Exercises on computation of Income Tax

Example # 11. Mr. San Pedro receives a monthly income of

P32,908.75. he happens to have 4 children which he has claimed as dependents.

Requirements:Compute for the following:1. Gross Taxable Compensation Income (GTCI)2. Personal exemption and additional exemption3. Taxable Income4. Tax due5. Tax withheld per BIR Form No.23166. Tax Payable7. Total Amount Payable

answer for Example #1 (NEW SYSTEM personal and additional exemption)

Monthly Income: P 32, 908.75

X 12mos

GTCI P394,905.00

Less: personal P 50,000.00

and additional

Exemptions 4(P25,000) P 100, 000.00

Taxable Income P244,905.00

answer for Example #1 (NEW SYSTEM personal and additional exemption)

To compute for the Tax due of Mr. San Pedro:Taxable IncomeP244,905.00 – P140,000.00

=P104,905.00X .25P26,226.25

+ P22,500.00TAX DUE: P48,726.25

Monthly income 32,908.75Less:Mo. Exemp ( found in the table ) 24,167.00

8,741.75X .25 (tax rate)

2,185.4375+ 1,875 4,060.4375X 12

TAX WITHHELD P48,725.25

answer for Problem #1 (old SYSTEM)

TO COMPUTE FOR THE TOTAL AMOUNT PAYABLE:

TAX DUE: P48,726.25less: TAX WITHHELD P48,725.25

TAX PAYABLE P 1.00

TOTAL AMOUNT PAYABLE: P 1.00