The income tax department has changed the method of calculating the tax amount from a flat tax of 10% on the taxable income to a fixed charge of Rs. 20,000 plus 5% tax on the taxable income exceeding Rs. 2,00,000. If an individual’s tax amount as per the new calculation is Rs. 5,000 less than that found by using the old formula, what is his taxable income?
A) Rs. 2,88,000 B) Rs. 2,92,000 C) Rs.
3,00,000 D) Rs. 2,78,000 E) Rs. 3,25,000

• Just go with "hit and trial" approach. There are 5 options and in each, calculation is same - 10% of given - 5% of amount in given exceeding 200000) - 20000 ... Option C will give 5000. So right answer is Rs.300000
  
  5% of given amount exceeding 200000 - for instance, in 300000, amount exceeding 200000 is 100000 ... So we will take 5% of 100000
  
  Likewise for 288000, it will be 5% of 88000
  
  And so on
• 6 Months agoHelpfull: Yes(0) No(0)