A man's annual income has increased by ₹20 lakhs but the tax on income that he has to pay has reduced from 20% to 16%. He now pays the same amount of tax as earlier. What is his new total income(in ₹ lakhs)?

100

Ratio of              Old    :   New

Tax                     20    :   16

                           5     :    4

Income                4     :   5

ATQ,  

(5R - 4R) = 20 lakh

New total income = 5R = 5 × 20 = 100 lakh