45. A man earns Kshs 32,895 p.m. Each year he is deducted a total of Kshs 30,900 as interest on a loan he used to buy a house. He is also deducted Kshs 3,840 for NSSF and a further Kshs 24,600 for insurance premium per year. Calculate
the employees monthly PAYE deductions
| Monthly Taxable income (Kshs) | Rate of Tax % in each Kshs | |
| 0-10,164 | 10% | |
| 10,165- 19,740 | 15% | |
| 19,741- 29,316 | 20% | |
| 29,317- 38,892 | 25% | |
| Over 38,892 | 30% | |
| Monthly personal relief Kshs 1,162 | ||
| Solution: | ||
| Taxable income = Income - allowable deductions | ||
| = 32,985 - (30,900/12 + 3,840/12) | ||
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= 32,895 - [ + ]
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= 32,895 - =
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