For taxable income Rs. $4,00,000$ (old regime, age $< 60$), tax (before cess) is

For taxable income Rs. $4,00,000$ (old regime, age $< 60$), tax (before cess) is
  1. Rs. $7,500$
  2. Rs. $20,000$
  3. Rs. $5,000$
  4. Nil

Solution

$5\%$ of $(4{,}00{,}000 - 2{,}50{,}000) = 5\%$ of $1{,}50{,}000 = 7{,}500$.

Asked in: MH-SSC-9

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