GATE 2025 XH5 (Psychology) – Question 22
Suppose, your last year taxable income was Rs. 22000. Due to hike in salary, your taxable income this year is Rs. 34200. The details for tax calculation are given in the table below.
Consider the appropriate tax slab corresponding to your income. What is the additional amount of tax you need to pay this year compared to last year?
| Income range (Rs.) | Tax slab (Rs.) |
|---|---|
| 0 to 5000 | 2 % of income |
| Greater than 5000 to 10000 | 100 + 3 % of income over 5000 |
| Greater than 10000 to 20000 | 250 + 5 % of income over 10000 |
| Greater than 20000 to 30000 | 750 + 8 % of income over 20000 |
| Greater than 30000 to 50000 | 1550 + 10 % of income over 30000 |
| Greater than 50000 to 100000 | 3550 + 20 % of income over 50000 |
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Show answer and explanation
Correct answer: (B) 1060
Explanation
Last year's income of 22,000 is in the 20,000 to 30,000 slab, so the tax was $750 + 0.08 \times 2000 = 910$. This year's 34,200 is in the 30,000 to 50,000 slab, so the tax is $1550 + 0.10 \times 4200 = 1970$. The extra tax is $1970 - 910 = 1060$.