Question

From the following information calculate taxable income and tax liability of Mr. Zawad for the income year ended 30th June, 2018. Basic pay Tk. 20,000 per month; House rent allowance Tk. 8000 per month; Entertainment allowance Tk. 6000 per quarter; He contributed 10% of basic salary in a recognized provident fund and his employer contributed half the amount in the fund; He contributed Tk. 5000 as the said fund as interest for the year @ 14.5%; Two festival bonuses, One for Eid-ul –Fitr and another for Eid-ul-Adha. In Eid-ul-Fitr – One full month’s basic and 50% of a full month’s basic in Eid-ulAdha; He received rent from his house property Tk. 400,000 during the year; whereas municipal value of the house is Tk. 320,000; He incurred Tk. 120,000 for repair and Tk. 6000 city corporation tax for the house rent during the year; He received interest from post office savings bank account Tk. 4500 and dividend from a limited company Tk. 8100; Sale of forest timber Tk. 10,000; He paid the life insurance premium of Tk. 30,000; purchased savings certificate Tk. 50,000 and also purchased primary share of a listed public company Tk. 40,000 during the year.

Answer 1

Statement of Income tax Calculation
Name of the Assessee		Mr. Zawad
Financial Year		2017-18
		Amount in Tk
Income From Salalry
Basic Pay			2,40,000.00
HRA Received	96,000.00
Less: 50% of basic salary or BDT 25000per month whichever is lower
50% of basic salary	1,20,000.00
BDT 25000/Month	3,00,000.00
As lower is Tk 1,20,000 which is more than the actual HRA received,entire HRA received is exempted
So HRA taxable	-	-
Entertainment allowance		24,000.00
Bonus
Eid-ul-Fitr –		20,000.00
Eid-ulAdha		10,000.00
(Festival Bonus is fully taxable)
Employer's Contribution to provident Fund	12,000.00
(amount equal to half of the contribution made by the employee)
Interest received from recogonised PF is exempted as it doesn’t exceed 1/3rd of the salary.
Total Salary			3,06,000.00
INcome from House Property
Annual Value
Actual Rent		4,00,000.00
(As the actual is more than the muncipal value)
City Corporation Tax		6,000.00
Expenditure for Repair		1,00,000.00
an amount equal to one fourth of the annual value of the property where the property is used for residential purpose
( 400000 x 1/4)
Income From House Property			2,94,000.00
Income From Other Sources
Interest from post office Savings	4,500.00
Dividend		8,100.00
Sale of forest Timber ( not agricultural Income)	10,000.00
Income From Other Sources			22,600.00
Total Income			6,22,600.00
Deduction s
Contribution to Provident Fund	24,000.00
Contribution to Provident Fund by employer	12,000.00
Premium upto 10% of the face value	30,000.00
( Assuming it is within 10%)
Invested in primary share of Listed Company	40,000.00
savings certificate	50,000.00
Total Investment	1,56,000.00
30% of taxable income	1,86,780.00
Standard Amount	1,50,00,000.00
Maximum amount eligible for tax rebate is lower of the above	1,56,000.00
Net Taxable Income			4,66,600.00
Tax Slab		Rate		Tax Amount
Upto Tk 250000	-		-
Tk- 250001 Tk 650000	10%		37,260.00