Question

A tax payer is exempted of income tax for the first Rs. $100000$ of his annual income but for the rest of the income he has to pay a tax at the rate of $20\%$. If he paid Rs. $3160$ as income tax for a year his monthly income is

• A. Rs. $11580$
• B. Rs. $103160$
• C. Rs $13610$
• D. Rs. $9650$

Answer 1

The correct option is D Rs. $9650$

Let the annual income of the person be Rs. $x$

Then $20\%$ of $(x-100000)=3160$
$\Rightarrow x-100000=\frac{3160\times 100}{20}=15800$
$\Rightarrow x=115800$
$\therefore$ Monthly income $=$ Rs. $\frac{115800}{12}=$ Rs. $9650$