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Mr. Ahmed Ali received the following salary and allowances during the financial year 2012-13: (a) (b) (c) (d) (e) (f) Basic salary- Tk.6,40,000 House rent allowance Tk.300,000 Conveyance allowance- Tk.72,000 Bonus Tk.120,000 Medical allowance Tk. 120,000(entirely spent) Employers contribution to providend fund 10% of basic salary.

Compute his salary income & calculate tax payable.

Solution Computation of income of Mr. Ahmed Ali for the accounting year 2012-13 Item of salary (a) Basic salary (b) House rent allowance (c) Conveyance allowance (d) Bonus (e) Medical allowance (f) Employers contribution to P.F. Total Gross amount (in taka) 6,40,000 3,00,000 72,000 1,20,000 1,20,000 64,000 Exempted amount (in taka) Nil 2,40,000 (note1) 30,000 (note2) Nil 120,000 (note3) Nil Net taxable amount (in taka) 6,40,000 60,000 42,000 1,20,000 Nil 64,000




Note1: 50% of basic Tk.3,20,000 TK. 20,000 per monthX12 =Tk.2,40,000 Exemption will be smaller of the two i.e. Tk. 2,40,000. Note2: Conveyance allowance is exempted upto Tk. 30,000 per annum. Note3: Medical allowance is exempted upto the amount actually spent.

Calculation of tax: Salary income Tax on first Balance Tax on next Balance Tax on next Tax on balance Total tax payable: Tk 9,26,000 Tk . 2,20,000 @ 0% = Nil Tk.7,06,000 Tk 3,00,000 @10% = Tk. 30,000 Tk.4,06,000 Tk. 4,00,000 @15% = Tk.60,000 Tk.6,000 @ 20% = Tk. 1,200 Tk.91,200