REQUIRED:

a) For the year of assessment 2022, compute the followings:

i. The chargeable income of the deceased; and

ii. The income tax payable of the executor. (13 MARKS)

b) Explain the taxability (if any) of the annuity received by Salman of RM10,000 (2 MARKS)

APPENDIX:

Transcribed Image Text:

Salmah, a resident taxpayer, died domiciled in Malaysia on 30 September 2022. Upon his death, his estate was administered by Sulaiman, his brother who is non-resident in Malaysia for the basis year 2022. The following are information gathered by the executor for the year of assessment 2022: Business income (Laundry business) Adjusted loss Balancing charge Capital allowance Business income (Restaurant business) Adjusted income Unabsorbed loss brought forward Capital allowance Rental income Net rental income after deduction of interest on mortgage (RM2,000) and installation of air conditioner (RM1,300) Interest income Fixed deposit at MBB Bank maturing on 10 November 2022 Dividend income Glosev Berhad (a pioneer company) paid on 5 April 2022 RM Other information available: (15,000) 27,000 15,000 100,000 20,000 10,000 30,000 3,000 18,500 Other expenses Donation made to Rumah Kebajikan Masyarakat (approved) on May 2022 Executor's remuneration Annuity payable to husband, Salman Salmah also received income from sources outside Malaysia as follows: 1. Interest of RM25,000 on a fixed deposit was received from a bank in Thailand. The amount was fully received in Malaysia in May 2022. 5,000 10,000 10,000 Salmah was a disabled person (registered with Welfare Services Department) due to an accident several years ago. He lived with his husband, Salman until he died. Salman has no other sources of income except for annuity received from the executor. Before his death, Salmah spent RM7,000 to purchase a wheelchair in January 2022 and RM550 for her husband medical examination. Salmah, a resident taxpayer, died domiciled in Malaysia on 30 September 2022. Upon his death, his estate was administered by Sulaiman, his brother who is non-resident in Malaysia for the basis year 2022. The following are information gathered by the executor for the year of assessment 2022: Business income (Laundry business) Adjusted loss Balancing charge Capital allowance Business income (Restaurant business) Adjusted income Unabsorbed loss brought forward Capital allowance Rental income Net rental income after deduction of interest on mortgage (RM2,000) and installation of air conditioner (RM1,300) Interest income Fixed deposit at MBB Bank maturing on 10 November 2022 Dividend income Glosev Berhad (a pioneer company) paid on 5 April 2022 RM Other information available: (15,000) 27,000 15,000 100,000 20,000 10,000 30,000 3,000 18,500 Other expenses Donation made to Rumah Kebajikan Masyarakat (approved) on May 2022 Executor's remuneration Annuity payable to husband, Salman Salmah also received income from sources outside Malaysia as follows: 1. Interest of RM25,000 on a fixed deposit was received from a bank in Thailand. The amount was fully received in Malaysia in May 2022. 5,000 10,000 10,000 Salmah was a disabled person (registered with Welfare Services Department) due to an accident several years ago. He lived with his husband, Salman until he died. Salman has no other sources of income except for annuity received from the executor. Before his death, Salmah spent RM7,000 to purchase a wheelchair in January 2022 and RM550 for her husband medical examination.

Answer rating: 100% (QA)

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