Objectives CLO3 : To compute the tax payable for Malaysians individual taxpayer

Eddy is married to Sofia, a full-time housewife. The are having a pair of twins aged 10 years old and a baby of 7- month young. . Eddy also taking care of his father, aged 65 years old and suffered with heart problem. Due to that, Eddy spent an amount of RM400 per month for his father medication. Sofia is also a registered dealer with one of the online business leader in Malaysia. Sofias earned an amount of RM45,000 in the year 2020 from the online business.

During the year 2020, Eddy and Sofia incurred the following expenses:

i. Purchase of tablets amounting to RM1,400 for the use of his kids online classes.

ii. RM2,200 for the purchase of breastfeeding equipments.

iii. Reading materials of RM3,100 for his family.

iv. RM6,000 each for the twins, deposited to National Education Saving Scheme (SSPN).

v. Life insurance premium for him and her wife amounted to RM2,500.

vi. Medical insurance for Eddy and Sofia at RM1,500 each, and another RM1,500 for his children.

vii. Personal donation of RM1,000 to Tabung Prihatin (approved).

viii. Zakat payment amounted to RM3,000.

Eddy is not sure of the responsibility of individual taxpayer for the assessment and payment of their tax liabilities and submission of tax returns under the self- assessment system.

Questions

ii. Compute the income tax payable for Eddy and Sofia under combined (joint) assessment.

iv. Advise Eddy on his responsibility as a taxpayer