Mathematics · Textbook solutions

Financial Planning

Every solved example, exercise, and miscellaneous question — in the order the textbook teaches them. · 29 questions

Investments

4 q

Solved Examples

Worked · 4
  1. Investments SolvedEx.1
    Shamrao's income in 2015-16 after paying all taxes is 6,40,000 rupees. He pays 2000 rupees per month for insurance and 20% of his annual income into his provident fund. He puts aside 500 rupees per month for emergencies. How much money does he have for yearly spending ?
  2. Investments SolvedEx.2
    Mr. Shah invested 3,20,000 rupees in a bank at 10% compound interest. He also invested 2,40,000 rupees in mutual funds. At market rates he got 3,05,000 rupees after 2 years. How much did he gain ? Which of his investments was more profitable ?
  3. Investments SolvedEx.3
    Mr. Shaikh invested 4,00,000 rupees in a glass industry. After 2 years he received 5,20,000 rupees from the industry. Putting aside the original investment, he invested his gains in a fixed deposit and in shares in the ratio 3 : 2. How much amount did he invest originally in each of the schemes ?
  4. Investments SolvedEx.4
    The ratio of Mr. Anil's monthly income to expenditure is 5 : 4. For Mr. Aman the same figure is 3 : 2. Also, 4% of Aman's monthly income is equal to 7% of Anil's monthly income. If Anil's monthly expenditure is 96,000 rupees - (i) Find Aman's annual income. (ii) Savings made by Mr. Anil and Mr. Aman.

Practice Set 6.1

5 q
  1. Ex 6.1 Q1
    Alka spends 90% of the money that she receives every month, and saves 120 rupees. How much money does she get monthly ?
  2. Ex 6.1 Q2
    Sumit borrowed a capital of 50,000 rupees to start his food products business. In the first year he suffered a loss of 20%. He invested the remaining capital in a new sweets business and made a profit of 5%. How much was his profit or loss computed on his original capital ?
  3. Ex 6.1 Q3
    Nikhil spent 5% of his monthly income on his children's education, invested 14% in shares, deposited 3% in a bank and used 40% for his daily expenses. He was left with a balance of 19,000 rupees. What was his income that month ?
  4. Ex 6.1 Q4
    Mr. Sayyad kept 40,000 rupees in a bank at 8% compound interest for 2 years. Mr. Fernandes invested 1,20,000 rupees in a mutual fund for 2 years. After 2 years, Mr. Fernandes got 1,92,000 rupees. Whose investment turned out to be more profitable ?
  5. Ex 6.1 Q5
    Sameera spent 90% of her income and donated 3% for socially useful causes. If she left with 1750 rupees at the end of the month, what was her actual income ?

Computation of Income Tax

3 q

Solved Examples

Worked · 3
  1. Table I - Individuals (up to the age of 60 years)
    Taxable income slab (in rupees)Income taxEducation cessSecondary and higher education cess
    Up to 2,50,000NilNilNil
    2,50,001 to 5,00,0005% (on taxable income minus two lakh fifty thousand)2% of income tax1% of income tax
    5,00,001 to 10,00,00012,500 + 20% (on taxable income minus five lakh)2% of income tax1% of income tax
    More than 10,00,0001,12,500 + 30% (on taxable income minus ten lakh)2% of income tax1% of income tax
    Income Tax SolvedEx.1
    Mr. Mhatre is 50 years old. His gross total income is 12,00,000 rupees. He has invested the following amounts in different schemes. (i) Insurance premium : 90,000 rupees (ii) Investment in provident fund : 25,000 rupees (iii) Investment in PPF : 15,000 rupees (iv) National Savings Certificate : 20,000 rupees Find out the permissible deductions, taxable income, and the income tax payable.
  2. Table II - Senior citizens (Age 60 to 80 years)
    Taxable income slab (in rupees)Income taxEducation cessSecondary and higher education cess
    Up to 3,00,000NilNilNil
    3,00,001 to 5,00,0005% (on taxable income minus three lakh)2% of income tax1% of income tax
    5,00,001 to 10,00,00010,000 + 20% (on taxable income minus five lakh)2% of income tax1% of income tax
    More than 10,00,0001,10,000 + 30% (on taxable income minus ten lakh)2% of income tax1% of income tax
    Income Tax SolvedEx.2
    Mr. Ahmed, a 62 year old senior citizen, is employed in a private company. His total annual income is 6,20,000 rupees. He has contributed 1,00,000 rupees to the Public Provident Fund and paid a premium of 80,000 rupees for the year for health insurance and a donation of 10,000 rupees to CM's Relief Fund. What is tax payable ?
  3. Table I - Individuals (up to the age of 60 years)
    Taxable income slab (in rupees)Income taxEducation cessSecondary and higher education cess
    Up to 2,50,000NilNilNil
    2,50,001 to 5,00,0005% (on taxable income minus two lakh fifty thousand)2% of income tax1% of income tax
    5,00,001 to 10,00,00012,500 + 20% (on taxable income minus five lakh)2% of income tax1% of income tax
    More than 10,00,0001,12,500 + 30% (on taxable income minus ten lakh)2% of income tax1% of income tax
    Income Tax SolvedEx.3
    Mrs. Hinduja's age is 50 years. Last year her taxable income was 16,30,000 rupees. How much income tax has she to pay ?

Practice Set 6.2

6 q
  1. Observe the table given below. Check and decide, whether the individuals have to pay income tax. Table I - Individuals (up to the age of 60 years)
    Taxable income slab (in rupees)Income taxEducation cessSecondary and higher education cess
    Up to 2,50,000NilNilNil
    2,50,001 to 5,00,0005% (on taxable income minus two lakh fifty thousand)2% of income tax1% of income tax
    5,00,001 to 10,00,00012,500 + 20% (on taxable income minus five lakh)2% of income tax1% of income tax
    More than 10,00,0001,12,500 + 30% (on taxable income minus ten lakh)2% of income tax1% of income tax
    Ex 6.2 Q1(i)
    Miss Nikita, age 27 years, taxable income 2,34,000 rupees.
  2. Ex 6.2 Q1(ii)
    Mr. Kulkarni, age 36 years, taxable income 3,27,000 rupees.
  3. Ex 6.2 Q1(iii)
    Miss Mehta, age 44 years, taxable income 5,82,000 rupees.
  4. Ex 6.2 Q1(iv)
    Mr. Bajaj, age 64 years, taxable income 8,40,000 rupees.
  5. Ex 6.2 Q1(v)
    Mr. Desilva, age 81 years, taxable income 4,50,000 rupees.
  6. Table I - Individuals (up to the age of 60 years)
    Taxable income slab (in rupees)Income taxEducation cessSecondary and higher education cess
    Up to 2,50,000NilNilNil
    2,50,001 to 5,00,0005% (on taxable income minus two lakh fifty thousand)2% of income tax1% of income tax
    5,00,001 to 10,00,00012,500 + 20% (on taxable income minus five lakh)2% of income tax1% of income tax
    More than 10,00,0001,12,500 + 30% (on taxable income minus ten lakh)2% of income tax1% of income tax
    Ex 6.2 Q2
    Mr. Kartarsingh (age 48 years) works in a private company. His monthly income after deduction of allowances is 42,000 rupees and every month he contributes 3000 rupees to GPF. He has also bought 15,000 rupees worth of NSC (National Savings Certificate) and donated 12,000 rupees to the PM's Relief Fund. Compute his income tax.

Problem Set 6

11 q
  1. Write the correct alternative answer for each of the following questions.
    Prob Q1(i)
    For different types of investments what is the maximum permissible amount under section 80C of income tax ?
    1. A.
      1,50,000 rupees
    2. B.
      2,50,000 rupees
    3. C.
      1,00,000 rupees
    4. D.
      2,00,000 rupees
  2. Prob Q1(ii)
    A person has earned his income during the financial year 2017-18. Then his assessment year is ....
    1. A.
      2016-17
    2. B.
      2018-19
    3. C.
      2017-18
    4. D.
      2015-16
  3. Prob Q2
    Mr. Shekhar spends 60% of his income. From the balance he donates 300 rupees to an orphanage. He is then left with 3,200 rupees. What is his income ?
  4. Prob Q3
    Mr. Hiralal invested 2,15,000 rupees in a Mutual Fund. He got 3,05,000 rupees after 2 years. Mr. Ramniklal invested 1,40,000 rupees at 8% compound interest for 2 years in a bank. Find out the percent gain of each of them. Whose investment was more profitable ?
  5. Prob Q4
    At the start of a year there were 24,000 rupees in a savings account. After adding 56,000 rupees to this the entire amount was invested in the bank at 7.5% compound interest. What will be the total amount after 3 years ?
  6. Prob Q5
    Mr. Manohar gave 20% part of his income to his elder son and 30% part to his younger son. He gave 10% of the balance as donation to a school. He still had 1,80,000 rupees for himself. What was Mr. Manohar's income ?
  7. Prob Q6
    Kailash used to spend 85% of his income. When his income increased by 36% his expenses also increased by 40% of his earlier expenses. How much percentage of his earning he saves now ?
  8. Prob Q7
    Total income of Ramesh, Suresh and Preeti is 8,07,000 rupees. The percentages of their expenses are 75%, 80% and 90% respectively. If the ratio of their savings is 16 : 17 : 12, then find the annual saving of each of them.
  9. Compute the income tax payable by following individuals. Table I - Individuals (up to the age of 60 years)
    Taxable income slab (in rupees)Income taxEducation cessSecondary and higher education cess
    Up to 2,50,000NilNilNil
    2,50,001 to 5,00,0005% (on taxable income minus two lakh fifty thousand)2% of income tax1% of income tax
    5,00,001 to 10,00,00012,500 + 20% (on taxable income minus five lakh)2% of income tax1% of income tax
    More than 10,00,0001,12,500 + 30% (on taxable income minus ten lakh)2% of income tax1% of income tax
    Prob Q8(i)
    Mr. Kadam who is 35 years old and has a taxable income of 13,35,000 rupees.
  10. Prob Q8(ii)
    Mr. Khan is 65 years of age and his taxable income is 4,50,000 rupees.
  11. Prob Q8(iii)
    Miss Varsha (Age 26 years) has a taxable income of 2,30,000 rupees.