Personal Reliefs in income tax

Whether you  are foreigner or Malaysia citizen , every income derive from Malaysia are taxable under section 7 ,  income tax act 1967. The tax rate are vary depend on your resident status .In general government are sharing our profit without risk . 

So every one is try to run away from paying tax.  Is legally and to avoiding tax but not legally to evading tax  . So we need to be a smart taxpayer and fully utilize our right that available to us.There are more than 100 way to avoid tax in Malaysia. To be short , let discuss about the personal relief here .

Personal Reliefs 

The chargeable income of an individual resident is arrived at by deducting from his total income the following personal reliefs:

(a) Personal = RM5,000 (a further relief of RM5,000 if the taxpayer is a disabled person) (b) Wife = RM3,000 (a further relief of RM2,500 if the wife is a disabled person) (c) Medical expenses of parents up to a maximum of RM5,000. Medical expenses for serious illnesses for individual, wife or child up to a maximum of RM5,000. (d) Expenditure for purchase of basic support equipment for the individual, his wife, child or parent who is disabled the up to a maximum of RM5,000 (e) Unmarried children below the age of 18 = RM800 per child The maximum relief for unmarried children (regardless of age) receiving full-time education in universities and institutions of higher education in Malaysia is four times the normal relief. (f) Incapacitated children RM5,000 per child (g) Contributions to the Employees Provident Fund and insurance or takaful premiums for life policies are allowed a maximum total tax relief of RM5,000. A further tax relief of RM2,000 is given for insurance or takaful premiums with respect to medical and educational purposes.

A married woman whose income is separately assessed generally has her overall tax liability reduced,although this may not always be the case. The separate assessment covers all her income sources. She may, however, elect for joint assessment, in which case, the husband is given a wife relief of RM3,000.