Question
If 4% of income tax is paid by me, my net income is
₹5,76,000. What will be my net income if income tax is raised to 8%?Solution
ATQ, Let total income = ₹x 4% tax is paid, so net income is ₹5,76,000: 96% of x = 5,76,000 x = (5,76,000/0.96) = 6,00,000 So, Total income = ₹6,00,000 If tax is increased to 8%, new net income: 92% of 6,00,000 = 5,52,000 Hence, If tax is 8%, the net income will be ₹5,52,000.
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