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    Inctax 2

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    janeferrarin551
    This document provides a lesson on explaining the procedure for computing gross taxable income and tax due for income and business taxation. It defines key terms like tax schedule and tax due. It also provides an illustration of computing the taxable portion of different amounts received by an employee. The document asks the learner to compute tax due using either itemized deductions or the optional standard deduction, given additional information about inventory amounts. The learner is then asked multiple choice questions to check their understanding of computing tax due in different scenarios.

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    Inctax 2

    Uploaded by

    janeferrarin551
    24 views45 pages
    This document provides a lesson on explaining the procedure for computing gross taxable income and tax due for income and business taxation. It defines key terms like tax schedule and tax due. It also provides an illustration of computing the taxable portion of different amounts received by an employee. The document asks the learner to compute tax due using either itemized deductions or the optional standard deduction, given additional information about inventory amounts. The learner is then asked multiple choice questions to check their understanding of computing tax due in different scenarios.

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    Inctax2 ppt

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    This document provides a lesson on explaining the procedure for computing gross taxable income and tax due for income and business taxation. It defines key terms like tax schedule and tax due. It also provides an illustration of computing the taxable portion of different amounts received by an employee. The document asks the learner to compute tax due using either itemized deductions or the optional standard deduction, given additional information about inventory amounts. The learner is then asked multiple choice questions to check their understanding of computing tax due in different scenarios.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    24 views45 pages

    Inctax 2

    Uploaded by

    janeferrarin551
    This document provides a lesson on explaining the procedure for computing gross taxable income and tax due for income and business taxation. It defines key terms like tax schedule and tax due. It also provides an illustration of computing the taxable portion of different amounts received by an employee. The document asks the learner to compute tax due using either itemized deductions or the optional standard deduction, given additional information about inventory amounts. The learner is then asked multiple choice questions to check their understanding of computing tax due in different scenarios.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 45

    Fundamentals of Accountancy,

    Business and Management 2

    Quarter 2 – Module 8.2:


    Income and Business Taxation
    Lesson 2: Explain the procedure in the
    computation of gross taxable income and tax
    due.

    After going through this module, you are expected


    to:
    1. explain the procedure in computing gross
    taxable income and tax due for Income and
    Business Taxation.
    https://www.bir.gov.ph/index.php/bir-forms.html to check the
    different forms used in filing Income Tax Return(ITR)
    Activity 1: Compute for the Gross Business
    Income of Mr Lee Butero Trading.
    Before we proceed on how to compute the gross taxable
    income and tax due, let's define first tax schedule and tax
    due.

    TAX SCHEDULE is gross income minus the


    deductions allowed by law.
    Taxable income is the amount on which the tax
    computed.
    Tax Due - the amount of tax to be paid to the
    government by a taxpayer
    THE PROCEDURE IN COMPUTING THE GROSS
    TAXABLE INCOME AND TAX DUE
    Illustration 1:
    An employee receives the following:
    13th month pay P 24,000
    Christmas bonus (Non-performance based) 6,000
    Rice subsidy 21,600
    Uniform allowance 7,000
    Laundry allowance 2,400
    Productivity bonus (received under CBA and
    productivity incentive schemes) 5,000
    Requirement: Compute for the taxable portion of the amounts
    received.
    Additional Information:

    ➢ The P210 reimbursement for transportation costs in relation


    to overtime work is omitted because this is not taxable.

    ➢ The P8,000 paid vacation leaves taken during the year are
    taxable. Because this amount already included in the salary, no
    adjustment is necessary. Note that only monetized unused
    vacation leaves considered de minimis benefits; those used are
    not
    Additional information:
    The ending inventory per physical count is P60,000.
    Requirements:
    a Compute for the tax due assuming the taxpayer uses the
    itemized deductions
    b. Compute for the tax due assuming the taxpayer avails
    the
    optional standard deduction (OSD).
    Percentage Tax Due is 0 (zero). Alejo is not liable
    for any percentage tax on his business income since
    he chose the 8% income tax rate. It was discussed in
    the previous module under Gross Business Income
    Optional Eight percent (8%) Tax.
    Compute what is asked
    Additional information:
    ➢ The ending inventory per physical count is P60,000.
    1. How much is the tax due assuming the taxpayer elects to deduct
    itemized deductions?
    A. 27,500 B. 30,000
    C. 57,500 D.0
    2. How much is the tax due assuming the taxpayer avails the
    optional standard deduction (OSD)?
    A. 37,600 B. 67,600
    C. 77,000 D. 83,000
    Let us check what you have learned.
    Let us check what you have learned.

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