# Calculate the amount of tax to be paid in these questions

Published: Published Date - 11:40 PM, Tue - 19 July 22

This article is in continuation to the last article focusing on the percentage topic. Here are some practice questions along with solutions that will help you in your preparation for the State government recruitment jobs.

**1. Arun’s income is 150% of Bala’s income and Chandu’s income is 120% of Arun’s income. If the total income of Arun, Bala and Chandu is Rs 86,000, then find Chandu’s income.**

a) Rs 34,000 b) Rs 35,000 c) Rs 36,000 d) Rs 37,000

**Ans**: c

**Solution**: Arun = 150% of Bala

Arun : Bala = 3 : 2

Chandu = 120% of Arun

Chandu : Arun = 6 : 5

Arun : Bala = (3 : 2)5

Chandu : Arun = (6 : 5)3

Arun : Bala : Chandu

= 15 : 10 : 18

43 –>; 86,000

1 –>; 2000

Chandu’s income = 18 × 2000 = Rs 36,000

**2. A man spends 75% of his income. If his income increases by 28% and his expenditure increases by 20%, then what is the increase or decrease percentage in his savings?**

a) 48% increase b) 52% increase c) 48% decrease d) 52% decrease

**Ans**: b

**Solution**: Income = Expenditure Savings

100 = 75 25

28 15 13

13/ 25 × 100% = 52%

**3. The sum of the salaries of A and B together is Rs 4300. A spends 95% of his salary and B spends 80% of his salary. If their savings are the same, what is A’s salary?**

a) Rs 3,440 b) Rs 3,330 c) Rs 3,445 d) Rs 3,335

**Ans**: a

**Solution**: 5% of A’s savings = 20% of B’s savings

5A = 20B

A/B = 20/5

A : B = 4 : 1

A B = 4300

5 –>; 4300

1 –>; 860

4 × 860 = 3440

**4. A person pays a debit of Rs 8,960 per month for repayment of loan, which is 28% of his monthly salary. Calculate his monthly salary.**

a) Rs 30,000 b) Rs 30,500 c) Rs 32,000 d) Rs 32,500

**Ans**: c

**Solution**: 28% = 8960

10% = 320

The monthly salary = 100 × 320 = 32,000

**5. If the income tax is increased by 19%, the net income is reduced by 1%. Then the rate of income tax is?**

a) 5% b) 6% c) 5.5% d) 6.5%

**Ans**: a

**Solution**: Tax × 19% = Net income × 1%

Tax/ Net income = 1/19

Total income = 20

Rate of income tax = 1/20 × 100% = 5%

**6. If the rate of income tax is increased from 20% to 25%, find the additional amount of tax a person has to pay if his total income is Rs 40,000.**

a) Rs 1,500 b) Rs 1,750 c) Rs 2,000 d) Rs 2,150

**Ans**: c

**Solution**: 25 – 20 = 5% = 5/100 = 1/20

Therefore, increase in tax amount = 1/20 × 40,000

= Rs 2,000

**7. The income tax rate is increased from 4% to 5%, but the tax liability of a person is increased by 10% only. Find the percent decrease in his taxable income.**

a) 10% b) 12% c) 13% d) 11%

**Ans**: b

**Solution**: Let tax in the first case = Rs 100

Then new tax = 100 × 5/4 = Rs 125

But actual revised tax = Rs 110

Reduced income = 110/125 × 100 = 88%

Decrease in income = 100 – 88 = 12%

**8. Income tax rate is 20% in a particular year. If in the next year, a person’s income is increased by 25%, but total tax liability remains the same, find tax-rate during the next year.**

a) 16% b) 18% c) 17% d) 15%

**Ans**: a

**Solution**: Ratio of income = 100 : 125

= 4 : 5

Ratio of tax rate = 5 : 4

5 –>; 20%

1 –>; 4%

4 –>; 4 × 4 = 16%

**To be continued**

**M.Venkat**

**Director**

**MVK Publications**

**Dilsukhnagar**

**7671002120**