Ms. Adeeba Sharmin is the owner of a four-storied building (in each floor there are two flats) at Mirpur. Ms. Adeeba Sharmin resides with her family in the 2nd floor and all other floors were let out at a monthly rent of Tk. 30,000 per flat. The owner paid gas and water bill of the tenant Tk. 12, 000. Tenant paid Tk. 30,000 for the repair expense on behalf of owner. The municipal value of the house is Tk. 24,00,000.

The following expenses were incurred in the income year 2018-19 for that house: Repair expenses Tk. 120,000; City corporation tax Tk. 22,000; legal expense Tk. 25,000; insurance premium Tk. 35,000; caretaker and night guard salary Tk. 24,000; pump man salary Tk. 10000; land revenue paid Tk. 12,000; alteration cost for ground floor Tk. 60,000. During the year one of the tenants of one flat leave the house without paying rent for one month. Even after taking necessary legal action Ms. Adeeba Sharmin failed to collect the rent of that month. During the year, one flat of the house was vacant for two months.

Required:

Compute the taxable income from house property for the income year ended June 30th, 2019.

Calculate the tax liability of Ms. Adeeba Sharmin for the assessment year 2019-20.

Answer rating: 100% (QA)

Taxable income Gross Annual Value GAV 30000 x 12 x 4 Tk 1440000 Less Muni... View the full answer