If a taxpayer's total taxable income is ₹10,00,000, what is the income tax liability for an individual below 60 years under the old tax regime?

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Q: If a taxpayer's total taxable income is ₹10,00,000, what is the income tax liability for an individual below 60 years under the old tax regime?

Solution: Under the old tax regime, the income tax liability for ₹10,00,000 is ₹1,50,000 after applying the applicable slabs.

Steps: 5

Step 1: Understand that the old tax regime has different income tax slabs for individuals below 60 years.
Step 2: Identify the income tax slabs applicable under the old tax regime. For ₹10,00,000, the slabs are: 0-2,50,000: 0%, 2,50,001-5,00,000: 5%, 5,00,001-10,00,000: 20%.
Step 3: Calculate the tax for each slab: For the first ₹2,50,000, tax is ₹0. For the next ₹2,50,000 (from ₹2,50,001 to ₹5,00,000), tax is ₹2,50,000 * 5% = ₹12,500. For the remaining ₹5,00,000 (from ₹5,00,001 to ₹10,00,000), tax is ₹5,00,000 * 20% = ₹1,00,000.
Step 4: Add the tax amounts from each slab: ₹0 + ₹12,500 + ₹1,00,000 = ₹1,12,500.
Step 5: The total income tax liability for a taxable income of ₹10,00,000 under the old tax regime is ₹1,12,500.