Question

Kranti has an income of Rs. 1,75,000 per year and has to pay an income tax of Rs. 3000. 

Kamlesh’s annual income is Rs.3,00,000 and he has to pay an income tax of Rs.5,500. 

a) Who pays more income tax? 

b) Who has to pay a larger part of the income as tax? 

c) In such a situation, the person with higher income is paying a ........... (smaller/greater/equai) part of the income as tax.

Answer 1

a) 1. Kranti pays 3% of her income as tax. 

2. Kamiesh’s pays 2.75% of her income as tax. 

3. When we take rate of tax into consideration, Kanti is paying high rate. 

4. When we consider the amount of tax paid Kamlesh pays more tax.

b) Kranti has to pay a larger part of the income as tax i.e. 3% when compared with Kamlesh who pays 2.75% as tax. 

c) smaller