Question

man's annual income has increased by Rs 5 lakhs but the tax on income that he has to pay has reduced from 12% to 10%. He now pays Rs 10,000

more income tax. What is his increased income (in Rs lakhs)?​

Answer 1

Answer:

Increased income of that man is Rs 25 lakhs.

Step-by-step explanation:

Let the original annual income was Rs a and at that time man was paying 12% of his annual income as tax.

It means :

He was paying 12% of Rs a as tax.

According to the question :

Man's annual income has been increased by Rs 5 lakh.

It means :

Present annual income of that man = Original annual income + Increase = Rs a + Rs 5,00,000 = Rs ( a + 5,00,000 ).

Also, his tax has been reduced to 10%.

It means :

He is paying a tax 10% of Rs ( a + 5,00,000 )

Also, given in the question that he pays 10,000 rupees more than before as tax.

It means :

= > Tax being paid before = Tax being paid now - Rs 10,000.

From above :

= > 12% of Rs a = 10% of Rs( a + 5,00,000 ) - Rs 10,000

= > 12 / 100 x Rs a = 10 / 100 x Rs ( a + 5,00,000 ) - Rs 10,000

= > 12a / 100 = ( a + 500000 ) / 10 - 10000

= > 12a / 100 = ( a + 500000 - 100000 ) / 10

= > 12a / 10 = a + 400000

= > 6a / 5 = a + 400000

= > 6a = 5a + 2000000

= > 6a - 5a = 2000000

= > a = 2000000

Hence his annual income was Rs 20 lakhs.

Therefore,

His present annual income is Rs 20 lakhs + 5 lakh = Rs 25 lakh

Answer 2

Answer:

Step-by-step explanation:

Let the previos income is x :

Income             Rate

x                        12%

x+5L                  10%

--------------------------------------------------

                                     =10000 more he pays the tax.

Now apply the eqaute trick to form an equation easily.