Question $2$

$($Total $20$ marks$)$

Lucia and Mana started work in the same year, $2021.$ They were offered three years fixed term contracts commencing $1^{st}$ March for Lucia and $1^{81}$ June for Mana. The following information is provided at the start of their contracts in $2021$:

$\backslash$table$[[,$Lucia,Mana$],[,$N$$,$N$$],[$Basic Salary $($PA$),240,000,180,000],[$Housing Allowance per month,$7,500,6,000]]$

$1$

$\backslash$table$[[$Transport Allowance per month,$3,000,2,400],[$Entertainment allowance per month,$2,000,1,800],[$SSC payroll deduction,$972,972],[$Medical aid $($PA$),24,600,23,400],[$Utility Bills $($PA$),43,200,33,600],[$Pension$,108,000,96,000]]$

Additional information

The company's housing scheme was registered with the ministry of Finance

The Salary was subject to $10\%$ increment every year.

In September $2022,$ they both received net dividends from their local investment: Lucia received N$$14,000$ and Mana received N$$15,500$ and $$11,500$ each from Botswana's investment $($employee$\text{'}$s investment scheme$).$

Contributions to registered charity organisation were made every June amounting to $N$$$4,000$ and $N$$$2,800$ respectively.

Study policies: They paid $N$$$42,000$ and $N$$$36,000$ per annum respectively.

Company paid the Pension contributions stated above in the ratio $4$:$6,$ employee's contribution being $40\%.$

Lucia and Mana each received undeclared rental income of $N$$$45,000$ and $N$$$62,500$ respectively for their backyard flats they were sub$-$letting. Mana had only declared $N$$$17,500$ rental income included in the gross profit. All these activities took place in $2022-23$ tax period.

Required

You are required to calculate Lucia and Mana's taxable income and Tax payable for the tax period $2022-23.$

$($Total $20$ marks$)$

$2$