Question 8: The annual income of Tayyab is \(Rs.\) \(9,60,000\), while the exempted amount is \(Rs.\) \(1,30,000\). How much tax would he have to pay at the rate of \(0.75\%\)?
Solution:
\[
\begin{align*}
\text{Total Income} &= 960000\\ \text{Taxable Income} &= 960000-130000\\&=830000\\\text{Tax Rate} &= 0.75\%\\\text{Tax} &= 830000 \times \frac{0.75}{100}\\&=\small{ 830000 \times \frac{75}{100\times 100}}\\&= 83 \times 75\\&=6225\\
\end{align*}
\]