Nov-Dec 2010 Q-7

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Computation of Total Income
Assessment year 2010-2011
Income Year 2009-2010
Note Taka

Income from Salary (u/s-21):

Basic salary(30,000 *12) 360,000
Festival Bonus(One month's Basic salary) 30,000
House Rent Allowance
60% of Basic Salary (360000*60%) 216,000
Less: Exemption (Rule-33 A)
50% of Basic salary 180,000
or
TK. 15,000 per month 180,000
Whichever is lower 180,000.00 36,000
-
Medical allowance(Tk 2,000*12) 24,000
Less: Exemption(Rule-33I):
Actual expense(assumed allowance are expended) 24,000
-
Conveyance Allowance ( Tk. 1,800*12) 21,600
Less: Exemption(Rule-33C): Maximum Limit 24,000 -

Employer's Contribution to RPF(10% of Basic) 36,000

Interest on recognized provident fund @16% 190,000

Less: Exemption 14.50% 172,188
Or 1/3 of BS (360000/3) 120,000
Whichever is lower 120,000 70,000

Income from Salary (u/s-21) 532,000

Income from securities (U/S-22)

Income from approved debentures 30,000
30,000
Income from house property ( U/S- 24 & 25)
Rental / Annual Value ( 20,000 *12 ) 240,000
Less: Admissible Expenditures-
Repairs & Maintenance ( 240,000 *30%) 72,000
Municipal Tax 24,000
Insurance premium 15,000
Vacancy Allowance for 1 month 20,000 131,000
Income from House property 109,000

Income from Agriculture ( U/S-26 & 27)

Sale of Crops 35,000
Less: Cost of Production 60% 21,000 14,000
Income from Other sources (u/s-33):
Dividend from listed company 54,000 *100/90 60,000
Income from Other sources (u/s-33): 60,000
Total income 745,000

Calculation of investment allowance(under Part B 6th schedule):

Investment in listed company's share 100,000
(As per SRO 60-2012)
Contribution to monthly DPS (5000 * 12) 60,000
Allowable up to Tk. 60,000
Whichever is lower 60,000
Employee and employer's contribution to RPF(10% of salary each) 72,000
(allowable as per para-5)
Actual investment 232,000
Allowable investment allowance(u/s-44):
Actual investment 232,000
20% of total income [excluding employer's contribution to RPF, interest 127,800
on RPF (excluding interest para-25, part-A 6th schedule), income u/s-
82C]. So 20% on Tk (745,000-36000-70000).

Maximum allowable investment 10,000,000

Allowable investment (whichever is lower) 127,800

Computation of tax liabilities

On first Tk. 200,000 @ 0% -

On next Tk. 300,000 @ 10% 30,000
On balanceT 245,000 @ 15% 36,750
Total 745,000 66,750
Gross tax liability 66,750

Less: 10% Rebate on investment Tk 127800 12,780

53,970
Less: TDS 6,000
Net tax liability 47,970

Notes:
1 The total income & tax liability of Mr. Rahim are computed in the light of the
provision of Finance Act-2012

2 Salary of caretaker can not be claimed separately as it is included in the repair maintenance allowance.

3 As Mr. Rahim did not maintain as books of accounts, 60% of income from agriculture is charged as
cost of production.

4 Sock dividend will not be considered as income as per definition of "Income"

5 As Mr. Rahim is above 65 years, his exempted limit of income is Tk. 200,000
Nov-Dec 2010 Q 8
ABC Ltd
Computation of Total Income
Assessment year 2010-2011
Income year 2009-2010
Note Taka Taka
000 000
Income from Interest on Securities (u/s-22):
Interest on govt bond 1,000 1,000

Income from Interest from Securities 1,000

Income from business or Profession (u/s-28):

Profit before tax as per profit and loss account 19,700

Less: Non-business income included in P&L A/c for consideration at appropriate heads of income:

ii Interest income (for consideration at interest on securities) 1,000

ii Capital gain on sale of shares 2,500
(3,500)
Add: Inadmissible expenses:
a Salary to finance manager 1 600
b Gratuity Provision 2 1,500
c Security service disallowed u/s-30(aa) 300
d Audit, accountancy & advisory services disallowed u/s-30(aa) 500
e Office rent disallowed u/s-30(aa) 600
f Donation to ICAB 3 1,800
g Board meeting attendance fee. 4 300
h Entertainment: This is personal expenditure not related to business as per rule -65 500
ii Corporate income tax 6 4,500
j Dividend paid (disallowed u/s-30(aa) for non deduction of TDS. 9,000
19,600
Income from business or Profession (u/s-28): 35,800

Income from Capital Gain (u/s-31)

Gain on Sale of Shares 2,500
2,500
Total income 39,300

Break up of total income

Interest on Securities(u/s-22): 1,000

Income from business or Profession (u/s-28): 35,800
Income from Capital Gain(u/s-33) 2,500
Capital loss carry forward from 2007-08 (1,000)
Capital gain after setting off previous loss 1,500
Total income 38,300

Computation of tax liabilities

1 On total income excluding Capital Gain. (38,300-1,500)=36,800X24.75% 9,108

2 On Capital gain @15% 150

Net tax liability 9,258
or However, Minimum Tax: 0.50% on gross receipts 130,000 650

Whichever is higher 9,258

Notes:
1 The total income & tax liability of ABC Ltd are computed in the light of the
provision of Finance Act-2012

2 Salary of finance manager TK. 600,000 disallowed fully as per sect 30(i) as it was
not paid through crossed cheque of balance transfer

3 No such provision either recognized or unrecognized is allowable expenditure so disallowed fully

4 Donation to ICAB is disallowed being unapproved institution

5 VAT deduction is applicable as VAT was not deducted at source it is disallowed U/S 30 (aa)

6 Allowable U/S 30(k) up to 1% of disclosed turnover

7 Corporate Income tax is not an expense rather than appropriation of profit so it is not an item of
P/L account . So disallowed fully.

8 Depreciation To 8,000,000(depreciation claims as per 3rd schedule so nothing to be added back.)

9 As the ABC Ltd is a publicly traded company and declared 25% dividend, hence tax rate would be 24.75%

10 As per SRP 269-2010, the tax rate on the capital gain of selling listed company's stock is 10%
May-June'2011 Q 2
ABC Ltd
Assessment Year Particulars Tk.

2007-2008 Income from Garments Business 500,000

Income from Textile Business 200,000
Loss from (1,000,000)
Income/(Loss) from business (300,000)

Loss from Jute business is to be carried forward to set off against income
from Jute Business

2008-2009 Income from Garments Business 800,000

Income from Textile Business 600,000
Income other than Jute business 1,400,000

Income from Jute Business 200,000

loss from Jute Biz brought forwarded from 2007-08 (300,000)
Loss from Jute biz to be carried forward (100,000)

2009-10 Income from Garments Business 900,000

Loss from Textile Business (1,200,000)
Loss from textile business is to be (300,000)
carried forward and to be set off against the
Income from Textile Business

Income from Jute business 50,000

Loss from Jute Biz brought forwarded from 2008-09 (100,000)
Loss from Jute biz to be carried forward (50,000)

2010-2011 Income from Garments Business 700,000

Income from Jute business 100,000
Loss brought forward from 2009-10 50,000 50,000
Income/(Loss) from business 750,000

Income from Textile Business 200,000

Loss brought forward from 2009-10 (300,000)
Loss from textile business is to be (100,000)
carried forward and to be set off against the
Income from Textile Business