Assignment on

Income from salary

Submitted to:
Shariful Islam (Lecturer)
Department of Law.
Green University of Bangladesh

Submitted by:
Farjana Alam jhuma
Id: 192911001
 Assessee: Md Shahidul Haque

Assessment year:2019-2020

Income year:2018-2019

Determination of total income

Income From Salary Taka

 Basic salary (40,000x12) 4,80,000
Basic salary means the pay and allowances for services other than mechanical involving some
skill . Total amount of basis salary in a year is taxable.

 Dearness Allowance ( 4,80,000x10%) 48,000

The payment is to cope with the higher cost of living, which is a certain percentage of the basic
salary.

 Special Allowance (25,600 taka =fully exempted)

Special allowance profit is excluded from taxable income.

 Bonus (2 equivalent) ( 40,000x2) 80,000

Bonus is extra salary for Eid, Christmas or any occation. Total amount is taxable.

 Medical Allowance(5000x12)=60,000 taka

Less: exempted –Taka 1,20,000 or 10% of Basic salary( 60,000-48,000) 12,000
medical allowance, the amount, if any, so receivable or received exceeds ten per cent of the
basic salary or taka 2[1,20,000]annually, whichever is less, shall be included in his income.

 Accommodation facility the rental value

(15,000x12=1,80,000)or
25% of Basic 1,20,000 taka. Less rent should be paid. 1,20,000
  Conveyance (3000x12=36,0000)
Higher of 30,000 taka should be paid. 6,000

 Fees and commission 2,000

Fees is an amount paid for services rendered and it is with
reference to the work performed not with reference to time factor. Commission is an
amount paid for transacting a business. It may be based on sales, or net profit or other
factors or it may be just a sum of money. Fees and commission is fully taxable.

 Entertainment allowance (5,000x12) 60,000

 Servant allowance (2,000x12)

Full amount received for this purpose is taxable and there is no
exemption. 24,000

 Employer contribution to RPF (4,80,000X10%)

Employer’s total contribution is taxable. 48,000

 Interest on RPF .
Basic (40,000X12) = 4,80,000 /3=1,60,000 taka
40,000 taka at 20%
Calculation 14.5% = (interest/actual rate of interest) x14.5
= (40,000/20) x14.5
= 29,000 taka
(40,000-29,000)
=11,000 taka. 11,000

 Mobile bill paid by company (5000x12) 60,000

 Entertainment allowance (8,000x12) 96,000

Total 10,47,000

Taxable income is 10,47,000 taka

Income tax

On the first 3,00,000 taka……………………………0%.................................................... 0 taka

On the next 1,00,000 taka………………………….5%................................................... 5000 taka

On the next 3,00,000 taka…………………………10%................................................. 30,000 taka

On the next 3,47,000 taka………………………….15%................................................ 52,050 taka

Total = 87,050 taka

Total Income tax is 87,050 taka