If 4% of income tax is paid by me, my net income is Rs.5,76,000. What will be my net income if income tax is raised to 8%.

Correct option is C

Given:
Net Income after 4% tax = ₹5,76,000
Tax Rate (initially) = 4%
Tax Rate (after increase) = 8%

Concept Used:

Net Income Formula: Net Income = Gross Income×(1−Tax Rate)

Solution:
Let I be the gross income

Net income = I - 0.04I = 0.96I

0.96I = 576000 

​$$\text{I} =\frac{56000}{0.96}$$​​

I = 600000

If the tax is raised to 8%, the new net income will be:

Net income = $$\text{I - 0.08I = 0.92I = 0.92} \div 600000 = \text{Rs. } 552,000$$​​