Question

6. In accordance with the provisions of the new
budget, a man pays tax at the rate of 5% and
10% as special surcharge on the amount of
income tax levied. He altogether pays a tax of
11000. Find the gross pay of the man
(standard deduction allowed is 20%).
(b) * 250000
(d) * 350000
(a) 200000
(C) 300000​

Answer 1

Answer:

b) 250000

Explanation:

let the gross income of man be Rs.x

income after standard education = Rs.0.8x

Income tax on this income at the rate of 5% = Rs. (0.05)(0.8x)

surcharge is added at the rate of 10% = 1.1 x 0.05 x 0.8x

= Rs. 0.044x

• 0.044x = 11000
• x = 250000