If the income tax is increased by 19% then the net income is decreased by 6%. Find the rate of income tax.
Answer & explanation
Correct answer: option 1
Income = Net income + tax
ATQ,
Income tax × \(\frac{19}{100}\) = Net income × \(\frac{6}{100}\)
Income = 25
Rate of income tax = \(\frac{6}{25}\) × 100 = 24 %