Mr. Kartarsingh (age 48 years) works in a private company. His monthly income after deduction of allowances is Rs. 42,000 and every month he contributes Rs. 3000 to GPF. He has also bought Rs. 15,000 worth of NSC (National Savings Certificate) and donated Rs. 12,000 to the PM's Relief Fund. Compute his income tax.
According to 1st table,
His monthly income = Rs 42,000
⇒ Annual Salary = 12 × Rs 42,000
= Rs. 5,04,000
Now, following table shows his investments:
Taxable salary = Rs. 5,04,000 – (Rs. 63,000)
= Rs. 4,41,000
It comes into table 1 and income tax slab 2.
5%(taxable minus 2.5lacs) = 
= Rs.9550
∴ Income tax = Rs.9550
Primary cess = 2% of I.T.
= 
= Rs.191
Secondary cess = 1% of I.T.
= Rs.95.5
Total income tax = Rs.9550 + Rs.191 + Rs.95.5
= Rs.9836.5
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