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6. Rs.1800001 to Rs.2500000 Rs.140000 +17.5% of the
amount exceeding Rs.1800000

7. Rs.2500001 to Rs.3000000 Rs.262500 + 20% of the amount
exceeding Rs.2500000

8. Rs. 3000001 to Rs.3500000 Rs.362500 + 22.5% of the
amount exceeding Rs.3000000

9. Rs.3,500,001 to Rs.4000000 Rs.475000 + 25% of the amount
exceeding Rs.3500000

10. Rs. 4000001 to Rs. 7000000 Rs.600000 + 27.5% of the amount
exceeding Rs.4000000

11. Rs.7000001 and above Rs.1425000 + 30% of the amount
exceeding Rs. 7000000

4.5.2 Solve Simple Real Life Problems Related to Individual Income Tax
Assesse

Calculation of Income Tax is illustrated with the following examples. Use the above
table for calculations.

Example 1: Calculate the amount of Income Tax at 5% of a person whose income is
Rs.578,000 for the year.

Solution:
Income of the person = Rs. 578,000

The amount lies in Taxable income slab at Sr. # 2
i.e, 5% of the amount exceeding Rs. 400,000

Taxable income = 578,000 - 400,000
= Rs.178,000

∴ 5
Income Tax @5% = 100 x 178,000

= Rs. 8,900

version: 1.1

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