Mth302 assignment 1 fall 2020
Virtual University Helping Point The basic salary of an employee is 20,000 find the following for this salary. a) Calculate the allowances, if allowances are 50% of the basic salary. What is the taxable income of employee? Also find gross salary? Answer: 1- Allowance: 50% of the basic salary = Basic Salary x 50% = 20,000 x 50 / 100 = 10, 00,000 /100 = 10,000 2- Taxable Income: According to the taxation rules if allowances are 50% of basic salary, the amount is treated as tax free. = 20,000 3- Gross Salary: Basic Salary + Allowance = Basic Salary + Allowance = 20,000 + 10,000 = 30,000 b) What the cost of the business is on explanation of leaves (18.2%), group insurance/medical (5%) and additional social welfares (5.8%)? Answer: 1- Cost of leaves: 18.2% of the gross salary = Basic Salary x 18.2% = 30,000 x 18.2 / 100 = 546,000 / 100 = 546,000 / 100 = 5,460 2- Group Insurance: 5% of the Gross Salary = Basic Salary x 5% = 30,000 x 5 / 100 = 150,000 / 100 = 1,500 Social Benefits: 5....