Question

A country follows a progressive taxation system under which the income tax rate applicable varies for different slabs of income. Total tax is computed by calculating the tax for each slab and adding them up. The rates applicable are as follows:

Annual income Slab (in Rs)	Tax rate Applicable
0 - 50,000	0%
50,001- 60,000	10%
60,001 - 1,50,00	20%
>1,50,000	30%

If my annual income is Rs. 1,70,000, then what is the tax payable by me?

• A. 51,000
• B. 17,000
• C. 34,000
• D. 25000

Answer 1

The Correct Option is D

Total tax payable on Rs. 1,70,000
= (50,000 × 0%) +(10,000 ×10%) +(90,000 ×20%) +(20,000 ×30%)
= 0+1,000 +18,000 +6,000
= Rs.25,000
The correct answer is (D) :25000