#01 a) Any income of a farmer is to be treated as agricultural income -Do you...

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#01 a) "Any income of a farmer is to be treated as agricultural income" -Do you agree? Explain in detail. b) Compute taxable income and tax liability of Md. Bazlur Rahman, who is a 50 years old farmer, from the given particulars related to the income year ended 30 June, 2019: Sale of rice 700 maunds @ Tk. 1100 per muund; Sale of potato 100 maunds @ Tk. 450 per maund, Income from lease of agricultural land Tk. 80,000; Income from sale of stones from quarries Tk. 45,000; Income from sale of water used for irrigation Tk. 35,000; Income from Tea garden Tk. 170,000; Income from sale of wild grass Tk. 45,000; Income from sale of honey from honey comb Tk. 10,000; and sale of mud to the brickfield for Tk. 12,000. When the income tax authority ask for the books of accounts regarding cultivation expense Md. Bazlur Rahman failed to provide proper records for both rice and potato though he claimed Tk. 100,000 as production cost. His other expenses are: Union Parishad tax Tk. 1,500; Crop insurance premium Tk. 5,500: Allowable depreciation for tractors as per ITO 1984 was Tk. 30,000. Md. Bazlur Rahman had a tractor which was purchased for Tk. 29,000 and sold for Tk. 16,000 (accumulated depreciation Tk. 22,000). Moreover, he has also sold a weighing machine for Tk. 12,500 purchase price of which was Tk. 25,750. At the time of sale the written down value of the machine was Tk. 17,250. Required: L ii. Compute taxable income for the relevant income year. Compute tax liability for the relevant assessment year. #01 a) "Any income of a farmer is to be treated as agricultural income" -Do you agree? Explain in detail. b) Compute taxable income and tax liability of Md. Bazlur Rahman, who is a 50 years old farmer, from the given particulars related to the income year ended 30 June, 2019: Sale of rice 700 maunds @ Tk. 1100 per muund; Sale of potato 100 maunds @ Tk. 450 per maund, Income from lease of agricultural land Tk. 80,000; Income from sale of stones from quarries Tk. 45,000; Income from sale of water used for irrigation Tk. 35,000; Income from Tea garden Tk. 170,000; Income from sale of wild grass Tk. 45,000; Income from sale of honey from honey comb Tk. 10,000; and sale of mud to the brickfield for Tk. 12,000. When the income tax authority ask for the books of accounts regarding cultivation expense Md. Bazlur Rahman failed to provide proper records for both rice and potato though he claimed Tk. 100,000 as production cost. His other expenses are: Union Parishad tax Tk. 1,500; Crop insurance premium Tk. 5,500: Allowable depreciation for tractors as per ITO 1984 was Tk. 30,000. Md. Bazlur Rahman had a tractor which was purchased for Tk. 29,000 and sold for Tk. 16,000 (accumulated depreciation Tk. 22,000). Moreover, he has also sold a weighing machine for Tk. 12,500 purchase price of which was Tk. 25,750. At the time of sale the written down value of the machine was Tk. 17,250. Required: L ii. Compute taxable income for the relevant income year. Compute tax liability for the relevant assessment year.

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a No I do not agree The income of a farmer should not be treated as agricultural income because it i... View the full answer