A man with an annual salary of N2000, has allowances of N600. If Income Tax is 5%. How much income tax expenses does he pay each year?
-
A.
15 -
B.
50 -
C.
70 -
D.
25
Correct Answer: Option C
Explanation
His annual salary = N2000
His allowances = N600
So his taxable income = Annual salary − allowance
= N2000 − N600
= N1400
He pay at 5%
Then, his allowance income tax 5/100 × 600 = N30
There is an explanation video available below.