Second Year Second Term B.B.

A (Honours) Final Examination 1999

Management
Course No. # 225
(Taxation)
Full Marks 90
Time 4 Hours
[N.B. Numbers on right margin indicates full marks. All questions are of equal value. Answer any
five of the following]
1.

a.
b.
c.
d.
e.

What are purposes of tax?

Explain the characteristics of income.
Narrate the effects of classification of income on assessment.
Discuss the importance of income year and assessment year in determining tax.
Explain the methods of determining residential status.

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2.

a.
b.
c.

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d.

Who is an assessee?
Show the classification of an assessee.
What is meant by residential status of an assessee? How would you find out
residential status of an individual and an unregistered firm?
State the importance of determining residential status.

3.

a.
b.
c.
d.
e.

What are the procedures of settling of losses?

Explain the conditions of carry forward of losses.
Narrate the reasons for tax evasion and tax avoidance.
Explain the common method of tax evasion and tax avoidance.
What is value added tax?

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4.

a.
b.
c.
d.

Who are the income tax authorities?

Discuss the power and functions of National Board of Revenue.
Discuss the powers and functions of Appellate Joint Commissioner of Taxes.
Discuss the procedure of filing settlement and decision of appeal to the Appellate
Joint Commissioner of Taxes.

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5.

a.
b.
c.

Discuss the classification of securities.

What are the rules regarding grossing up of interest on securities?
What is annual value of house property? Explain the methods of determining
annual value of house property.
Mr. Alam constructed a two-storied house in Kushtia. He has occupied the
ground floor for his residence where as the upper floor was let out for a monthly
rental value of Tk. 4000. Other particulars for the house for the year ended 30 th
June, 2000 are given below:i.)
Ground Rent
Tk.
500
ii)
Municipal Tax paid
Tk.
1,000
iii) Repairing Cost
Tk.
2,000
iv) Legal fee
Tk.
500
v)
Salary of nightguard
Tk.
12,000
vi) Insurance premium
Tk.
6,000
vii) Interest of HBFC Loan
Tk.
24,000
The Municipal value of the house has been Tk. 90,000. The house has remained
vacant two months.

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d.

Calculate the annual value and the annual income from house properties of Mr.
Alams house.
6.

a.
b.
c.
d.
e.

7.

What are the different kinds of method of accounting on income from business
or profession? Discuss.
How you will compute of capital gain?
What is income from dividend?
What are the allowable deductions of income from other sources?
Mr. Islam has got an agricultural farm and for the year ended 30 th June, 2000 his
income arising there from has been as follows (he has not maintained no books
of accounts):i)
Paddy from cultivation
Tk.
2,80,000
ii)
Winter corps
Tk.
40,000
iii) Paddy from Barga
Tk.
40,000
iv) Rent from lease of agricultural land
Tk.
15,000
v)
Godown rent received
Tk.
10,000
During the year he has spent Tk. 4,000 for local land tax and Tk. 10,000 for
interest on loan of Bangladesh Krishi Bank.
Compute his agricultural income.
Mr. Hossain is a service holder. His sources of income for the year ended 30 th
June, 2000 were as follows:a. Income from salary:i)
Basic Salary
Tk. 15,000
ii)
Dearness allowance Tk. 20% of basic salary
iii)
Entertainment allowance (per month)
Tk. 300
iv)
Medical allowance (per month)
Tk. 500
v)
Bonus
Tk. 30,000
vi)
Special allowance
Tk.5,000
vii)
His office provides him with a car for official purpose.
viii) He is a member of the recognized provident fund of the company to
which he contributes 10% of the basic salary and his employer
contributes a similar amount. During the year a sum of Tk. 1,000
was credited to his P.F. account as interest.
ix)
He has been provided with an unfurnished accommodation the
annual value of which is Tk. 50,000 and he is required to pay Tk.
40,000 annually on account of it.
b. Income from Securities:
i)
He has 13% tax-free and 12% less-tax Government Securities worth
Tk. 20,000 and Tk. 15,000 respectively.
ii)
He also received Tk. 10,000 and Tk. 15,000 on tax-free and less-tax
commercial securities respectively and paid bank charge Tk. 500.
iii)
He received interest of debentures Tk. 30,000.
c. Income from house properties:
He is a owner of a house and it was let-out at a monthly rent of Tk. 10,000
and the Municipal value of the house is Tk. 1,00,000. The expenditure of
the house were as follows:
i)
Fire Insurance Premium Tk. 1,000.
ii)
Municipal Tax Tk. 1,000
The house remained vacant for one month.
d. Income from agriculture:

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i)
Income from tea garden Tk. 1,00,000
ii)
Income from rubber garden Tk. 50,000
e. Income from business :
i)
Income from partnership firm Tk. 20,000.
f. Income from Capital gain:
He sold a machine Tk. 1,20,000. Its fair market value was Tk. 1,50,000. It
was bought by him 10 years back and original cost was Tk. 2,00,000.
Allowable depreciation of it was Tk. 80,000.
g. Income from other sources:
i)
Income from fixed deposits Tk. 50,000.
ii)
Income from postal deposit accounts Tk. 20,000.
iii)
Prize from Prize bond Tk. 1,00,000.
iv)
Dividend (public Ltd. Co.) Tk. 20,000
During the year he incurred the following expenditures:
i)
Life insurance premium Tk. 60,000 on a joint life policy with his
wife. The policy is for Tk. 5,00,000.
ii)
Purchased a savings certificates Tk. 50,000.
iii)
Invested Tk. 45,000 in ICB Mutual Fund.
iv)
Purchased of books Tk. 1,000 and shares of Tk. 15,000.
From the above information, calculate Mr. Hossains total taxable income,
investment allowance and tax liabilities.