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Personal Finance

Autor:   •  April 15, 2016  •  Course Note  •  685 Words (3 Pages)  •  889 Views

Page 1 of 3

QUESTION 1

        

During the year 2013, Mr Shaari income is RM9,000 per month and his contribution to Employees Provident Fund (EPF) in year 2013 was RM4,900. Mr Shaari donated cash of RM1,600 to the National Kidney Fund, an approved organization. He also paid a premium of RM4,800 for the education policy for his children. His wife, Mrs Norkiah is the office manager of a travel agency with Net income per year RM65,000. Mrs Norkiah paid premiums of RM2,600 for her medical insurance policy and RM2,800 for her life insurance policy. Her contributions to Employees Provident Fund (EPF) in year 2013 was RM4,600

In September 2013, Mrs Norkiah paid her father hospital bills amounted to RM3600.

Mr Shaari and Mrs Norkiah have four (4) children whose ages and educational status are as follows:

  1.  12-year-old – Standard 6, Government-run primary school;
  2.  19-year-old – Disabled since birth, currently being home schooled;
  3.  20-year-old – 2nd year student, University of Wisconsin, United States; and
  4.  22-year-old – Medical student, University of Malaya, Kuala Lumpur.

        Other information:

  1. Mr Shaari purchased several books worth RM1,100 for his family. He utilized books voucher under “Baucer Buku 1 Malaysia”, amounted RM200 given to his son who is studying in Universiti Malaya.

  1. Mr Shaari and Mrs Norkiah purchased two units of laptops worth RM2,500 and RM 2,000 respectively. Mr Shaari had purchased one unit of desktop two years ago and had made an income tax deduction with respect to this purchase. Mrs Norkiah, however never bought any type of computer before. In 2013, Mr Shaari also paid RM100 per month for broadband subscription fees to TM Berhad.

  1. Statement of deposit with Skim Simpanan Pendidikan Nasional showed that Mr Shaari net saving in year 2013 was RM2,100.
  1. Mr Shaari spend RM1,400 to buy golf equipment for his own used.
  1. Zakat payment for Mr Shaari and Mrs Norkiah in 2013 amounted RM350 and RM200 respectively.

REQUIRED:

  1. Compute the tax payable for Mr Shaari and Mrs Norkiah for the year of assessment 2013 assuming that all relief for children were claimed by Mr Shaari, under separate assessment.

                                                                 

  1. Compute the tax payable by Mr Shaari and Mrs Norkiah for the year of assessment 2013 under joint assessment and Mr Shaari claims all expenses make by Mrs. Norkiah.                                                    

Answer;

Tax computation YA2012

 

Separate

Joint

 

Shaari

Norkiah

 

 

 RM

RM

RM

Employment income

 

 

 

Mr Shaari Salary

108000

 

108000

Mrs Norkiah Salary

 

65,000

65,000

Aggregate Income

108,000

65,000

173,000

Less approved donation – cash

1600

0

1600

Total income

106,400

65,000

171,400

Less: Personal reliefs

 

 

 

  Relief for self

9,000

11000

9000

  Wife relief

 

 

3000

Purchase of books

900

 

900

Purchase of personal computer

        -  

2000

2000

Parents medical

 

3600

3600

Net saving in SSPN

2,100

 

2,100

Sports equipment

300

 

300

Broadband

500

 

500

   EPF & life insurance

4,900

6000

6000

   Child relief

 

 

 

        12 year old

1000

 

1000

        19 year old

5000

 

5000

        20 year old

6000

 

6000

        22 year old

4000

 

4000

Medical and education insurance (restricted to)

3,000

2600

3,000

 

36,700

25,200

46,400

Chargeable income

69,700

39,800

125,000

 

 

 

 

Tax on first RM50000 / RM35000 / RM100000

2850

1200

13850

On next RM19700 at 19% / RM4800 at 11% / RM25000 at 26%

3743

528

6500

Tax charged

6593

1728

20350

Rebate (C.I. not exceeding RM35,000)

 

 

 

Zakat

350

200

550

Tax payable

6243

1528

19800

...

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