Tax Computation of Individual - Desklib

Tax Computation of Individual
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Name of the student
Topic-
University Name
TABLE OF CONTENT

Tax Computation of Individual
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S
memo....................................................................................................................................................1
Computation of the Net income of the Rachel......................................................................................1
Commutation of the net income after deducting all the expenses.......................................................4
Taxable income for the Rachel IN 2017.................................................................................................6
Net income of Roland............................................................................................................................9
Computation of the Net income of Roland..........................................................................................10
Computation of the taxable income for Roland..................................................................................11
Computation of the Tax of the Roland................................................................................................12
REFERENCES........................................................................................................................................14

Running Head: Tax Computation of Individual
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MEMO
To Mr. and Mrs. Sorter
Addresses
Date-
Dear Sir/ Madam
It is the amount of tax which need to be paid by individual on their income. There is income
tax slab issued by the income tax authority of the Canada. This slab rate is used by the
individual to compute his income tax payment.
Individual in the Canada needs to pay tax on their income.
This could be understood with the simple example that income tax is chargeable by
zero % for the starting income of $ 46605 as it is exempted amount to pay tax to government.
After that, rest amount will be taxed accordingly.
Description of the payment of tax
 Exempt income till $ 46605.
 Next 46605 amount of income will be charged @ 15%.
 Next following $ 46605 will be charged @ 20.5%.
 After that 29% will be tax charged till $ 205843.
Rest of the income will be charged at the rate of 33% $205,842
It is analysed that Ronald will pay tax amount of 7,463.00 to government. In
addition to this, Rachel will pay tax of $ 55242 to government (Caron, et al. 2018).
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Running Head: Tax Computation of Individual
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COMPUTATION OF THE NET INCOME OF THE RACHEL
Calculation of Total income of Rachel
Income from employment
Business revenue from legal practice $
4,11,000.00
Total income from employment $
4,11,000.00
Income from Investments
Capital Gains $
12,750.00
Eligible Dividends $
11,500.00
Interest income $
6,300.00
Total investment income $
30,550.00
Income from RRSP
Additionally contribution $
14,500.00
Un-deducted contribution $
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