Question

If the income tax is increases by 16% then the net income is reduced by 2%. the rate of income tax is:

Answer 1

Let total amount of taxable income is =100: Say income tax rate at x%, Then, income tax amount =x=x: Net income =(100−x).

Since increase in income tax amount = decrease in net income from salary.

Therefore, we have : 16%x 16% of xx =2%=2% of (100−x)(100−x): 16x=100−x25x=100x=424x=100−x25x=100x=4.

Answer is 4 %:

What is income tax ?An income tax is a tax levied by central  governments .It is impose on financial income generated by all persons who have income within their jurisdiction.

As per Income tax law,  businesses and individuals must file an income tax return every year to determine whether they have contributed tax oe get tax return from government.