Question

Mrs.Langat ,primary school head teacher earns a basic salary of sh.38,300 house allowance of sh.12,000 and radical ,allowance of sh.3,600 every month. She claims a family relief of sh.1172 and insurance relief of 10% of the premium paid. Using tax rates table below.

Taxable income£(p.a)	Tax(Ksh/£)
1-8800	2
8801-16800	3
16801-24800	5
24801 - 36800	7
36801-48800	9
over 48800	10

1. Calculate Mrs.Langats annual taxable income in Kenya pound per annum.
2. Tax due evenly month from Mrs.Langat. 
3. If the following deductions are made every month from her salary,
   w.c p.s 2 % of basic salary
   life insurance premium of sh.4600
   sacco van repayment of sh.14,200
   Calculate:
   • the total deductions.
   • Her net pay for very month. 

Answer 1

1. 38300 + 1200 + 3600          
   53900 x 12 = k£ 32,340 pa 
   20
    
2. 32,340
   8800 x2=17600  
   8000 x 3= 24,000
   8000 x 5= 40,000
   6540 x 7=   45,780   
            127,380      
   Monthly = 127,380 = 10,615   
                        12
   Less ……. 1172
        9443
3.    
   • ³/₁₀₀ x 4600 = 198 
           = 9,245
     total decuctions:(9245+776+4600+4200)=Sh.28,821
      
   • Net pay = 53900-28821=Sh.25079