The personal income tax (PITA) Amendment Act 2011 consolidates the allowances granted to personal income tax payers in such a way that the complexity in determining allowances and reliefs are eliminated. The allowances now granted are:
Consolidated relief allowances of =N=200,000 (or 1% of Gross income, whichever is higher) and 20% of Gross income. This is what is now applicable to everyone.
After determining the Gross income, take out the consolidated relief allowances of =N=200,000 and 20% of gross income as stated above. Also, the following reliefs are also granted:
1) Pension, in line with the pension reform act 2011
2) Contribution towards the National Health Insurance Scheme (NHIS)
3) Life assurance policy
4) Contribution for housing, in line with the NHF Act
5) Gratuity
Consolidated relief allowances of =N=200,000 (or 1% of Gross income, whichever is higher) and 20% of Gross income. This is what is now applicable to everyone.
After determining the Gross income, take out the consolidated relief allowances of =N=200,000 and 20% of gross income as stated above. Also, the following reliefs are also granted:
1) Pension, in line with the pension reform act 2011
2) Contribution towards the National Health Insurance Scheme (NHIS)
3) Life assurance policy
4) Contribution for housing, in line with the NHF Act
5) Gratuity
Comments
Post a Comment