Question

15. Mr Neo paid an income tax of $1474 for a
particular year. Of his gross annual income, the
amount that will not be subjected to income tax is
n
shown in the following table;
Personal relief
$3000
Wife relief
$2000
d
Child relief
Parent relief
$4000 per child
$5000 per parent
$15 600
©
CPF contributions
Donations
$200
Given that he lives with 4 children and 2 parents,
and that for the remaining income that will be taxed,
the gross tax payable for the first $40 000 is $550
and the tax rate for the rest is 7%, find his gross
annual income.
SI​

Answer 1

Answer:

Let the amount of money be taxable at 7% be $x.

Amount of tax payable for $x at 7%

= $1474 – $550

= $924

Hence,

100/7 x Sx =$924

x = 13 200

Total reliefs

= $3000 + $2000 + $4(4000) + 2($5000) + $15 600 + $200

= $46 800

Gross annual income = $46 800 + $40 000 + $13 200

= $100 000