a) 20 %
b) 22 %
c) 23 %
d) 24 %
Answer: b
Explanation: Let his original salary be Rs. 100
Salary after increment = Rs. 120
Let the tax on original salary be 20% and now tax on increased salary (Rs. 20) will be 22% i.e. Rs. 4.40
Increase in tax liability $$ = \frac{{4.40}}{{20}} \times 100 = 22\% $$
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