University of Dhaka

Department of Finance
MBA(Evening) Program, Spring 2021
Corporate Taxation
Mid term- 2, Marks -15, Time – 1 Hour

1. (a) Identify the different incomes which are included in the scope of income under the head
“Income from business or profession.”?
(b) Khan Ltd. reported turnover of Tk. 40,000,000 and net income of Tk. 10,000,000 in its
income statement prepared for the year ended on 30 June 2020. Some of the expenses reported in
its income statement are given below:
(i) Inventory lost in fire amounting to Tk. 100,000 was debited to income statement.
(ii) Overseas travelling expense - Tk. 9,20,000.
(iii) Purchase costs of a printer amounting Tk. 50,000. Repair and maintenance expenses of Tk.
5,000.
(iv) Incentive bonus of Tk. 1,500,000.
(v) Royalty expense of Tk. 800,000.
(vi) Interest expense of Tk. 250,000 on borrowing form bank.
(vii) The company has transferred a part of its export quota of garments to another company that
may generate a total of Tk. 9,500,000.
Requirement: State with reasons whether the following expenses are fully or partly admissible as
deduction while computing income from business or profession.
[6]
2. Sikder Ltd. has the following income in the recent two previous income years. Calculate the
total income of the assessee for the following income years considering the procedures relating
to set off and carry forward of losses.

Sources of Income 2020 2019

Income from business or profession Tk. 40,00,000 Tk. (20,00,000)

Capital gain 5,20,000 50,00,000
Interest on Securities - 2,00,000
Income from other sources 80,000 -

The company incurred a loss of Tk. 50,00,000 from business or profession in the year of 2017 which has
not been set off in previous years.
[5]
3. (a) When does an assessee is permitted to pay advance tax based on own estimate? Explain.
(b) The latest assessed income of Chowdhury Ltd. was Tk. 80,000,000 for the income year of
2018-2019. But management wanted to pay advance tax for the year of 2019-2020 of its own
estimate that amounts to Tk. 60,000,000 and accordingly paid the tax. Regular assessment for the
assessment year 2020-2021 was completed on March 15, 2021.
Requirements: (i) Calculate the amount of tax which has been paid in each installment.
(ii) Calculate the amount of excess or shortfall and explain the consequence of the same.
[4]