Muaj Muhammad is a renowned financial analyst in the telecommunication market and a resident in Bangladesh. He works as a CFO of a private telecommunication firm and has an age of 68 years. Details of the incomes of Mr. Muaj Muhammad concerned with the income year 2020 – 2021 are presented below: Income from Salary: He received basic salary Tk. 60, 000 per month. He is also entitled to get a house allowance of 50% of the basic salary; Conveyance allowance Tk. 3000 per month; Medical allowance Tk. 10,000 per month. He also received two festival bonuses each equal to one month’s basic salaries. He contributed 10 % of basic salaries to the Recognized Provident Fund (RPF). He received interest @ 13% Tk. 20, 000 on the accumulated balance of RPF. Income from Interest on Securities: · Interest on 10% tax-free government securities Tk. 20,000. · Value of 13% approved debentures Tk. 100,000. · Interest in Zero Coupon Bond Tk. 15,000. Income from Agriculture: · Sale of paddy 40 maunds @ Tk. 1,500 per maund. · Income from borga Tk. 50, 000. · Sale of jute 100 maunds @ Tk. 300 per maund · Income from sugarcane Tk. 100,000. Mr. Muaj maintained proper books of accounts as per the rules of ITO 1984. Expenses relating to all these incomes are Land revenue paid Tk. 8000; Interest on loan Tk. 25,000; Purchase of tractor Tk. 100,000 and actual production cost Tk. 60,000. Income from House property: He has a four-storied house at Muhammad pur. Mr. Muaj resides on one floor and all the other floors are let out at a monthly rent of Tk. 20,000 on each floor. The municipal value of each floor each month is Tk. 30,000. Expenses incurred during the income year 2020-2021 were stated below: · Repair & maintenance expenses Tk. 200,000; · City corporation tax Tk. 10,000; · Interest on the mortgage loan too. 40,000. Income from Other Sources: · Profit from DBBL by Tk. 18,000. · Dividend from ICB Mutual Fund by Tk. 63,000. · Sale of forest timber by Tk. 50,000. During the year he incurred and made the following expenses and investments: · Life insurance premium paid by Tk. 30,000 (policy value Tk. 200, 000); · Family expense Tk. 85,000; · Purchase of shares of listed companies Tk. 50,000; · Donations: Prime minister’s relief fund Tk. 15,000; Religious institution Tk. 10,000; · Deposited to Pension Scheme per month Tk. 4,000; · Purchase of govt. savings certificates Tk. 100,000. Requirement: Determine Taxable Income and Net Tax Liability of Mr. Muaj Muhammad for the assessment year 2021-2022 by using the form as per Income Tax Ordinance 1984, IT-11GA2016.

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