Solution: 1

Assessee Name: Ms. Naima Akter

Assessment year: 2014-2015

Income Year: 2013-2014

Computation of total income from salary (Section-21) :

Particular Taka Taka

Basic salary 3,60,000

Dearness allowance 1,20,000
Entertainment allowance 24,000
Employer’s contribution to provident fund (recognized) 60,000
Lunch allowance 24,000
School fee for children of the Naima 1,20,000
Utility allowance 72,000
Conveyance for full time use(5% of basic salary) 18,000
(+) Additional cash allowance 24,000 42,000

Fee for golf club 10,000

Medical allowance 72,000

(-) Actual expenditure 36,000 36,000
12,000
Employer’s contribution to Life insurance policy
60,000
Festival Bonus
Accommodation allowance:
25% of basic salary - 90,000
Or actual rental value Tk. -4,80,000 which is less 90,000

Servant salary 28,800

Total income from salary 10,58,800

 Computation of income from house property (Section - 24):
Particular Taka Taka

Annual value of building:

Actual rental value (15,000×12×3×2) 10,80,000
Less: tenant expenses paid by owner 45,000

10,35,000

Add: owner expenses paid by tenant 15,000

10,50,000

6
Expected rent(14,40,000× ) 10,80,000
8

Annual value (higher one) 10,80,000

Add: Advance received 1,50,000
12,30,000

Admissible expenses:
Repair and maintenance (10,80,000×25%) 2,70,000
City corporation tax (1,30,000×6⁄8) 97,500
Insurance premium (22,000×6⁄8) 16,500
Land revenue paid (8,000×6⁄8) 6,000
Mortgage interest paid (8,000×6⁄8) 6,000
Legal expenses (12,000×6⁄8) 9,000
Uncollectible rent (10,80,000×1⁄6 × 1⁄12) 15,000
Vacancy allowance (10,80,000×1⁄6 × 2⁄12) 30,000
Refund of advance 60,000
5,10,000

Total income from house property: 7,20,000

 Calculation of income from other sources (Section - 33):
Grossing –up:
31,500×100
1. Dividend from ICB unit fund = = 35,000
90
1,52,000×100
2. Interest on savings certificate = = 1,60,000
95
19,000×100
3. Interest on Paribar Sanchaypatra = = 20,000
95
36,000×100
4. Interest on post office savings bank = = 40,000
90
18,000×100
5. Fees for technical service = = 20,000
90
20,000×100
6. Prize of winning bond lottery = = 25,000
80
4,000×100
7. Income from copyright and royalty= = 4,444
90

Calculation of weighted commission expenditure:

1200
1. Collection of dividend from ICB unit fund= × 35,000 = 215
35,000+1,60,000
1,200
2. Collection of interest on savings certificate=35,000+1,60,000 × 1,60,000 = 985
 Computation of income from other sources (Section- 33) :
Taka Taka
Particular
Dividend from ICB unit fund 35,000
(-) Commission 215

34,785
(-) interest
1,000
33,785
(-) Exemption up to 25,000 25,000
8,785

Interest on savings certificate 1,60,000

(-) Commission 985
1,59,015
Interest on post office savings Bank 40,000
Interest on paribar sanchaypatra 20,000
Fees for technical service from government 18,000
Prize of winning bond lottery 25,000
Income from copyright and royalty 4,444
Income from participating television talk show 2,000
5,000
Income from marriage anniversary
5,000
(-) Exemption (social custom) NiL
Income from license 2,000
(-) Renew fee 200
1,800

Total income from other sources 2,81,044

 Computation of income from Agriculture sources (Section – 26 & 27) :
Taka Taka
Particular
Income from Agriculture (Section -26 & 27):
Income from sale of Jute (300×700) 2,10,000
Income from sale of Rice (225×550) 1,23,750
Income from lease of agriculture land 48,000
Income from tea garden (80,000×60%) 48,000
Income from sale of honey 20,000
Gain on sale of tractor 3,000
Gain on insurance compensation 4,000

4,56,750

Less: Admissible expenses:

1. Production cost 2,00,250

2. Land revenue paid 9,000
3. Union parisad tax 6,800
4. Crop insurance premium 11,500
5. Allowable depreciation 8,000
6. Interest on mortgage loan 4,750
7. Maintenance cost of irrigation plant 7,200
8. Loss due to discard of machine 3,500

2,51,000

Total income from source of Agriculture 2,05,750

Computation of total income Ms. Naima Akter:
1.Income from salary : 10,58,800
2.Income from house property : 7,20,000
3.Income from other sources : 2,81,044
4.Income from Agriculture : 2,05,750
Total income of Ms. Naima Akter = 22,65,594

Computation of Rebatable Investment:

1. Bangladesh Sanchoy patra : TK. 2,00,000
2. Prime minister’s relief fund : TK. 1,00,000
3. LIP(10% of sum assured) : TK. 60,000
4. Contribution of P.F(Self + Employer) : TK. 90,000
5. Purchase of share (IPO) : TK. 2,00,000
Total Rebatable Income = TK. 6,50,000

As per section 44 (3) of the ITO, allowable investment allowance comes to

30% 0f total income (excluding employer’s contribution to P.F ) =
(22,65,594-60,000)×30%= 6,61,678.
 Calculation of Tax Liability:
1st TK. 2,75,000 Tax is Nil
For next 3,00,000 Tax @ 10% Tk.30,000
For next 4,00,000 Tax @ 15% TK. 60,000
For next 5,00,00 Tax @ 20% TK. 1,00,000
For next 7,90,594 Tax @ 25% Tk. 1,97,648

Gross Tax =TK. 3,87,648

(-)Tax Rebatable=(6,50,000×15%) =TK. 97,500

Total Tax payable =TK. 2,90,148

(-) AIT/ TDS = Tk. 23,944

Net Tax Payable =TK. 2,66,204