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Income tax problems and solutions in old regime

 🟢 Q 1-Stage 1 – Simple Level

Mr. Ajay earns ₹3,20,000 in a financial year (2024–25).
He has no deductions.
Calculate his Income Tax payable under the New Tax Regime.


Answer:

Slab

Rate

Amount

₹0 – ₹3,00,000

0%

No Tax

Next ₹20,000 (₹3,20,000 − ₹3,00,000)

5%

₹1,000

Total Tax = ₹1,000


🟡 Q-2 Stage 2 – Medium Level

 

Ms. Priya earns ₹8,50,000 per year.
She invests ₹50,000 under 80C.
Calculate tax payable (Old Regime).

Answer:

Step 1 – Income After Deduction

Gross Income = ₹8,50,000

Less 80C Deduction = ₹50,000

Taxable Income = ₹8,00,000

Step 2 – Tax Calculation (Old Regime)

Slab

Rate

Tax

₹0 – ₹2,50,000

0%

₹0

₹2,50,000 – ₹5,00,000 (₹2,50,000)

5%

₹12,500

₹5,00,000 – ₹8,00,000 (₹3,00,000)

20%

₹60,000

Total Tax = ₹72,500

Step 3 – Add Cess (4%)

₹72,500 × 4% = ₹2,900

Final Tax Payable = ₹75,400


🔴 Q-3 Stage 3 – Hard Level

Mr. Rohan earns:

  • Salary = ₹12,00,000
  • House rent paid: ₹1,80,000 per year
  • HRA received: ₹1,50,000
  • Investment under 80C: ₹1,00,000
  • Health Insurance (80D): ₹20,000

Calculate tax payable (Old Regime).


Answer:

Step 1 – HRA Exemption Calculation

Given:

  • Actual HRA received = ₹1,50,000
  • Rent paid – 10% of salary = ₹1,80,000 – ₹1,20,000 = ₹60,000
  • 50% of Salary (metro) = ₹6,00,000

Exempt HRA = least of the above = ₹60,000

Taxable HRA = ₹1,50,000 − ₹60,000 = ₹90,000


Step 2 – Taxable Income Calculation

Particulars

Amount

Gross Salary

₹12,00,000

Less HRA exemption

₹60,000

Net Salary = ₹11,40,000

Deductions:

  • 80C = ₹1,00,000
  • 80D = ₹20,000

Total Deductions = ₹1,20,000

Taxable Income = ₹11,40,000 − ₹1,20,000

                = ₹10,20,000


Step 3 – Tax Calculation (Old Regime)

Slab

Rate

Tax

₹0 – ₹2,50,000

0%

₹0

₹2,50,000 – ₹5,00,000 (₹2,50,000)

5%

₹12,500

₹5,00,000 – ₹10,00,000 (₹5,00,000)

20%

₹1,00,000

Remaining ₹20,000 (₹10,20,000 – ₹10,00,000)

30%

₹6,000

Total Tax = ₹1,18,500

Add Cess 4%:

₹1,18,500 × 4% = ₹4,740

Final Tax Payable = ₹1,23,240


🟣 Q 4. (Medium-Hard)

Income details:

  • Salary (after Standard Deduction) = ₹7,00,000
  • Interest from Bank FD = ₹30,000
  • Long-Term Capital Gains (LTCG) = ₹60,000
  • Donations to Charity (80G) = ₹20,000
  • Medical Insurance Premium (80D) = ₹25,000

Calculate tax (Old Regime).


Answer:

Step 1 – Total Income

Salary Income = ₹7,00,000

FD Interest Income = ₹30,000

LTCG (Taxable) = ₹60,000

Gross Total Income = ₹7,90,000

Step 2 – Deductions

  • 80D = ₹25,000
  • 80G = 50% of ₹20,000 = ₹10,000

Total Deductions = ₹35,000

Taxable Income = ₹7,90,000 – ₹35,000 = ₹7,55,000

Step 3 – Income Tax (excluding LTCG)

Slab

Tax

₹0 – ₹2,50,000 → 0

₹0

₹2,50,000 – ₹5,00,000 → 5%

₹12,500

₹5,00,000 – ₹7,55,000 → 20% on ₹2,55,000 = ₹51,000

Normal Tax = ₹63,500

Step 4 – LTCG Tax

LTCG taxed @ 10% above ₹1 lakh (only ₹60,000 given → LTCG = taxed @ 10% without indexation)

LTCG Tax = 10% of ₹60,000 = ₹6,000

Step 5 – Total Tax + Cess

Total Tax = ₹63,500 + ₹6,000 = ₹69,500

Cess = 4% of ₹69,500 = ₹2,780

Final Tax Payable = ₹72,280


🔵 Q5. (Hard Level)

Income Details:

  • Basic Salary = ₹6,00,000
  • HRA received = ₹1,80,000
  • Rent paid (non-metro) = ₹1,50,000
  • Income from Freelancing = ₹1,20,000
  • Interest from FD = ₹15,000
  • Home loan interest (Income from house property) = ₹1,50,000
  • 80C investments = ₹1,20,000
  • 80D insurance = ₹30,000

Calculate Tax (Old Regime)


Answer:

Step 1 – HRA Exemption (Non-Metro)

  • Actual HRA received = ₹1,80,000
  • Rent paid – 10% of salary = ₹1,50,000 – ₹60,000 = ₹90,000
  • 40% of salary (non-metro) = ₹2,40,000

Exemption = ₹90,000
So Taxable HRA = ₹90,000


Step 2 – Salary Income

Gross Salary = ₹6,00,000

Less HRA exemption = ₹90,000

Net Salary = ₹5,10,000


Step 3 – Income From House Property

Home loan interest allowed = ₹1,50,000 (negative income)

Income = - ₹1,50,000


Step 4 – Other Incomes

Freelancing = ₹1,20,000

FD Interest = ₹15,000


Step 5 – Gross Total Income

Salary = ₹5,10,000

House Property = -₹1,50,000

Freelance = ₹1,20,000

FD Interest = ₹15,000

Total = ₹5,10,000 - ₹1,50,000 + ₹1,20,000 + ₹15,000

Gross Income = ₹5, - 5,000 = ₹4,95,000


Step 6 – Deductions

80C = ₹1,20,000

80D = ₹30,000

Total Deductions = ₹1,50,000

 

Taxable Income = ₹4,95,000 – ₹1,50,000 = ₹3,45,000


Step 7 – Tax Calculation (Old Regime)

Income Range

Rate

Tax

₹0 – ₹2,50,000

0%

₹0

Next ₹95,000 @5% = ₹4,750

Total Tax = ₹4,750

Cess = ₹190

Final Tax = ₹4,940

Final Tax Payable = ₹4,940


🔴 Q6. (Very Hard – For Advanced Practice)

Income Details:

  • Salary Income = ₹14,00,000
  • Business Income (after expenses) = ₹4,00,000
  • Rental Income = ₹2,40,000
  • Municipal Taxes Paid = ₹40,000
  • Home Loan Interest = ₹2,00,000
  • Interest from FD = ₹50,000
  • Dividend Income = ₹40,000
  • 80C Investments = ₹1,50,000
  • 80D Health Insurance = ₹40,000
  • 80E (Education Loan) = ₹60,000

Calculate Tax (Old Regime).


Answer:

Step 1 – House Property Income

Gross Rent = ₹2,40,000

Less Municipal Tax = ₹40,000

Net = ₹2,00,000

Less Interest on Home Loan = ₹2,00,000

Income = ₹0 (No loss allowed >2L)


Step 2 – Total Gross Income

Salary = ₹14,00,000

Business = ₹4,00,000

Rent = ₹0

FD Interest = ₹50,000

Dividend = ₹40,000

Gross Total = ₹18,90,000


Step 3 – Deductions

80C = ₹1,50,000

80D = ₹40,000

80E = ₹60,000

Total Deductions = ₹2,50,000

 

Taxable Income = ₹18,90,000 – ₹2,50,000 = ₹16,40,000


Step 4 – Tax Calculation

Slab

Tax

0 – 2,50,000

₹0

2,50,000 – 5,00,000 → 5% of 2,50,000 = ₹12,500

5,00,000 – 10,00,000 → 20% of 5,00,000 = ₹1,00,000

10,00,000 – 16,40,000 → 30% of 6,40,000 = ₹1,92,000

Total Tax = ₹3,04,500

Cess = 4% of ₹3,04,500 = ₹12,180

Final Tax Payable = ₹3,16,680

Final Tax = ₹3,16,680


👍 You now have:

6 fully worked-out examples
Increasing difficulty
Mixed sources + deductions + calculations

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