A man with an annual salary of ₦2000, has allowances of ₦600. If Income Tax is 5%, how much tax does he pay each year?

A man with an annual salary of ₦2000, has allowances of ₦600. If Income Tax is 5%, how much tax does he pay each year?

Answer Details

His annual salary = ₦2000
His allowances = ₦600
So his taxable income = Annual salary − allowance
= ₦2000 − ₦600
= ₦1400
He pays at 5%
Then, his allowance income tax 5/100 × 600 = ₦30