Question

How much education cess at $ 3\%\left( 2\%+1\% \right) $ is levied on income tax INR 125000?

Answer 1

Hint: The education cess $ 3\%\left( 2\%+1\% \right) $ on income tax means the amount of education cesson the income tax is $ 3\%\left( 2\%+1\% \right) $ of the total income tax. The total education cess is $ 3\% $ by $ \left( 2\%+1\% \right) $ . To find the education cess on income tax of Rs 125000we have to find $ 3\%\left( 2\%+1\% \right) $ of 125000 which we are going to find by multiplying 125000by $ \dfrac{3}{100}\left( \dfrac{2}{100}+\dfrac{1}{100} \right) $ and the result of the multiplication is the required amount of education cess.

Complete step-by-step answer:
In the above problem, we have given the rate of education cess which is levied on income tax of Rs 125000 is $ 3\%\left( 2\%+1\% \right) $ and we are asked to find the amount of education cess that could be possible.
The amount of education cess is $ 3\%\left( 2\%+1\% \right) $ of Rs 125000. So, basically to find the education cess we have to calculate $ 3\%\left( 2\%+1\% \right) $ of Rs 125000.
We know that $ 3\%\left( 2\%+1\% \right) $ of Rs 125000 means $ \dfrac{3}{100}\left(
\dfrac{2}{100}+\dfrac{1}{100} \right) $ of Rs 125000. Multiplying $ \dfrac{3}{100}\left(
\dfrac{2}{100}+\dfrac{1}{100} \right) $ by 125000 will give the amount of education cess on income tax.
 $ \begin{align}
& \dfrac{3}{100}\left( \dfrac{2}{100}+\dfrac{1}{100} \right)\left( 125000 \right) \\
& =\dfrac{3}{100}\left( \dfrac{3}{100} \right)\left( 125000 \right) \\
& =\dfrac{9}{10000}\left( 125000 \right) \\
& =\dfrac{9}{10}\left( 125 \right) \\
& =Rs112.5 \\
\end{align} $
From the above calculations, we have calculated the amount of education cess levied at the rate of
 $ 3\%\left( 2\%+1\% \right) $ on the income tax of Rs 125000 as Rs 112.5.

Note: The point where you make mistakes in the above problem is you might think that the educational cess $ 3\%\left( 2\%+1\% \right) $ is total $ 3\% $ . You think that total of $ 2\%\And 1\% $ is $ 3\% $ but actually it is the multiplication of 3\% by $ \left( 2\%+1\% \right) $ which is $ \left( 3\% \right)\times \left( 3\% \right) $ so you think that education cess levied on Rs 125000 is $ 3\% $ so be careful while interpreting the above problem.