Azim has been revising the Taxation topic in Mathematics... the basic formula begins with employment income, from which approved deductions are subtracted... these deductions include donations, gifts, and contributions approved by the government, as well as eligible tax reliefs... he should be careful when calculating tax reliefs: if the amount claimed exceeds the maximum limit stated, only the maximum allowable amount can be used; if the amount claimed is below the limit, the actual amount should be used... the Chargeable Income is calculated by subtracting all approved reliefs from the total income... next, the Income Tax is calculated using the tax rate table provided in the question... he should remember that if the chargeable income is below RM35,000, a RM400 tax rebate provided by the Government is automatically applicable... the Net Income Tax is obtained after considering the tax payable based on the relevant tax brackets... additional rebates, such as those for zakat and fitrah payments or certain approved religious travel levies, can then be deducted... the resulting figure is known as the Total Tax Charged...
finally, the PCB, which is the amount of tax already paid to the LHDN throughout the year, must be taken into account... if the question provides a monthly PCB amount, it must be multiplied by 12 months to obtain the annual total... the Tax Overpayment or Underpayment is calculated by comparing the Total Tax Charged with the PCB amount... if the PCB is greater than the Total Tax Charged, it means that too much tax has been paid, and the taxpayer will receive a tax refund from LHDN... on the other hand, if the Total Tax Charged is greater than the PCB, it means that insufficient tax has been paid, and the taxpayer must pay the outstanding balance to LHDN... this step is important in determining whether the taxpayer is entitled to a refund or is required to make an additional tax payment...
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