Question

A man taxed at a rate of 5% as income tax and 10% special surcharge on the amount of income tax pays altogether 1110rs .Find his gros t

Answer 1

Answer:

Gross Income = Rs. 20181.81

Step by step Explaination:

Let the gross income of the man = X

Tax rate = 5%

Special surcharge rate = 10%

Tax payable by the man = 5 % of X = 0.05X   .... (1)

Now, Surcharge is added to the tax, and is calculated on the tax amount only.

Thus, calculating surcharge,

Surcharge = Tax amount x 10%

Surcharge = 0.05X × 0.1

Surarge = 0.005X .....(2)

From equation 1 and 2,

Total income tax payable = Tax + Surcharge

But we know that the man paid rs 1110 as total tax.

∴ 1110 = 0.05X + 0.005X

∴ 1110 = 0.055 X

∴ X = 1110 / 0.055

∴ X = 20181.81 Rs.

Gross Income = 20181.81 Rs.