rs 5,00,000: 5%
3. Income from Rs 5,00,001 to Rs 10,00,000: 20%
4. Income above Rs 10,00,000: 30%
### Example Calculations:
#### (a) A single individual earns Rs 8,00,000 in a year. How much income tax does he need to pay?
1. For the first Rs 2,50,000: 0% tax
2. For the next Rs 2,50,000 (i.e., Rs 2,50,001 to Rs 5,00,000):
[tex]\[ \text{Tax} = 2,50,000 \times 0.05 = Rs 12,500 \][/tex]
3. For the remaining Rs 3,00,000 (i.e., Rs 5,00,001 to Rs 8,00,000):
[tex]\[ \text{Tax} = 3,00,000 \times 0.20 = Rs 60,000 \][/tex]
Total tax:
[tex]\[ \text{Total Tax} = Rs 12,500 + Rs 60,000 = Rs 72,500 \][/tex]
#### (b) Calculate the income tax for a single individual earning Rs 10,00,000 in a year.
1. For the first Rs 2,50,000: 0% tax
2. For the next Rs 2,50,000 (i.e., Rs 2,50,001 to Rs 5,00,000):
[tex]\[ \text{Tax} = 2,50,000 \times 0.05 = Rs 12,500 \][/tex]
3. For the next Rs 5,00,000 (i.e., Rs 5,00,001 to Rs 10,00,000):
[tex]\[ \text{Tax} = 5,00,000 \times 0.20 = Rs 1,00,000 \][/tex]
Total tax:
[tex]\[ \text{Total Tax} = Rs 12,500 + Rs 1,00,000 = Rs 1,12,500 \][/tex]
#### (c) A single individual earns Rs 15,00,000 in a year. Determine the tax liability.
1. For the first Rs 2,50,000: 0% tax
2. For the next Rs 2,50,000 (i.e., Rs 2,50,001 to Rs 5,00,000):
[tex]\[ \text{Tax} = 2,50,000 \times 0.05 = Rs 12,500 \][/tex]
3. For the next Rs 5,00,000 (i.e., Rs 5,00,001 to Rs 10,00,000):
[tex]\[ \text{Tax} = 5,00,000 \times 0.20 = Rs 1,00,000 \][/tex]
4. For the remaining Rs 5,00,000 (i.e., Rs 10,00,001 to Rs 15,00,000):
[tex]\[ \text{Tax} = 5,00,000 \times 0.30 = Rs 1,50,000 \][/tex]
Total tax:
[tex]\[ \text{Total Tax} = Rs 12,500 + Rs 1,00,000 + Rs 1,50,000 = Rs 2,62,500 \][/tex]
#### (d) Calculate the total income tax for a single person who earns Rs 25,00,000 annually.
1. For the first Rs 2,50,000: 0% tax
2. For the next Rs 2,50,000 (i.e., Rs 2,50,001 to Rs 5,00,000):
[tex]\[ \text{Tax} = 2,50,000 \times 0.05 = Rs 12,500 \][/tex]
3. For the next Rs 5,00,000 (i.e., Rs 5,00,001 to Rs 10,00,000):
[tex]\[ \text{Tax} = 5,00,000 \times 0.20 = Rs 1,00,000 \][/tex]
4. For the next Rs 10,00,000 (i.e., Rs 10,00,001 to Rs 20,00,000):
[tex]\[ \text{Tax} = 10,00,000 \times 0.30 = Rs 3,00,000 \][/tex]
5. For the remaining Rs 5,00,000 (i.e., Rs 20,00,001 to Rs 25,00,000):
[tex]\[ \text{Tax} = 5,00,000 \times 0.30 = Rs 1,50,000 \][/tex]
Total tax:
[tex]\[ \text{Total Tax} = Rs 12,500 + Rs 1,00,000 + Rs 3,00,000 + Rs 1,50,000 = Rs 5,62,500 \][/tex]
### Summary of Taxes:
- Rs 8,00,000 income: Rs 72,500
- Rs 10,00,000 income: Rs 1,12,500
- Rs 15,00,000 income: Rs 2,62,500
- Rs 25,00,000 income: Rs 5,62,500
