📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    There are two slabs of income tax, 7% tax for income up

    to 3 lakh and 12.5% for income above 3 lakh. Nitin tried to evade tax by hiding some of the income, to fall in the 7% tax slab. The amount hid by Nitin is 6/29 of the original taxable income. If Nitin paid Rs. 32,200 as tax, what is the original amount of tax he had to pay?
    A 55440 Correct Answer Incorrect Answer
    B 87500 Correct Answer Incorrect Answer
    C 72500 Correct Answer Incorrect Answer
    D 51750 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Tax paid = 32200 (7% of the taxable income) Shown income = (32200 × 100)/7 = 460000 Amount hid = 6/29 of original income. Shown income = 23/29 × original taxable income Original Taxable income = (29/23) × 460000 = 580000 Tax = 12.5% × 580000 = Rs. 72500

    Practice Next
    More Percentage Questions
    ask-question