Correct Answer - Option 1 : Rs.74.00
Given:
Basic salary = Rs.7700
Old DA = 125%
New DA = 132%
Old Tax deduction (TDS) = 20%
New Tax deduction (TDS) = 22%
Concept Used:
Gross salary = Basic salary + Dear allowance
Net Salary = Gross Salary - Tax deduction
Calculation:
Old DA = 125% of basic salary
⇒ (125/100) × 7700 = Rs.9625
Old Gross salary = Basic salary + Dear allowance
Old Gross salary = 7700 + 9625 = Rs.17325
Old TDS = 20% of Gross salary
⇒ (20/100) × 17325 = Rs.3465
Old Net Salary = Gross Salary - Tax deduction
Old Net salary = 17325 - 3465 = Rs.13860 ----(i)
New DA = 132% of basic salary
⇒ (132/100) × 7700 = Rs.10164
New Gross salary = Basic salary + Dear allowance
New Gross salary = 7700 + 10164 = Rs.17864
New TDS = 22% of Gross salary
⇒ (22/100) × 17864 = Rs.3930
New Net Salary = Gross Salary - Tax deduction
New Net salary = 17325 - 3930 = Rs.13934 ----(ii)
Subtracting eqn i from ii
Increase in Net salary = 13934 - 13860 = Rs. 74
∴ The salary got increased by Rs. 74