- This topic has 6 replies, 3 voices, and was last updated 9 years ago by
.
- Posts
Hi Sir,
I would like to ask for personal income tax, if he earns a salary of 9,000 and receive bank interest of 5,000, personal allowance is 10,000, what happen if the personal allowance is greater than the salary? does it make the taxable income as the ones from bank interest only?
So just to confirm, I will just compute the taxable income from the bank interest?
If you have worked through chapter 2 of the OT notes you would see that the PA is deducted first from non savings income before savings income and finally dividend income. I would recommend that you work through the OT notes and lectures and then pose questions on any of those issues that you have not understood.
Usman thank you for trying to help but it would be better in this specific forum to let the tutor answer the question to avoid any misunderstanding.Hi Sir, I have seen the notes, and my question is.. for chapter 2, example 5, what if the non savings income is 9,000 , ie less than the personal allowances 10,000? negative taxable income, will it be exempted?
If the non savings income is 9,000 then 9,000 of the PA will be firstly used against that income with the remaining 1,000 of the PA then set against the savings income – see first paragraph of section 3 personal allowances, chapter 2.
- You must be logged in to reply to this topic.