Percentage Practice Test 4 with solutions

Question : 12 of 40

Marks: +1, -0

The gross income of a person is Rs. 20000. 10% of his income is exempted from income tax and his net income is Rs. 19100. The rate of income tax is :

Validate

Solution:

Gross income = Rs. 20000
Income exempted from income tax = 10% of gross income
∴ Income on which income tax is chargeable = (100 – 10%) = 90% of gross income

= 20000 ×90/100

= Rs. 18000
∴ Total income tax paid on = Rs. 20000 – Rs. 19100 = Rs. 900
∴ Rate per cent of income tax

=900/18000 ×100 = 5%

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