All looked at seperately fall below the tax bracket so hakuna malipo.

am not sure whether the rental income is within the tax bracket but am sure she should not be taxed from the money she receives from her children. she has not "earned" it

Taxable income Agricultural income 10K(assuming she has deducted all the expenses including capital and farm house allowances) Rental Income-15K(again assuming she has deducted interest and other running expenses) Total Taxable income is Kshs.25K You cannot tax the money given by her children since it has already been taxed

That's not the correct way to look at it! Look at this Tax Returns Form: http://www.kra.go.ke/notices/pdf2013/IT12012.pdf Go to pg3 and look at line 35 in PART H. It requires that ALL the income categories are added together and then the tax due calculated on the TOTAL income. In my view, the taxable income is that which comes from her work. Gifts from her children, however high cannot qualify for taxation. Thus the tax should be calculated only on the 25k from the farming and rental houses....assuming that the figures given here are the net profits, not the turn-over (sales)

@Bigchick is part of #teamtaxevasion#