(FACULTY OF BUSINESS STUDIES)

Course Name: TAXATION

Submitted to:
Mr. Steve Oscar D’ Rozario
Assistant Professor

Department of Accounting

FBS, Premier University

Submitted by: GROUP-A

NAME ID NUMBER DEPARTMENT BATCH
Giash Uddin Mahmud 1703610109424 FINANCE 36th
Noor E Tasnim Shopnil 1703610109448 FINANCE 36th
Ismita Afrin Farsi 1703610109464 FINANCE 36th
Soumik Barua 1703610109447 MARKETING 36th
Azhar Uddin 1703610109345 MARKETING 36th
Chowdhury

Submission Date: 25th June, 2020

Name: Giash Uddin Mahmud
ID: 1703610109424 (Finance B)

Chapter: Income from Salary

Illustration: 5; Page: 207

Question: Calculate the Taxable Income and Tax to be paid by Mr. Mahdi Hasan for the income year
2018-2019.

Step 1: Calculate the total taxable income of Mr. Mahdi Hasan.

Assessee: Mr. Mahdi Hasan

Income Year: 2018-19
Assessment Year: 2019-2020

SL Particular Taka Taka Taka

n
o
1. Income from Salary (sec: 21)
a) Basic Salary: 30,000*6 1,80,000
b) Basic Salary: 40,000*6 2,40,000 4,20,000

c) House Allowance: (40% of B.S.) 1,68,000

Exempted up-to:
50% Of B.S. = (50%*420,000)
OR, Maximum 21,0000
(which is less) 3,00,000 2,10,000 Nil

d) Medical Allowance: (2000*12) 24,000

Exempted up-to:
10% Of B.S. = (10%*420,000) 42,000
OR, Maximum 1,20,000
(which is less) 42,000 Nil

e) Festival Bonus: (30,000*2) 60,000

f) Salary of House Servant 60,000
g) Employer’s contribution to R.P.F @ 10% of B.S. 42,000
h) Charge Allowance 36,000
Income from Salary 6,18,000
2. Income From other Sources: ( sec: 33-34)
a) Interest on Fixed Deposit : (60,000*100)/90 66,667
b) Interest on Savings Account: (40,000*100)/90 44,444
c) Reward for Extra Ordinary performance 25,000
Total Income 7,54,111
Less: Allowable Deduction
I. Contribution to Recognized 10,000
II. Contribution to Group Insurance 18,000
III. Contribution to employee welfare fund 6,000 34,000
Total Taxable Income 7,20,111
Step 2: Calculate of tax credit income of an assessee

A. Actual investment

Particular TK TK
1. Contribution to recognized P.F. (42,000+42,000) 84,000
2. Purchase of Share 50,000
3. Life Insurance Premium 60,000
4. Group insurance Premium 18,000
Total 2,12,000

B. Maximum Amount= TK 15,00,0000

C. 25% of total income expecting Employer’s Contribution
= (754,111-42,000)*25%
=178,028
Lowest of these three is TK 1, 78,028.
Tax rebate = (178,028*15%) =TK 26,704.

Step 3: Calculate of net Tax liability of an Assessee:

 Computation of Tax on TK. 720,111

Income Step TAKA TAKA

On First TK. 25000 @0% Nil
On next TK. 400000 @10% 40,000
On next TK. 500000 @15% (here Tk. 720111-650000) 10,517
Gross Tax 50,517
LESS:
I. Rebate on investment 26,704
II. Tax deducted on:
Fixed Deposit interest (66667*10%) 6,667
Savings interest (44444*10%) 4,444
III. Tax deducted at Source by employer 30,000 41,111
Net Tax Payable 9,406

So, Mr. Mahdi Hasan Can Claim TK. 9406 as Refund.

 Name: Nur-E-Tasnim Shopnil
ID: 1703610109448 (Finance)

Chapter: Income from Interest on Securities

Page: 224
Illustration: 2

Calculation of Total Taxable Income of an Assessee :

Name of the Assessee: Mr. Hassan Raja

Residential Status: Resident
Income Year: 2018 - 2019
Assessment Year:2019 - 2020

Sl Particulars Taka Taka

No
1. Interest on tax free govt. securities 20000
- Fully Exempted (20,000) Nil
2. Intereston port-trust debenture 40,000

3. Interest on securities of Pvt. Hospital 25,000

4. Interest on 15% commercial securities(120000*15%) 18,000

5. Interest of 8% Govt. Security(Less Tax) (150000*8%) 12,000

6. 10% commercial security of (1,00,000*10%)*1/2 5,000

7. Interest on treasury bill 5,000

10,5,000

(-) Allowable Expenditures:

1. Bank loan (1,00,000*8%)*1/2 4000
2. Bank charge *1 840
(4,840)

Total Taxable Income 100,160

Workings:
1. Bank charge:
Total Income: 20,000+40,000+25,000+18,000+12,000+5,000+5,000 = 125,000
Total allowable income: 40,000+25,000+18,000+12,000+5,000+5,000 = 105,000
(1,000/1,25,000)* 105,000 = 840
Name: Ismita Afrin Farsi

Id: 1703610109464 (Finance)

Illustration: 4
Income from House Property

Name of the Assessee: Mrs. Chad Sultana

Resident Status: Resident
Income Year: 2018-2019
Assessment Year: 2019-2020

Step 1: Calculation of total taxable income of an Assessee

Particulars Taka Taka
Income from salary 300,000
12000
Income from Securities 240,000 240,000
Nil
Annual Values of The House Rental Income (20,000×12)

Or, Municipal Value

(Whichever is higher)

Gross Total 552,000

(-)Allowable

Expenditure 60,000
Repair and Maintenance (240,000×25%) 4,000
3,000
Municipal Tax
5,000
Urban Property Tax
(72,000)
Interest on loan taken for the house property

Total 480,000

Income from others source:

2500
Interest on post office saving bank account fully
Assessable from 2007-08 as per finance Act 2007

Total Taxable Income 482,500

Name: Soumik Barua

ID: 1703610109447 (Marketing)

Chapter: Income from Agriculture

Illustration-1, Page: 260

Step 1: Calculation of total income of an assessee:

Assessee: Mr. Motaleb Matabber

Income Year: 2018-2019

Assessment year: 2019-2020

Particulars Taka Taka

Income from sale of paddy 1,80,000
(300mauned *600)
Income from lease of agricultural land. 80,000

Income from poultry farm. 40,000

(-) Fully exempted (40,000)
NIL
2,60,000
(-) Allowable Expenditure:
(1,08,000)
Cost of cultivation (180,000*60%)
1,52,000
Total agricultural income

Other Income:
28,000
Income from ferry ghat
38,000
Income from salt production 66,000
Total Taxable Income 2,18,000

Note: Income from ferry ghat & salt production are typical non-agricultural income. These
will be taxed but not as agricultural income.
Name: Md. Azhar Uddin Chowdhury

ID: 1703610109345 (Marketing)

Chapter: Income from Business and Profession

Illustration – 3, Page – 290

Solution: Computation of Business Income and Total Income

Assesse: Mr. Soroj Shaha

Income year: 2018-19

Assessment Year: 2019-20

Particulars Taka Taka

Profit as per Income Statement 3,77,000
Add : Inadmissible Expenses :
i) Salary paid to Proprietor 60,000
ii) Bad debt provision 16,000
iii) Depreciation (To be treated further latter on) 14,000
iv) Legal Exp. (For violation of traffic rule) 15,000
v) Loss of stock 12,000
vi) Travelling Exp. (Personal) 50,000
vii) Loss on sale of security 15,000
1,97,000
-
In-admissible Exp. U/S-30 : -
i) Brokerage & Commission paid to non-resident & Tax not
deducted = Tk. 1,20,000 (To be treated latter on Note-4)
Add: Income not shown in account : 20,000
ii) Commission received 5,94,000

(10,000)
Less : Expenditure Allowable :
5,84,000
i) Depreciation allowable under Income-tax provision
40,000
Business Income 20,000
Less : Non-Business Income : 32,000
i) Profit on sale of Investment
ii) Int. on Tax-free Govt. Security (92,000)
iii) Bank Interest
4,92,000

Taxable Business Income

Total Income Taxable:

Particulars Taka
i) Business Income 4,92,000
ii) Int. on Tax free Govt. Security -
(Non-assessable Note-6)
iii) Bank Interest 32,000

5,24,000

Competition of Tax:

Particulars Taka
st
i) On 1 Tk. 2,50,000 Nil
ii) On Next Tk. 2,74,000 @ 100% 27,400
Add: On Non-allowable Exp.
i) U/s- 30 tax at regular rate on tk. 1,20,000 @ 100% 12,000
Gross Tax Payable 39,400
Less: Tax deducted on Bank Int. @ 100% on Tk. 32,000 3,200

Net Tax Payable 36,200

Notes:

1) Entertainment allowance is considered within exemption limit, thus it has been allowed as
expenses.
2) Mics. Expenses assumed to be genuine and related to business.
3) Salary, remuneration, commission etc. paid to proprietor or partner is not allowable.
4) Non-assessable exp. U/S 30 are to be separately shown & be taxed at regular rate with tax on
business income. It is not to be adjusted first but to treated separately & be taxed as income from
business/profession vide F.A-2019.
5) Bank interest is subject to tax at source @10%. It is assume interest received was gross & thus
tax rebate for tax deducted at source has been allows computing net tax payable.
6) Int. on tax free Govt. Security is non-assessable.
7) Travelling expenses of personal nature is not allowable.

T
HE END