Encik Zubir $($a certified handicapped person$)$ is the owner of a financial consulting firm, Bijak Wealth Enterprise. The business assists its clients to grow their wealth. Encik Zubir is married to Puan Akmar who is currently working as a pharmacist in Putrajaya Hospital. Both of them are tax resident in Malaysia for the year of assessment $2023.$ The following is the summary of income provided by Encik Zubir and Puan Akmar in respect of the basis year $2023$:

Encik Zubir

The adjusted income and capital allowance for Bijak Wealth Enterprise were RM$45,800$ and RM$14,480$ respectively.

The following were income and expenses in connection with Encik Zubirs terrace house:

RM

Rental income per month

$2,300$

Advance rental $(2$ months$)$

$4,600$

Assessment for $2023$

$1,200$

Advertisement cost

$200$

Quit rent for $2021$

$420$

Quit rent for $2023$

$420$

Penalty for late payment of quit rent

$50$

Repair and maintenance on $15$ April $2023$

$700$

The terrace house was occupied by Encik Zubir until $30$ April $2023$ and effective from $1$ June $2023,$ the house was rented out to a tenant named Encik Kadir.

Interest income of RM$4,200$ from a fixed deposit with Maybank.

Royalty amounted to RM$50,500$ from Network Publishing upon book published titled You are a Smart Millionaire$.$

Puan Akmar

A monthly salary of RM$7,298($after EPF, $11\%).$

Dividend income of RM$32,200$ received from investment in Singaporean company. The dividend was remitted to Malaysia in $2023.$

Due to her knowledge and expertise, she received invitations from several medical colleges to conduct workshops pertaining to her expertise in medicines and food supplements. The honorarium received was RM$12,000.$

Additional Information:

a$.$ Encik Zubir and Puan Akmar were blessed with four children:

Mawar

Aged $24$ years old, working as an auditor and pursuing her studies in Master of Forensic Accounting & Financial Criminology at UTM on part$-$time basis

Megat

Aged $22$ years old, studying medicine in India under a full scholarship. Encik Zubir incurred RM$6,000$ for his study in $2023$

Melati

Aged $18$ years old, studying matriculation in Tangkak, Johor

Jebat

Aged $9$ years old, a legal adopted son who was certified as handicapped due to moderate down syndrome. Jebat attending special school in Putrajaya

b$.$ Encik Zubir incurred RM$9,000$ for $6-$month day care services for his father, aged $75$ years old who is suffering mental illness. His father is living with him. His mother passed away in $2019.$

c$.$ Encik Zubir purchased books and smart phone for Puan Akmar amounted RM$2,100$ and RM$1,600$ respectively.

d$.$ Encik Zubir incurred RM$2,400$ for Melatis laptop.

e$.$ Encik Zubir paid RM$3,500$ as zakat perniagaan to Majlis Agama Islam Wilayah Persekutuan Cawangan Putrajaya. He also paid zakat fitrah amounted to RM$42.$

f$.$ Encik Zubir incurred RM$2,000$ for annual medical insurance premium for his family.

g$.$ Puan Akmar incurred RM$1,500$ for a mountain bike and RM$1,600$ for internet subscription.

h$.$ Puan Akmar bought a wheelchair for her paralysed brother for RM$8,000.$ She also bought health supplements for her parents amounted to RM$1,000.$

i$.$ Puan Akmar donated RM$12,000$ to Majlis Kanser Negara $($MAKNA$).$

j$.$ Puan Akmar also paid Melatis complete medical check$-$up amounted to RM$1,500.$ The receipt was issues by KPJ Kajang.

k$.$ Puan Akmar incurred RM$1,500$ for a mountain bike and RM$1,600$ for internet subscription.

l$.$ Puan Akmar bought a health supplements for her parents amounted to RM$1,000.$

m$.$ Puan Akmar also paid Melatis complete medical check$-$up amounted to RM$1,500.$ The receipt was issues by KPJ Kajang.

n$.$ Both Encik Zubir and Puan Akmar paid zakat during the year amounting to Majlis Agama Islam Wilayah Persekutuan Cawangan Putrajaya, amounting to RM$350$ and RM$400$ respectively.o$.$ Encik Zubir subscribe gym membership amounting RM$1,800$ for his family.

p$.$ Puan Akmar also paid Jebats monthly fees amounting RM$3,000$ that serve special needs for child care $($registered centre$).$

Required:

Compute the income tax payable for Encik Zubir and Puan Akmar for the year of assessment $2023.$ To optimize tax relief, Encik Zubir and Puan Akmar are still undecided about whether to do a joint or separate assessment. $($Round up to the nearest ringgit$).$

Answer rating: 100% (QA)

Computation of Income Tax Payable for Encik Zubir and Puan Akmar for the Year of Assessment 2023 Joi... View the full answer