0
A man's annual income has increased by Rs. 2 lakhs but the tax on income that he has to pay has reduced from 20% to 16%. He now pays the same amount of tax as before. What is his increased income (in Rs. lakhs)?
- A8
- B10
- C12
- D6
Answer not set
Discussion 1
Log in or create a free account to reply and vote.
0
CCommunity
Let the annual income before increment be Rs. X.
After the increment of Rs. 2 lakhs, income tax is reduced from 20% to 16% but the amount
of tax remains same.
⇒ X × 0.2 = (X + 2) × 0.16
⇒ 0.04X = 0.32
⇒ X = 8
∴ Increased income = 8 + 2 = 10 lakhs
After the increment of Rs. 2 lakhs, income tax is reduced from 20% to 16% but the amount
of tax remains same.
⇒ X × 0.2 = (X + 2) × 0.16
⇒ 0.04X = 0.32
⇒ X = 8
∴ Increased income = 8 + 2 = 10 lakhs