Solution:

Ex. Mr. Mehta's annual income is Rs. 4,50,000

• If he does not have any savings by which he can claim deductions from his income, to which slab does his taxable income belong?  ₹ 2,50,001 to ₹ 5,00,000
• What is the amount on which he will have to pay income tax and at what percent rate?

  On ₹ 2,00,000 at percentage 5%

  i.e. Income Tax = ₹ 10,000
• On what amount will the cess be levied? ₹ 10,000