A company pays a dividend of 15% on its ten- rupee shares from which it deducts tax at the rate of 22%. Find the annual income of a man who owns one thousand shares of this company.
Answer & explanation
Correct answer: option 3
The correct answer is option (3) : ₹1170
Dividend on one share $₹10=₹\left(\frac{15}{100}×10\right)$
$=₹1.5$
Dividend on 1000 shares of $₹10 = ₹(1000×1.5)$ $=₹1500
Income tax deducted = 22% of 1500
$=\frac{22×1500}{100}=₹330$
∴ Annual income $=₹1500-₹330$ $=₹1170$