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The table below shows the income tax rates: Income per month (K£) Rate in Kshs per £ 1 - 325 ...

      

The table below shows the income tax rates:
Income per month (K£) Rate in Kshs per £
1 - 325 2
326 – 975 3
976 - 1300 5
1301 – 1625 6
Over 1625 7.50
Mr. Misoi is a public servant who lives in a government house and pays a nominal rent of Kshs.1,220 per month. He earns a basic salary of Kshs. 24,800 and a house allowance of Kshs.12,000 per month. He is entitled to a monthly relief of kshs.1620.
(a) Calculate his monthly;
(i) Taxable income in K£
(ii) Tax payable without relief
(iii) Tax after relief
(b) Apart from the income tax. The following monthly deductions are made from his earnings
-HELB loan repayment Kshs.2400
- Health insurance fund Kshs.1200
- 2% of Basic salary union fee
Calculate:- (i) the total monthly deduction made on Mr. Misoi’s income
(ii) Mr. Misoi’s net income per month

  

Answers


Kavungya
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Kavungya answered the question on June 19, 2019 at 09:11


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