The man’s taxable income is Rs. 14,280/-. The state tax instructions tell him to pay 2% on the first Rs. 3000/- of his taxable income, 3% on each of the second and third Rs. 3000/- and 4% on the remainder. What is the total amount of income tax that he must pay?
- Rs.680
- Rs. 451.20
- Rs. 481.20
- Rs. 380.60
Explanation
Total = 14,280
First 3,000 => 2% = 3000 x 2/100 = 60
Second 3,000 => 3% = 3000 x 3/100 = 90
Third 3,000 => 3% = 3000 x 3/100 = 90
Remaining 14,280 – 9000 = 5280 => 5280 x 4% = 211.20
Total Tax = 60 + 90 +90 +211.20 =
451.20
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