During the year, Odindo's monthly income was: Basic salary Ksh 53, 840; House allowance Ksh 13 200, Commuter allowance Ksh 8 000. Calculate: (i) Odindo's monthly taxable income. (ii) Total income tax charged on Odindo's monthly income.

Odindo's monthly taxable income is the sum of his basic salary, house allowance, and commuter allowance.

$$\text{Basic salary} = \text{Ksh } 53,840$$ $$\text{House allowance} = \text{Ksh } 13,200$$ $$\text{Commuter allowance} = \text{Ksh } 8,000$$ $$\text{Total taxable income} = 53,840 + 13,200 + 8,000$$ $$\text{Total taxable income} = \text{Ksh } 75,040$$

Odindo's monthly taxable income is $\boxed{\text{Ksh } 75,040}$.

17. a) (ii) Total income tax charged on Odindo's monthly income.

The total taxable income is Ksh 75,040.

• First band: Under Kshs. 13,165 (i.e., Kshs. 1 to 13,164) at 10%.

  $$\text{Tax} = 13,164 \times 0.10 = \text{Ksh } 1,316.40$$

• Second band: From Kshs. 13,165 but under Kshs. 22,741 (i.e., Kshs. 13,165 to 22,740) at 15%.

  $$\text{Amount in band} = 22,740 - 13,164 = \text{Ksh } 9,576$$ $$\text{Tax} = 9,576 \times 0.15 = \text{Ksh } 1,436.40$$

• Third band: From Kshs. 22,741 but under Kshs. 32,317 (i.e., Kshs. 22,741 to 32,316) at 20%.

  $$\text{Amount in band} = 32,316 - 22,740 = \text{Ksh } 9,576$$ $$\text{Tax} = 9,576 \times 0.20 = \text{Ksh } 1,915.20$$

• Fourth band: From Kshs. 32,317 but under Kshs. 41,893 (i.e., Kshs. 32,317 to 41,892) at 25%.

  $$\text{Amount in band} = 41,892 - 32,316 = \text{Ksh } 9,576$$ $$\text{Tax} = 9,576 \times 0.25 = \text{Ksh } 2,394.00$$

• Fifth band: From Kshs. 41,893 and above at 30%. Odindo's total taxable income is Ksh 75,040.

  $$\text{Amount in band} = 75,040 - 41,892 = \text{Ksh } 33,148$$ $$\text{Tax} = 33,148 \times 0.30 = \text{Ksh } 9,944.40$$

$$\text{Total income tax} = 1,316.40 + 1,436.40 + 1,915.20 + 2,394.00 + 9,944.40$$ $$\text{Total income tax} = \text{Ksh } 17,006.40$$

The total income tax charged on Odindo's monthly income is $\boxed{\text{Ksh } 17,006.40}$.