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