Mr. X salary increased by 20%. On the increase, the tax rate is 10% higher. The percentage increase in tax liability is:

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.
Thus, increase in tax liability = (6.60 /20)/100 = 22%