Mr. Kartarsingh’s monthly income = ₹ 42,000
Mr. Kartarsingh’s yearly income = 42,000 x 12 = ₹ 5,04,000
Mr. Kartarsingh’s investment
= GPF + NSC =
(3000 x 12)+ 15,000
= 36,000 + 15,000
= ₹ 51,000
Donation to PM’s relief fund = ₹ 12, 000
∴ Taxable income
= yearly income – (investment + donation)
= 5,04,000 – (51,000 + 12,000)
= 5,04,000 – 63,000 = ₹ 4,41,000
Mr. Kartarsingh income falls in the slab 2,50,001 to 5,00,000.
∴ Income tax = 5% of (Taxable income – 250000) = 5% of (4,41,000 – 2,50,000)
= \(\frac{5}{100}\) x 1,91,000 100
= ₹ 9550
Education cess = 2% of income tax
= \(\frac{2
}{100}\) x 9550
= 191 Secondary and Higher Education cess = 1% of income tax
= \(\frac{1}{100}\) x 9550 100 = 95.50
Total income tax = Income tax + Education cess + Secondary and higher education cess
= 9550 + 191 + 95.50
= ₹ 9836.50
∴ Mr. Kartarsingh’s income tax is ₹ 9836.50