An individual pays 30% Income tax. On this tax he has to pay a surcharge of 10%. Thus, the net tax rate, he has to pay, is

Options

A. 0.45
B. 0.33
C. 0.37
D. 0.27

Answer

To solve the problem step-by-step, we will calculate the net tax rate that an individual has to pay after considering both the income tax and the surcharge.

### Step 1: Determine the Income Tax
Let's assume the individual's income is 100x (where x is a constant). The income tax rate is 30%.

**Calculation:**
Income Tax = 30% of Income = \( 100x \times \frac{30}{100} = 30x \)

### Step 2: Calculate the Surcharge
The surcharge is 10% of the income tax.

**Calculation:**
Surcharge = 10% of Income Tax = \( 30x \times \frac{10}{100} = 3x \)

### Step 3: Calculate the Total Tax
Now, we need to find the total tax paid, which includes both the income tax and the surcharge.

**Calculation:**
Total Tax = Income Tax + Surcharge = \( 30x + 3x = 33x \)

### Step 4: Calculate the Net Tax Rate
To find the net tax rate, we divide the total tax by the total income.

**Calculation:**
Net Tax Rate = \( \frac{Total Tax}{Income} = \frac{33x}{100x} = \frac{33}{100} = 0.33 \)

### Conclusion
The net tax rate that the individual has to pay is **0.33**.

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