1. (a) Mr. Raman's income from his salary for the year 2001-2002 is Rs 3,05,000/-. His savings and donations are as given below:- Savings: • Contribution towards Provident Fund: Rs. 40,000/- • Contribution towards L.I.C. premium: Rs. 24,000/- per year • Investment in National Saving Certificates: Rs. 15,000/- Donations: • To Prime Minister's Relief Fund: Rs. 10,000/- (eligible for 100% tax exemption) • To religious institutions: Rs. 8,000/- (eligible for 50% tax exemption). If a sum of Rs. 4,000/- per month was deducted every month towards tax from his salary for the first 11 months of the year, calculate Mr. Raman's income tax liability in the last month of the year. Tax slab:- Upto Rs. 50,000 : No tax. Rs. 50,001 to Rs. 60,000 : 10% of the income exceeding Rs. 50,000. Rs. 60,001 to Rs. 1,50,000 : Rs. 1,000 + 20% of the income exceeding Rs. 60,000. Above Rs. 1,50,000 : Rs. 19,000 + 30% of the income exceeding Rs. 1,50,000. Standard Deduction : Rs. 20,000. Surcharge : A surcharge of 2% is levied if the taxable income is above Rs. 60,000. Tax Rebate : An amount equal to 20% of the money deposited in P.F., L.I.C., N.S.C. etc., subject to a maximum of Rs 12,000/- is deducted from the income tax.   Hint First letter clue   2. (b) The line joining P (−4, 5) and Q (3, 2), intersects the y axis at R. PM and QN are perpendiculars from P and Q on the X axis. Find: (i) the ratio PR : RQ   First letter clue