Question

After deducting 10% provident fund a married person draws Rs 40,500 salary per month and one month's salary as festival bonus, the person pays Rs 14,500 annually as the premium of his/her insurance. Calculate the annual income tax paid by the person.
Need correct answer​

Answer 1

The  annual income tax paid by the person is: $4,500.

Annual income tax

Using this formula

Annual income tax=[Salary÷(1-percentage deduction)]- Salary

Let plug in the formula

Annual income tax=[40,500÷(1-10%)]-40,500

Annual income tax=45,000-40,500

Annual income tax=4500

Therefore the  annual income tax paid by the person is: $4,500.

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