Question

Ali is an individual who lives in Southampton UK. He receives the following incomes and earnings in 2019/20 Ali (E) 100,000 Employment Income (before tax deducted) Bank deposit interest. 3,500 3,000 6,000 Building society interest Dividends .... PAYE tax deducted Interest paid on loan to invest in a partnership 30,000 2000 Note: Ali has made a gift donation of £3,000 (net) to a local charity in the year 2019/20. Required: a) Compute Ali's Taxable income b) Compute the tax payable by Ali

Answer 1

1. Ali Taxable Income for the year 2019-20

Income from Salary

Employment Income = 1,00,000

Income from other sources

Bank Deposit Interest = 3,500

Building society Interest = 3,000

Dividend ( Assume Assesee req. to pay tax on it )= 6,000   

Total Taxable income = 12,500

2. Total Taxable Income = 12,500

Deduction:-

Donation to Local Trust (Assume Trust not = Nil

eligible for providing deduction)

Net Taxable income = 12500

Tax required to be paid on the rate provide by government on 12,500 pounds.