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Solution 3.6
A statement showing Mrs. Amboni’s net pay for March 2024
Name of the employee: Sima Amboni
Month: March 2024
Details TZS TZS
FOR ONLINE READING ONLY
1,800,000
Basic salary
Add: Taxable allowances: 100,000
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- Housing allowance 208,000
- Meal allowance = (8,000 × 26) 260,000
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- Transport allowance = (10,000 × 26 days) 120,000 688,000
- Extra duty allowance = (30,000 × 4 days)
Gross salary 2,488,000
Less: Deductions:
- PAYE tax* 239600
- Development levy = (2.5% × 2,488,000) 62,200
- NSSF = (10% × 1,800,000) 180,000
- Health insurance Fund = (8% × 1,800,000) 144,000
- Salary advance 350,000
975,800
Net Pay 1,512,200
* Gross income = TZS 2,488,000
Less: Allowable deduction – NSSF (10% of the Basic salary)=180,000,
HIF(8%×1,800,000) = 144,000
Taxable amount = TZS 2,164,000
Tax rate applicable is TZS 80,000 plus 15% on the amount in excess of
TZS 1,100,000
= TZS 80,000 + 15%× TZS (2,164,000 – 1,100,000) = TZS 159,600
= TZS 80,000 + TZS 159,600
PAYE = TZS 239,600
Student’s Book Form Five
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