Mr. Athar Ali, a 67 years old farmer, who didn't maintain the books of accounts properly....

 

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Mr. Athar Ali, a 67 years old farmer, who didn't maintain the books of accounts properly. His income from the agriculture related activities for the income year ended on 30 June, 2017 are as follows: 1) Sale of Paddy 200 maunds @ Tk. 400 per maund; 2) Sale of Jute 150 maunds @Tk. 600 per maund; 3) Sale of Rabi Crops Tk. 60,000; 4) Income from agricultural co-operative society which was organized for farming Tk. 25,000; 5) Income from lease of agricultural land Tk. 100,000; 6) Income from Barga Tk. 125,000; 7) Income from sale of herbal or medicinal plants Tk. 30,000; 8) Income from lease of storehouse used for storing crops Tk. 20,000; 9) Income from tobacco industry Tk. 20,000; 10) Income from sale of sugar Tk. 35,000; and 11) Income from sale of tea Tk. 20,000. Mr. Athar Ali had a pump machine which was purchased for Tk. 40,000. To acquire an advance technology in the irrigation plant he has sold the pump machine for Tk. 42,000. At the time of sale, the amount of accumulated depreciation of the pump machine was Tk. 18,000. Moreover, he also had a weighing machine which was purchased at Tk. 18,000. It has become obsolete and has been discarded at Tk. 9,500. At the time of sale, the written down value of the machine was Tk. 13,000. Expenses claimed by him are: Production costs Tk. 200,000; Land revenue paid Tk. 8,000; Interest on loan Tk. 2,500; Union parisad tax Tk. 4,000; Installation of irrigation plant Tk. 70,0003; Maintenance of the irrigation plant Tk. 12,000. In addition, during the year Mr. Athar Ali also incurred the investments and expenses for: (i) Family expenses Tk. 50,000; (ii) Life Insurance premium (policy value Tk. 3,00,000) Tk. 25,000; (iii) Purchase of debenture from primary market Tk. 25,0003; (iv) Donation to Aga Khan Development Network Tk. 20,000; (v) Donation to a local mosque Tk. 6,0003; (vi) Donation to Government Zakat fund Tk. 30,000; and (vii) Purchase of Furniture Tk. 27,000. Compute taxable income and tax liability of Mr. Athar Ali. Mr. Athar Ali, a 67 years old farmer, who didn't maintain the books of accounts properly. His income from the agriculture related activities for the income year ended on 30 June, 2017 are as follows: 1) Sale of Paddy 200 maunds @ Tk. 400 per maund; 2) Sale of Jute 150 maunds @Tk. 600 per maund; 3) Sale of Rabi Crops Tk. 60,000; 4) Income from agricultural co-operative society which was organized for farming Tk. 25,000; 5) Income from lease of agricultural land Tk. 100,000; 6) Income from Barga Tk. 125,000; 7) Income from sale of herbal or medicinal plants Tk. 30,000; 8) Income from lease of storehouse used for storing crops Tk. 20,000; 9) Income from tobacco industry Tk. 20,000; 10) Income from sale of sugar Tk. 35,000; and 11) Income from sale of tea Tk. 20,000. Mr. Athar Ali had a pump machine which was purchased for Tk. 40,000. To acquire an advance technology in the irrigation plant he has sold the pump machine for Tk. 42,000. At the time of sale, the amount of accumulated depreciation of the pump machine was Tk. 18,000. Moreover, he also had a weighing machine which was purchased at Tk. 18,000. It has become obsolete and has been discarded at Tk. 9,500. At the time of sale, the written down value of the machine was Tk. 13,000. Expenses claimed by him are: Production costs Tk. 200,000; Land revenue paid Tk. 8,000; Interest on loan Tk. 2,500; Union parisad tax Tk. 4,000; Installation of irrigation plant Tk. 70,0003; Maintenance of the irrigation plant Tk. 12,000. In addition, during the year Mr. Athar Ali also incurred the investments and expenses for: (i) Family expenses Tk. 50,000; (ii) Life Insurance premium (policy value Tk. 3,00,000) Tk. 25,000; (iii) Purchase of debenture from primary market Tk. 25,0003; (iv) Donation to Aga Khan Development Network Tk. 20,000; (v) Donation to a local mosque Tk. 6,0003; (vi) Donation to Government Zakat fund Tk. 30,000; and (vii) Purchase of Furniture Tk. 27,000. Compute taxable income and tax liability of Mr. Athar Ali.

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Fully agricultural incomes Tk Sale of paddy 80000 Sale of jute 90000 Sale of Rabi crops 60000 Partia... View the full answer