Question

Q13.Madan pays income tax at the rate of 10%. If his income increased by 10% and his tax rate increas15%.Then his nete income would increas by rs350 , what is madan income

Answer 1

Tax Deducted at Source (TDS) is a system introduced by Income Tax Department, where person responsible for making specified payments such as salary, commission, professional fees, interest, rent, etc. is liable to deduct a certain percentage of tax before making payment in full to the receiver of the payment.

Answer 2

Let Madan's income = 100.

In this 10% is income tax & 90% is Net income.

Now his income is increased by 10%(100)= 110

Now tax rate is 15%(110)= 16.5

Net income =110-16.5 = 93.5

Net income increment = 93.5 - 90= 3.5

3.5---------->350

100----------?

=> 100×350/3.5

= 10000.