How the answer is option (a) ? Please guide

Vignesh · 28 Dec 2024

1. Calculate income for the whole year = 85,000 - 25000*3 = 10,000 2. Calculate tax amount for the income. For 1st 20,000, rate is 20%. So tax = 10,000*20% = 2000. 3. Average rate = tax amount of FY/ income of FY = 2000/10,000 = 20% 4. Apply the avg rate on the income of interim period. 85,000 * 20% = 17,000.