a) Calculate Onjwera's monthly taxable income. b) Find the net tax paid by Onjwera per month.

a) Onjwera's monthly taxable income. Step 1: Identify all taxable income components. Basic salary = Shs.34 800 Medical allowance = Shs.2 400 House allowance = Shs.10 000 Commuter allowance = Shs.7 200 Non-taxable allowance = Shs.12 000 (This is not included in taxable income) Step 2: Calculate the total monthly taxable income. Taxable income = Basic salary + Medical allowance + House allowance + Commuter allowance Taxable income = Shs. 34\,800 + Shs. 2\,400 + Shs. 10\,000 + Shs. 7\,200 Taxable income = Shs. 54\,400 The monthly taxable income is Shs. 54\,400. b) Find the net tax paid by Onjwera per month. Step 1: Calculate the gross tax based on the taxable income (Shs.54 400) and the given tax rates. First Shs.14 200 at 10%: 0.10 × 14\,200 = Shs. 1\,420 Next Shs.(26 700 - 14 200) = Shs.12 500 at 15%: 0.15 × 12\,500 = Shs. 1\,875 Next Shs.(39 200 - 26 700) = Shs.12 500 at 20%: 0.20 × 12\,500 = Shs. 2\,500 Next Shs.(51 700 - 39 200) = Shs.12 500 at 25%: 0.25 × 12\,500 = Shs. 3\,125 Remaining taxable income (Shs.54 400 - Shs.51 700) = Shs.2 700 at 30%: 0.30 × 2\,700 = Shs. 810 Total gross tax: Gross tax = 1\,420 + 1\,875 + 2\,500 + 3\,125 + 810 = Shs. 9\,730 Step 2: Calculate the total tax relief. Personal tax relief = Shs.1 020 Insurance premium relief = 10% of Shs.2 700 0.10 × 2\,700 = Shs. 270 Total tax relief = Personal tax relief + Insurance premium relief Total tax relief = 1\,020 + 270 = Shs. 1\,290 Step 3: Calculate the net tax paid. Net tax paid = Gross tax - Total tax relief Net tax paid = 9\,730 - 1\,290 = Shs. 8\,440 The net tax paid by Onjwera per month is Shs. 8\,440. c) If Onjwera pays a loan of Shs.8 000 every month, affordable housing levy of 1.5% of taxable income and social health Authority fee of Shs.1 805. Find his net monthly pay. Step 1: Calculate Onjwera's gross monthly income. Gross income includes all earnings (basic salary and all allowances). Gross income = Basic salary + Medical allowance + House allowance + Commuter allowance + Non-taxable allowance Gross income = Shs. 34\,800 + Shs. 2\,400 + Shs. 10\,000 + Shs. 7\,200 + Shs. 12\,000 Gross income