An individual pays 30% income tax. On this tax he has to pay a surcharge of 10%. Thus the net tax rate, he… · ABC26GN2236
Subject: General Aptitude · Chapter: Percentage
An individual pays 30\% income tax. On this tax he has to pay a surcharge of $10 \%$. Thus the net tax rate, he has to pay, is
(a)27\%
(b)33\%
(c)40\%
(d)45\%
Answer
Answer (as printed): B
Explanation
Let his taxable income be ₹ 100. Then, income tax = 30\% of ₹ 100 = ₹ 30. Surcharge $=10 \%$ of ₹ $30=₹ 3$. Total tax paid $=₹(30+3)=₹ 33$. $$\text { ∴ Net tax rate }=\left(\frac{33}{100} \times 100\right) \%=33 \% \text {. }$$
Explanation as extracted from the printed page; notation may be imperfect.