Example NSI

Trading Income 56,000.00

Property Income 33,000.00
Employment Income 10,000.00
Total Income 99,000.00
Less Personal Allowance (12,570.00)
Taxable Income 86,430.00

Tax Thereon Amount Rate Liability

First 37,700.00 20% 7,540.00
Next 48,730.00 40% 19,492.00
86,430.00 Tax Liability 27,032.00
Less tax @ source -
Tax Payable 27,032.00
Required: Compute Income tax Payable

NSI SI Total
Trading 27,500.00 27,500.00
Interest 25,000.00 25,000.00
Total 27,500.00 25,000.00 52,500.00
Personal Allowance (12,570.00) (12,570.00)
Taxable Income 14,930.00 25,000.00 39,930.00

Tax Thereon Amount Rate Liability

First 14,930.00 20% 2,986.00
Next 500.00 0% -
Next 22,270.00 20% 4,454.00
Total 37,700.00 -
Next 2,230.00 40% 892.00
39,930.00 8,332.00

SI
Interest 22,500.00
PA (12,570.00)
Taxable Income 9,930.00

Amount Rate Liability

First (starting Rate) 5,000.00 0% -
Next (NRB) 1,000.00 0% -
Next (Bal) 3,930.00 20% 786.00
786.00
 NSI SI Total
Trading 13,500.00 13,500.00
Interest 18,000.00 18,000.00
Total/Net Income 13,500.00 18,000.00 31,500.00
Personal Allowance (12,570.00) (12,570.00)
Taxable Income 930.00 18,000.00 18,930.00

Tax Thereon Amount Rate Liability

First 930.00 20% 186.00
Next (Starting Rate) 4,070.00 0% -
5,000.00 -
Next (NRB) 1,000.00 0% -
Next 12,930.00 20% 2,586.00
2,772.00

NSI Si DIV
Salary 19,500.00
Interest 10,000.00
Dividends 1,000.00
Total 19,500.00 10,000.00 1,000.00
Personal Allowance (12,570.00)
Taxable Income 6,930.00 10,000.00 1,000.00

Tax Thereon Amount Rate Liability

First 6,930.00 20% 1,386.00
Next 1,000.00 0% -
Next 9,000.00 20% 1,800.00
Next 1,000.00 0% -
17,930.00 3,186.00
Less (1,400.00)
1,786.00

NSI SI DIV
Salary 37,500.00
Interest 13,000.00
Dividends 1,000.00
Total 37,500.00 13,000.00 1,000.00
Personal Allowance (12,570.00)
Taxable Income 24,930.00 13,000.00 1,000.00

Tax Thereon Amount Rate Liability

First 24,930.00 20% 4,986.00
Next 500.00 0% -
Next 12,270.00 20% 2,454.00
Next 230.00 40% 92.00
Next 1,000.00 0% -
38,930.00 7,532.00
Less (5,000.00)
2,532.00

Class Examples

Ex.1
Trading Income 16,200.00 Ex.2
Bank Interest 54,000.00 Dividend Income
Dividends 7,600.00 Required: Tax Payable?
Total 77,800.00
Required: Tax Payable?

Ex. 3
Bank Interest 15,000.00
Dividends 45,000.00
Total 60,000.00
Required: Tax Payable?
Total
19,500.00
10,000.00
1,000.00
30,500.00
(12,570.00)
17,930.00

Total
37,500.00
13,000.00
1,000.00
51,500.00
(12,570.00)
38,930.00
 40,000.00
ed: Tax Payable?