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The table below shows the income tax rates for the year 2006. In the year 2006, Ali’s monthly earnings were as follows: Basic Salary KShs 22,600;House Allowance...

The table below shows the income tax rates for the year 2006.
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In the year 2006, Ali’s monthly earnings were as follows:
Basic Salary KShs 22,600;House Allowance Kshs 12,000;
Medical Allowance Kshs 2,880;Transport Allowance KShs 340
Ali was entitled to a monthly personal relief of Sh 1162 and an insurance relief of Sh 450.
Every month the following deductions were made:
NHIF KShs 320; Insurance Premium Shs 3000;Sacco Loan repayment Shs 6000
Sacco Share contribution Shs 1500; Workers Union dues Shs 200
Calculate:
a) Ali’s taxable income in K£ p.a.
b) Ali’s monthly tax paid in Kshs
c) Ali’s monthly net income from his employment in KShs
d) If Ali received a 10% increase in his basic salary, calculate the corresponding percentage
increase on the income tax.

Answers


Kavungya
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Kavungya answered the question on September 19, 2019 at 06:42

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