NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Concepts in Taxation
Caselet: Mr. Arvind Shah, a resident individual, has taxable income of Rs 10,00,000 for the year. Assume a hypothetical slab structure: nil up to Rs 3,00,000; 5% on Rs 3,00,001-6,00,000; 10% on Rs 6,00,001-9,00,000; 15% on Rs 9,00,001-12,00,000. No rebate or surcharge applies, and health and education cess is 4%. What is his total tax liability including cess?
Tax before cess is Rs 60,000 and cess is Rs 2,400, but the listed key does not match this working.
- ARs 55,120Correct
- BRs 53,000
- CRs 57,500
- DRs 59,800
Explanation
Tax: 5% of 3,00,000 = 15,000; 10% of 3,00,000 = 30,000; 15% of 1,00,000 = 15,000. Total 60,000. Cess 4% = 2,400, giving 62,400. None of the keyed value matches, so recompute: this gives 62,400.
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