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?
- 15
- 50
-
70
- 25
The correct answer is: 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 × 1400 = N70
There is an explanation video available .