Question

A man’s annual income is \[Rs.16000\].The income tax at the rate of \[15\% \] after allowing a deduction of \[Rs{\text{ }}7500\], the tax payable amount is
A.\[Rs{\text{ }}1,500\]
B.\[Rs{\text{ }}1,200\]
C.\[Rs{\text{ }}1,275\]
D.\[Rs{\text{ }}1,450\]

Answer 1

Hint: In the question, we had given a man’s annual income and the income tax at the rate of \[15\% \] after a deduction of \[Rs{\text{ }}7500\], then we have to find out the payable amount we will firstly subtract the deduction from the given annual income and then further we will find out the payable amount of tax.

Complete step-by-step answer:
 We are given Man’s annual income is \[Rs{\text{ }}16000\] and after a suitable deduction of \[Rs{\text{ }}7500\]. He has to pay income tax which is at the rate of \[15\% \] and we have to find out how much amount he has to pay as income tax.
Firstly annual income and deduction is given therefore will subtract the deduction from the annual income. Because tax is not applied on that deduction. Therefore the amount left for tax which means the amount on which tax will have to pay is
Annual Income \[ = {\text{ }}Rs{\text{ }}16000\]
Deduction \[ = {\text{ }}Rs{\text{ }}7500\]
Therefore man is left with \[Rs{\text{ }}\left( {16000 - 7500} \right)\]
Which means \[Rs{\text{ }}8500\]
This is the amount after deduction which income tax of \[15\% \] had to pay.
Therefore income tax will have to pay is \[15\% \] of the amount left
Which we will find out by using the identity
That is \[2\% \] of \[10\] is \[\dfrac{2}{{100}} \times 10\] which means \[0.2\]
Here we will find \[15\% \]of amount left which is 8500 which will become
\[ \Rightarrow \dfrac{{15}}{{100}} \times 8500\]
Which on solving, we get
\[ \Rightarrow 15 \times 85 = 1275\]
Therefore \[Rs{\text{ }}1275\]is the amount that the person has to pay as income tax which is \[15\% \] of the total annual income after deduction of the Man’s salary.

Note: In the above question, the income tax is applied and then further deducted from the Man’s salary after deduction which means \[15\% \] of income tax is applied on \[Rs{\text{ }}8500\]not on \[16000\] because \[7500\] as deduction is already deducted from his salary and income tax is applied on the left over amount after deduction which \[1275{\text{ }}Rs.\]