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Group units in tax rates of 25% and 40%. Shifting Rs 10 lakh profit to the lower-tax unit saves how much?

ARs 1.5 lakh
BRs 2.5 lakh
CRs 4 lakh
DRs 6.5 lakh
Answer & Solution
Correct answer: A. Rs 1.5 lakh
The tax rate difference is 15 points, and 15% of Rs 10 lakh is Rs 1.5 lakh.
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