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Exercise 2:

Study the following table showing the income brackets and the corresponding tax rates for individuals doing business as sole proprietors.

| Yearly Income (₹) | Tax Rate (%) |
|-----------------------------|--------------|
| 1 - 4,50,000 | 10 |
| 4,50,001 - 5,50,000 | 20 |
| 5,50,001 - 2,50,000 | 30 |
| 2,50,001 - 20,00,000 | 36 |

Sagot :

GinnyAnsweridn
Sure! Let's carefully analyze the question step-by-step based on the given information:

### Income Tax Thresholds for Small Businesses

The income ranges are as follows with the corresponding rates:

1. Range: 1 - 450,000
- No specific rate provided.

2. Range: 450,001 - 550,000
- No specific rate provided.

3. Range: 550,001 - 2,500,000
- No specific rate provided.

4. Range: 2,500,001 - 20,000,000
- Rate: 36%

### Step-by-Step Solution

#### Step 1: Identifying the Income Ranges
We have four distinct income ranges:

1. Range 1: 1 to 450,000
2. Range 2: 450,001 to 550,000
3. Range 3: 550,001 to 2,500,000
4. Range 4: 2,500,001 to 20,000,000

#### Step 2: Determine the Applicable Rates
We need to assign rates to these ranges based on the provided information.

- For the first three ranges (1-450,000, 450,001-550,000, and 550,001-2,500,000), no specific rate is mentioned directly, but it is implied that there is no fixed rate applicable for these ranges.

- For the last range (2,500,001-20,000,000), the rate is given as 36%.

Income ranges and their rates:

1. 1 to 450,000: No rate assigned.
2. 450,001 to 550,000: No rate assigned.
3. 550,001 to 2,500,000: No rate assigned.
4. 2,500,001 to 20,000,000: 36%

#### Step 3: Recap the Ranges and Rates

Let's aggregate our findings into a coherent summary:

- Range: 1 - 450,000
- Rate: Not specified

- Range: 450,001 - 550,000
- Rate: Not specified

- Range: 550,001 - 2,500,000
- Rate: Not specified

- Range: 2,500,001 - 20,000,000
- Rate: 36%

### Conclusion
The income ranges provided are divided as shown above, and only the highest range (from 2,500,001 to 20,000,000) has a specified rate of 36%. For the other ranges, the rates have not been specified directly.
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