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

(d) Rs 9650

Let the annual income of the person be Rs x,

Then, 20% of (x – 1,00,000) = 3160

\(\Rightarrow\)x - 1,00,000 = \(\frac{3160\times100}{20}\) = 15800

\(\Rightarrow\) x = 115800

\(\therefore\) Monthly income = Rs \(\frac{115800}{12}\) = Rs 9650