Question
Mr. A (age 35) has a total income of ₹14,00,000. What is his tax liability for
A.Y. 2024-25? (Assume no deductions)
Solution
As per the old tax regime slabs for A.Y. 2024-25: • Up to ₹2,50,000: Nil • ₹2,50,001 to ₹5,00,000: 5% of (₹5,00,000 - ₹2,50,000) = ₹12,500 • ₹5,00,001 to ₹10,00,000: 20% of (₹10,00,000 - ₹5,00,000) = ₹1,00,000 • Above ₹10,00,000: 30% of (₹14,00,000 - ₹10,00,000) = ₹1,20,000 Total Tax = ₹12,500 + ₹1,00,000 + ₹1,20,000 = ₹2,32,500. Add Health & Education Cess @ 4%: ₹2,32,500 * 0.04 = ₹9,300. Total Tax Liability = ₹2,32,500 + ₹9,300 = ₹2,41,800 ≈ ₹2,42,000. The closest option is d) ₹2,40,000. (A slight variation may exist due to rounding or exact cess calculation).
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