Mr Hiruzzaman is Executive Director of a company. His basic salary is Tk. 87,000 per month.  Particulars of his income are as follows:

(a) Income from Salary:

(i) His basic salary is Tk. 87,000 on 1 July 2018.  

(ii) Leave fare allowance - one-month basic salary.  

(iii) Medical allowance - Tk. 8,000 per month. During the year Mr. Hiruzzaman had to undergone Kidney surgery and he spent Tk. 3,50,000 for the operation. His employer reimbursed the whole amount of cost of operation.

(iv) Charge allowance - Tk. 2,500 per month.

(v) He has been provided with a furnished flat and the rent of the flat is Tk. 40,000 per month.

(vi) He contributed 10% of his basic to approved provident fund and received interest at the rate of 15% amounting to Tk. 150,000.

(vii) He received conveyance allowance Tk. 3,000.

(viii) He also gets full time car for his personal and official use.

(ix) Fuel cost for the car was Tk. 2,40,000 and Driver's salary was Tk. 2,20,000. (x) Entertainment allowance - Tk. 500 per month.

(xi) Bonus - two months basic salary.

(xii) He travelled to India with his spouse as per the terms of employment. The company paid him Tk. 3,00,000 for both way tickets. However actual ticket cost was Tk.  2,50,000.

(b) Interest on Securities:

(i) Interest on tax exempted government securities - Tk. 25,000

(ii) Interest on taxable Government securities - Tk. 18,000

(iii) Interest on Debenture (Gross) - Tk. 5,000.

(iv) Interest on Savings certificate Tk. 45,000

(c) Income from House Property:

He has a two storied building in Dhanmondi. The municipal value of the house is Tk.  3,00,000. He lives in 1st floor and the ground floor is let out at Tk. 20,000 per month. He took loan of Tk. 5,00,000 at 15% interest. Expenses of the house for the year were as follows:

Repairing Tk. 10,000; Legal expenses Tk. 5,000; Collection expenses Tk. 1,500; Municipal Tax Tk. 5,000; Electricity installation expense Tk. 10,000; Wasa bill Tk. 2,000; Land Tax Tk. 2,500; Insurance premium Tk. 1,500.  

(d) Agricultural Income:

Sale of Agri-products Tk. 2,00,000; Cash rental of agricultural land Tk. 1,00,000 and sale of honey Tk. 10,000.  

Expenses relating to agriculture were - Local rates and taxes Tk. 3,000; Insurance premium Tk. 6,000; Interest on loan Tk. 15,000 and Land development Tk. 25,000.

(e) Income from Business:

Share of profit from partnership firm Tk. 1,50,000; Income from Sole Tradership Business Tk. 50,000; Last year' s loss carried forward Tk. 40,000.

(f) Other Income:

(i) Interest on bank deposits (Gross) Tk. 13,000

(ii) Remuneration received as Director Tk. 50,000

(iii) Royalty from Book Tk. 60,000

During the year he incurred the following expenses:  

(a) Family expenses Tk. 2,40,000 (b) Insurance premium-own (Policy value Tk. 5,00,000) 48,000 (c) Insurance premium-spouse (Policy value Tk. 3,00,000) 40,000 (d) Purchase of share of partnership 65,000 (e) Purchase Bangladesh savings certificate 80,000

(f) Purchased Books 4,000 (g) Donation to Prime Minister's Relief Fund 10,000 (h) Deposit to Pension Scheme (per month Tk. 500) 6,000 (i) Paid to Zakat Fund 6,000

From the above information compute his total income and tax to be paid for the income year 2018- 19.

Answer rating: 100% (QA)

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