Question

A man has a wife and 6 children and his total income in 1995 was GH¢400,000.00 was allowed the following free of tax.
Personal GH¢30,000.00
Wife GH¢2,000.00
Each child GH¢2,000.00 for a maximum of 3.
Dependent relatives GH¢6,000.00
Insurance GH¢7,000.00
The rest were taxed as follows:
The first GH¢20,000.00 at GH¢5,000 per 1000.00
Next GH¢25,000.00 at GH¢3,000 per 1000.00
Next GH¢4,500.00 at GH¢400.00 per 1000.00
Next GH¢75,000.00 at GH¢200.00 per 1000.00
Next GH¢7,000.00 at GH¢500.00 per 1000.00
Remainder GH¢700.00 per 1000.00
Calculate
a) His tax free income
b) His taxable income
c) His monthly income tax
d) His net monthly pay

Answer 1