Question
Answers

Income of a person is Rs. 50,000. He pays income tax at the rate of 15%. Find the amount of income tax.
(A). Rs. 750
(B). Rs. 7500
(C). Rs. 1500
(D). Rs. 75

Answer Verified Verified
Hint- In order to find the amount of income tax, we will use the principal amount and the rate at which income tax is found out. Amount to be paid is $\dfrac{{p \times r}}{{100}}$.

Complete step-by-step answer:
Given that: Income of a person is Rs. 50,000. He pays income tax at the rate of 15%.
We know that
If r % tax is paid on Rs. P, principle amount then the tax amount to be paid is $\dfrac{{p \times r}}{{100}}$.
For the given problem, the principal amount is Rs. 50,000 and rate is 15%.
Amount of income tax:
$
   = \dfrac{{p \times r}}{{100}} \\
   = \dfrac{{50000 \times 15}}{{100}} \\
   = 500 \times 15 \\
   = Rs.7500 \\
 $
Hence, the amount of income tax is Rs. 7500.
So, option B is the correct option.

Note- An income tax is a tax imposed on individuals or entities that varies with respective income or profits. Income tax generally is computed as the product of a tax rate times taxable income. In order to find the income tax we just find the percentage given of the sum of money. Students must remember the formula for tax on the basis of percentage.