60th to 62nd B.P.S.C. (Pre) 2016

The dearness-allowance of a person with basic salary Rs. 7700 is increased to 132% from 125% and the tax deduction on both is increased from 20% to 22%. He got salary increased by.

aRs. 74.00
bRs. 77.00
cRs.385.00
dRs. 369.60
eNone of the above/More than one of the above✓ Correct

Explanation

Basic salary of person = Rs. 7700 Initial dearness-allowance = $7700 \times \frac{125}{100} = Rs. 9625$ Increased dearness- allowance = $7700 \times \frac{132}{100} \Rightarrow Rs. 10164$ Salary after 20% tax deduction in basic salary and dearness allowance = $(7700 + 9625) \frac{80}{100}$ $$= 17325 \times \frac{80}{100} = 13860 Rs.$$ Salary after 22% tax deduction in basic salary and increased dearness allowance. $$= (7700 + 10164) \frac{78}{100}$$ $$= 17864 \times \frac{78}{100} = 13933.92 Rs.$$ Increased salary of person = $13933.92 - 13860 = Rs. 73.92$ So, the correct answer is option (e).

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