XAT 2011 — QA & DI Question 12
Simple EquationsEasy
Passage / Data
Answer the following question based on the information given below.
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Total income tax payable is obtained by adding two additional surcharges on calculated income tax.
- Education Cess: An additional surcharge called ‘Education Cess’ is levied at the late of 2% on the amount of income tax.
- Secondary and Higher Education Cess: An additional surcharge called ‘Secondary and Higher Education Cess` is levied at the rate of 1% on the amount of income tax.
Mr. Madan observed his tax deduction at source, done by his employer, as Rs. 3,17,910/-. What was his total income (in Rs.) if he neither has to pay any additional tax nor is eligible for any refund?
Answer & solution
13,48,835/-
- B
14,45,522/-
- C
14,47,169/-
- D
15,70,718/-
- E
None of the above
Solution
Let Madan’s income be (x + 5) lakhs.
Then his income tax = 0 × 160000 + 0.1 × 140000 + 0.2 × 200000 + 0.3 × x = (54000 + 0.3x)
Total tax payable including surcharges = 1.03 (54000 + 0.3x)
∴ 317910 = 1.03 (54000 + 0.3x)
∴ x ≈ 848835
∴ Madam’s income = 848833 + 500000 = Rs. 1348835
Hence, option (a).