QUESTION 10 Income Tax-30 Marks 10.1 Sthandile, a 43 year old murse earns a taxable income of R369 706 per year, is worried about tax calculated by SARS from her salary. She received a letter with a total of R53 72 pa tax paid to SARS and she claimed that she was over taxed. Sthandile is a single parent with three girls and a boy. She contributes to medical aid for herself and her kids. Use the information below answer the questions that follow: TABLE 10: Individual income tax table for 2020/2021 tax year 2021 tax year (1 March 2020-28 February 2021) Rate of Tax (R) Taxable Income (R) 0-195 850 2195 851-305 850 305 851-423 300 4423 301-555 600 S555 601-708 310 6708 311-1500 000 1 500 001 and above 18% of taxable income 35 253 +26% of taxable income above 195 580 63 853 +31% of taxable income above 305 850 100 263 + 36% of taxable income above 423 300 147 89119% of taxable income above 555 600 207 448 41% of taxable income above 708 310 532 041 +45 % of taxable income above 1 500 000 Tax Rebates Primary Rebate below 65 yrs. Secondary Rebate age 65 below 75 Tertiary Rebate age 75 and more MTC (Medical Tax Credits). the monthly tax credit amounts are: R310 for main member, R310 for the first dependent and >? R14 220 R7 794 R2 601 R209 for each additional dependent. 10.1.1. 10.1.7 Sthandile stated that she was over taxed, justify with calculations whether her statement is valid.
