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Mr. B's gross income totals ₹1,26,00,000, which includes business income, lottery winnings, and a matured life insurance policy. After allowable deductions of ₹1,63,000, his taxable income is ₹1,24,37,000. To determine his exact tax liability, further information about his tax filing status and applicable tax rates for the financial year 2023-2024 is required.

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6 views1 page

Assignment

Mr. B's gross income totals ₹1,26,00,000, which includes business income, lottery winnings, and a matured life insurance policy. After allowable deductions of ₹1,63,000, his taxable income is ₹1,24,37,000. To determine his exact tax liability, further information about his tax filing status and applicable tax rates for the financial year 2023-2024 is required.

Uploaded by

yaswanthmangalagiri
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Taxable income is the gross income minus allowable deductions.

In Mr. B’s case:

Gross income:

Business income: ₹75,00,000

Lottery winnings: ₹19,00,000

Matured life insurance policy: ₹32,00,000

Total gross income: ₹1,26,00,000

Allowable deductions:

Life insurance premium: ₹50,000

PPF investment: ₹80,000

Medical test: ₹6,000

Health insurance: ₹27,000

Total allowable deductions: ₹1,63,000

Taxable income = Gross income – Allowable deductions

Mr. B’s taxable income = ₹1,26,00,000 - ₹1,63,000 = ₹1,24,37,000

Tax liability

To calculate Mr. B’s exact tax liability, we would need to know his tax filing status (senior
citizen or not) and the tax rates for the financial year in question (2023-2024).

In India, tax rates are progressive. This means that the tax rate increases as the taxable
income increases. There are different tax slabs for different income groups. Senior citizens
(aged 60 years and above) have different tax slabs compared to younger individuals.

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