Question

The estimated tax on the income of Shreemati is Rs8000. How much education cess does she have to pay at 3%?

Answer 1

Hint: Education cess is an additional levy on the basic tax liability. This means the 3% of the estimated tax on her income she has to pay as education cess.

Complete step-by-step answer:

It is given that the estimated tax on the income of shreemati is Rs. 8000.
Then we have to calculate how much educated cess she has to pay at 3%.
So the educated cess she has to pay is 3% of total tax she paid.
So the educated cess is 3% of 8000.
Therefore education cess (E.C) is
$ \Rightarrow E.C = \dfrac{3}{{100}} \times 8000 = 3 \times 80 = 240$ Rs.
So the educated cess she has to pay is Rs. 240.
So this is the required answer.

Note: Whenever we face such types of problems the key concept is to have a good understanding of the basic finance related terminology like education cess. This concept will get on the right track to reach the answer as it’s just a definition based problem involving general mathematics.