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.

$$\text{Taxable income} = \text{Basic salary} + \text{Medical allowance} + \text{House allowance} + \text{Commuter allowance}$$ $$\text{Taxable income} = \text{Shs. } 34\,800 + \text{Shs. } 2\,400 + \text{Shs. } 10\,000 + \text{Shs. } 7\,200$$ $$\text{Taxable income} = \text{Shs. } 54\,400$$

The monthly taxable income is $\boxed{\text{Shs. } 54\,400}$.

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%: $$0.10 \times 14\,200 = \text{Shs. } 1\,420$$
• Next Shs.(26 700 - 14 200) = Shs.12 500 at 15%: $$0.15 \times 12\,500 = \text{Shs. } 1\,875$$
• Next Shs.(39 200 - 26 700) = Shs.12 500 at 20%: $$0.20 \times 12\,500 = \text{Shs. } 2\,500$$
• Next Shs.(51 700 - 39 200) = Shs.12 500 at 25%: $$0.25 \times 12\,500 = \text{Shs. } 3\,125$$
• Remaining taxable income (Shs.54 400 - Shs.51 700) = Shs.2 700 at 30%: $$0.30 \times 2\,700 = \text{Shs. } 810$$

Total gross tax:

$$\text{Gross tax} = 1\,420 + 1\,875 + 2\,500 + 3\,125 + 810 = \text{Shs. } 9\,730$$

Step 2: Calculate the total tax relief.
Personal tax relief = Shs.1 020
Insurance premium relief = 10% of Shs.2 700

$$0.10 \times 2\,700 = \text{Shs. } 270$$

Total tax relief = Personal tax relief + Insurance premium relief

$$\text{Total tax relief} = 1\,020 + 270 = \text{Shs. } 1\,290$$

Step 3: Calculate the net tax paid.

$$\text{Net tax paid} = \text{Gross tax} - \text{Total tax relief}$$ $$\text{Net tax paid} = 9\,730 - 1\,290 = \text{Shs. } 8\,440$$

The net tax paid by Onjwera per month is $\boxed{\text{Shs. } 8\,440}$.

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).

$$\text{Gross income} = \text{Basic salary} + \text{Medical allowance} + \text{House allowance} + \text{Commuter allowance} + \text{Non-taxable allowance}$$ $$\text{Gross income} = \text{Shs. } 34\,800 + \text{Shs. } 2\,400 + \text{Shs. } 10\,000 + \text{Shs. } 7\,200 + \text{Shs. } 12\,000$$ $$$$