MBApyq

Income Tax Calculation

XAT 2011 · Quantitative Ability & Data Interpretation · Medium · Arithmetic

All XAT 2011 questionsMore Arithmetic questionsAll XAT QADI

Passage / data set

Based on the following information

Individual & HUF below age of 65 yearsWomen below age of 65 yearsTax Rates
Income up to Rs. 1,60,000/-Income up to Rs. 1,90,000/-Nil
Rs. 1,60,001 to Rs. 3,00,000/-Rs. 1,90,001 to Rs. 3,00,000/-10%
Rs. 3,00,001 to Rs. 5,00,000/-Rs. 3,00,001 to Rs. 5,00,000/-20%
Above Rs. 5,00,001Above Rs. 5,00,00130%

Total income tax payable is obtained by adding two additional surcharges on calculated income tax:

  • Education Cess: 2% on the amount of income tax.
  • Secondary and Higher Education Cess: 1% on the amount of income tax.

Question 1 of 2

Sangeeta is a young working lady. Towards the end of the financial year 2009 - 10, she found her total annual income to be Rs. 3, 37, 425/ -. What % of her income is payable as income tax?

  1. A.

    5.64

  2. B.

    6.82

  3. C.

    7.38

  4. D.

    8.10

  5. E.

    None of the above

Answer

A

Explanation

Base tax = 10%×(300000−190000)+20%×(337425−300000)=11000+7485=1848510\% \times (300000 - 190000) + 20\% \times (337425 - 300000) = 11000 + 7485 = 18485. Total tax with 3% cess = 18485×1.03=19039.5518485 \times 1.03 = 19039.55. Percentage = 19039.55337425×100≈5.64%\frac{19039.55}{337425} \times 100 \approx 5.64\%.

Question 2 of 2

Mr. Madan observed his tax deduction at source, done by his employer, as Rs. 3,17,910/-. What was his total income (in Rs.) if he neither has to pay any additional tax nor is eligible for any refund?

  1. A.

    13,48,835/-

  2. B.

    14,45,522/-

  3. C.

    14,47,169/-

  4. D.

    15,70,718/-

  5. E.

    None of the above

Answer

A

Explanation

Tax before cess = 317910/1.03=308650.48317910 / 1.03 = 308650.48. Since income >500000> 500000, tax = 10%×140000+20%×200000+30%×x=14000+40000+0.3x=54000+0.3x10\% \times 140000 + 20\% \times 200000 + 30\% \times x = 14000 + 40000 + 0.3x = 54000 + 0.3x. 54000+0.3x=308650.48  ⟹  0.3x=254650.48  ⟹  x=84883554000 + 0.3x = 308650.48 \implies 0.3x = 254650.48 \implies x = 848835. Total income = 500000+848835=1348835500000 + 848835 = 1348835.

Related Arithmetic questions

Practise this under exam conditions

Sign in to solve it with a live timer, the on-screen CAT calculator, and streak and accuracy tracking across every question you attempt.

Solve in the workspace