Question
A 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)?ÂSolution
Starting income=x New income=x+500000 income tax at 1st=0.12x Income tax now=(x+500000)*0.1 Difference=10000 0.1x+50000-0.12x=10000 400000=0.02x x=2000000 x+5=25 lakhs
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