Computation of income tax

81,320 views

Published on

8 Comments
32 Likes
Statistics
Notes
  • Njce! Thanks for sharing.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Do you need a genuine loan to pay your bills or solve any financial problems, kindly contact us now via email: rbinvestment11@outlook.com We offer all kinds of loan. Here comes an Affordable loan that will change your life for ever. We offer genuine and legitimate loan, I offer loan to individual and public sector that are in need of financial Assistance, you will never regret anything in this loan transaction because i will make you smile through out this transaction because you where not born to be a loser, The Terms and Conditions are very simple and considerate. What are you waiting for why don't you try this company and be free from debts and poverty.If you are in need of a genuine loan we can help you, i am certified,registered and legit lender. kindly contact us now via email: rbinvestment11@outlook.com, rbinvestment12@outlook.com
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Tax Calculator for Windows Phone users: https://www.microsoft.com/en-us/store/apps/tax-calculator-philippines/9nblggh5f3gp
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Could you help me to compute this one?Pretty please...I really have no idea about this:
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Help tips for the student for understanding the computation of income tax.quetion and its solution is nicely presented
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Views
Total views
81,320
On SlideShare
0
From Embeds
0
Number of Embeds
20,704
Actions
Shares
0
Downloads
1,761
Comments
8
Likes
32
Embeds 0
No embeds

No notes for slide

Computation of income tax

  1. 1. COMPUTATION OF INCOME TAX
  2. 2. Computation of Income Tax In order to understand the concept described above, let us use the hypothetical data: Mr. De Castro is gainfully employed as a full-time professor at the Far Eastern Academy. His monthly salary is P85, 000.00 and said academy deducted 32% of his salary for tax. He is married, with five (5) children namely: Jackie, 25 years old but mentally retarded; Celine, 22years old; Andrew, 19 years old; Ely, 18 years old; and Ben, 15 years old. Solve the monthly and annual tax of Mr. De Castro. Identify if there is an overpayment/tax payable using the following allowable deductions: SSS= P700.00/Monthly Pag-IBIG= P200.00 PhilHealth= P200.00 Union Due= P100.00
  3. 3. Given: Total allowance reductions : P1, 200.00/month x 12 = P14, 400.00/year Gross income : P85, 000.00/month x 12 = P1, 020, 000.00/year Tax deduction from his employer (32% of his salary) : P1, 020, 000.00 x 0.32 = P 326, 400.00
  4. 4. Given: Tax income : P85, 000.00(month income) –P1,200.00(allowance deductions) = P83, 800.00 Annual tax of Mr. De Castro : P83, 800.00 x 0.32 = P26, 816.00(monthly tax) x 12 = P321, 792.00
  5. 5. Computation: A. Single Gross income : P1, 020, 000.00 - P14, 400.00(allowance deductions) = P1, 005, 600.00 Gross taxable income : P1, 005, 600.00 – P50, 000.00 (personal exemptions) = P955, 600.00
  6. 6. Computation: Taxable income (Notes: Using the tax table, tax table, tax due is P125, 000.00 + 32% of the excess of P500, 000.00) : P955, 600 – P500, 000 = P455, 600 x 0.32 = P145, 792 + P125, 000 = 270, 792.00 Tax due from his employer : P326, 400.00 Tax withheld per BIR 1700 : P270, 792.00
  7. 7. Computation: Overpayment of Mr. De Castro from his employer: P55, 608.00(refundable)
  8. 8. Computation: B. Married with 4 Qualified Dependents Gross income : P1, 020, 000.00 - P14, 400.00(allowance deductions) = P1, 005, 600.00 Gross taxable income :P1, 005, 600.00 – P150, 000.00 (personal exemptions + 4 Qualified dependant) = P855, 600.00
  9. 9. Computation: Taxable income (Notes: Using the tax table, tax table, tax due is P125, 000.00 + 32% of the excess of P500, 000.00) : P855, 600 – P500, 000 = P355, 600 x 0.32 = P113, 792 + P125, 000 = 238, 792.00 Tax due from his employer : P326, 400.00 Tax withheld per BIR 1700 P238, 792.00
  10. 10. Computation: Overpayment of Mr. De Castro from his employer: P87, 608.00(refundable)

×