Question

When a man has claimed all his allowances, his resulting taxable income is N348,000. Calculate the income tax to be paid.

a) N348,000
b) N3,480
c) N34,800
d) N348,000

Answer 1

The income tax to be paid is b) N3,480.

Step-by-step explanation:

Income tax calculation involves applying the appropriate tax rate to the taxable income. In this case, the taxable income is N348,000. To calculate the income tax, one needs to multiply the taxable income by the applicable tax rate. The tax rate is not provided in the question, but for the sake of illustration, let's assume a hypothetical tax rate of 1%.

In this scenario:

Income Tax = Taxable Income * Tax Rate

Income Tax = N348,000 * 1% = N3,480

Therefore, the correct answer is b) N3,480. It's important to note that actual tax rates can vary, and this explanation uses a hypothetical rate for illustrative purposes.