To determine how much tax is paid by a married individual whose annual earning is Rs 1,750,000, given that the tax is exempted up to Rs 1,25,000 and he is taxed at 30%, follow these steps:
1. Determine the total annual earning:
[tex]\[
\text{Total Annual Earning} = \$1,750,000
\][/tex]
2. Subtract the exempted amount:
The exempted amount that is not subject to tax is Rs 1,25,000. Therefore, the taxable amount is calculated as follows:
[tex]\[
\text{Taxable Amount} = \text{Total Annual Earning} - \text{Exempted Amount}
\][/tex]
[tex]\[
\text{Taxable Amount} = \$1,750,000 - \$1,25,000
\][/tex]
[tex]\[
\text{Taxable Amount} = \$1,625,000
\][/tex]
3. Calculate the tax at 30%:
The tax rate is 30%, so we will calculate 30% of the taxable amount.
[tex]\[
\text{Tax Paid} = \text{Taxable Amount} \times \text{Tax Rate}
\][/tex]
[tex]\[
\text{Tax Paid} = \$1,625,000 \times 0.30
\][/tex]
[tex]\[
\text{Tax Paid} = \$487,500
\][/tex]
Therefore, the tax paid by the married individual whose annual earning is Rs 1,750,000 is Rs 487,500.
