INSTRUCTIONSCompute for the Income Tax Due and Payable for taxable year ended December 31, 2020assuming that the taxpayer will use the Optional Deductions. Reference shall be Republic ActNo. 10963 or the Train Law.Sources of Income:1. Compensation income from employmentP600,0002. Income as Part-Time Instructor100,000184,0003. 13th and 14trh Month Pay4. Income from Professional Practice500,0005. Income from Business6. Income from Cards and Mahjong Gambling7. Income from Drug Pushing8. Prizes and winnings from raffles9. Interest income from bank deposits10. Income from commissions as unlicensed real estate agent11. Income from family farm12. Income from family scrap items13. Family gifts1,000,000180,000500,000400,000100,000200,000400,000100,000100,00014. Loan Proceeds600,00015. Money found on the street100,000

Income tax: Fees charged on the taxable income of the individual and the corporates by the…

Compute for the Income Tax Due and Payable for taxable year ended December 31, 2020 assuming that the taxpayer will use the Optional Deductions. Reference shall be Republic Act No. 10963 or the Train Law.

Compute for the Income Tax Due and Payable for taxable year ended December 31, 2020 assuming that the taxpayer will use the Optional Deductions. Reference shall be Republic Act No. 10963 or the Train Law.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter3: Computing The Tax

Section: Chapter Questions

Problem 27P

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

INSTRUCTIONS
Compute for the Income Tax Due and Payable for taxable year ended December 31, 2020
assuming that the taxpayer will use the Optional Deductions. Reference shall be Republic Act
No. 10963 or the Train Law.
Sources of Income:
1. Compensation income from employment
P
600,000
2. Income as Part-Time Instructor
100,000
184,000
3. 13th and 14trh Month Pay
4. Income from Professional Practice
500,000
5. Income from Business
6. Income from Cards and Mahjong Gambling
7. Income from Drug Pushing
8. Prizes and winnings from raffles
9. Interest income from bank deposits
10. Income from commissions as unlicensed real estate agent
11. Income from family farm
12. Income from family scrap items
13. Family gifts
1,000,000
180,000
500,000
400,000
100,000
200,000
400,000
100,000
100,000
14. Loan Proceeds
600,000
15. Money found on the street
100,000

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