Question

A man's income is increased by Rs.400 but the income tax is reduce from 5% to 4% he pays the same amount of tax as before what is his income?

Answer 1

Let, the amount of income is x

then tax on x will be 5x/100

Now, payment increase by 400

and tax decrease to 4 percent

then new tax will be (x+400)×4/100

But the amount of the tax paid is the same.

So, 5x/100 = (x+400)×4/100

Hence, x will be Rs. 1600