Income Tax Computation

Question 1

Chargeable income is calculated as:

Accepted Answer

Gross income − reliefs — Chargeable income = gross income minus total tax reliefs.

Question 2

A tax relief:

Accepted Answer

Reduces chargeable income — Reliefs are deducted from gross income, lowering the chargeable income.

Question 3

A tax rebate is:

Accepted Answer

Subtracted from the tax charged — A rebate reduces the actual tax, ringgit for ringgit, after tax is computed.

Question 4

Gross income is RM50,000 and total reliefs are RM13,000. The chargeable income is:

Accepted Answer

RM37,000 — Chargeable income $= 50000 - 13000 = 	ext{RM}37{,}000$.

Question 5

Bands: 0–5,000 at 0%; 5,001–20,000 at 1%; 20,001–35,000 at 3%. The tax on a chargeable income of RM35,000 is:

Accepted Answer

RM600 — Tax $= 15000(0.01) + 15000(0.03) = 150 + 450 = 	ext{RM}600$.

Question 6

A chargeable income of RM32,000 gives a tax charged of RM510. With a rebate of RM400, the tax payable is:

Accepted Answer

RM110 — Tax payable $= 510 - 400 = 	ext{RM}110$.

Question 7

An individual rebate of RM400 is given when chargeable income does not exceed:

Accepted Answer

RM35,000 — The RM400 rebate applies to a chargeable income of RM35,000 or less.

Question 8

Which reduces the tax the most directly, ringgit for ringgit?

Accepted Answer

A rebate — A rebate is subtracted straight from the tax; a relief only lowers chargeable income first.

Question 9

Gross income RM60,000 with reliefs RM18,000 gives a chargeable income of:

Accepted Answer

RM42,000 — Chargeable income $= 60000 - 18000 = 	ext{RM}42{,}000$.

Question 10

The Monthly Tax Deduction (PCB/MTD) is:

Accepted Answer

A scheme where tax is deducted monthly from salary — PCB deducts an estimate of the year's tax from salary each month.