Illustration 8-5

Assesse: Mr. Abedin

Income year: 2019-2020
Assessment year: 2020-2021
Calculation of total income

Particulars Amount (Tk.) Amount (Tk.)

Income from House Property (sec:24)
Annual Value:
Rent Received (10,000×6)×12 720,000
Add: Owner’s expense paid by tenant 10,000
Less: Tenant’s expense paid by owner (30,000)
Actual Rental value 700,000
Municipal value
(960,000÷8×6) = Tk. 720,000 720,000
Annual Value (Higher one) i.e. Tk. 720,000 720,000
Advanced received 100,000
Less: Admissible Expenses:
Repair and Maintenance expense
25% of Annual Value (720,000×25%) = Tk. 180,000
180,000
City Corporation tax (22,000÷8×6) = Tk. 16,500
16,500
Insurance premium (16,000÷8×6) = Tk. 12,000 12,000
Land revenue (2,000÷8×6) = Tk. 1,500 1,500
Mortgage Interest (4,000÷8×6) = Tk. 3,000 3,000
Uncollectible rent (720,000÷6)÷12×1 = Tk.
10,000 10,000

Vacancy allowance (720,000÷6)÷12×2 = Tk. 20,000

20,000
Refund of Advance 40,000 (283,000)
Net Income 537,000
 Illustration 8-1
Assesse: Mr. Jashim
Income year: 2019-2020
Assessment year: 2020-2021
Calculation of total income

Particulars Amount (Tk.) Amount (Tk.)

Income from House Property (Sec:24)
Actual Rental value (19,000×12) = Tk. 228,000 228,000
Municipal value 240,000
Annual Value (Higher one) i.e. Tk. 240,000 240,000
Less: Admissible Expense:
Repair and Maintenance Expense 25% of
Annual value (240,000×25%) = Tk. 60,000 60,000
City Corporation Tax 7,000
Fire insurance premium Tk. 750 per quarter
(750×4) = Tk. 3,000 3,000
Interest on Borrowed fund 2,500 (72,500)
Net income 167,500
 Illustration 8-2

Assesse: Mr. Jaman

Income year: 2019-2020
Assessment year: 2020-2021
Calculation of total income

Particulars Amount (Tk.) Amount (Tk.)

Income from House Property (Sec:24)
Rental value 600,000
Less: Tenant’s expenses paid by owner 20,000
Actual Rental Value 580,000
Municipal Value Tk. 120 per square feet
(4,800×120) = Tk. 576,000 576,000
Annual Value (Higher one) i.e. Tk. 580,000 580,000
Less: Admissible Expense
Repair and Maintenance expense 25% of
Annual value (580,000×30%) = Tk. 174,000 174,000
City Corporation Tax 15,000
Fire insurance premium 9,000
Interest on Borrowed fund 3,500 (201,500)
Net income 378,500
 Illustration 8-3

Assesse: Mr. Abid

Income year: 2019-2020
Assessment year: 2020-2021
Calculation of total income

House at Dhanmondi

Particulars Amount (Tk.) Amount (Tk.)

Income from House Property (Sec:24)
Actual Rental Value (12,000×6)×12 864,000
Municipal Value 900,00
Annual Value (Higher one) i.e. Tk. 900,000 900,000
Less: Admissible expenses:
Repair and Maintenance Expense 25% of
Annual Value (900,000×25%) = Tk. 225,000
Insurance premium Tk. 2,000 per quarter
(2,000×4) = Tk. 8,000 8,000
Ground rent 2,000
Local Govt. tax (1,200×12) 14,400
Interest on Borrowed fund 5,000
Vacancy allowance
(900,000÷6)÷12×2 = Tk. 25,000 25,000 (279,400)
Net income 620,600
 House at Thakurpara

Particulars Amount (Tk.) Amount (Tk.)

Income from House property (Sec:24)
Rental Value (6650×6)×12 478,800
Add: TDS (7,000×5%)×6×12 25,200
Actual Rental Value 504,000
Municipal Value (700,000÷8×6) 525,000
Annual Value (Higher one) i.e. Tk. 525,000 525,000
Less: Admissible Expense:
Repair and Maintenance Expenses 30% of
Annual Value (525,000×30%) = Tk. 157,500 157,500
Insurance premium Tk. 1,500 per quarter
(1,500×4)÷8×6 4,500
Local Govt. Tax (500×12)÷8×6 4,500
Interest on Borrowed fund (4,000÷8×6) 3,000 (169,500)
Net income 356,000
Total Net Income from: 620,600
House at Dhanmondi and house at Thakurpara 356,000 976,600
 Illustration 8-4

Assesse: Mr. Arup

Income year: 2019-2020
Assessment year: 2020-2021
Calculation of total income

Particulars Amount (Tk.) Amount (Tk.)

Income from House Property (Sec:24)
Actual Rental Value (9,200×6×12) 662,400
Municipal Value (900,000÷8×6) 675,000
Annual Value (Higher one) i.e. Tk. 675,000 675,000
Less: Admissible Expense:
Repair and Maintenance expense 25% of
Annual Value (675,000×25%) = Tk. 168,750 168,750
City corporation Tax (22,000÷8×6) 16,500
Insurance premium (16,000÷8×6) 12,000
Land Revenue (2,000÷8×6) 1,500
Interest on Mortgage (4,000÷8×6) 3,000
Uncollectible Rent (675,000÷6)÷12×1 9,375
Vacancy Allowance (675,000÷6)12×2 18,750 (229,875)
Net income 445,125
 Illustration 8-6

Assesse: Mr. Jalal Ahmed

Income year: 2019-2020
Assessment year: 2020-2021
Calculation of total income

Particulars Amount (Tk.) Amount (Tk.)

Income from House Property (Sec:24)
Rental Value (28,500×12) 342,000
Add: TDS (1,500×12) 18,000
Actual Rental Value 360,000
Municipal Value (725,000÷2) 362,500
Annual Value (Higher one) i.e. Tk. 362,500 362,500
Less: Admissible Expense:
Repair and Maintenance Expense 30% of
Annual Value (362,500×30%) = Tk. 108,750 108,750
City corporation Tax (22,000÷2) 11,000
Insurance premium (16,000÷2) 8,000
Land Revenue (2,000÷2) 1,000
Interest paid to HBFC (6,000÷2) 3,000
Vacancy allowance (362,500÷12×2) 60,417 (192,167)
Net income 170,333
 Illustration 8-7

Assesse: Mr. Aziz Ahmed

Income year: 2019-2020
Assessment yer: 2020-2021
Calculation of total income

Particulars Amount (Tk.) Amount (Tk.)

Income from House Property (Sec:24)
Rental Value:
Residential purpose (25,000×12) 300,000
Commercial purpose (28,500×12) 342,000
Add: TDS (1,500×12) 18,000
Actual Rental Value 660,000
Municipal Value 650,000
Annual Value (Higher one) i.e. Tk. 660,000 660,000
Add: Unspent Repair and Maintenance expense 83,000
Total 743,000
Less: Admissible Expense
Repair maintenance Expenses
(300,000×25%)+(360,000×30%) = Tk. 183,000 183,000
City corporation Tax 22,000
Insurance premium 16,000
Land Revenue 2,000
Interest paid to HBFC 6,000
Vacancy allowance (300,000÷12×2) 50,000 (279,000)
Net income 464,000
 Illustration 8-8

Assesse: Mr. Arman

Income year: 2019-2020
Assessment year: 2020-2021
Calculation of total income

Particulars Amount (Tk.) Amount (Tk.)

Income from House property (Sec:24)
Rental Value (80,000×12) 960,000
Less: Tenant’s expense paid by owner 50,000
Actual Rental Value 910,000
Municipal Value (2,000,000÷2) 1,000,000
Annual Vaule (Higher one) i.e Tk. 1,000,000 1,000,000
Less: Admissible Expense:
Repair and Maintenance expense 25% of
Annual Value (1,000,000×25%) = Tk. 250,000
250,000
City corporation Tax (30,000÷2) 15,000
Fire insurance premium (18,000÷2) 9,000
Interest on Borrowed fund (120,000÷2) 60,000 (334,000)
Net income 666,000
 Illustration 8-9

Assesse: Mr. Taleb

Income year: 2019-2020
Assessment year: 2020-2021
Calculation of total income

Particulars Amount (Tk.) Amount (Tk.)

Income from House property (Sec:24)
Rental Value (190,000×12) 2,280,000
Add: TDS (10,000×12) 120,000
Actual Rental Value 2,400,000
Municipal Value 2,500,000
Annual Value (higher one) i.e. Tk.
2,500,000 2,500,000
Advanced (2,000,000÷5) 400,000
Unspent repair and maintenance expense
(750,000-400,000) 350,000
Total 3,250,000
Less: Admissible Expense

Repair and Maintenance expense 30% of

Annual Value (2,500,000×30%) = Tk. 750,000
750,000
City corporation Tax 30,000
Fire insurance premium 18,000
Interest on loan for construction
(240,000÷3) 80,000
Interest on Borrowed fund 120,000 (998,000)
Net income 2,252,000
 Illustration 8-10

Assesse: Mr. Atif Iqbal

Income year: 2019-2020
Assessment year: 2020-2021
Calculation of total income

House at Azimpur

Particulars Amount (Tk.) Amount (Tk.)

Income from House Property (Sec:24)
Rental Value (8,000×5×12) 480,000
Less: Tenant’s expense paid by owner 30,000
Actual Rental Value 450,000
Municipal Value (480,000÷6×5) 400,000
Annual Value (Higher one) i.e. Tk.
450,000 450,000
Received Advance 100,000
Total 550,000
Less: Admissible Expense:
Repair and Maintenance 25% of Annual
Value (450,000×25%) = Tk. 112,500 112,500
City corporation Tax Tk. 2,400 per quarter
(2,400×4)÷6×5 = Tk. 8,000 8,000
Land Revenue (12,000÷6×5) 10,000
Interest paid to HBFC (4,200÷6×5) 3,500
Vacancy allowance
(450,000÷5)÷12×2 15,000
Refund Advanced 25,000 (174,000)
Net income 376,000
 House at Dhanmondi

Particulars Amount (Tk.) Amount (Tk.)

Income from House Property (Sec:24)
Rental Value (47,500×12) 570,000
Add: TDS (2,500×12) 30,000
Add: Owner’s expense paid by tenant 15,000
Actual Rental Value 615,000
Municipal Value 625,000
Annual Value (Higher one) i.e. Tk.
625,000 625,000
Received Advance (1,000,000÷5) 200,000
Total 825,000
Less: Admissible Expense
Repair and Maintenance Expense 30% of
Annual Value (625,000×30%) = Tk. 187,500
187,500
Fire insurance premium 25,000
Municipal Tax 12,000
Ground Tax 10,000 (234,500)
Net income 590,500
Total Net Income
From House at Azimpur 376,000
From House at Dhanmondi 590,500 966,500

Calculation Allowable Investment Amount (Tk.)

Life insurance premium Tk. 40,000 10% of P.V
(500,000×10%) = Tk. 50,000 40,000
Spouse premium Tk. 60,000 10 of P.V
(500,000×10%) = Tk. 50,000 50,000
 Donation to President relief fund 20,000
Donation to Govt. Zakat fund 30,000
Actual Investment 140,000

Allowable investment: Actual investment Tk. 140,000

Or 25% of total income (966,500×25%) = Tk. 241,625
Or Tk. 15,000,000 whichever is lower i.e. Tk. 140,000

Calculation of Total Tax liability Tax Rate Amount (Tk.)

On first Tk. 300,000 of total income Nil
On next Tk. 100,000 of total income 5% 5,000
On next Tk. 300,000 of total income 10% 30,000
On next Tk. 266,500 of total income 15% 39,975
Gross Tax 74,975
Less: Investment Tax Credit
Average Rate: (Gross Tax÷Total
income×100) (10,850)
= (74,975÷966,500×100) = 7.75%
Rebate = (140,000×7.75%) = Tk. 10,850
Net Tax Liability 64,125