As it's been few years since mankind has been living, earning and spending in the country of Coderland, governing body of the country have come up with rules and regulations for paying annual income tax for all individuals.
Now that they have successfully implemented it manually for some years, they are confident that the system will sustain. Though, to reduce the manual effort, they now want to automate it.
In the country of Coderland, the annual income tax for an individual is calculated based on their total earnings and investments for a given financial year according to rules that are predefined for financial year.
- Luckily, Coderland's Financial Year is aligned to Calendar Year i.e. Jan-Dec.
- Coincidentally, Coderland's Currency is INR (₹)
Here are rules for last three consecutive years:
| Income Range | Tax Percentage |
|---|---|
| < ₹ 1,00,000 | 0% |
| ₹ 1,00,001 - ₹ 5,00,000 | 10% |
| ₹ 5,00,001 - ₹ 10,00,000 | 20% |
| > ₹ 10,00,000 | 30% |
- One can reduce taxable income by investing in tax free Government Bonds up to ₹1,00,000.
- If individual’s total tax is above ₹ 5,00,000 then they are charged cess of 1% on total tax amount.
| Income Range | Tax Percentage |
|---|---|
| < ₹ 1,00,000 | 0% |
| ₹ 1,00,001 - ₹ 6,00,000 | 10% |
| ₹ 6,00,001 - ₹ 12,00,000 | 20% |
| > ₹ 12,00,000 | 30% |
- One can reduce taxable income by investing in tax free Government Bonds up to ₹1,50,000.
- If individual’s total tax is above ₹ 5,00,000 then they are charged cess of 2% on total tax amount.
- For Taxpayers above age 60, taxable income is reduced by 50,000 for purpose of calculations
| Income Range | Tax Percentage |
|---|---|
| < ₹ 1,00,000 | 0% |
| ₹ 1,00,001 - ₹ 10,00,000 | 15% |
| > ₹ 10,00,000 | 25% |
- One can reduce taxable income by investing in tax free Government Bonds up to ₹2,00,000.
- If individual’s total tax is above ₹ 5,00,000 then they are charged cess of 5% on total tax amount.
- For Taxpayers above age 60, taxable income is reduced by 75,000 for purpose of calculations
-
Example 1:
For Duke (aged 25), who earns ₹ 8,25,000 per annum and invests ₹75,000 in tax free govt bonds his 2019 payable tax will be calculated as follows:
After investment deduction
net taxable income = ₹8,25,000 - ₹75,000 = ₹7,50,000
out of which on first ₹1,00,00, tax is ₹0
on next ₹5,00,000 tax is 10% i.e. ₹50,000
and on remaining ₹1,50,000 tax is 20% i.e. ₹30,000
so total tax payable would be ₹80,000
total cess = ₹ 0
-
Example 2:
For Gopher (aged 65), who earns ₹ 38,00,000 per annum and invests ₹1,00,000 in tax free govt bonds. His 2020 payable tax will be calculated as follows:
After investment deduction
net taxable income = ₹38,00,000 - ₹1,00,000 = ₹37,00,000
Because he is above 60, he is eligible for additional deduction
net taxable income = ₹37,00,000 - ₹75,000 = ₹36,25,000
out of which on first ₹1,00,00, tax is ₹0
on next ₹9,00,000 tax is 15% i.e. ₹1,35,000
and on remaining ₹26,25,000 tax is 25% i.e. ₹6,56,250
so total tax payable would be ₹7,91,250
since tax is above ₹5,00,000 additional 5% cess will be added
so cess = ₹7,91,250 * 5% = 39,562.5
total tax + cess payable = ₹8,30,812.5
For a given year, age of user, user's taxable income and total tax free investments, write a web application that can accept these as a user input:
year,age,income,investment
The application will return the calculated tax output to user on change of any input field. Please consider these talks when you are building this application,
- Do not use third part component library to build the UI. UI design should be material styled.
- Tax calculation should be visible on every change. User can save a calculation.
- The app should contain three screens.
- Register/Login screen (Username & Password)
- A dashboard shows last four tax calculation when they are saved (even when tabs are closed)
- Tax calculation screen
- Choice of database is yours
- The submission must have full unit test coverage.
- Prefer React with functional components. Building using typescript is good to have.
- Use webpack to build project.
- Design the solution considering future use case (as if writing production grade code, avoid if-else waterfalls).
- You would be asked to enhance the same solution for in-office interview.
- Ideally it should take 3-4 days to implement, if you need more time to inform us upfront.
- Accompany a Readme with instructions to execute your program.
We value integrity the most in our potential candidates. Please do not share the coding problem or solution with any one. Avoid publishing your code in any public forum.
Please push your changes to the master branch of this repository. You can push one or more commits.
Once you are finished with the task, please click the Complete task link on this screen.
Please push your changes to the master branch of this repository. You can push one or more commits.
Once you are finished with the task, please click the Complete task link on this screen.