The table below shows monthly income tax rates for the year 2003.
Monthly taxable income
in Ksh.
1- 9680
9681-18800
18801-27920
27921-37040
37041 and above
Tax rates
(percentages)
10%
15%
20%
25%
30%
In the year 2003, Ole Sanguya's monthly earnings were as follows:
Basic salary
House allowance
Medical allowance
Transport allowance
Ksh 20 600
Ksh 12 000
Ksh 2 880
Ksh 340
Ole Sanguya was entitled to a monthly tax relief of Ksh 1056. Calculate.
(a) his monthly taxable income
(b) the monthly tax paid by Ole Sanguya.
(2
