Mr. X is a regular taxpayer, and this taxable income is 250,000 BDT during 2020-21. He...

 

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Mr. X is a regular taxpayer, and this taxable income is 250,000 BDT during 2020-21. He has invested 50,000 BDT in the bond market and 20,000 BDT in Stock market respectively. Government has announced the allowable investment, which is 25% of total taxable income, and the rebate rate is 12%. All the possible options are listed [A to E] A. The maximum allowable investment is 80,000 BDT B. The maximum allowable investment is 62,500 BDT C. The rebate amount is not greater than 7500 BDT D. Taxpayer's tax incidence is zero E. When the rebate rate increases, the tax base reduces Select the correct answer choice (one or more than one), and explain your logic. You may use graph or math if the answer will require. [5] Mr. X is a regular taxpayer, and this taxable income is 250,000 BDT during 2020-21. He has invested 50,000 BDT in the bond market and 20,000 BDT in Stock market respectively. Government has announced the allowable investment, which is 25% of total taxable income, and the rebate rate is 12%. All the possible options are listed [A to E] A. The maximum allowable investment is 80,000 BDT B. The maximum allowable investment is 62,500 BDT C. The rebate amount is not greater than 7500 BDT D. Taxpayer's tax incidence is zero E. When the rebate rate increases, the tax base reduces Select the correct answer choice (one or more than one), and explain your logic. You may use graph or math if the answer will require. [5]

Answer rating: 100% (QA)

A The maximum allowable investment is 80000 BDT The maximum allowable investment for Mr X is 80000 B... View the full answer