Personal Finance
QUESTION 1 ¬†¬†¬†¬†¬†¬†¬†¬†During the year 2013, Mr Shaari income is RM9,000 per month and his contribution to Employees Provident Fund (EPF) in year 2013 was RM4,900. Mr Shaari donated cash of RM1,600 to the National Kidney Fund, an approved organization. He also paid a premium of RM4,800 for the education policy for his children. His wife, Mrs Norkiah is the office manager of a travel agency with Net income per year RM65,000. Mrs Norkiah paid premiums of RM2,600 for her medical insurance policy and RM2,800 for her life insurance policy. Her contributions to Employees Provident Fund (EPF) in year 2013 was RM4,600In September 2013, Mrs Norkiah paid her father hospital bills amounted to RM3600.Mr Shaari and Mrs Norkiah have four (4) children whose ages and educational status are as follows:¬†12-year-old ‚Äď Standard 6, Government-run primary school;¬†19-year-old ‚Äď Disabled since birth, currently being home schooled;¬†20-year-old ‚Äď 2nd year student, University of Wisconsin, United States; and¬†22-year-old ‚Äď Medical student, University of Malaya, Kuala Lumpur.¬†¬†¬†¬†¬†¬†¬†¬†Other information:Mr Shaari purchased several books worth RM1,100 for his family. He utilized books voucher under ‚ÄúBaucer Buku 1 Malaysia‚ÄĚ, amounted RM200 given to his son who is studying in Universiti Malaya.Mr Shaari and Mrs Norkiah purchased two units of laptops worth RM2,500 and RM 2,000 respectively. Mr Shaari had purchased one unit of desktop two years ago and had made an income tax deduction with respect to this purchase. Mrs Norkiah, however never bought any type of computer before. In 2013, Mr Shaari also paid RM100 per month for broadband subscription fees to TM Berhad. Statement of deposit with Skim Simpanan Pendidikan Nasional showed that Mr Shaari net saving in year 2013 was RM2,100.Mr Shaari spend RM1,400 to buy golf equipment for his own used.Zakat payment for Mr Shaari and Mrs Norkiah in 2013 amounted RM350 and RM200 respectively.REQUIRED:Compute the tax payable for Mr Shaari and Mrs Norkiah for the year of assessment 2013 assuming that all relief for children were claimed by Mr Shaari, under separate assessment. ¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬† ¬† ¬† ¬† ¬†Compute the tax payable by Mr Shaari and Mrs Norkiah for the year of assessment 2013 under joint assessment and Mr Shaari claims all expenses make by Mrs. Norkiah. ¬† ¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬† ¬† ¬† ¬† ¬† Answer;Tax computation YA2012¬†Separate Joint¬†ShaariNorkiah¬†¬†¬†RM RMRMEmployment income¬†¬†¬†Mr Shaari Salary 108000¬†108000Mrs Norkiah Salary ¬†65,00065,000Aggregate Income108,00065,000173,000Less approved donation ‚Äď cash 160001600Total income106,40065,000171,400Less: Personal reliefs¬†¬†¬†¬† Relief for self9,000110009000¬† Wife relief¬†¬†3000Purchase of books900¬†900Purchase of personal computer¬† ¬† ¬† ¬† – ¬† 20002000Parents medical¬†36003600Net saving in SSPN2,100¬†2,100Sports equipment300¬†300Broadband500¬†500¬† ¬†EPF & life insurance4,90060006000¬† ¬†Child relief¬†¬†¬†¬† ¬† ¬† ¬† 12 year old1000¬†1000¬† ¬† ¬† ¬† 19 year old5000¬†5000¬† ¬† ¬† ¬† 20 year old6000¬†6000¬† ¬† ¬† ¬† 22 year old 4000¬†4000Medical and education insurance (restricted to)3,00026003,000¬†36,70025,20046,400Chargeable income69,70039,800125,000¬†¬†¬†¬†Tax on first RM50000 / RM35000 / RM1000002850120013850On next RM19700 at 19% / RM4800 at 11% / RM25000 at 26%37435286500Tax charged6593172820350Rebate (C.I. not exceeding RM35,000)¬†¬†¬†Zakat350200550Tax payable6243152819800

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