Step 1: Concept
This is a differential equation solvable for $y$, specifically in the form of Clairaut's Equation $y = px + f(p)$.
Step 2: Meaning
Rearranging the given equation: $\tan^{-1}p = px - y$, which becomes $y = px - \tan^{-1}p$.
Step 3: Analysis
In Clairaut's form $y = px + f(p)$, the general solution is obtained by simply replacing $p$ with a constant $c$.
Step 4: Conclusion
Substituting $p = c$ into $y = px - \tan^{-1}p$, we get the general solution: $y = cx - \tan^{-1}c$.
Final Answer: (C)