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A man with an annual salary of ₦2000, has allowances of ₦600. If Income Tax ...


Question

A man with an annual salary of ₦2000, has allowances of ₦600. If Income Tax is 5%, how much tax does he pay each year?

Options

A) 15

B) 20

C) 30

D) 25

The correct answer is C.

Explanation:

His annual salary = ₦2000
His allowances = ₦600
So his taxable income = Annual salary − allowance
= ₦2000 − ₦600
= ₦1400
He pays at 5%
Then, his allowance income tax 5/100 × 600 = ₦30

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Dicussion (1)

  • His annual salary = ₦2000
    His allowances = ₦600
    So his taxable income = Annual salary − allowance
    = ₦2000 − ₦600
    = ₦1400
    He pays at 5%
    Then, his allowance income tax 5/100 × 600 = ₦30

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