Problem Description:
The image shows an Excel spreadsheet with two sections:
1.
Income Details: Contains information about gross income, total deductions, and total exemptions.
2.
Income Tax Slab: Lists different income tax slabs with corresponding tax rates.
The task is to calculate the taxable income and determine the applicable tax based on the provided income details and the tax slab structure.
Step-by-Step Solution:
####
Step 1: Understand the Income Details
From the image:
-
Gross Income: ₹42,00,000
-
Total Deductions: ₹1,50,000
-
Total Exemptions: ₹2,45,000
The
Taxable Income is calculated as:
\[
\text{Taxable Income} = \text{Gross Income} - \text{Total Deductions} - \text{Total Exemptions}
\]
Substitute the values:
\[
\text{Taxable Income} = 42,00,000 - 1,50,000 - 2,45,000 = 38,05,000
\]
So, the
Taxable Income is
₹38,05,000.
####
Step 2: Determine the Applicable Tax Slab
The tax slab structure is as follows:
- Up to ₹2.5 Lakhs: 0%
- ₹2.5 Lakhs - ₹5 Lakhs: 10%
- ₹5 Lakhs - ₹20 Lakhs: 15%
- ₹20 Lakhs - ₹35 Lakhs: 20%
- ₹35 Lakhs - ₹50 Lakhs: 25%
- ₹50 Lakhs - ₹90 Lakhs: 30%
- Above ₹90 Lakhs: 40%
Since the taxable income is ₹38,05,000 (which is between ₹35 Lakhs and ₹50 Lakhs), the applicable tax rate for this portion is
25%.
####
Step 3: Calculate the Tax
To calculate the tax, we need to apply the tax rates progressively to each slab up to the taxable income.
1.
Up to ₹2.5 Lakhs: No tax (0%)
\[
\text{Tax} = 0
\]
2.
₹2.5 Lakhs - ₹5 Lakhs: Tax rate is 10%
\[
\text{Tax} = (5,00,000 - 2,50,000) \times 10\% = 2,50,000 \times 0.10 = 25,000
\]
3.
₹5 Lakhs - ₹20 Lakhs: Tax rate is 15%
\[
\text{Tax} = (20,00,000 - 5,00,000) \times 15\% = 15,00,000 \times 0.15 = 2,25,000
\]
4.
₹20 Lakhs - ₹35 Lakhs: Tax rate is 20%
\[
\text{Tax} = (35,00,000 - 20,00,000) \times 20\% = 15,00,000 \times 0.20 = 3,00,000
\]
5.
₹35 Lakhs - ₹38,05,000: Tax rate is 25%
\[
\text{Tax} = (38,05,000 - 35,00,000) \times 25\% = 3,05,000 \times 0.25 = 76,250
\]
####
Step 4: Sum the Taxes
Add up the taxes from all the slabs:
\[
\text{Total Tax} = 0 + 25,000 + 2,25,000 + 3,00,000 + 76,250 = 5,26,250
\]
Final Answer:
The total tax payable is
₹5,26,250.
\[
\boxed{526250}
\]
Parent Tip: Review the logic above to help your child master the concept of income tax worksheet excel.
