TUTORIAL 5: OTHER INCOME 1

Question 1

Ms. Edwina is a government pensioner. To fill up her spare time, she writes book on Malaysian
Taxation System and receives royalty income of RM6,000 from her books. In addition, she also
receives RM13,000 translation fees on translation of literary works at the special request of the
Ministry of Education. Apart from that she recorded a tape on patriotic songs for children and
music for elementary schools. She received RM10,000 as royalties in respect of the recording of
tapes.

Ms. Edwina also derived the following income for the year ended 2020:
RM
Annuity from his late father’s estate 4,500
Malaysian dividend 8,000
Foreign dividend (remitted to Malaysia) 1,550
Interest from Malayan Banking Bhd for a 15 month fixed deposit 3,300
Annuity from Malaysian Life Insurers 2,000
Lottery winning 500,000

Ms Edwina owns a terrace house in Cheras that are rented out for the first time. The rental
income for the year amounted to RM6,550. The expenditure for the year of assessment 2020 is
as follows: Advertising cost of obtaining first tenant (RM120), Housing loan interest (RM5,550),
Insurance premium on fire (RM200), Cost of supervision and rental collection (RM300) and
Repairs and Maintenance (RM330).

Based on the above information you are required to compute the income of Ms. Edwina for the
year of assessment 2020.

Question 2
 TUTORIAL 5: OTHER INCOME 2

Mr. Zamri retired permanently from a government service on 31 May 2017, on his 60th birthday
and he receives monthly pension amounted to RM2,570. Zamri also derived the following
income for the year of assessment 2018:

a. Annuity from Suria Insurance Sdn. Bhd. amounted to RM24,000.

b. Dividend from Zenco (UK) Pte Ltd amounted to RM8,800.

c. Payment for occasional television appearances amounted to RM4,300.

Zamri’s wife, Zarina, owns a house which she lets out for the first time. The details of the
income and expenses for the house as follows:

RM RM
Annual rental 32,000
Advertising cost of obtaining first tenant 1,000
Insurance premium on fire 640
Repairs and Maintenance 1 ,467
Cost of supervision and rental collection 250
Quit rent and assessment 876
Housing loan interest 7,250
Renovations 35,790
(47,273)
Adjusted loss 15,273

During her spare time, Zarina writes book on Malaysian Economics and receives royalty income
of RM36,000 from her books. In addition, she also receives RM16,000 translation fees on
translation of literary works at the special request of the Ministry of Education. Apart from that
she recorded a tape on children songs. She received RM4,000 as royalties in respect of the
recording of tapes. During the year, Zarina also received a dividend, of RM1,440 from Decorp
Sdn Bhd and an interest on fixed deposit with a finance company in Malaysia amounted to
RM2,370.

Required:

Compute the amount of adjusted other income of Mr Zamri and Ms Zarina under Section 4(c) -
Section 4(f) of ITA 1967, for the year of assessment 2020.
(15 marks)