En Ghazali is a General Manager at De Palma Resort. He is happily married to a Senior Manager at Bank of Sintok, Kedah. They have two children, a son aged 15 and 20 years old daughter-studied in Diploma at Kolej Mara. Both of his parents are alive, but lately his mother is not in a good condition and need to get a therapy from a doctor. Both of them a retiree with a combined income of RM20,000 per annum.

En. Ghazali’s annual employment income for 2020 was RM180,000. His annual Employees Provident Fund (EPF) contribution was RM19,800. He paid a life Takaful premium amounting to RM5,000 annually. In addition, he also paid a medical Takaful premium for RM5,000 which covers for all of his family members since last four years. His wife earned a basic salary of RM30,000 (annually), in addition of that he also collected annual rental income, RM13,200 from her apartment from his late father. As a government servant, she also entitled half month of her salary as bonuses.

(*EPF contribution: Employer,12% and employee,11%).

En. Ghazali and his wife also incurred this expenses in year 2020 (all receipts are available).

· Net saving in SSPN RM7,500 scheme for his children

· Purchase a book and magazine for his reference totalling RM1,500 and pay for internet bills RM130 (monthly)

· Gym membership fees for RM200 monthly

· Purchase a wheelchair for his mother, RM850

· Purchase a laptop for his daughter, RM2,000

· Private retirement scheme (PRS), voluntary contribution of RM3,000.

· He paid zakat of RM1,500 and his wife contribute RM600 (annually).

· Both of them has paying a tax deduction of RM1,000 and RM200 every month respectively.

Compute the tax payable (if any) for En. Ghazali and his wife for the year assessment 2020 and advise him on tax saving advantage.

Answer rating: 100% (QA)

1 Computation of Tax Payable by En Ghazali RM Annual Employment Income 180000 Deductions Child under ... View the full answer