Question

What is income tax 

Answer 1

• Taxes on personal income is income tax. Gross income is the total amount of money due to the individual at the end of the month or the year.Gross income = salary + allowances / benefits
• Taxable income is the amount on which tax is levied. This is the gross income less any special benefits on which taxes are not levied. Such benefits include refunds for expenses incurred while one is on official duty.
• In order to calculate the income tax that one has to pay, we convert the taxable income into Kenya pounds K£ per annum or per month as dictated by the by the table of rates given.