Question

a) A purchase of new macbook laptop costs rm3500 and rm200 for additonal warranty

b) A child aged 28 and styding Phd in uum. Most expenses are covered by the government scholarship. the taxpayer (father) spent rm4900 for some expenses.

c) Purchase of books costs rm800.However one of the purchase receipt worth rm90 was lost.

d)the taxpayer spent rm18000 for a carer to take care of his ill mother.The carer is taxpayer's sister who is an ex-nurse

e)The wife has just been diagnosed with parkinson disease and the taxpayer has send in the application to the dept of social welfare for the disability card.

explain the eligibility of relief and amount of relief if eligible by providing a proper justification, according to the gazetted relief for year of assesment 2019.

Answer 1

According to the Malaysian Tax system there are certain tax incentives or benefits for the tax payer. The tax credit limits are as follows for each of the following

1) Given , the costs of macbook is RM 3,500 and additional Warranty of RM 200. Purchase of books RM 800, the receipt worth lost RM 90

The above costs are related to the life style tax relief. The maximum limit for the life style tax relief is RM 2,500 which includes purchase of boos, journals, news papers, personal computer, tablet, laptops for self, spouse, child, internet bill, sports equipment etc.

so, for the above costs he incurrd for macbook and books will be limited to RM 2,500

2) A child aged 28 and studying Phd in uum.The tax payer paid RM 4,900 for the expenses.

Every unmarried child aged 18 and above who is

i) receiving further education in Malaysia for the diploma or higher

ii) receiving eduction degree or equivalent outside malaysia

iii) provided the institution must be approved by the relevant government authority

can have a maximum limit of RM 8,000 per child

Here UUM is University Utara Malaysia which is the governmnet recognised university , so can take the relief upto RM 8,000 per child but limted to the expenses he paid which is RM 4,900

3)the taxpayer spent rm18000 for a carer to take care of his ill mother.The carer is taxpayer's sister who is an ex-nurse

For the purpose of parental care, a taxpayer can get a relief of RM 1,500 for the mother and RM 1,500 for the father with the folloeing conditions

i) Parents should be aged 60 and above

ii) The tax payer should not take the relief for medical treatment and care of parents

iii) Parents should not have an annual income of exceeding RM 24,000 per each parent

iv) The parents must be legitimate natural parents are adopted according to the law

v) Parents should be residents of malaysia for the current assessment year

Here i am assuming the ill mother is above 60 years of age and so can take a tax relief of RM 1,500

4) The wife has just been diagnosed with parkinson disease and the taxpayer has send in the application to the dept of social welfare for the disability card.

The limit for the disabled wife is RM 3,500

Hence the total eligible relief is as follows

Particulars Amount

Life style tax relief. RM 2,500

expenses for higher education for child aged 18 years above. RM 4,900

Parental care RM 1,500

Disabled wife RM 3,500

Total RM 12,400

So, the eligible tax relief according the the gazetted relief for year of assesment 2019 is RM 12,400