Income from Empolyment

ID: 21 AIS 039

Problem-1:Mr. Shazzad Hossain is an officer of a private insurance company.Information regarding his income for the year
ended June 30,2023.
Monthly Basic Salary -Tk.40000 per month, Dearness Allowance -10% of Basic salary,Monthly medical Allowance TK 1000
(Actual cost Tk 740 per Month), House rent 50% of Basic salary ,Entertainment Allowance Tk. 12000 per month,He has received
car from the employer for full time use,Fastival bonus erual two months ,Annuity Tk 13000.,Overtime Tk. 16000, Mobile bill paid by
company Tk. 4000.,He has also received arrear salary of 25000 which has not been taxed earliar,He has been provided with a house
at a concessional rate for which Tk. 1000 per month. The annual value of the house is tk 50000.His contribution to recognize provident
fund (FPF)is 10% od B.S,his employer also contributed the same to the fund .He also entited to receive Tk. 4000 conveyance allowance
per month. Get Tk. 720000 for gratuity.Receive others facility TK. 8000.

Investment and expenses of Shazzad Hossain during the year were as follows:
Purchase of Debentures from the primary market TK.7000 ,Insurance premium Tk 20000 (policy value Tk.250000),Household expance
Tk.200000,payment in Income tax Lowyer Tk.25000,Purchase of savings certificate Tk.80000,Donated Tk.20000 to the presidents
relief funds.Donated to government Zakat fund Tk.5000,Donated to Ahssania Mission Cancer Hospital Tk.2000,Installment 5 Katha
Plot to the Bashundhara Group Tk.40000.Donation to Dhaka Community Hospital Tk.5000,Investment in Government treasury
bond Tk.10000.Compute taxable income and tax liability of Shazzad Hossain for the assessment year 2022-23 .

Solution-01:
Assessee Shazzad Hossain Assessment Year:2023-2024 Income Year :2022-2023
Income From Salary (section-32) Earned Exampted Taxable
Basic Salary (40000*12) 480000 480000
Dearness allowance (480000*10%) 48000 48000
Medical allowance (1000*12) (Note-1) 12000 36000
House rent allowance 50% (Note-2) 240000 240000
Entertainment Allowance (1200*12) (Note-3) 1440 1440
Conveyance Facility (Note-4) 60000 60000
Festival Allowance(40000*2) 80000 80000
Annuity 13000 13000
Over time 16000 16000
Mobile bill 4000 4000
Advanced Salary 25000 25000
Employer's contribution to RPF (480000*10%) 48000 48000
Accommodation at a concessional rate (Note-5) 50000 12000 38000
Conveyance allowance (Note-6) 4000 4000
Gratuity (Note-7) 720000 25000000
Other Benefits 8000 8000
Total income from salary 1809440 821440

Note-1: Lower of TK.120000 or 10% of Basic salary (480000*10%=48000)

Note-2: Lower of 50% of Basic salary (480000*50%=240000) or Tk.300000 (annually)
Note-3: Entertainments allowance received is fully taxable. In the case the actual cost is not considration.
Less:Rent paid by Assessee(1000*12=12000)
Note-4: Higher of Tk. 60000 or 5% of Basic salary (480000*5%=24000)
Note-5: Lower of rental value i.e 50000 or 25% of Basic salary (480000*25%=120000).
Note-6: Exampted up to Tk.30000.
Note-7: Excess of Tk.1.5 core of Gratuity is Taxable.

Computation of Investment Allowance: Tk.

Purchase of Deventures 7000
Payment of Life Insurance premium 20000
Maximun (10% of the policy value i.e.10% of 250000=25000) 20000
purchase of Savings Cetificate 80000
Contribution to Presidents relief fund 20000
Contribution to govern Zakat Fund 5000
Contribution to Ahsinia Mission cancer Hospital 2000
Contribution to Dhaka Community Hospital 5000
Employee's and employer's contributions to RPF (48000*2) 96000
Investment in Government treasury bond 10000
 Total 245000
Maximum limit of the Investment allowance : 20% of Total income i.e.(821440*20%)=164288or Tk.10000000 whichever is
less so the required amount of investment allowance on which tax rebate will be applicable is Tk.245000.So the amount of
tax(245000*15%)=36750.

Calculation of Tax liability: TK Rate Tk

On First 4E+05 0% Nil
On Next 1E+05 5% 5000
On Next 3E+05 10% 30000
On Balance 71440 15% 10716
Total 8E+05 45719
Less: investment tax credit 15% (245000*15%) -36750

Net tax liability (Dhaka City corporation) 8966

Problem-2 : Mr. Habib , a Bangladeshi citizen, joined Natasha Ltd in Dhaka on 1st November 2021 with a consolidated salary of Tk.
150000 (65% basic and 35% house rent). Full time car with 20000 per month allowance for maintenance;2000 as entertainment
allowance (he spent the full amount). He received dearness allowance @15% of basic salary and medical allowance 4000 per month.
During the month his actual medical expense Tk. 3000. He received two festival bonus each equivalent to one month's basic salary.
He contributes 10% of his basic salary to a recognized provident fund from which he has also received interest of 1500 @15% interest.
His employer also contributes same amount to the RPF. He has also received arrear salary of Tk 100000 which has not been taxed
earlier. He has also been given travel allowance of Tk. 10000 during the year for official tour.
His investment during the year were:Purchase of shares of listed company and partnership firm Tk.10000;payment of his life insurance
premium Tk. 10000 (policy value Tk. 200000); Contribute to a deposit pension Scheme 2000 on a monthly basis. Contribution to
Superannuation fund Tk.6000,Donation to national level instituion set up in memory father of the nation Tk.5000 , Donation A.K. Khan
Heath Care Trust TK.7000.Donation to Hope Worldwid BangladeshTk.8000.Donation to Civil service collage Tk.5000.Compute taxable
income and tax liability of Mr. Habib for the assessment year 2022-23 assuming that he is a taxpayer of Chittagong City Corporation.

Solution - 02
Assessee Mr. Habib Assessment Year:2022-2023 Income Year :2021-2022
Income from salary (section 32) Earned Exampted Taxable
(a)Basic Salary(150000*65%)*8 780000 780000
(b)House rent Allowance 420000
Less: Exempted –lower of 50%of B.S 480000 or TK 25000 per months. 200000 220000
for 8 months(200000)
(c)Conveyance Facility(Higher of 60000 or 5% of B.S 39000) 60000 60000
(d) Dearness Allowance (780000*15%) 117000 117000
(e)Medical Allowance(4000*8) 32000 78000
Less: Lower of 120000 or 10% of B.S 78000
(f)Employer Contribution to RPF (780000*10%) 78000 78000
(g)Bonus(97500*3) 292500 292500
(h)Interest on RPF@ 15% 1500
Less: Exempted- lower of Interest @ 14.5% [(1500/15*14.5)=1450] or 1450 50
one third of B.S
(i)Arrear salary 100000 100000
(j) Travel Allowances 10000
less : Exampted 10000
Total Income from salary 1111000 289450 1647550

Computation of Investment Allowance: Tk.

Purchase of Share Listed company 10000
Employee’s & Employer’s contribution to RPF (78000*2) 156000
Payment of Life Insurance premium 10000; maximum 10% of policy
value 200000*10% 20000
Donation Superannuation fund 6000
Donation to national level instituion set up in memory 5000
Donation A.K. Khan Health Care Trust 7000
Donation to Hope Worldwid Bangladesh 8000
Donation to Civil service collage 5000
Contribution to DPS(2000*8) 16000
Tatal 233000

Maximum limit of the Investment allowance : 20% of Total income i.e.(1647550*20%)=392510 or Tk.10000000 whichever is
less so the required amount of investment allowance on which tax rebate will be applicable is Tk.233000.So the amount of
Tax 233000*15%=34950

Calculation of Tax liability: TK Rate Tk

On the first 350000 0% Nill
On Next 100000 5% 5000
On Next 300000 10% 30000
On Next 400000 15% 60000
On Balance 497550 20% 99510
Total 2E+06 194510
Less: investment tax credit 15% (233000*15%) -34950
Net tax laibilities 159560

Problem-3: On July 2018, MD. Faysal Basic salary 45000.He received dearness allowance 15% of basic salary and medical allowance 3500 per
month. During the year his actual medical expense was Tk.30000. He received two festival bonus and one performance bonus each equivalent
to one month of basic salary.He contributes 12% of his basic salary to a recognized provident fund from which he has also received an Interest
ofTk. 2000 @15% interest. His employer also contributes the same amount to the RPF. He has been provided with a rent free quarter annual
rental value of Tk. 160000 and full time car by the employer. The maintenance cost of the car during the year was 15000. Company gave
him International Air ticket for a tour as a part of his service contract for which the company spent Tk.40000.During the year he also received an
entertainment allowance of Tk. 35000 which 25000 has been actually spent. His taxable income from other sources 350000 during the year.

His investment during the year were: Purchase of shares of a privet limited company Tk. 20000; purchase of shares of a registered
partnership firm 15000; Payment of his life insurance premium 15000 ( policy value 200000); purchase of book and magazine Tk. 5000;
Contribution to a Superannuation fund Tk 1000 on a monthly basis; Donation to Ibn Sina Hospital Tk. 20000.Investment in leptop Tk. 40000
Investment in saving certificate Tk. 15000. Donation to Moktijudha jadughor Tk 7000. Contribution to Benevolent fund and group insurance
Tk 3000.Compute taxable income and tax liability of MD. Faysal for assessment year 2019-20, assuming that in current year
his net asset is valued at Tk. 3 crore.

Solution-3 :
Assessee MD Faysal Assessment Year:2019-2020 Income Year :2018-2019
Income From Salary (section-32) Earned Exampted Taxable
(a)Basic Salary( 45000*12) 540000 540000
(b)Dearness Allowances (540000*12%) 81000 81000
(c)Medical Allowances (3500*12) Less: Lower of Tk 120000 42000
10% of B.S Tk 54000 54000
(d)Bonus (45000*3) 150000 150000
(e)Employer’s contribution to RPF (540000*12%) 64800 64800
(f)Interest of RPF@ 15% Less: Exempted- lower interest rate @14.5% 2000
[(2000/15 * 14.5)=1933] or one third of B.S 180000 1933 77
(g)Rent free accommodation: lower of rental value TK 160000 135000 135000
or 25% of B.S (540000*25%)= 135000
(h)Conveyance facility (higher of TK 60000or 5% of B.S TK 27000 60000 60000
(I) Entertainment allowance 35000 35000
(j) Income from other Sources 350000 350000

Total 1459800 55933 1415877

Computation of Investment Allowance: Tk.

Payment of life Insurance Premium 15000; maximum( 10% of 200000) 20000
Contribution to Superannuation (1000*12) 12000
Employee’s and Employer’s contribution to RPF (64800*2) 129600
Investment in leptop 40000
Investment in saving certificate 15000
Donation to Moktijudha jadughor 7000
Contribution to Benevolent fund and group insurance 3000
 Total 226600

Maximum limit of the Investment allowance : 20% of Total income i.e.(1415877*20%)=283176 or Tk.10000000 whichever is
less so the required amount of investment allowance on which tax rebate will be applicable is Tk.226600.So the amount of Tax
226600*15%=33990

Calculation of Tax liability: TK Rate Tk

On the first 350000 0% Nill
On Next 100000 5% 5000
On Next 300000 10% 10000
On Next 400000 15% 60000
On Balance 265877 20% 53176
Total 1E+06 128176
Less: investment tax credit 15% (226600*15%) -33990
Net tax laibilities 94186
 Income from Rent
ID : 21 AIS 039

Problem - 1
Mr Kabila is the owner of a two storied building at Gulshan . Mr Kabila let out 1 floor for residential
purpose at a monthly rent of Tk 30000 and another floor has been let out to a government authority at
monthly of Tk 35000.The government authority deducts tax at source at prescribed rate (5%) before pay-
ing thr rant to him. The manicipal value of the the house Tk 775000.Expenses incurred for that house
during the year were , repair expenses TK.150000;city corporation tax Tk.22000;insurance premium
Tk. 16000;legal Expanses Tk 10000;land revenue paid Tk.2000 and interest paid tp HBFC Tk.6000. The
residential floor remained vacant for two months during the year.
His Investment during the year were : Contribution of life insurance premiums : for own Tk.6000(policy
value Tk. 50000); purchased 5 year Bangladesh saving certificate Tk 50000 ; Contributed Tk. 6000 per
month to a DPS opend in Sonali Bank; contributed govt. Zakat fund Tk.3000;Donated Tk 5000 to the Bang-
ladesh Moktijuddho Jadugur;contribution to presidents Relief fund Tk.10000 and to Red Cresent Socity
Tk.20000.
Compute the income from house property of Mr. kabila for year. Assume that the income year 2021-2022.
compute the taxlaibilty.
Solution - 1

Assessee Mr. Kabila Assessment Year:2022-2023 Income Year :2021-2022

Schedule: 35B Total Area :
Address of the property : Gulshan Share of the assessee :100%
Income from house property (section 35) TK. TK.

1. Annual value (note 1) 780000

2. Unspent repair expense (note 2) 66000
3. Deductions (agregate pf 3a to 3f) 322000
3a. Repair & maintenance (note2) 216000
3b.City corporation tax 22000
3c.Insurance premium 16000
3d.Land revenue paid 2000
3e.Interest paid to HBFC 6000
3f.Vacancy allowance (360000*2/12) 60000

4. Income from house property (1+2-3) 524000

NOTE : (1) Higher of the rental value [i.e.. Rental value {residentail purpose : (30000*12) = 360000 +
commercial purpose (33250*12) = 399000 } =759000 plus tax deducted at sourse { 399000* 5/(100-5)}=
21000, total = Tk.780000] and municipal value 775000.
 2. Allowable repair and maintanance expense [(360000*25%)+(420000*30)]= Tk. 216000 . Actual repair
and maintenance expense amount is Tk.150000. Since , actual spending for repair and collection expen-
ses is less then the allowable limit , the unspent amount (Tk.216000-Tk.150000)= Tk. 66000 has to
considered as income section.
3. Legal expense is not an admissible expense.

Computation of Investment Allowance: Tk Tk

Life insurance premium paid : 5000
{own Tk.6000(max limit 10% of the PV )}
purchase of 5 year Bangladesh sancayprotro 50000
DPS per monnth Tk.(6000*12) (max limit Tk.60000) 60000
Contribution to Zakat fund 3000
Donated to the Bangladesh Muktijuddha Jadugar 5000
Contibution to President relief fund 10000
contibution to red cricscent socity 20000
TOTAL 153000

Here , Eligible amount of investment allowance for rebate will be lower of (a),(b),(c):
(a) Actual investment allowance 153000
(b) 3%% of total income( 524000*20%) 104800
©Tk 1000000 1000000
So the eligible amount of investement will rebate is Tk. 104800 . So the rebate will be (104800
*15%) = Tk . 15720

Calculation of Tax liability: TK Rate Tk

On First 350000 0%
On Next 100000 5% 5000
On Balance 74000 10% 7400
Total 12400
Less: investment tax credit
Net tax liability (Dhaka City corp. 5000

Problem : 2
Abul Kashem is the owner of a four-storied at Mirpur. There are two flats in each floor of the building . Abul
Kashem Resides with his family inone flat of the 2nd floor and the other flat of the same floor is used as
residence by the elder son who is fully dependent on him. All other flats were let out for residential purpose
at a monthly rent of Tk. 10000 per flat .During the current income year , the owner has borne the water
and gas bill of a tenant amounted to tk 30000 and one of the tenants has borne repair expence of tk 10000
. The municipal value of the house is TK .960000.He received advance Tk. 100000 during the year and refand
ed Tk 40000 advance . Expanses related to the property for the year were ; repair expanse Tk.190000 ;
city corporation tax Tk. 22000 ; insurance premium Tk . 16000; caretaker and night guard salary Tk.24000;
painting cost of the building Tk.15000;land revanue paid Tk.2000;mortgage interest paid Tk.4000;alternation
cost for ground floor Tk.30000;installation of generator Tk.50000;and fuel cost of generator Tk.20000.During
thr year one of the tenants of the ground floor left the house paying rent for one month.Abul kashem even
after taking necessary legal action failed tp collect this rent . Besides the same flat was vacant for two
months during the year .Compute income from house property for the year. (income year 2021-22)
His investment during the year were;Contribution to superannuation Fund Tk.3000;Contribution to a
Aga khan Development Network Tk.3000;Donation to Charitable Hospital Tk. 2500;Contribution to sylhet
daibetics Socity 5000;Investment in govt. Treasury bond 4000.Donation to science and Technology dev.
Fund Tk.7000;Donation to Dhaka Community Hospital Tk. 6000.
Compute the tax laibility. Assume that his age is 70 years and he is fredom fighter .

Solution : 2

Assessee Abul Kashem Assessment Year:2022-2023 Income Year :2021-2022

Schedule: 35B Total Area :
Address of the property : Mirpur Share of the assessee :100%
Income from house property (section 35) TK. TK.
1. Annual value (note 1) 720000
2. Advance of the proferty 100000
3. Deduction (Aggregate of 3a to3h) 283000
3a. Repair and maintenance (720000*25%) 180000
3b. City corporation tax (22000*6/8) 16500
3c. Insurance premium (16000*6/8) 12000
3d. Land revenue paid (2000*6/8) 1500
3e. Mortgage interest paid (4000*6/8) 3000
3f. Uncollectable rent (one month) 10000
3g. Vacancy allowance [(720000/6)*2/12] 20000
3h. Refund of advancr 40000

4. Income from house property (1+2-3) 537000

Note: Higher of actual rental value {i.e..rent received ( 10000*6*12)= 720000 }

Computation of Investment Allowance: Tk
Contribution to superannuation Fund 3000
Contribution to a aga khan development network 3000
Donation to Charitable Hospital 2500
Contribution to sylhet Contribution to sylhet 5000
Investment in govt. Treasury bond 4000
.Donation to science and Technology development 7000
Donation to Dhaka Community Hospital 6000
Total 30500
Here , Eligible amount of investment allowance for rebate will be lower of (a),(b),(c):
(a) Actual investment allowance 30500
(b) 20% of total income( 537000*20%) 107400
©Tk 1 crore 10000000
So the eligible amount of investement will rebate is Tk. 30500 . So the rebate will be (30500
*15%)=4575
Calculation of Tax liability: TK Rate Tk
On First 500000 0% Nill
On Next 37000 5% 1850
Less : investment tax credit -4575
Tax laibility 0

Problem 3: Aysha is the owner of the three houses at Dhanmondi ,Dhaka;Agrabad , Chittagong and Thakur-
para, Cumilla One flat of the dhanmondi house remaund vacant for two months during the year . Two falts
of the thakurpara house are occupied by his depandent sons . Considering following details of these pro-
perties , compute taxable income of Aysha from house properties for the current year.
Particuler Dhanmondi Agrabad Thakurpara
Number of storied 3 1 2
Number of flats ineach floor 2 1 4
Rental status fully let out personal use partly let out
Purpose Rsidential - Commercial
Municipal value (annual ) Tk 9000000 TK 120000 Tk 700000
Rental value (each flat per month) 12000 - 12000
Expenses incurred during the year
* Repair and maintenance Tk. 240000 Tk 25000 Tk 195000
* Insurance premium (quaterly) 2000 1500
* Salary of guard 15000 5000 17000
* Ground Rent 2000 3000
* Local Govt. Tax (per month) 1200 600 500
* Interest on borrwed fund
His Investment during the year were : Contribution of life insurance premiums : for own Tk.6000(policy
value Tk. 50000); purchased 5 year Bangladesh saving certificate Tk 50000 ; Contributed Tk. 6000 per
month to a DPS opend in Sonali Bank; contributed govt. Zakat fund Tk.3000;Donated Tk 5000 to the Bang-
ladesh Moktijuddho Jadugur;contribution to presidents Relief fund Tk.10000 and to Red Cresent Socity
Tk.20000.
Compute the income from house property of Aysha for year. Assume that the income year 2021-2022.
and compute the taxlaibilty.( Assume that she is 70 years old lady)
Solution 3

Assessee Aysha Assessment Year:2022-2023 Income Year :2021-2022

Schedule: 35B Total Area :
Address of the property : Dhanmondi Share of the assessee :100%
Income from house property (section 35) TK. TK.
1. Annual value (note1) 900000
2. Deductions (aggregate of 2a to 2f) -279400
2a. Repair & maintenance (900000*25%) 225000
2b. Fire insurance premium 8000
2c. Ground rent 2000
2d. Local govt . Tax (1200812) 14400
2e. Interest on borrowed fund 5000
2f. Vacancy allowance [(900000/6)*2/12] 25000
3. Income from house property 620600
Assessee Aysha Assessment Year:2022-2023 Income Year :2021-2022
Schedule: 35B Total Area :
Address of the property : Thakur para Share of the assessee :100%
Income from house property (section 35) TK. TK.
1. Annual value (note2) 525000
2. Deductions (aggregate of 2a to 2f) 169500
2a. Repair & maintenance (900000*25%) 157500
2b. Fire insurance premium 4500
2c. Local govt . Tax (1200812) 4500
2d. Interest on borrowed fund 3000
3. Income from house property (1-2) 355500
4. in case of partial ownership , the share of income
5. Aaggregate income from all house property (620600+355500) 976100

Notes:1. Higher of actual rental value(12000*12*6)=864000 for dhanmondi house and 7000*6*
12= Tk. 504000 for Thakurpara house and municipal value Tk. 900000 for dhanmondi house and
700000*6/12=525000for thakurpara)

Computation of Investment Allowance: Tk Tk

Life insurance premium paid : 5000
{own Tk.6000(max limit 10% of the PV )}
purchase of 5 year Bangladesh sancayprotro 50000
DPS per monnth Tk.(6000*12) (max limit Tk.60000) 60000
Contribution to Zakat fund 3000
Donated to the Bangladesh Muktijuddha Jadugar 5000
Contibution to President relief fund 10000
contibution to red cricscent socity 20000
TOTAL 153000

Here , Eligible amount of investment allowance for rebate will be lower of (a),(b),(c):
(a) Actual investment allowance 153000
(b) 20% of total income( 976100*20%) 195220
©Tk 1 crore 10000000
So the eligible amount of investement will rebate is Tk. 153000 . So the rebate will be (153000
*15%) = Tk . 15720
Calculation of Tax liability: TK Rate Tk
On First 400000 0% Nill
On Next 100000 5% 5000
On Next 300000 10% 30000
On Balance 176100 15% 26415
Less: investment tax credit -15720
Tax Laibility 45695
 Topic :Income from Agriculture
ID: 21AIS 039

Question: 01

Mr. Nurul Mia, a new entrepreneur, started his agricultural farming activities after passing from
Agricultural University. He is very aware of the reduced rate of taxes for some typical nature of
agricultural income and involved himself into those activities. During the income year 2019-20 his
agricultural incomes were: sale of pelleted poultry feed Tk.350000; sale of locally produced seeds
250000; income from cattle farming Tk. 250000; income from Dairy farming Tk.150000; income
from bee keeping Tk. 300000; and income from sale of flowers Tk. 750000.
He maintained the books of accounts properly and claimed Tk. 650000 as admissible expenses . In
addition to it, during the year he has invested Tk. 250000 in Chittagong Stock Exchange , Contri
bution to deposit pension Scheme 2000 on a monthly basis,Donated to government Zakat fund
tk .5000 and donation to Ahssania Mission Cancer Hospital Tk.2000
Compute taxable income and tax liability of Mr. Nurul Hossain, for the income year ended on
30.06.2021

Solution : 01

Assessee Mr. Nurul Mia Assessment Year:2022-2023 Income Year :2020 - 2021
Income from Agriculture (Section 40) Tk Tk Tk
Sale of pelleted poultry feed 350000
Sale of seeds 250000
Income from cattle farming 250000
Income from dairy farming 150000
Income from bee keeping 300000
Sale of flowers 750000
Total 2050000
Less: Admissible Expenses 650000
Total Income 1400000

Calculation of investment allowances

Particuler TK Tk
Purchase of shares 250000
Contributed to DPS(12*2000) 24000
Donated to government Zakat fund 5000
Donated to Ahssania Mission Cancer Hospita 2000
Total 281000

Maximum limit of investment: Lower of Tk. 1000000 and 3% of total income. As actual investment is
is within the maximum limit, investment allowance allowed for tax credit is on 281000@ 15%,
investment tax credit is Tk 42000
 Calculation of Tax Liability
Particuler Tk Rate Tk
On the first 350000 Nill 0
On Next 100000 5% 5000
On Next 300000 10% 30000
On Next 400000 15% 60000
On Balance 250000 20% 50000
145000
Less) 3% of Total income -42000
Tax liabilities 103000

Question :2
Mr. Sohel Khan sale of Paddy 1200 mounds Tk. 350 per mound; sale of Jute 600 mounds Tk. 550; sale of
rabi crops Tk. 200000; income from lease of agriculture land; Tk.150000; income from Fisheries Tk. 140000
income from mushroom farming Tk. 160000; income from sale of tea Tk. 240000; and income from Dairy
farming Tk. 140000. He maintain the books of accounts properly but claimed ex. for production cost Tk.
250000; land revenue paid Tk. 15000; interest on loan Tk.3000; union tax Tk.5000; Purchase of tractor Tk
90000; and maintenance of the irrigation plant Tk. 20000. In addition to it, during the year Mr. Sohel Khan
also incurred investment and expenses Tk. 60000; Life Insurance premium (p value Tk. 250000) Tk30000
purchase of cow for dairy firm Tk. 130000; donation to prime minister’s higher education fund Tk. 25000;
purchase of 5 year Bangladesh Savings Certificate Tk. 150000; donation to Govt. Zakat fund Tk.40000
Tk. 40000; and purchase of gold Tk. 33000; purchase ofmagazine Tk. 3000 and Donation to the Baitul
mokarram Mosque Tk. 10000.Donation to SKF fund TK. 12000;Purchase a private ltd com. share Tk 5000
Compute Tax liability of Mr. Sohel Khan from for the income year ended on 30.06.2020.

Solution :2

Assessee Mr. Sohel Khan Assessment Year:2021-2022 Income Year :2019-2020

Income from Agriculture (Section 40) Tk Tk Tk
Income from sale of Paddy (1200*350) 420000
Income from sale of Jute (600*550) 330000
Sale of Rabi crops 200000
Income from lease of agricultural land 150000
Income from Sale of tea (240000*60) 144000
Total 1244000

Agricultural Income on which reduced tax rate (3%) are applicable

Income from fisheries 140000
Income from mushroom farming 160000
Income from dairy farming 140000 440000
Total Income from Agriculture 1684000

Less: Admissible expenses

1. Production cost 570000
2. Land revenue paid 15000
3. Interest on loan 3000
4. Union Parisad Tax 5000
5. Maintenance of kutcha irrigation plant 20000
-613000
Income from business and profession:
Income from sale of tea (240000*40%) 96000
Total 1167000

Calculation of investment allowance

particuler Tk TK
Insurance Premium (own)[Max: 250000*10%] 25000
Donation to PM’s higher education fund 25000
Purchase of 5 year Bangladesh Savings Certificate 150000
Donation to Government Zakat fund 40000
Total Investement 240000

Maximum limit of investment: Lower of Tk. 1000000 and 3% of 1167000 or Tk.35010 . As actual investement
is within the maximum limit, investment allowance allowed for tax credit on 240000 @ 15% Tk. 36000;
tax credit Tk. 35010

Calculation of Tax Liability

Particuler Tk Rate Tk
On the First 350000 0% Nill
On the Next 100000 5% 5000
On the Next 277000 10% 27700
On reduce rate income 440000 3% 13200
Total 1167000 45900
(Less) Tax cradit (1167000*3%) -35010
Tax liabilities 10890

Question :3
Compute Tax Laibilities of Najma Akter Sania from the given particulars related to the year ended
30.06.23: Sale of rice 300 mounds @ Tk. 600 per mound; Income from lease of agricultural land Tk.
90000; Income from salt production Tk. 30000; Income from rubber garden Tk.120000; Sale of forest tree
Tk. 35000; and income from sale of fish from pond Tk. 57000. He didn’t maintain the book of accounts
properly. Expenses related to all these income are: Production cost Tk. 100000; Land revenue paid Tk.
5000;Interest on loan Tk. 3000; Union Parishad tax Tk. 3700; Purchase of tractor Tk. 110000; Repair and
Maintenance of a Kutcha irrigation plant Tk. 17000.
. His investments during the year were as follows:
a) Purchase of shares of a listed company Tk. 2,000.
b) Purchase of gold Tk. 10,000.
c) Payment of his life insurance premium Tk. 4,000 (Policy value Tk. 35,000)
d) Purchase of books and magazine Tk. 3,000.
e) Contribution to a Deposit Pension Scheme Tk. 500 on a monthly basis
Solution:3

Assessee Najma Akter Sania Assessment Year:2023-2024 Income Year :2022-2024

Income from Agriculture (Section 40) Tk Tk Tk
Income from sale of Rice (300*600) 180000
Income from lease of agricultural land 90000
Income from rubber garden (120000*60%) 72000
Total 342000
Less: Admissible expenses:
1. Production cost (180000*60%) 108000
2. Land revenue paid 5000
3. Interest on loan 3000
4. Union Parishad Tax 3700
5. Maintenance of kutcha irrigation plant 17000
-136700
Income Business and Profession
Income from rubber garden (120000*40%) 48000
Income from other sources
Income from salt production 30000
Income from sale of forest tree 35000
Income from sale of fish from pond 57000
122000

Total 375300

Computation of investment allowance:

particuler Tk TK
Purchase of shares of listed company 2000
Payment of life insurance premium 4,000; maximum (10% of
the policy value i.e..10% of 35000=3500 3500
Contribution to Deposit Pension Scheme (500x12) 6000
Total Investment 11500

Maximum limit of investment: Lower of Tk. 1000000 and 3% of 375300 or Tk.11259 . As actual investement
is within the maximum limit, investment allowance allowed for tax credit on 11500 @ 15% Tk. 1725;
tax credit Tk. 1725

Calculation of Tax Liability

Particuler Tk Rate Tk
On Balance 375300 0% nill

Tax laibilitiesb 0
 Income from financial Assets
Question:1
Mr. Jamal Kaiser has the following interest income from investments in securities during the income year 2022-23:
1.Tk. 100,000 from interest on Bangladesh Wage Earner's Development Bond (Purchased on 1" September, 2017).
2. Tk. 200,000 from Bangladesh Investment Bond (Purchased on 30th June,2020). Tax @ 5% was deducted at that
time at upfront system. That’s why no further tax was deducted at the time of maturity on 30th June,2023.
3. On 31" March, 2020, 3 years Zero Coupon Bond of Tk. 50,000 was matured and he has received the amount as
s maturity value, whether the acquisition price of the same was Tk. 35,000. The collection fee of Tk. 500 was charged
in this regard by his bank. Assuming that his income from Employment is TK.350000.
His investments during the year were as follows:
a) Purchase of shares of a listed company Tk. 2,000
b) Purchase of gold Tk. 10,000.
c) Payment of his life insurance premium Tk. 4,000 (Policy value Tk. 35,000)
d) Purchase of books and magazine Tk. 3,000
e) Contribution to a Deposit Pension Scheme Tk. 500 on a monthly basis.
Compute income from interest and tax payable by Mr. Jamal Kaiser for the income year 2022-23

Solution : 1
Assessee Mr. Jamal Kaiser Assisment year:2023-24 Incomr year:2022-23
Particuler Tk Tk Tk
Income from empolyment(section 32) 350000
Income from financial assets (section 62)
1) Interest form tax free government securities 100000
(less) tax free as per 6th schedule (part-A) para-24A -100000 0
2)) Interest on Bangladesh Investment Bond 200000 200000
3)Interest on zero coupon bond 15000
(less) exemption (full) As per 6th Schedule (Part-A) -15000 0

Total taxable income from interest on securities 200000

Total taxable income 550000

Calculation of investment allowances

Particuler TK Tk
1)Purchase of shares of a listed company 2000
2)Payment of his life insurance premium 3500
3)Contribution to a Deposit Pension Scheme 6000

Total 11500

Maximum limit of investment: Lower of Tk. 1000000 and 3% of total income. As actual investment is
is within the maximum limit, investment allowance allowed for tax credit is on 11500@ 15%,
investment tax credit is Tk 1725
 Calculation of Tax Liability
Particuler Tk Rate Tk
On first 350000 0% nill
On next 100000 5% 5000
On balance 100000 10% 10000
Total 15000
(less) Rebate -1725
Tax laibility 13275

Income from business

Question: 1

The Profit and Loss Account of Janani Traders owned by Mr. Rajon Majumder for the year ended on June 30, 2023 is
given below, Janani Traders
profit and loss account
for year ended 30 june 2023
Debit Tk Credit Tk
Salary 380000 Gross profit 1950000
Commission 70000 Interest on securities 132000
Rent of premises 132000 Interest on bank deposit 32000
Fund embezzlement 30000 Recovery of bad debt 18000
Donations 150000 Gain on sale of furniture 27000
Bad debt 80000 2207000
Life Insurance premium 50000
Depreciation on furniture 40000
Provision for income tax 38000
Repair expense 26000
License renewal fee 4000
Penalty and fine 37000
Bonus 80000
Royalty 70000
Interest on Bank Loan 45000
Household expenses 22000
Net profit 953000
2207000
Other informatuin

1. Salary includes Taka 87,000 paid to the owner.

2. Fund embezzlement occurred after office hour
3. Donations include Taka 70,000 paid to a charitable hospital that is not approved by the Board
4. Life insurance premium is the payment against the insurance policy in the owner's name.
5. Tax depreciation amounts to Taka 30,000
6. Furniture sold for Tk. 78,000 that was originally purchased for Tk. 70,000. Written down value of the furniture on the
of sale was Tk. 51,000
Compute the income from business or profession of Janani Traders for the year ended on June 30, 2022
Solution :1

Assessee Janani traders Assisment year : 2023-24 Income year : 2022-23

Income from business (section 45) Tk Tk
Profit as per P/L Account 953000
Add: Inadmissible expenses
1. Salary [Note-1] 87000
2. Fund embezzlement [Note-2] 30000
3. Donations [Note-3] 70000
4. Life insurance premium [Note-4 50000
5. Depreciation (to be considered later on) 40000
6. Provision for income tax 38000
7. Penalty and fine 37000
8. Household expense 22000
374000
Less: Depreciation (As per tax law) -30000
1. Interest on securities -180000
2. Interest on bank deposit -32000
3. Capital gain on sale of furniture [Note-7] -8000

Taxable income from business 1077000

Notes:
1. Salary paid to the owner is not admissible expense.
2. Fund embezzlement occurred after office hour is not allowable expenditure.
3. Donation Tk. 70,000 to un- approved organization not allowable.
4. Life insurance premium is inadmissible as this is personal expense
5. Royalty is admissible up to an amount equal to 10% of the disclosed net profit i.e., 10% of Tk. 9,53,000 i.e.
Tk. 95,300. Thus, actual royalty payment Tk.70,000 is admissible because it is lower than admissible limit
6. Capital gain on sale of furniture was Tk. 8,000 (Tk. 78,000 – Tk. 70,000). This amount should be consider
income under the head ‘Capital Gains’. Actual revenue gain is Tk.19,000 but shown Tk.27,000, so Tk. 8,000
Tk. 8,000 is to be deducted to arrive real income from business or profession
 INCOME FROM OTHER SOURCES
Question :1
. Mr. Salam has earned following incomes for the year 2017 - 2018:
(a) Salary Tk. 570,000; (b) Dividend from preference shares of a Public Limited Company Tk. 6300; (c) Divi-
dend from Islami Bank Mutual Fund Tk. 21600; (d) Income from underwriting shares of a Company
Tk. 4000; (e) Income from mooring terminal Tk. 22000; (f) Interest on Savings Bank Deposit Tk. 3600; (g)
Honorarium received as a director to be a member of the Board Tk. 2000;(h) Interest on loan given to a
friend Tk. 2000;(i) Income from consultancy work not related to his profession Tk. 3500; (j) Income from
participating in a training program Tk. 13000; (k) Income from Birthday Party Tk. 7000; and (1) Income
from lump sum royalty of a book Tk. 120000. It took him two years to write the book. During the year he
spent Tk. 400,000 to purchase a piece of land, Tk. 120,000 to purchase a motorcycle and the source of
of expenditure remained unexplained to the DCT. Through investigation, the DCT has also identified an
FDR of Tk. 500,000 in a local bank which has also not been explained. He has also visited Turkey incurring
. a total cost of Tk. 400,000 and purchased a Diamond set of Tk. 50000 for his wife for which the source of
the money was also unexplained. During the year he has paid Tk. 1500 as commission for collecting the
interest. His other expenditures during the year were: (i) Purchase of Books and Magazine Tk. 5,000;(ii)
Donation to President's Relief Fund Tk. 200,000; (iii) Contribution to a deposit pension scheme Tk. 12,000
(iv) Purchase of a Laptop Tk. 130,000 and (vi) Purchase of Primary Shares Tk. 30,000. Compute taxable
income and tax liability of Mr. Salam for the assessment year 2018-19 considering TDS from his salary
during the year was Tk. 63000. Assuming that investment credit is Tk. 52300.
Solution :1

Assessee Mr. salam Assisment year : 2017-18 Income year : 2018-19

Particulars Tk Tk Tk
Income from Salary (Sec-32) 570000
Income from Other sources (sec-66)
a) Dividend from Pref. Share [6300*100/90] 7000
Less: Exempted- Up to 25000 -7000 0
b)Dividend from Is. Bank Mutual fund[21600/9*10] 24000
Less: Exempted- up to 25000 -24000 0
c) Income from Underwriting share 4000
d) Income From mooring terminal 22000
e) Interest on Savings Bank deposit [3600/9*10] 4000
f) Honorarium received 2000
g) Interest on loan given to a friend 2000
h) Income from consultancy work 3500
a) Income from Training program 13000
a) Income from royalty of book 120000
a) Unexplained investment 1470000 1640500
Less: Allowable deduction:
Commission for collecting Int -1500

Total Income 2209000

 Calculation of Tax Liability
Particulers Tk Rate TK
On first 350000 0% Nill
On nesxt 100000 5% 5000
On next 300000 10% 30000
On next 400000 15% 60000
On next 500000 20% 100000
On balance 559000 25% 139750
Total 334750
(Less) Tax Rebate -52300
(Less) TDS (63000+700+2400+400) -66500

Tax Laibility 215950