1.Assessment-PE-3(17.4.2011)

7/29/2019 1.Assessment-PE-3(17.4.2011)

1/37

May-June 2003 Textile unit

Note Taka

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

Profit before tax as per profit and loss account 2,015,000

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

Income from house property m 90,000

90,000

1,925,000

-

1,925,000

Add: Expenditure to be considered as per provision of law afterwards

-

1,925,000

Add: Inadmissible expenses as per provision of law:

Undervaluation of stock a 200,000

Excess paid for purchase of goods from relative of a Director b 80,000

Preliminary expenses written off c 25,000

Provision for bad and doubtful debt e 120,000

General charges g 6,000

XYZ Limited

Computation of Total Income

Assessment year 2002-2003 (Income year ended 30 June 2002)

Salary expenses h 400,000

Insurance premium i 65,000

Miscellaneous expenses j 15,000

Advertising expenses k 0

Interest on borrowing l 15,000

Munincipal tax m 30,000

956,000

Add: Deemed income u/s-19

Balancing charge(revenue gain) on sale of machine d 200,000

Unclaimed wages f 25,000

Profit before charging separate considerable expenses 225,000

Less: Admissible expenses as per provision of law:

-

Income from business or Profession (u/s-28): 3,106,000

Income House Property (u/s-24):

Actual Rental 90,000Municipal value 0

Annual Value (higher one of actual rental and municipal value) 90,000

Less: Admissble expenses(u/s-25)

Repair and maintenance (25% of Annual Value) 22500

Municipal tax 30000

52,500

Income House Property (u/s-24): 37,500

7/29/2019 1.Assessment-PE-3(17.4.2011)

2/37

Income from Capital Gain(u/s-31):

Capital gain on sale of machine d 200,000

Income from Capital Gain(u/s-31): 200,000

Income from Other sources (u/s-33):

Interest income 0

Income from Other sources (u/s-33): -

Total income 3,343,500

Tax LiabilityTotal income tax rate Tax liability

Total income excluding capital gain 3,143,500 37.50% 1,178,813

Capital gain tax @ 15% (under para-2 Second schedule) 200,000 15% 30,000

Total 3,343,500 1,208,813

Gross tax payable 1,208,813

Less: Tax credit:

Tax deducted at source 0

Advance tax paid u/s 64 0

0

Tax adjustable from any refund (u/s 152) -

0

Net Tax refundable 1,208,813

Notes

(a) Under valuation of stock

Opening stock as per account 2,700,000

Opening stock under valued by 10% (A) 300,000

Closing stock as per account 4,500,000

Closing stock under valued by 10% (B) 500,000

Net profit understated (B-A) 200,000

(b) Purchase of goods from relative of a Director Tk. 490,000

(c) Preliminary expenses written off Tk. 25,000

The opening and closing stock of cloths were valued 10% less than their costs. As a result the net

profit of the Company has been understated for charging higher COGS in P/L account for the

undervalued closing stocks. And net profit has been overstated for charging lower COGS in P/L

account for undervalued opening stocks. So total net profit has been understated for net amount Tk.

200,000 which has been add back with the profit. Market price is higher than costs.

Goods purchased from a relative of a Director at price (Tk 490,000) higher than the market value

(410,000). The profit reduced by excess amount Tk 80,000 has been added back with the net profit

because this amount not expended wholly and exclusively for the business purpose u/s-29(1)(xxii).

Preliminary expense written off which is considered incurred for the business purpose and was

allowed in the year when amount paid.

7/29/2019 1.Assessment-PE-3(17.4.2011)

3/37

(d) Balancing charge(revenue gain) on sale of machine(u/s-19(16))

Cost price(B) 300,000

Net proceeds from sale of machine(A) 500,000

Less: Written Down value(WDV) 100,000

Net gain on sale of machine 400,000

Capital gain[u/s-32(1) & (2)](A-B) 200,000

Balancing charge(revenue gain) on sale of machine(net gain-capital gain) 200,000

(e) Provision for bad and doubtful debt Tk 120,000

(f) Unclaimed wages Tk. 25,000

(g) General charges Tk. 6,000

(h) Salary expenses Tk 400,000

Disallowed fully being no provision for bad and doubtful debt is allowable u/s-29(xv) unless the debtbecome irrecoverable and actually been written-off in the books of accounts. So total provision added

back with profit.

Unclaimed wages Tk. 25,000 not paid within 3 years of expiration of income year in which expenses

were allowed for and legal claim for wages is unavailable. So this trading liability is added back u/s-

19(15)(c ).

The Company did not complied with the legal formalities for termination of employee by serving

notice as per job agreement. This is incurred not for the purpose of business and disallowed fully u/s-

29(1)(xxii).

No tax has been deducted from the salary payment to Engineer which is fully disallowable u/s-30(aa).

The non deduction of employer can not remediable by compliance of the employee.

(i) Insurance premium Tk. 65,000

(J) Miscellaneous expenses Tk. 15,000

(k) Advertising expenses Tk. 500,000

(l) Interest on borrowing Tk 15,000

(m) Municipal tax Tk 30,000

House property A

House property B

The insurance premium against the loss of profit during strike is considered non-business expenditure

and hence disallowed u/s-29(1)(xxii)

Salary paid for MD's residence is not a contractual obligation of the company and considered as

personal expenses of MD. So it is fully disallowed.

Advertising expenses paid for cinema slides assumed been capitalized being deferred revenue

expenses and are distributed within 5 years is allowable expenses.

Interest has been paid to director at free of interest is fully disallowable since in this case the loan

assumed to have been borrowed for non-business purposes.

Assumed house property A has been let out to employees as per contractual obligation with the

company and is considered as business expenses and the municipal taxes will be considered as

business expenses (Tk 60,000 and Tk. 25,000 for rental and municipal taxes of A respectively).

House property B has been let out to outsiders for Tk. 90,000 which is considered as income under

"Income form House property" u/s-24. The property is considered as let out for residential purpose.

7/29/2019 1.Assessment-PE-3(17.4.2011)

4/37

May-June 2003

Note Taka



Less:

-


Head office expense for separate consideration as per u/s-30(g) b 1,100,000

Foreign travel for holiday recreation as per rule 65 A i 220,000

Accounting depreciation for consideration as per 3rd schedule d 900,000

2,220,000


Director's salary a 330,000

Fines c 11,000

Commission to local agent e 1,000,000Doantion to unrecognised school g 15,000

Miscellaneous expenses h 72,000

Interest on bank loan 1,196,429

Excess perquisites u/s-30(e) k 42,000

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

income:

John Morris Inc.



2,666,429


Balancing charge(revenue gain) on sale of machine f -

-

Profit before charging separate considerable expenses 2,553,571


Head office expense as per u/s-30(g) b 255,357Foreign travel for holiday recreation as per rule 65 A i -

Fiscal depreciation d 800,000

1,055,357



Capital gain on sale of machine f 140,000



Tax Liability

Total income tax rate Tax liability

Total income excluding capital gain 1,498,214 37.50% 561,830

Capital gain tax @ 15% (under para-2 Second schedule) 140,000 15% 21,000

Total 1,638,214 582,830

7/29/2019 1.Assessment-PE-3(17.4.2011)

5/37

Gross tax payable 582,830

Less: Tax credit:

Tax deducted at source 0

Advance tax paid u/s 64 0

0

Tax adjustable from any refund (u/s 152) -

0

Net Tax refundable 582,830

Notes

(a) Director's salary Tk 330,000

(b) Head office expense Tk.1,100,000

(c) Fine Tk. 11,000

(d)

In accordance with u/s-50 no tax has been deducted from the salary payment to Director which is fully

disallowable u/s-30(aa).

In accordance with u/s-30(g) 10% of the profit before charging separate considerable expenses for

head office which is not an incorporated company in Bangladesh under Companies Act 1994.

Fines paid for violation of customs law considered not for business purpose hence fully disallowable.

Accounting depreciation Tk. 900,000

Two Motor vehicle (Nissan Petrol Jeeps) purchased 4,500,000

Accounting depreciation @ 20% on costs 900,000

Cost allowable (under para-11(6) 3rd Schedule) 4,000,000

Fiscal/tax depreciation @20%(under para-3(1)(b) 3rd Schedule) 800,000

(e) Commission to local agent Tk 1,000,000

(f) Balancing charge(revenue gain) on sale of motor vehicle(u/s-19(16))

Cost price(B) 525,000

Net proceeds from sale of machine(A) 465,000

Less: Written Down value(WDV) 325,000

Net gain on sale of machine 140,000

Capital gain[u/s-32(1) & (2)](A-B) 140,000

Balancing charge(revenue gain) on sale of motor vehicle(net gain-capital gain) -

(g) Doantion to unrecognised school Tk.15,000

As the Company did not deduct tax @7.5% us/53(E) while making payment of commssion will be fully


In accordance with the u/s-19(16) the balancing charge is applicable for only building, machinery orplant not for the motor vehice. So the total gain on sale of motor vehicle is considered as capital gain.

Donation to unrecognised school is considered non-business expense and hence is disallowed fully.

7/29/2019 1.Assessment-PE-3(17.4.2011)

6/37

(h) Miscellaneous expenses Tk 72,000

(i) Foreign travel for holiday recreation Tk 220,000

MD 0 220,000 165,000 - - 220,000

(j) Interest on bank loan Tk 3,350,000

(k) Excess perquisites u/s-30(e)

HouseConveyanc Other

Allowable Excess

3 months Basic salary Admissible

expense

Inadmissible

expense

As per Rule-65A(1) expenditure on foreign travel for holiday recreation of employee and his

dependants allowed upto lower one of 3/4 of actual expense and 3 months basic salary. This amount is

allowable for once in every 2 years. The amount is disallowed u/s 65A(2) as the payment exceeding

Tk.10,000 has considered been paid in cash rather than in cross cheque or cross bank draft.

In accordance with u/s-29(1)(iii) interest on bank loan is proportionately allowable for the loan amount

used for the business purpose. Total interest not for businesspurpose=(3,350,000/21,000,000)*7,500,000=Tk 1,196,429.

Salaries paid to servant of MD is considered as not a part of contractual obligation of the Company and

hence is to be non business expenses will be disallowed fully for being personal expenses of MD.

Name of

Employee

Basic per

month

Actual

travelling

expenses

3/4th of

actual

expense

Rentutilities s

limit perquisites

MD 220,000 72000 292,000 250,000 42,000

7/29/2019 1.Assessment-PE-3(17.4.2011)

7/37

Nov-Dec2006 Q-2

Note Taka

Income from Salary (u/s-21):

Basic salary(10,000 *12) 120,000

Festival Bonus(two month Basic salary) 20,000Rent free accomodation(Rule-33B)

25% of Basic salary 30,000

or

Rental valueTk 25,000 25,000

Lower one of above 25,000

Less: Concessional rate by [email protected]% of basic 9,000

16,000

Medical allowance(Tk 3600) 3,600

Less: Exemption(Rule-33I):

Actual expenseTk 5000(allowed upto allowance 3,600

-Conveyance allowance Tk 500 per month 6,000

Less: Exemption Rule-33C Upto 24,000

-

Mr. Azgar



Employer's Contribution to RPF(10% of Basic) 12,000

Income from Salary (u/s-21) 168,000

Income from agricuture(u/s-26): 0

Income from Other sources (u/s-33): 0

Total income 168,000

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

Investment in listed company's share 10,000

(allowable as per para-8)

Purchase of ICB certificate(allowed as para-10) 5,000

Payment of insurance premium(as para-1)

Allowed for assessee, spouse, minor child only 9,000

Group Insurance & benevolent fund(allowed as para-17) 200

Allowed for assessee, spouse, child and dependent only

Employee and employer's contribution to RPF(10% of salary each) 24,000


Actual investment 48,200

7/29/2019 1.Assessment-PE-3(17.4.2011)

8/37

Allowable investment allowance(u/s-44):


39,000

Maximum allowable investment 1,000,000

Allowable investment (lower of the above) 39,000

1 On total income other than Capital gain=Tk.1741,000 487,000

On first Tk. 165000 @ 0% -

On next Tk. 3,000 @ 10% 300

On next Tk. @ 15% -

On next Tk. @ 20% -

On balanceTk. @ 25% -

Total 168,000 300

Gross tax liability 300

Less: 10% Rebate on investment Tk 39000 3,900

(3,600)

Less: TDS 0

Net tax liability (3,600)

25% of total income [excluding employer's contribution to RPF, interest on

RPF (excluding interest para-25, part-A 6th schedule), income u/s-82C]. So

25% on Tk 156,000(168,000-12,000-0-0).

Computation of tax liabilities

, , .

7/29/2019 1.Assessment-PE-3(17.4.2011)

9/37

May-June 2007 Q-3

Note Taka


Basic salary(50,000 *12) 600,000

Festival Bonus(two month Basic salary) 100,000

Rent free accomodation(Rule-33B)25% of Basic salary 150,000

or

Rental valueTk 25,000 p.m 300,000

Lower one of above 150,000

-

Medical allowance(Tk 150,000) 150,000


Actual expense(assumed allowance are expended) 150,000

-

Conveyance facilities @7.5% on basic salary 45,000

Foreign travel expenditure Tk 250000 320,000

Driver's salary borned by company from which nothing to be added

considering general practice of company for solely business purpose.

Assuming that the passage provided in accordance with terms of service

contract & arranged in yearly trip basis. So the air ticket Tk 100,000 is

Mr. Arman



Entertainment allowance Tk 3,000 per month 36,000

As u/s-33H total allowance is added with the salary income.

Other allowance Tk 100,00 -


Income from Salary (u/s-21) 1,311,000

Income from agricuture(u/s-26):

Income from agricuture(nothing prod. Cost as barga u/s-27(1)(c)(iii) 280000


Income from Lecture 150,000

Income from Other sources (u/s-33): 150,000


.

each two years, total actual expenditure Tk 220,000 is added.

Assuming U/s-33J the allowances has been expended wholly, necessarily

and exclusively in the performance of the duties of the office paid by him

in cash. So fully allowed.

7/29/2019 1.Assessment-PE-3(17.4.2011)

10/37









420,250



1 On total income other than Capital gain=Tk.1741,000 487,000

On first Tk. 165000 @ 0% -

On next Tk. 275000 @ 10% 27,500

On next Tk. 325000 @ 15% 48,750

On next Tk. 375000 @ 20% 75,000

On balanceTk. 601,000 @ 25% 150,250

Total 1,741,000 301,500

Gross tax liability 301,500

Less: 10% Rebate on investment Tk 115,750 42,025


25% of total income [excluding employer's contribution to RPF, interest

on RPF (excluding interest para-25, part-A 6th schedule), income u/s-

82C]. So 25% on Tk 1741,000(60,000-24,000-0-0).

259,475

Less: TDS -

Net tax liability 259,475

7/29/2019 1.Assessment-PE-3(17.4.2011)

11/37

Nov-Dec 2006Q-5

Note Taka



Less:

a) Dividend (for consideration at income from other source) 760,760

(760,760)


1 Entertainment(for consideration as per Rule-63) 125,321

2 Depreciation(for consideration as per 3rd schedule) 4,681,665

4,806,98614,409,150


1 Refund of VAT on cost of diesel Tk 8,002,241

Marine Fisheries


Assessment year 2006-2007 (Income year ended 31 July 2005)


income:

8,002,241

2 Salary expense Tk 9,344,035

3,540,000

3 Import duty on packing material & fishing gear Tk 240,500 -

4 WASA bill Tk 30,000 30,000

5 Excess perquisites Tk 360,300 360,300

Excess perquisites disallowed u/s-30(e).

6 Salary & allowances of Crew, captain Tk 360,000 -

7 Insurance expense Tk 218,500 218,500

As VAT Tk 8,002,241 paid for cost of diesel which has been refunded for

export earning Tk 94,446,822 is disallowable because already refunded

for export.

Import duty paid allowed as tax credit as AIT. So nothing to add from

this custom duty.

No tax has been deducted from the salary payment Tk 3,540,000 out of

Tk 9,344,035 which is fully disallowable u/s-30(a).

Disallowed for being not business expense rather personal expense of

Director.

Tax paid by company on salary is allowable fully as job agreement and

expended for business.

Disallowed for being not business expense rather personal expense of

Director.

7/29/2019 1.Assessment-PE-3(17.4.2011)

12/37

8 Miscellaneous expense Tk 25,000 -

9 Office rent Tk 1,026,647 720,000

60000*12=Tk720,000 disallowed for non tax deduction u/s-53A.

10 Picnic expense Tk 150,000 150,000

13,021,041

27,430,191

Add: Deemed income u/s-19 -

27,430,191


Tax depreciation as per 3rd schedule (3,390,000)


Entertainment as per Rule-65

40,000460,804

Allowable limit 500,804

Actual entertainment expense 125,321

Allowable lower one of above 125,321

2% On rest of balance of profit before charging entertainment exp.

Donation to local orphange center approved by NBR is allowable

assuming expended for business u/s-29(1)(xxvii).

upto Tk 1,000,000 4% of profit before charging entertainment exp.

Incurred for sister concern so disallowed as non business expense u/s-

29(1)(xxvii).

Income from business or Profession (u s-28): 23,914,870

Income from Other sources (u/s-33)

Dividend income (gross) 760,760

760,760


Calculation of proprtionate income on export:

[23,914,870/154,283,278)*94,465,822]=Tk 14,642,791

Export income to be excluded from export income @50% as per para-28 Part-A of 6th schedule.

Exclusion from export income=[14,642,791/2]=Tk 7,321,396

So non business income=Tk 23,914,870-7,321,396=Tk 16,593,474

Income Tax

1 On total income other than dividend income @37.5% 23,914,870 8,968,076(Being non listed trading Company)

2 On dividend income @20% 760,760 152,152

Gross tax liability 9,120,228

Less: Tax credit:

Tax deducted at source on dividend @15%(u/s-54) (114,114)

Net Tax liabilities 9,006,114


7/29/2019 1.Assessment-PE-3(17.4.2011)

13/37

May-June 2007

Note Taka


Profit before tax as per profit and loss account 230,000

Less:

Sale of scrap Tk 20,000 20,000 (20,000)


Accounting depreciation for consideration as per 3rd schedule 28,000

28,000

Add: Inadmissible expenses as per provision of law:Provision for bad and doubtful debt Tk 16,000 16,000

Sale of scrap is non-business income classifiable under income from

othe sources.

KMA Ltd.


Assessment year 2006-2007 (Income year ended 31 December 2005)


income:

Disallowed fully being no provision for bad and doubtful debt is

allowable u/s-29(xv) unless the debt become irrecoverable and

actually been written-off in the books of accounts. So total provision

Director's fee Tk 48000 48,000

Audit fee Tk. 25,000 25,000

Legal expense Tk 15,000 15,000

Donations Tk 10,000 5,000

Brokerage on loans obtained Tk 10,000 10,000

Brokerage on loans disallowed as non-business exp. u/s-29(1)(xvii).

Fines and penaltiess Tk 21,000 21,000Disallowed u/s-29(1)(xvii) assuming Company committed offences.

140,000

Add: Deemed income u/s-19 -


Donations out of which Tk 5,000 paid to charitable fund under the

Zakat Fund Ordinance, 1982 which is only allowable as business

expense u/s-29(1)(xvii).

added back with profit.

No tax has been deducted from the Director's fee payment which is

fully disallowable u/s-30(aa).

No tax has been deducted from the audit fee payment which is fully


Defending an action of evasion of customs duty is not allowable

because of non-business expense u/s-29(1)(xvii).

7/29/2019 1.Assessment-PE-3(17.4.2011)

14/37


Fiscal depreciation (assumed as per para-3 3rd schedule) 30,000

(30,000)

Income from business or Profession (u/s-28): 348,000


Sale of scrap Tk 20,000 20,000


Tax Liability

Total income tax rate Tax liability

Total income excluding capital gain 368,000 37.50% 138,000

Capital gain tax @ 15% (under para-2 Second schedul 0 15% 0

Total 368,000 138,000

Gross tax payable 138,000Less: Tax credit:

Tax deducted at source -

Advance tax paid u/s 64 -

Net Tax payable 138,000

7/29/2019 1.Assessment-PE-3(17.4.2011)

15/37

May-June 2008Q-4

Note Taka


Surplus of income over expenditure 193,000

Less:

1 Dividend from pvt. co(for consideration at income from other source) 50,000

2 Interest free govt securities 40,000

3 36,000

(126,000)


Entertainment as per Rule -65 10,000

Loan to client 40,000

50,000


1 Fines for breaking custom rule Tk 20,000 20,000

2 Loss of investment in shares Tk 18,000 18,000

3 Purchase of books Tk 12000 12,000

(being violation of law it is disallowed fully u/s-30(i).

Mr Rahman


Assessment year 2008--2009 (Income year ended 30 June 2007)

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

Rent from sub-let of premise

Being capita nature p ant e inition isa owe u y

50,000


a Entertainment as per Rule -65 @4% on Tk 155000 (6,680)


Interest on Securities(u/s-22):Interest free govt securities (exempted under para-24 Part-A schedule) -


1 Dividend income from pvt. company 50,000

2 Rent from sub-let 36,000

86,000



1 On total income including Capital gain 246,320

On first Tk. 165,000 @ 0% -

On next Tk 81,320 @ 10% 8,132On next Tk - @ 15% -

On next Tk - @ 20% -

On balanc - @ 25% -

Total 246,320 8,132


Less: 10% Rebate on investment Tk -

8,132

Less: Tax credit -


7/29/2019 1.Assessment-PE-3(17.4.2011)

16/37

May June 2008 Q-3C

Note Taka

Income from Agriculture (u/s-26):

Income from sale of rice(200 maunds*Tk 600) 120,000

Income from sale of rabi crops 25,000

Lease of agricultural land 40,000

Income from sale of bamboo(assumed not being forest bamboo) 20,000

Income from tea garden and sale of tea(agriculture income@60%*60000) 36,000

Income from sale of palm juice 18,000

Income from cattle rearing 40,000

299,000

Less: Admissible expense (u/s-27)

Production costs(60% on 120000 +25,000+36000) 108,600Interest on loan(50000*8%) 4,000

UP tax 2,000

Land revenue 1,000

Loss on sale of pump machine:

Mr. X


Assessment year 2000-2010 (Income year 2007-2008)

,

Tax Depreciation@20% 10,000

Written down value 15,000

Sale 12,000

Loss on sale of pump machine 3,000

118,600

Income from Agriculture (u/s-26): 180,400


50,000

Total taxable income 130,400


Life insurance premium for son (Tk4,000) 4,000

Investment in listed company's share Tk 5,000 5,000

(allowable as per para-8 for Investment in listed company's share)


(as per para-1 LIP allowable only for assessee, spouse and minor child).

As per para-29 Part A 6th schedule individual having only agricultural income,

Tk 50,000 is exempted from the total income.

7/29/2019 1.Assessment-PE-3(17.4.2011)

17/37



32,600




1 On total income including Capital gain 130,400

On first Tk. 130,400 @ 0% -

On next Tk. - @ 10% -

On next Tk. - @ 15% -

On next Tk. - @ 20% -

On balanceTk. - @ 25% -

Total 130,400 -

Gross tax liability -

Less: 10% Rebate on investment Tk 9,000 (900)

(900)

Less: Tax credit -

25% of total income [excluding employer's contribution to RPF, interest on RPF

(excluding interest para-25, part-A 6th schedule), income u/s-82C]. So 25% on

Tk 130400=(Tk 130400-0-0-0).

e ax a y

Since the individual having total taxable income less than the maximum exemption limit, then there

is not applicable to minimum tax liability Tk 2,000. So there is no tax liability.

7/29/2019 1.Assessment-PE-3(17.4.2011)

18/37

Nov-Dec 2008

Note Taka



Less:

1 Dividend (for consideration at income from other source) 6,000,000

2 Interest income(for consideration at interest on securities) 800,000

3 1,000,000

4 Share income from partnership firm 6,000,000

5 25,000,000

6

500,000

Capital gain on sale of shares(as it was tax free u/s-32(7) & will be taxable

from AY 2011-2012. It will not be treated as income)

Keyman life insurance proceeds(for consideration at income from othersource)

Tax refund(tax cannot be income or expenses rather it is an appropriation

of profit. So it will not be considered as income afterwards)

Oak Limited


Assessment year 2008--2009 (Income year ended 31 December 2007)


income:

(39,300,000)

Add: Expenditure to be considered as per provision of law afterwards -


1 Salary to finance manager Tk 600,000

600,000

2 Compensation to Voluntary Retirement Scheme Tk 1,500,000

-

3 Gratuity provision(unrecognised) Tk 1,500,0001,500,000

4 Actual gratuity payment disallowed for unrecognised Tk1,000,000 1,000,000

(being not paid by cheque or bank transfer disallowed fully u/s-30(i).

(no provision recognized/unrecognised is allowed).

(assume govt approved this is not taxable in the hand of recipient as para-

26 part A 6th schedule. So no TDS. As part of salary it is allowable u/s-

29(1)(xvii).

(Only payment by employees to approved gratuity fund is allowable as per

para-6 part-C 1st schedule. As it is unrecognised so fully disallowable).

7/29/2019 1.Assessment-PE-3(17.4.2011)

19/37

5 Incentive bonusTk 2,000,000(for consideration as per u/s-30(j)) 30,000

2,000,000

6 Doubtful accounts Tk 2,000,000

900,000

7 Tax Tk 9000,000

-

8 Security service disallowed u/s-30(aa) 300,000

9 Audit, accountancy & advisory services disallowed u/s-30(aa) 500,000

10 Office rent disallowed u/s-30(aa) 600,000

11 Car rental disallowed u/s-30(aa) 100,000

12 Interest on working capital allowed as business exp. u/s-29(1)(xxvii) -

13 Donation to DU (unapproved institution so disallowed fully) 1,800,00014 300,000

15 -Depreciation Tk 8,000,000(as depreciation claims as per 3rd schedule so

(10% of disclosed profit=(19,700,000*10%)=1,970,000 is allowable limit u/s-

30(j). So (20,000,000-19,700,000)=Tk 30,000 is disallowable. Again, as no

tax deducted so as part of salary incentive bonus is fully disallowable u/s-

30(a).

(allowed u/s-29(1)(xv) only actual Tk 1,100,000 out of 2,000,000 and the

rest is added with profit.

Board meeting attendance fee(only applicable for VAT which is not

deducted, become disallowable u/30(aa).

Only Payroll taxes not deducted as part of salary & assuming employee tax

paid by the employer as terms of employment. So there is nothing to be

disallowed u/s-30(aa).

16 Premium on LIP of controller 1,500,000

17 500,000

18 Overseas travelling Tk 800,000 -

19 Corporate income tax Tk 4,500,000 4,500,000

20 9,000,000

21 Insurance claim Tk 1,500,000 1,500,000

26,630,000


(Income tax is not an expense rather appropriation of profit that is not a

part of P&L a/c. So disallowed fully).

Dividend paid Tk 9,000,000(disallowed u/s-30(aa) for non deduction of TDS.

(assuming loss on fire of Tk 1,000,000 (costs) was porperly accounted for &

allowed by the tax authority. So it is treated as income).

( as u/s-29(1)(vii) LIP is allowable for only against risk of damage,

destruction or loss building & machinery, plant, furniture, stocks & stores

not any life insurance premium. So disallowed fully.

Entertainment expense Tk 500,000 (as personal expense CEO, so ratherallowing it as business expense U/s-65 disallowed fully.

(allowable u/s-30(k) upto 1% of disclosed turnover Tk 90,000,000. As claims

is within the allowable limit Tk 900,000 nothing is added back from here.)

.

7/29/2019 1.Assessment-PE-3(17.4.2011)

20/37

Interest on Securities(u/s-22):

Interest on govt bond 800,000 800,000

Income from partnership firm:

Income from partnership firm(gross/before tax) 7,900,000 7,900,000


1 Dividend income from local company 2,000,000

Dividend income from Singapore based company(net) 2,000,000

Dividend income from Russian based company(net)2,000,000

2 23,500,000

3 1,000,000

30,500,000


Break up of total income


Less: set off previous loss (1,000,000)

Business income after setoff of Carried forward loss 6,030,000

Keyman life insurance proceed Tk 25,000,000(which is not classifiable

under other head treated as income u/s-33(e) Less: LIP premium Tk

1,500,000

Share capital raised through cash not received by cross cheque or bank

transfer disallowed u/s-33(d) & treated as income u/s-19(24).

nterest on ecur t es u s- : ,

Income from partnership firm: 7,900,000

Income from Other sources (u/s-33) 30,500,000



1 On total income excluding dividend income @27.5%(listed Company) 39,230,000 10,788,250

Less: Rebate @10% on Tk 11,200,750 for declaring more than 20% dividend (1,078,825)

9,709,425

2 On dividend income @20% 6,000,000 1,200,000

45,230,000 10,909,425

482,398

But restricted upto foreign tax Tk 200,00. 200,000

Allowable lower one of above (200,000)

(400,000) (400,000)

10,309,425

(1,800,673)

Net tax liability 8,508,752

Less: Tax relief as per section-145 for tax on dividend on Russian based company

(as there is no DTAA). But restricted upto foreign tax & foreign tax is lower because

average tax Tk. 482,802.

Less: Average tax rate on income from partnership

firm(10,309,425/45230,000)*7900000

Less: Credit against tax payable in Bangladesh on dividend from Singapore as U/s-

144(4) read with 7th schedule as para-4 as there is DTAA between Bangladesh and

Singapore: (10909,425/45230000)*2000000=Tk 482,398.

7/29/2019 1.Assessment-PE-3(17.4.2011)

21/37

Nov-Dec 2008 Q-6

Note Taka


a Basic salary(20,000 *12) 240,000

House rent allowance(11000*12): 132,000Less: Exemption(Rule-33A):


or

Tk 15,000 per month 180,000

Lower one 120,000

12,000

Medical allowance(Tk 2000 p.m) 24,000



-

Conveyance allowance(per month Tk. 1,000) 12,000Less: Exemption(rule-33) 24,000

-

b Basic salary(20,000 *12) 240,000

Mrs. Rahim



ouse rent a owance :

Less: Exemption(Rule-33A):


or

Tk 15,000 per month 180,000

Lower one 120,000

-Conveyance allowance(per month Tk1,000 12,000

Less: Exemption(rule-33) 24,000

-

Bonus(per month Tk 40,000) 480,000

Entertainment allowance (Tk2000 per month) 24,000

Honorarium as BOD from Rupali bank 50,000

Income from Salary (u/s-21) 1,046,000

As per Rule33(2)(b) there is only bar to allow allowance for calculation of

perquisites of Employer from more than one company for shareholder director.

As Mrs Rahim is not that category, so all the benefits from many companies isasumed to be applicable for her.

7/29/2019 1.Assessment-PE-3(17.4.2011)

22/37

Interest on Securities(u/s-22): -

Income from house property(u/s-24):

Annual value(AV):

Rental income(Tk25,000*12) 300000

Municipal value -

Higher one of above 300,000

Less: Admissible deduction(u/s-25):

Repair & maintenance(1/4 of AV u/s-25(1)(h) 75,000

Municipal tax(Tk40,000 u/s-25(1)(a)) 40,000

Insurance premium(Tk 15,000 u/s-25(1)(b)) 15,000

Land revenue 2,000

Vacancy allowance(2 months) 50,000

(182,000)

Income from house property(u/s-24) 118,000

Income from Agriculture (u/s-26);

Sale of crops 25,000

Less: 60% Cost of production(u/s-27) (15,000)10,000


Consultancy fee from UNDP-BD 400,000

onsu tancy ee rom or an - utan ep a ,

700,000Less: Membership fee to ICAB (4,800)

695,200

Income from paertnership firm: -

Income from Capital Gain(u/s-31):1 -

2 Sale of appartment (u/s-82C) 800,000

3 2,000,000

Income from Capital Gain(u/s-31): 2,800,000

(Sale of property which is treated u/s-82C i.e. final settlement of tax liability. At

the time of registration, TDS @2% of sale proceeds. In this problem the assesseealready reached highest slab. So the showed income as follows:

TDS=(10,000,000*2%)=Tk200,000 and shown income=Tk 200,000/0.25=Tk

800,000.

Money received from the real estate company against a contract which is

included in the definition of transfer u/s-2(66). So here Tk 2,000,000 is treated

as part of capital gain.

(Note: UNDP & WB are the organisation of UN. Only the salary categorized

persosn employee at UN is tax free. As Mrs Rahim is not salaried person of

UNDP & WB, so her income from there is not tax free. Moreover, there is no

DTAA with Bhutan and Nephal. So all the income will be taxable in our country).

Capital gain of Tk 200,000 by buying and selling listed company shares which is

exempted form tax in the hand of indidual.

7/29/2019 1.Assessment-PE-3(17.4.2011)

23/37


Dividend income u/s-54(assumed gross) 50,000

Interest on post office savings bank account 15,000

Income from part time lecture

Lecture 60,000

Articles publication 25,000

Question settings 12,000

97,000

Less: Actual expense to earn above income (3,000)

94,000Income from Other sources (u/s-33): 159,000



Life insurance premium for son (Tk5,000*4) 20,000






1,007,05025% of total income [excluding employer's contribution to RPF, interest on RPF

(excluding interest para-25, part-A 6th schedule), income u/s-82C]. So 25% on

- - -





1 On total income including Capital gain 4,828,200

On first Tk. 180,000 @ 0% -

On next Tk. 275,000 @ 10% 27,500

On next Tk. 325,000 @ 15% 48,750

On next Tk. 375,000 @ 20% 75,000

On balanceTk. 3,673,200 @ 25% 918,300

Total 4,828,200 1,069,550

Gross tax liability 1,069,550

Less: 10% tax rebate for showing 20% higher income

Last year's income(4828200-200000)/1.2=Tk 3856833 3,856,833

Higher income shown(4828200-200000)-3856833 771,367Rebate 10% on higher tax paid=771367*0.25*0.1 (19,284)

Less: 10% Rebate on investment Tk. 620,000 (62,000)

988,266

Less: Tax credit

on dividend@10% on Tk 50,000 5,000

On sale of apartment@2% on 1000,000 200,000

(205,000)

Net tax liabilit 783 266

, , - - - , .

7/29/2019 1.Assessment-PE-3(17.4.2011)

24/37

May-June 2009 Q-9

Note Taka


Interest on tax free govt securities Tk 10,000 - -



Less:

Dividend 20,000

Interest on bank deposit 12,000

Profit on sale of machineries 30,000

Interest on tax free govt securities 10,000

Sundry income 5,000

30,000

Interest on investment outside Bangladesh 20,000

(127,000)


De reciation for consideration as 3rd schedule 180 000 180 000

ABC Limited


Assessment year 2010-2011(Income year 2009--2010 )


income:

(Interest on tax free govt securities is fully exempted under para-24 part

A 6th schedule).

Refund of income tax(it is not income. So it is not considered

afterwards)


a Income Tax paid in advanceTk 200,000 200,000

b Fines paid to Customs authorityTk 20,000 20,000

c Salary & allowance Tk 250,000 50,000

d Legal expense Tk 14,000 -

e Conveyance allowance Tk 20000 -

Income taxes related legal expense Tk 10,000 is allowable upto appeal to

the appellate Tribunal. So as it is allowable expense nothing to added

back from here considering rest amount incurred for business purpose.

Disallowed u/s-29(1)(xvii) assuming Company committed offences as

Customs Act, 1969.

Tax is not an expense. So it not chargeable in P/L a/c and disallowable

fully being non business expense.

No tax has been deducted from the salary payment Tk 50,000 which is

full disallowable u/s-30 aa .

Paid to General Manager for overseas travelling as representative of

chamber which is allowable upto 1% of turnover disclosed Tk 4980,000.

So nothing to add back from here.

7/29/2019 1.Assessment-PE-3(17.4.2011)

25/37

f Excess perquisitess Tk 20000 20,000

(290,000)


Tax depreciation as per 3rd schedule 115,000

Add: Deemed income U/s-19 (115,000)

1 Profit on sale of machine Tk 800,000

Sale price(Tk 40000+profit Tk 30000) 70,000Written down value -

Total profit 70,000

Cost price 60,000

Capital gain(sale-costs)under capital gain he 10,000

Revenue gain(total profit-capital gain) 60,000 60,000

60,000

Profit before charging separate considerable expenses 281,000Income from business or Profession (u/s-28): 281,000


Capital gain on sale of machine 10,000 10,000

-

Capital gain to be considered in income from other sources afterwards.

Only revenue gain to be added u/s-19(16) now for being sale of

machinery.

Excess perquisitess Tk 20000 over allowable income tax paid fully added

here u/s-30(e).

Dividend income (assuming gross) 20,000

Interest on bank deposit(assuming gross) 12,000

Sundry income 5,000

Interest on investment outside Bangladesh 20,000

57,000



1 224,625 99,000.000

2 On capital gain@15%(para-2(a) 2nd schedule 1,500

3 On dividend income @20% 4,000

230,125Less: (200,000)

TDS on dividend income (4,000)

TDS on interest(12000*10%) (1,200)


But the corporate minimum tax liability either profi/loss in IY is Tk 5,000 as per Finance Act 2010.

On total income excluding capital gain and dividend income @37.5% on

(assuming not publicly traded listed Company)=Tk568000-10000-

20000=Tk 538,000

Advance tax paid( assuming it has paid on the basis of last assessed income as per

section-64. So there is no uestion of char in sim le interest .

(Lack of proper information in the given problem assume that interest

received from country which is not fully under DTAA & the company did

not claim for income tax rebate).

7/29/2019 1.Assessment-PE-3(17.4.2011)

26/37

Nov-Dec 2008

Note Taka



Less: -


Depreciation(for consideration as 3rd schedule) 4,000,000 4,000,000


a 755,375

b Goods damaged in store Tk 125,000 125000

c Tax deducted at source from Dividend Tk 1,275,850 1,275,850

Salary to Mr X Tk 755,375

Mr. Khan & Co Limited


Assessment year 2008--2009 (Income year 2007-2008)


income:

(assume capital expenditure for installation of machineries which is

disallowed fully u/s-29(1)(xxvii).

As normal course of business goods cannot be damaged in store. In

case of accident like flood, it is allowable expenditure because its outof human comntrol. But as there is no such indication it assume it was

damaged due to neglegence. So disallowed fully.

d Late fine for renewal of trade license Tk 35,450 35,450

Disallowed fully as incurred for violation of law

e Commission to Abul & Co Tk 2,000,000 -

f Depreciation of leasehold assets Tk 5,00000 -

g Profit on sale of motor car Tk 800,000 -

Written down value 1,200,000

Total Profit 800,000

Sale price 2,000,000

Cost price 1,800,000

Capital gain(sale-costs)under capital gain he 200,000

Revenue gain(total profit-capital gain) 600,000

As commission paid for security provided against loan by bank to thecompany which is solely revenue expense & incurred for business and

allowed u/s-29(1)(xxvii).

As accounting depreciation was disallowed earlier in which this

depreciation was included no need to diallowed futher.

Both revenue gain and capital gain to be considered in other heads

afterwards. Nothing to be added u/s-29(1)(xi) now for not being sale

of building, plant & machinery.

Tax is not an expense. So it not chargeable in P/L a/c and disallowable

fully being non business expense.

7/29/2019 1.Assessment-PE-3(17.4.2011)

27/37

h Money looted on the way Tk 5,000,0,00 3,500,000

5,691,675


Leased depreciation(assuming it was operating lease) 125,000

Tax depreciation as per 3rd schedule 3,500,000(3,625,000)

Profit before charging separate considerable expenses



Capital gain on sale of motor car 200,000 200,000


Balancing charge(revenue gain) on sale of motor car 600,000

Dividend income (gross) 6,379,250

6,979,250


Loss of money by theft is allowable expense as it is incurred during the

course of business. Here money looted Tk 5,000,000 & recovered was

Tk 3,500,000. So the net loss Tk 1,500,000 as loss. So afterwards

allowing actual loss the recovered amount is disallowed.

Total tax deducted at source@20% on dividend income. So total

dividend income=(1275850/0.2)=Tk6,379,250


1 12,145,980

(1,214,598) 10,931,382

2 On capital gain@15%(para-2(a) 2nd schedule 30,000

3 On dividend income @20% 1,275,850

12,237,232

Less: (5,000,000)

TDS on dividend income (1,275,850)


Advance tax paid( assuming it has paid on the basis of last assessed income as per

section-64. So there is no question of charging simple interest).

On total income excluding capital gain and dividend income @27.5%

on (listed Company)=Tk50746,450-200000-6,379,250=Tk 44,167,200.

Less: Rebate @10% on Tk 12,145,980 for declaring more than 20%dividend

7/29/2019 1.Assessment-PE-3(17.4.2011)

28/37

Nov-Dec 2009 Q-4

Note Taka


Annual value(AV):

Rental income(Tk25,000*12) 300,000

Municipal value 220,000




Municipal tax(u/s-25(1)(a)) 5,000

Insurance premium(u/s-25(1)(b)) 4,000

Interest on mortgage 4,000

Land revenue 2,000

(90,000)

Income from house property(u/s-24) 210,000

Notes

1 Half of house used by his son in law who is not dependant on him is not considered in annual value.

2 It is assumed that cost of alteration is a capital nature so it is not admissible expense.

Mr. Azim

Computation of Income from House property

Assessment year -------------- (Income year ended -------)

epa r ma n enance nc u e wa er an swerage c arge , w e was repa r.

4 Residential house at Uttara used by the assessee. So it is not considered for computation in income and its

realated expenditure.

7/29/2019 1.Assessment-PE-3(17.4.2011)

29/37

May-June 2010

Note Taka

Sources of income:

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

2 Capital gain (u/s-31)3 Income from Other sources (u/s-33)



Less:

a) Dividend (for consideration at income from other source) 30,000

30,000

c) Sundrey income( for consideration at Income from Other sources) 13,000

40,000

113 000

b) Share premium ( Not to be considered as income til AY 2010-2011. It is to

be treated as income with effect from 1st July 2010 as per NBR Circular no:

1 of 2010)

d) Capital gain on sale of machine(for consideration at capital gain head)

X Limited



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


1 Entertainment(for consideration as per Rule-63) 9,500

2 Depreciation(for consideration as per 3rd schedule) 46,600

56,100

175,400


1 Rent & Taxes Tk 24,500

4,200

2 Repair and operating expense Tk 27,300

6,000

3 Legal expense Tk 14,500-

4 Compensation for termination of staff Tk 10,000

10,000

5 Type writer Tk, 5948

As VAT Tk 4,200 paid for importing machines is charged at P&L A/c is

disallowable Tk. 4,200 being part of value of machine(capital expenditure).

As the machine does not used does not used during the year, so no tax

depreciation is allowable.

Tk. 6,000 disallowed for being not business expense rather personal

expense of MD.

Assuming compensation paid for violation of job agreement. So disallowable

fully,

Income taxes related legal expense is allowable upto appeal to the appellate

Tribunal. So as it is allowable expense nothing to added back from here.

,.

A/c as a revenue expenditure so disallowable fully.

7/29/2019 1.Assessment-PE-3(17.4.2011)

30/37

6 Bad debt provision Tk 4,400 4,400

30,548

205,948


Bad debt recovered is to be treated as business income u/s-19(15)(a) 2,000

207,948


Tax depreciation (58,400)



Allowable limit upto 4% of profit before charging entertainment exp. 5,982

(2,224)



Here the actual expenditure is Tk 9,500 out of which Tk 2,000 is unexplained

and Tk 5,276 is personal expnditure. So after deducting those two, calims

remains for Tk 9,500--Tk 2,000-Tk 5276=Tk 2224. As it is lower than the

ceiling of Rule-65 Tk 5982, so it is allowable expenditure.

Disallowable fully being no provision other than actual bad debt is allowable

u/s-29(1)(xv).

ap a ga n on sa e o mac ne ,



a Dividend income(gross assumed) 30,000

b Sundry income 13,000

43,000Total income 230,324

1 On total income other than Capital gain and dividend income @37.5% 60,122

(Being non listed trading Company)

2 On Capital gain tax @ 15% (under para-2 Second schedule) 6,000

3 On dividend income @20% 6,000


Less: Tax credit:

Tax deducted at source on dividend @20%(u/s-54) 6,000

Net Tax liabilities 66,122


7/29/2019 1.Assessment-PE-3(17.4.2011)

31/37

Nov-Dec-2010

Note Taka


Basic salary(9,000 *12) 108,000

Dearness allowance(20% of Basic salary) 21,600

Bonus(Two months Basic salary) 18,000

Rent free accommodation(Rule-33B):

Rental value(annual value) 30,000

or


Lower one 27,000




1,100

Conveyance facilities(u/s-33D)7.5% of Basic 8,100

Income from Salary (u/s-21) before considering Contribution & interest on PF: 183,800

Recognized Unrecognized Government

Salary Income before considering Cont. & interest on PF: 183,800 183,800 183,800

Employer's Contribution to PF(10% of Basic) 10,800 - -

Mr. Rahman



Provident Fund

(Since para-4(1) part-A 6th schedule excludes govt PF

income for PF re istered onl under PF Act 1925.

Interest on PF

(for RPF Para-25 Part-A 6th schedule)

Interest on RPF 1,000

Less: Exemption

1/3 of total salary 36,0001,611

higher one exempted 36,000

-

For GPF Para-4(1) Part-A 6th schedule -

(exempted for income PF which is under PF Act 1925)

For UPF -

Income from Salary (u/s-21) 194,600 183,800 183,800


Life insurance premium for father Tk 5000 5,000 5,000 5,000

(as per para-1 LIP allowable upto 10% of policy value).

Purchase of compnay's share Tk 4000 4,000 4,000 4,000

Employee and employer's cont. to PF(10% of salary each) 10800 21,600 -

Actual investment 19,800 30,600 9,000

Employee contribution in RPF exempted in Para-6 Part-B

1st schedule).

14.5% of cumulative

RPF(Tk1000/.09)*14.5%

(both allowable for RPF as per para-5, only employee cont. allowable for

GPF as para-4 and nothing allowed for UPF).

(assumed purchased listed company's share which allowed as per para-8)

.

7/29/2019 1.Assessment-PE-3(17.4.2011)

32/37


Actual investment 19,800 30,600 9,00045,950 45,950 45,950

Maximum allowable investment 1,000,000 1,000,000 1,000,000

Allowable investment (lower of the above) 19,800 30,600 9,000

Recognized Unrecognized Government Recognized Unrecognized Government

On first Tk. 165000 165000 165000 0 0 0

On next Tk. 29600 18800 18800 2960 1880 1880

On next Tk. 0 0 0 0 0 0

On next Tk. 0 0 0 0 0 0

On balance 0 0 0 0 0 0

Total income 194,600 183,800 183,800 2,960 1,880 1,880

Less: 10% Rebate on investment 1,980 3,060 900

Net tax liability 980 (1,180) 980

2,000 2,000 2,000

Total income for Provident Fund Total tax for Provident Fund

Minimum tax liability for individual for having taxable income above

exemption limit.


25% of total income [excluding employer's contribution to PF, interest on

PF]. So 25% on (Tk 194600-10800);(183800-0);((183800-0).

7/29/2019 1.Assessment-PE-3(17.4.2011)

33/37

Exam of Mr Akbar Q-6

Note Taka



Less: Exempted income included in P&L A/c:

9,250,000 9,250,000

Less:

-


Accounting depreciation( for consideration as per 3rd schedule) 2,136,860Entertainment(for consideration as per Rule-63) 112,980

2,249,840


1 Incentive bonusTk 6870,500(for consideration as per u/s-30(j))

XYZ Limited




income:

Income from export of handicraft(Exempted under para-35 Part A 6th

shcedule)

,

1,112,465

2 Overseas travelling Tk 8,550,000

1,159,315

3 Free sample Tk 82,570 (for consideration as Rule -65C)

Allowable limit in Rule 65C as follows: -

Upto Tk 5 crore [email protected]% 750,000

On excess of Tk5 crore to Tk 10 crore @0.75% 750,000

In excess of Tk 10 crore [email protected]% onTk 739,068,560=Tk 2,771,507

2,396,507

2,271,780


Tax depreciation as per 3rd schedule (2,315,970)Add: Deemed income u/s-19 -



Allowable limit:

4% upto Tk 10 lac of profit before charging entertainment exp. 40,000

on rest 2% of profit before charging entertainment exp. 1,380,720

(1,420,720)

Since the claim amount is within the allowable limit, it is fully

admissible expeense and nothing to be added back.

U/s-30(k) allowable upto 1% of disclosed turnover Tk 739,068,560. So

the excess amount disallwed =8,550,000-7,390,685=Tk 1,159,315 is

added with total income.

(10% of disclosed profit=(57,580,350*10%)=5758035 is allowable limit

u/s-30(j). So (6,870,500-5,758,035)=Tk 1112,465 is disallowable.

7/29/2019 1.Assessment-PE-3(17.4.2011)

34/37



1 Sale of shares 19,095,000

Purchase of shares 11,812,000

Capital gain on sale of shares 7,283,000 -


1 Total bank deposit 857,690,580

Less: Deposits from sales 748,234,890

Transfer deposit from CD to SA a/c 49,987,520

Deposit from cash subsidy 19,000,000

(817,222,410)

Deemed income u/s-19(1) 40,468,170

2 Unpaid cash loan Tk 10,000,000 10,000,000


According to u/s-19(21) cash loan is to be paid back within 3 years fromend of which year loan has been taken. Otherwise such loan will be

treated as income from other sources in the following income year.

But capital gain arise from transfer of listed company share is fully

exempted from tax u/s-32(7) in AY 2009-2010 as income tax rate

applicable in last IY retrospectively(i.e. AY 2010-2011 tax @10% under

SRO 269 dated 1.7.2010 is a licable and TDS ros ectivel .

ncome rom expor o an cra

9,250,000 -

Total taxable income 108,833,450


1 108,833,450 40,812,544

Add:

Opening Retained earnings 42,077,500

Add: Tax holiday reserve 11,270,000

Add: General reserve 13,000,000Undistributed profit 66,347,500 3,317,375

Charge of additional tax@5% on Tk 66,347,500


XYZ Ltd has not declared any dividend during IY 2008-2009. So u/s-

16B additional charge will be imposed on undistributed profit 5%.

On total income excluding capital gain @37.5%(listed but not declaring

dividend at least 15% at the end of six months of income year)

(Since handicraft income is not main business of company, it is

Exempted under para-35 Part A 6th shcedule and nothing to be added.

7/29/2019 1.Assessment-PE-3(17.4.2011)

35/37

Class Test

Note Taka


Basic salary(20,000 *12) 240,000

Dearness allowance(20% of Basic salary) 48,000

Bonus(one month Basic salary) 20,000

House rent allowance(55% of basic salary): 132,000

Less: Exemption(Rule-33A):


or

Tk 15,000 per month 180,000

Lower one 120,000

12,000



Actual expense(assumed allowance are expended) 6,000-

Conveyance allowance(per month Tk1200) 14,400

Less: Exemption(rule-33) 24,000

-

Posting subsidy(Tk5,000 p.m.) 60,000

Mr. X



, . . ,

Less:Exempted under para-5 Part-A, 6th schedule

60,000

-


Interest on RPF(Para-25 Part-A 6th schedule) 96,000

Less: Exemption

1/3 of total salary Tk 544400 114,667

544,400

14.5% of cumulative RPF 87,000

higher one exempted 114,667

-Income from Salary (u/s-21) 344,000


Interest on SEC approved debenture 35,000

Interest on govt bond 70,000

105,000

All salary related exp except those allowed under ITO

in above cases.So Total

salary=(240000+48000+20000+132000+6000+14400+

60000+24000 =544400

(Assumed allowance expended wholly and necessarily

for performance office duties or employment).

(Since para-4(1) part-A 6th schedule excludes income

for PF registered only under PF Act, 1925)

(Assumed that Tk 7,000 deducted as a upfront basis for

which tax credit is taken. So no tax credit and

7/29/2019 1.Assessment-PE-3(17.4.2011)

36/37

Less: Exemption(para-12 & 13 Part-A 6th schedule) 20,000

85,000

Interest on Securities(u/s-22) 85,000


Annual value(AV):

Rental income(Tk10,000*12) 120,000

Municipal value-not given -

(Assumed that actual rental is higher than municipal value)




Municipal tax(1/2 of Tk10,000 u/s-25(1)(a)) 10,000

Insurance premium(1/2 of Tk 6,000 u/s-25(1)(b)) 6,000

Interest on house building loan 73,500

Interest allowable u/s-25(1)(g) for deduction upto rented

portion (as loan has been taken for

personal=(3,200,000/2)=Tk 1,600,000 which is bellowthe allowable limit Tk 2,000,000). If personal loan

exceeds Tk 2,000,000 then interest on the amount

exceeding Tk 2,000,000 must deducted from House

property income. If whole or portion occupied by the

exemption is allowable).

(119,500)

Income from house property(u/s-24) 500

Income from paertnership firm:

Income from partnership firm(gross/before tax) 75,000

(1/3 of 225,000)


Income on Capital gain comes at (10000/0.15)=666,667 666,667


Cash Dividend u/s-54(gross) [45,000/90)*100] 50,000Stock dividend(Tk10*100 share)=1,000 -

Interest on saving account(gross) u/s-53I(5400/90)*100 6,000

Income from Other sources (u/s-33): 56,000


Less: Interest on house building loan(147,000/2) 73,500

As per u/s-53H TDS @2% of deed value Tk5,000,000 comes at Tk 100,000. It is final

settlement of tax liability as per u/s-82C.Assuming the land was transferred(inherited) after 5

years of acquisition. So applying 15% tax rate as per para-2 2nd schedule tax on total income

including CG or tax @15% on CG, lower one).

(as per u/s-2(26) dividend income and u/s-2(34) income definition excludes

the bonus dividend as an income).

, ,

(personal) allowed as deduction from total income.

Allowable interest(147000/2)=73,500.

7/29/2019 1.Assessment-PE-3(17.4.2011)

37/37

Residual total income on which tax to be imposed 1,153,667


Life insurance premium for father Tk 60,000 -



Deposit pension Scheme at Islami Bank(Tk5,000*12)=Tk60,000 -






115,75025% of total income [excluding employer's contribution to RPF, interest on

RPF (excluding interest para-25, part-A 6th schedule), income u/s-82C]. So

25% on Tk 463,000(1162,667-24,000-9000-666,667).

(as per u/s-25(1)(g) interest on upto Tk 2,000,000 loan which is allowable as

deduction for personal loan for construction of building fully /partly occupied

by owner).


(allowable only for schedule bank and govt approved bank as per para-11 ) .

, ,


1 On total income other than Capital gain=Tk.487,000=(1153,667-666,667) 487,000

On first Tk. 165000 @ 0% 0

On next Tk. 275000 @ 10% 27500On next Tk. 47000 @ 15% 7050

On next Tk. 0 @ 20% 0

On balanceTk. 0 @ 25% 0

487000 34,550

2 On Capital gain Tk 666,667 tax @ 15% (under para-2 Second schedule) 100,000


Less: 10% Rebate on investment Tk 115,750 11,575

122,975

Less: 7,995

114,980Less: TDS

on dividend 5,000

on saving interest 600

on Capital gain 100,000

105,600


Tax credit average rate for partnership firm income[(122975/1153667)*75000]


Documents

1.Assessment-PE-3(17.4.2011)