1. Exercises on computation of Income Tax

2. Example # 1 1.Mr. San Pedro receives a monthly income of P32,908.75. he happens to have 4 children which he has claimed as dependents. Requirements: Compute for the following: 1.Gross Taxable Compensation Income (GTCI) 2.Personal exemption and additional exemption 3.Taxable Income 4.Tax due 5.Tax withheld per BIR Form No.2316 6.Tax Payable 7.Total Amount Payable

3. answer for Example #1 (NEW SYSTEM personal and additional exemption) Monthly Income:P 32, 908.75 X 12mos GTCIP394,905.00 Less: personal P 50,000.00 and additional Exemptions 4(P25,000)P 100, 000.00 Taxable IncomeP244,905.00

4. answer for Example #1 (NEW SYSTEM personal and additional exemption) To compute for the Tax due of Mr. San Pedro: Taxable IncomeP244,905.00 – P140,000.00 =P104,905.00 X.25 P26,226.25 +P22,500.00 TAX DUE:P48,726.25 Monthly income32,908.75 Less: Mo. Exemp ( found in the table ) 24,167.00 8,741.75 X.25 (tax rate) 2,185.4375 + 1,875 4,060.4375 X 12 TAX WITHHELDP48,725.25

5. answer for Problem #1 (old SYSTEM) TO COMPUTE FOR THE TOTAL AMOUNT PAYABLE: TAX DUE:P48,726.25 less: TAX WITHHELDP48,725.25 TAX PAYABLEP 1.00 TOTAL AMOUNT PAYABLE:P 1.00