100 each son every month. En. Ereeman total income for the year of assessment 2020 was RM130,000. His wife’s total income was RM36,000. Their contribution to EPF in the basis year was RM14,300 (En. Ereeman) and RM3,960 (his wife). En. Ereeman paid RM15,000 for zakat on income and he saved RM8,000 in the SSPN scheme for his children. In 2020, he bought books and journals worth RM800, a personal computer worth RM3,000 in August an

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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En. Ereeman is a father of four children and his wife is working as a clerk. They are resident in Malaysia for the basis year 2020. One of their sons is studying in a university and the other three are still in the secondary school. En. Ereeman still has both parent and he is the only child. Her wife’s parent passed away a few years ago. En. Ereeman paid for his parent’s medical expenses amounted RM10,000 last year. He also bought education takaful for his sons and paid premium of RM100 each son every month. En. Ereeman total income for the year of assessment 2020 was RM130,000. His wife’s total income was RM36,000. Their contribution to EPF in the basis year was RM14,300 (En. Ereeman) and RM3,960 (his wife). En. Ereeman paid RM15,000 for zakat on income and he saved RM8,000 in the SSPN scheme for his children. In 2020, he bought books and journals worth RM800, a personal computer worth RM3,000 in August and he paid internet subscription of RM150 per month. Both of them contributed RM400 for SOCSO.

 

Required: 

a) Calculate the tax payable for the year of assessment 2020 on the assumption that En Ereeman’s wife is elected for combined assessment. 

b) Calculate the tax payable for the year of assessment 2020 on the assumption that they file for separate assessment. All child benefit will be file under En, Ereeman.

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