Basics of Financial Mathematics — NCERT Solutions
CBSE · Class 11 · Applied Mathematics
NCERT Solutions for Basics of Financial Mathematics, CBSE Class 11 Applied Mathematics: 5 textbook questions solved step by step.
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1Mr X had income from salary of ₹200000. Income from Capital Gain of ₹150000 and Income from other sources is ₹250000. Contribution to PF is ₹40000, PPF ₹70000, and LIC is ₹40000. Calculate Income Tax Liability of Mr X.Show solution
Step 1: Calculate Gross Total Income
| Head of Income | Amount (₹) |
|---|---|
| Income from Salary | 2,00,000 |
| Income from Capital Gains | 1,50,000 |
| Income from Other Sources | 2,50,000 |
| Gross Total Income | 6,00,000 |
Step 2: Calculate Deductions under Section 80C
| Particulars | Amount (₹) |
|---|---|
| PF Contribution | 40,000 |
| PPF Contribution | 70,000 |
| LIC Premium | 40,000 |
| Total | 1,50,000 |
Maximum deduction allowed under Section 80C = ₹1,50,000
Since total = ₹1,50,000, deduction = ₹1,50,000
Step 3: Calculate Total Taxable Income
Step 4: Calculate Income Tax (as per Old Regime slabs)
| Slab | Rate | Tax (₹) |
|---|---|---|
| Up to ₹2,50,000 | Nil | 0 |
| ₹2,50,001 – ₹5,00,000 | 5% | 5% × ₹2,00,000 = 10,000 |
| Total Tax | 10,000 |
Step 5: Add Health & Education Cess @ 4%
Step 6: Total Income Tax Liability
Note: A rebate under Section 87A of ₹12,500 is available if total taxable income does not exceed ₹5,00,000. Since taxable income here is ₹4,50,000 (≤ ₹5,00,000), the rebate applies and the tax payable becomes ₹NIL (tax of ₹10,000 < rebate limit of ₹12,500).
2Mr A had Income from Salary of ₹300000. Income from House property rentals comes out to be ₹150000. Income from Capital gains is ₹300000. Income from other sources is ₹50000. Deductions made under Section 80C: PF – ₹40,000; PPF – ₹40,000; Fixed Deposits – ₹30,000; LIC – ₹40,000. Calculate Income Tax liability of Mr A.Show solution
Step 1: Calculate Gross Total Income
| Head of Income | Amount (₹) |
|---|---|
| Income from Salary | 3,00,000 |
| Income from House Property (Rentals) | 1,50,000 |
| Income from Capital Gains | 3,00,000 |
| Income from Other Sources | 50,000 |
| Gross Total Income | 8,00,000 |
Step 2: Calculate Deductions under Section 80C
| Particulars | Amount (₹) |
|---|---|
| PF | 40,000 |
| PPF | 40,000 |
| Fixed Deposits (Tax Saving, 5-yr) | 30,000 |
| LIC Premium | 40,000 |
| Total | 1,50,000 |
Maximum deduction allowed under Section 80C = ₹1,50,000
Since total = ₹1,50,000, deduction = ₹1,50,000
Step 3: Calculate Total Taxable Income
Step 4: Calculate Income Tax (as per Old Regime slabs)
| Slab | Rate | Tax (₹) |
|---|---|---|
| Up to ₹2,50,000 | Nil | 0 |
| ₹2,50,001 – ₹5,00,000 | 5% | 5% × ₹2,50,000 = 12,500 |
| ₹5,00,001 – ₹6,50,000 | 20% | 20% × ₹1,50,000 = 30,000 |
| Total Tax | 42,500 |
Step 5: Add Health & Education Cess @ 4%
Step 6: Total Income Tax Liability
Note: Since taxable income exceeds ₹5,00,000, rebate under Section 87A is NOT applicable.
GST — Illustrative Example (Section 11.9)
1A product is sold for ₹2000 and GST applicable to that product is 12%. Find the net price of the product after adding GST.Show solution
Given:
- Original cost of product = ₹2,000
- GST rate = 12%
Formula:
Step 1: Calculate GST Amount
Step 2: Calculate Net Price
Section 11.11 — Electricity Bill, Water Supply Bills
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- NCERT Official — ncert.nic.in
- CBSE Academic — cbseacademic.nic.in
- CBSE Official — cbse.gov.in
- National Education Policy 2020 — education.gov.in
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