Encik Deem is working as an engineer and received annual salary of RM220,000 for the year ended 31 December 2020. His wife, Puan Zurin is a clerk with an annual salary of RM60,000. Being a senior management team, Encik Deem received n entertainment allowance of RM1,000 a month, medical and dental care for the whole family worth RM24,000 a year and a house to reside with a rental of RM5,000 a month. The couple has six children. Three of them are doing bachelor programmes and another three others are under 18 years old. They decided tax reliefs for their children will be divided equally. En Deem sent his youngest son in kindergarten with a monthly fee of RM400 a month. Encik Deem paid RM10,000 for zakat on income and he saved RM8,000 in the SSPN scheme for his children. He also contributed RM26,400 in EPF and paid educational takaful premium RM12,000 a year. He also paid medical takaful of RM2,000 a month for his children. As the only child, Encik Deem also taking care of his parents and paid RM6,000 for their medical expenses. In 2020, he bought books and journals worth RM800, a personal computer worth RM3,000 in September 2020 and he paid internet subscription of RM100 per month. He also contributed RM400 for SOCSO. Every month, his tax deduction amounted to RM3,500 of his salary. Puan Zurin is also the only child with both parents passed away. She contributed RM13,000 in EPF for the year 2020.

Required:

1. Calculate the tax payable for the year of assessment 2020 on the assumption that En Deem’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

Answer rating: 100% (QA)

Basic pay 220000 Basic pay of Puan Zurin 60000 Add Tax Deductions 3500 Total 283... View the full answer