Shill # 18c-4

Sheet # 20
1 Income from business or profession (u/S-28): Taka Taka Taka
Net profit as profit & loss accounts 92,300
Less Non-business income included in P/L a/c:
Divident 30,000
Share premium 30,000
Sundry income 13,000
73,000 (73,000)
19,300
Expenditure to be considered as per provision of law
Add afterwards:
Depreciation-Accounting 46,900
Entertainment 7,500
54,400 54,400

Add Inadmissible expenses:

Rent & tax 4,200
Air conditioner for MD 6,000
Compensation for termination 10,000
Typewriter 5,948
Provision for bad debts 4,400
30,548 45,048
118,748
Add Deemed income (u/s-19):
Bad debts writeof 2,000 2,000
Less Admissible expenses:
Depreciation-Tax 58,400
Profit before charging separate consideration 62,348
Add Entertainment expenditure (u/R-65)
Limit upto 10,00,000 i..e (62348 * 4%) 2,494
Actual entertainment 7,500
Less, unexplain expenses (2,000) 5,500
(Which ever is lower) 2,494 2,494
Income from business or profession 64,842
Non-business income:
Dividend income 30,000
Share premium 30,000
Sundry income 13,000
Total income 137,842

Tax Liabilities:
Business income including sundry income 77,842 37.50% 29,191
Dividend 30,000 20% 6,000
Share Premium 30,000 3% 900
Total gross tax liability 36,091
Less TDS:
Dividend 6000
Share Premium 900
Total deduction 6900 6,900
Net tax liability 29,191
 Assessee: X Ltd
Assessment year: 2010-2011
Income Year:2009-2010

Head of Accounts Taka Taka Taka

Income from business or profession (u/s-28):
Net profit as P/L a/cs 232,300
Less Non - business income included in p/l a/c:
Dividend income 30,000
Share premium 30,000
Sundry income 13,000
Capital gain on sale of assets 40,000
113,000 (113,000)
119,300
Expenditure to be considered as per provision of law
Add afterwards:
Entertainment 9,500
Depreciation-Accounting 46,600 56,100
175,400
Add In-admissible expenses:
Rate & Tax 4,200
Air-Condition for MD 6,000
Typewriter 5,948
Bad debts provision 4,400
Compensation of staf 10,000 30,548
Add Deemed income (u/s-19) 205,948
Bad debts recovered 2,000
207,948
Less Admissible expenses as per provision of law:
Depreciation-Tax 58,400
Profit before charging separate considerable expenses 149,548
Add Entertainment (Rules-65)
Allowable limit 4% 5,982
Actual expenses 9,500
Less, unexplained (2,000)
Manager personal expenses (5,276)
2,224 2,224
(Which ever is lawer) 2,224
Income from business or profession 151,772

Income from share premium (u/s-82C) 30,000

Income from capital gain(u/s-31)

Capital gain on sale of machinary 40,000
 Income from others (u/s-33)
Dividend income 30,000
Sundry income 13,000
Total income 264,772

Tax Liabilities:
On total income share premium, capital gain & dividend 164,772 37.50% 61,790
Share premium 30,000 3.00% 900
capital gain 40,000 15.00% 6,000
Dividend 30,000 20.00% 6,000
Gross tax liability 264,772 74,690
Less TDS:
Dividend 6,000
Share premium 900
6,900 6,900
Net tax liability 67,790
 Assessee: XYZ Bank Ltd
Assessment year: 2011-2012
Income Year:2010-2011

Head of Accounts TK Million TK Million TK Million

Income from business or profession (u/s-28):
Net profit as P/L a/cs 390.00
Less Non - business income included in p/l a/c:
Dividend income 5.00
5.00 5.00
385.00
Expenditure to be considered as per provision of law
Add afterwards:
Entertainment 4.00
Depreciation-Accounting 14.00 18.00
403.00
Add In-admissible expenses:
Excess perqusit 4.00
Subscription & donation 0.25
Printing Advertisment 1.00
Sundry Expenses 0.45
Provision for bad & doubtfull debt (10+1) 11.00
16.70
Add Deemed income (u/s-19) 419.70
Bad debts recovered
419.70
Less Admissible expenses as per provision of law:
Depreciation-Tax 25.00
Profit before charging separate considerable expenses 394.70
Add Entertainment (Rules-65)
Allowable limit 1st 10 million 4% 10.00 0.400
Next balance 2% 384.70 7.694
Total limit 8.094
Actual expenses 4.000
(Which ever is lawer) 4.00
Income from business or profession 398.70

Income from others (u/s-33)

Dividend income 5.00 5.00
Total income 403.70

Tax Liabilities:
On total income dividend 398.70 ### 149.51
 Dividend 5.00 ### 1.00
Excess profit as per ITO (u/s-16C) 113.20 ### 16.98
Gross tax liability 516.90 167.49
Less TDS:
Dividend 1.00

1.00 1.00
Net tax liability 166.49

Additional computation:
Calculation of excies profit: TK Million
Paid up capital 408.00
Statutory Reserve 130.00
Retain profit opening 42.00
Exchange Equalization fund 1.00
Total reserve & capital 581.00

Excess profit:
Assed profit as per computation 403.70
Less, 50% of capital & reserved 290.50
Excess profit 113.20
Excess profit income 15% 15%
So, Excess profit as per ITO (u/s-16C) 16.98
 Assessee: ABC Bank Ltd
Assessment year: 2011-2012
Income Year:2010-2011

Head of Accounts Taka Taka

Income from business or profession (u/s-28):
Net profit as P/L a/cs
Less Non - business income included in p/l a/c:
Dividend income

Expenditure to be considered as per provision of law

Add afterwards:
Entertainment 65,000.00
Depreciation-Accounting 50,000.00

Add In-admissible expenses:

Excess perqusit 50,000.00
Printing Advertisment 40,000.00
Others expenses 10,000.00

Add Deemed income (u/s-19)

Bad debts recovered

Less Admissible expenses as per provision of law:

Depreciation-Tax
Req-b Profit before charging separate considerable expenses
Less Entertainment (Rules-65)
Allowable limit 1st 10 million 4% 393,000.00 15,720.000
Next balance 2% - -
Total limit 15,720.000
Actual expenses 65,000.000
(Which ever is lawer)
Income from business or profession

Income from others (u/s-33)

Dividend income
Total income

Tax Liabilities:
On total income dividend 377,280.00 37.50%
Dividend 20.00%
 Excess profit as per ITO (u/s-16C) 15.00%
Gross tax liability 377,280.00
Less TDS:
Dividend

-
Net tax liability

Additional computation:
Calculation of excies profit:
Paid up capital
Statutory Reserve
Retain profit opening
Exchange Equalization fund
Total reserve & capital

Excess profit:
Assed profit as per computation 377,280.00
Less, 50% of capital & reserved 1,600,000.00
Excess profit -
Excess profit income 15% 15%
So, Excess profit as per ITO (u/s-16C) -

Req-c:
 Taka

258,000.00

258,000.00

115,000.00
373,000.00

100,000.00
473,000.00

473,000.00

80,000.00
393,000.00

15,720.00
377,280.00

377,280.00

141,480.00
-
 -
141,480.00

-
141,480.00

TK Million
2,000,000.00
750,000.00
250,000.00
200,000.00
3,200,000.00
 Assessee: Mr. Jamshed Hasan
Income Year: 2011-2012
Assessment year: 2012-2013
Computation on total income

1 Income from salary (u/s-21): TK TK TK TK

Basic salary (33,000*12) 396,000
Festival bonus -equial to two month basic salary 66,000

House rent allowance:

Actual rent @ 15,000 per month* 12 180,000
Less, Exampted:
50% of B.S 198,000
Or, 15000 per month * 12 180,000 180,000
(Which ever is lawer) -

Entertainment allowance 5% of B.S 19,800

Medical allowance:
TK. 2000 per month * 12 24,000
Less, Exampted actual expenses 18,000
Remaining is income 6,000
Conveyance allowance:
TK. 1500 per month *12 18,000
Less, Exampted upto 24000 18,000 -
Employers contribution to provident fund 39,600
(10% of basic salary) 527,400

2 Income Agriculture (u/s- 26, 27):

Sale of scrap 150,000
Income from sugar-60% 80,000 48,000
Less: Admissible expenses: 198,000
Production cost-60% of 150000 90,000
Net agriculture income 108,000
Carry forwarded of loss 60,000
48,000 48,000
3 Income from business or profession (u/s-28):
Income from fish & sugar 32,000

4 Income from others sources (u/s-33):

Income from sales of fish or pond 45,000
Interest form fixed deposit 30,000
Interest from bangladesh saving certificate 20,000
Dividend 10,000
Less, Exampted 5,000 5,000
Lease on non agricultural land 35,000 135,000
Total income 742,400

Investment allowance: Taka Taka

Insurance premium 20,000
or, Maximum 10% of policy value 200000 * 10% 20,000 20,000
Primary share investment 60,000
Investment in seving certificate 30,000
Donation to chiretable hospital 10,000
Donation to govt. zakat fund 5,000
Contribution to provident fund 79,200
Total investment 204,200
Maximum limit:
Actual investment 204,200
20% of taxable income excluding employes RPF 702,800 140,560
or, NBR slabe 10,000,000
(Which ever is lawer) 140,560
Thus, the amount of allowable investent
10% of allowable investment 14,056

Tax liability: Taxable % of Tax Amount

On first 200,000 0% -
On next 300,000 10% 30,000
On next 242,400 15% 36,360
Total 742,400 66,360
Less, Investment tax credit 14,056
Less, TDS 5,000
Less, Adjustment of refund 8,500
Net tax liability 38,804
 Assessee: Care pharmaceuticales
Assessment year: 2011-2012
Income Year:2010-2011

Head of Accounts Taka Taka Taka

Income from business or profession (u/s-28):
Net profit as per P/L a/cs 2,000,000
Less Non - business income included in p/l a/c:
Gain on sale of equipment 90,000
90,000 (90,000)
1,910,000
Expenditure to be considered as per provision of law
Add afterwards:
Entertainment 150,000
Depreciation-Accounting 250,000 400,000
2,310,000
Add In-admissible expenses:
Business & commission 120,000
(300000/5*2), remaining 3 times is allowble
Scientific Recharge 120,000
Salary & rent (500000+80000) 580,000
Brokerage comission-non residence 60,000
Free sample:
(Allowble limit 2% of up to 5 crore i..e.. 80,00000) 160,000
Actual expenses 200,000 40,000
Excess perqusit:
Actual expenses 2,200,000
Less, allowable (250000 each for 7 members) 1,750,000 450,000
Excess amount of Recreation & holyday:
Actual expenses(3/4) 300,000
3 month basic salary 360,000 60,000

1,430,000
Add Deemed income (u/s-19) 3,740,000
Bad debts recovered 20,000
Interest due & not paid-BSRS 80,000
Trading liability waib 150,000
Sales proced in scientific machinary 80,000
Sales of export quata 70,000
Revenue profit from sales of equipment 40,000

440,000
4,180,000
Less Admissible expenses as per provision of law:
 Depreciation-Tax 300,000
Accelerated depreciation-80% of 10,00,000 800,000
1,100,000 (1,100,000)
Profit before charging separate considerable expenses 3,080,000
Less Entertainment (Rules-65)
Allowable limit 4% of 1st 10,00,000 40,000
Next (B/F) 2% of 20,80,000 41,600
Limit 81,600
Actual expenses 150,000
(Which ever is lawer) 81,600
Income from business or profession 2,998,400
Income from capital gain(u/s-31)
Capital gain on sale of machinary 50,000
Total income 3,048,400

Tax Liabilities:
On total incomeexcluding, capital gain 2,998,400 37.50% 1,124,400
capital gain 50,000 15.00% 7,500
Net Tax liability 3,048,400 1,131,900
Problem# Provided by Ranjon Kumar Bowmik, Commissioner of Taxes,NBR
ABC Partnership Firm
Profit and Loss A/Cs
For the year ended
Particular Taka Particular Taka
Salaries: Gross profit 3,000,000
A 200,000 Sales of Machinary 300,000
C 300,000
House rent of B 600,000
(Without TDS)
Interest on Capital:
A 100,000
B 200,000
Provision for Bad Debt 400,000
Bad debts 200,000
Comission C 300,000
Net Profit 1,000,000

Total 3,300,000 Total 3,300,000

Requirments:
1) Total Income of the Firm
2) Tax payable of the Firm
3) Allocation the firm's income among the partners
4) Total income of partner's "B"
5) Tax payable of the partner's "B

Soluation:
Requirments # 1

Income from business or profession (u/s-28):

Net profit as per P/L- A/c 1,000,000
Less, Non business income included in P/L -A/cs (300,000)
700,000
Add; Inadmissible expenses:
Salaries:
A 200,000
C 300,000
500,000 500,000
Interest on capital:
A 100,000
B 200,000
 300,000 300,000
Commission of C 300,000
Provision for bad debts 400,000
Income from business or profession 2,200,000
Add; Income from capital gain 300,000
Total Income 2,500,000

Requirments # 2 :

Tax payable ABC Firm

Ist 200,000 0% -
On Next 300,000 10% 30,000
On Next 400,000 15% 60,000
On Next 300,000 20% 60,000
Next (Balance) 1,300,000 25% 325,000
Total 2,500,000 475,000

Requirments # 3:

Allocation of firm income amongest the partners:

Allocation A B C Total
Salary 200,000 300,000 500,000
Interest 100,000 200,000 - 300,000
Commission - - 300,000 300,000
Total 300,000 200,000 600,000 1,100,000

Total income 2,500,000

Less, Capital gain 300,000
(6th schedule part-A, para-18) 2,200,000

(Tk. 2200,000-1100,000) 1,100,000

Partners income Partners income Net PL part Total
A 300,000 366,666 666,666
B 200,000 366,666 566,666
C 600,000 366,667 966,667

Requirments # 4:
Total income for partners "B"

Partnes A B C
Firm income 666,666 566,666 966,667

Income from house property "B"

rental vale Tk. 600000
Municipal value 0
Annual value Tk, 600,000
Less, Repair & M (30%)
180,000 420,000
Total income 666,666 986,666 966,667

Requirments # 5

Tax liability of "B:

Ist 200,000 0% -
On Next 300,000 10% 30,000
On Next 400,000 15% 60,000
Next (Balance) 86,666 20% 17,333
Total 986,666 Tax payable 107,333
Less, Firm Rebate (107,333*566,666/986,666) 61,644
Net Tax liability 45,689

N/B:
1). C.A firm or any can not deducted any TDS as per provision of ITO, 1984
2). For capital machinary lets, buy and sales of machinary withing 5 years.
3). Total income of partners as per (u/s-43(3).