Tax Slab Range Calculation

Question

The tax rates for various income slabs are given below:

Income Slab (Rs.)	Tax rate
$\le 500$	Nil
$> 500$ to $\le 2000$	$5\%$
$> 2000$ to $\le 5000$	$10\%$
$> 5000$ to $< 10000$	$15\%$

There are 15 persons working in an organization. Out of them, 3 to 5 persons are falling in each of the income slabs mentioned above. Which of the following is the correct tax range of the 15 persons?

Accepted Answer

A. Minimum tax happens with maximum lower-income distribution: 5 in Slab 1, 4 in Slab 2, 3 in Slab 3, 3 in Slab 4 near lower boundaries: Minimum tax > $1350$. Maximum tax happens with upper boundaries limit: Maximum tax < $7350$. Thus, the range is 1350 to 7350, both excluded.

Answer

1350 to 7350, both excluded

Answer

1350 to 9800, both included

Answer

2175 to 7350, both excluded

Answer

2175 to 9800, both included

Answer

None of the above

Tax Slab Range Calculation

Explanation

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