According to Progressive tax system in a country an individual are exempted for the first OMR 30,000 taxable income. Higher income bracket from 30,0001 to 75,000 taxable income on which tax rate is 15%. Additional income tax bracket over and above OMR 75,000 taxable income on which tax rate is 20%. Assuming that taxable income of an individual is OMR 90,000. What will be the tax liability of an individual? a. OMR 14,250 b. Exempted c. OMR 9,750 d. OMR 6,750

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter1: Federal Income Taxation—an Overview
Section: Chapter Questions
Problem 43P
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According to Progressive tax system in a country an individual are exempted for the first OMR 30,000 taxable income. Higher income bracket from 30,0001 to 75,000 taxable income on which tax rate is 15%. Additional income tax bracket over and above OMR 75,000 taxable income on which tax rate is 20%. Assuming that taxable income of an individual is OMR 90,000. What will be the tax liability of an individual?
a.
OMR 14,250
b.
Exempted
c.
OMR 9,750
d.
OMR 6,750
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