Based on the following information
Total income tax payable is obtained by adding two additional surcharges on calculated income tax.
Education Cess : An additional surcharge called ‘Education Cess’ is levied at the rate of 2% on the amount of income tax.
Secondary and Higher Education Cess : An additional surcharge called ‘Secondary and Higher Education Cess` is levied at the rate of 1% on the amount of income tax.
Sangeeta is a young working lady. Towards the end of the financial year 2009 - 10, she found her total annual income to be Rs. 3, 37, 425/ -. What % of her income is payable as income tax?
Income tax payable by Sangeeta according to her salary band = 0.2*(337425-300000) + 0.1(300000-190000) = Rs. 18485
Total education cess levied on income tax = 2 + 1 = 3% of income tax
Therefore, the total income tax payable by Sangeeta = 1.03*18485 = 19039.55.
Hence, the required percentage = $$\dfrac{19039.55}{337425}\times 100$$ = 5.64 percent
Therefore, we can say that option A is the correct answer.
Create a FREE account and get:
- All Quant Formulas and shortcuts PDF
- XAT previous papers with solutions PDF
- XAT Trial Classes for FREE
