Paper 1 · Mathematical Reasoning and Aptitude
UGC NET December 2022 (06.03.2023) Shift-II
A person pays 10 percent tax on income up to 4.0 lakh, 20 percent on the amount between 4.0 lakh and 8.0 lakh, and 30 percent on the amount above 8.0 lakh. If the total tax paid is 1.8 lakh, find his average percentage of tax paid on the whole income.
A15%
B18% ✓ Correct
C20%
D25%
Correct answer: (B) 18% — The average tax rate is 18 percent, so the answer is 18 percent.
Explanation
★The average tax rate is 18 percent, so the answer is 18 percent.
★The first 4 lakh is taxed at 10 percent, giving 40000.
★The next 4 lakh is taxed at 20 percent, giving 80000.
★The remaining tax of 60000 at 30 percent comes from 2 lakh of income above 8 lakh.
★So the total income is 4 plus 4 plus 2, which is 10 lakh.
★The total tax of 1.8 lakh on 10 lakh is 18 percent.
★So the answer is 18 percent.
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