If the marginal rate of tax is 40% and consumers income increase from Rs10,000 to Rs12,000 ?

A. The amount of tax paid will increase by Rs4,800
B. The amount of tax paid will increase by Rs4,000
C. The amount of tax paid will increase by Rs 800
D. The total tax paid will be Rs4,800

Correct Answer: The total tax paid will be Rs4,800 ✔

Last Updated: June 11, 2019