ACN 402 Final assignment [Equivalent to final term exam]

Assignment marks: 30
Assignment type: Individual, handwritten.
Submission deadline: 1 May 2021, 11.59 PM. Saturday [late submission will be penalized]

Instructions
1) Check your ID and look for your set. You need to answer all the questions of your set.
2) Answer the question on your script, take images, convert into pdf and upload files.
3) Answer must be brief, relevant, neat and clean.
4) Start answering each question from a fresh sheet.
5) Your assignment will be checked carefully. If it is found to be plagiarized / copied from other
sources, it will be strictly dealt with.

SL STUDENT_ID STUDENT_NAME SET PAGE NO

1 1610221 Mohammad Sheikh Rifat B Page 7-9
2 1611231 Shyama Saha C Page 10-12
3 1620288 Surma Akter Rathi D Page 13-15
4 1620367 Saif Rahman A Page 3-6
5 1620489 Fahim Ahmed B Page 7-9
6 1620575 Md. Monirujjaman D Page 13-15
7 1621208 Nafis Ahmed C Page 10-12
8 1621393 Mayeda Siddique Bipasha B Page 7-9
9 1710027 Mohammed Hasnain D Page 13-15
10 1710238 Syeda Aanika Akbar A Page 3-6
11 1710404 Mohsin Uddin Chowdhury C Page 10-12
12 1710462 Md. Arifur Rahman Joy B Page 7-9
13 1710527 Mutakabbir Hossain Ayon D Page 13-15
14 1710691 Syed Zahurul Haque Zoheb A Page 3-6
15 1710740 Mohammad Sharfuddin Ali C Page 10-12
16 1720116 Nusrat Zahan Tanji D Page 13-15
17 1720213 Md. Ashfaqur Rhaman A Page 3-6
18 1720220 Khondakar Aminul Islam C Page 10-12
19 1720255 Afrin Arabi Munia D Page 13-15
20 1720283 Md Mofijul Ahmed Rohel A Page 3-6
21 1720639 Md. Murad Hossain C Page 10-12
22 1720682 Rupam Saha D Page 13-15
23 1720881 Tanbir Ahmed Asif A Page 3-6
24 1721395 Mohammad Un-Am Ar Rafi C Page 10-12
25 1721557 Marian Jyoti Baroi D Page 13-15
26 1722193 Md. Hasibur Rahman Emon A Page 3-6
27 1730112 Tehsin Ahsan C Page 10-12

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28 1730411 Nishan Tripura D Page 13-15
29 1730594 Akash Barua A Page 3-6
30 1730608 Sumaiya Ali C Page 10-12
31 1730702 Jahid Hasan C Page 10-12
32 1730905 Andin Prodhan A Page 3-6
33 1810146 Arman Ferdous D Page 13-15
34 1811282 Louli Fu D Page 13-15
35 1820959 Piyas Bhowmik A Page 3-6
36 1821441 Saima Sharmin D Page 13-15
37 1821952 Md Navidul Islam B Page 7-9
38 1821989 Md.Risatul Islam D Page 13-15
39 1830316 Syeda Ayesha Shahrina B Page 7-9
40 1830960 Kainat Binte Masuq D Page 13-15
41 1831157 Rabia Sultana B Page 7-9
42 2022258 Mantaka Haque Orthi B Page 7-9

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 Set: A

1) State the scope of income from interest on securities. Discuss the cum-interest and ex-interest
transactions and their effects
2) Briefly discuss the difference between Accounting Depreciation and Tax Depreciation.
3) What did you learn from this course? What do you think about the necessity of knowledge of
taxation in choosing a profession in accounting? Do you want to have a career on taxation?
Why or why not?
4) The Income Statement of Viyellatex Limited for the year ended 30th June, 2019 was as
follows:

Particulars Taka Taka

Sales 6,00,00,000
Less: Cost of Goods Sold: 81,00,000
Gross Profit 5,19,00,000

Less: Selling and Administrative Expenses

Printing and Stationary 9,00,000
Office Expenses 45,00,000
Salaries 46,20,000
Distribution of Samples 3,00,000
Depreciation 14,20,000
Donation 1,00,000
Overseas Travelling Expense 9,00,000
Travelling Expenses 19,80,000
Audit fees 15,00,000
Legal Expenses for Income Tax Return 7,20,000
Repairs for residential houses of Employees 9,90,000
Compensation to the families of the staff 9,30,000
Robbery of Cash 13,80,000
Bad Debt provision 15,00,000
Commission 7,80,000
Renewal Charges for Trade Mark Registration 6,00,000
Bonus to Staff - Cash 24,00,000
Bonus to Staff - Bonus Share 18,00,000
Foreign travel (Recreation) 2,80,000
Managing Agent's Commission 30,00,000 3,06,00,000
2,13,00,000
Add: Profit on Reissue of shares 3,60,000
Profit on Sale of Machineries 14,40,000
Share Premium 9,00,000
Interest on Tax - free Govt. Securities 9,00,000
Sundry Income 27,00,000

63,00,000
Net Profit 2,76,00,000

Additional Information:
(i) Tax has not been deducted on printing and stationary bills.

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(ii) Salaries included Tk. 4,00,000 paid to the Retired Manager for house rent and Tk. 6,00,000
contribution to the Pension Fund. It also includes Tk. 10,00,000 paid as perquisite to
Managing Director.
(iii) Compensation to the family of a staff included Tk. 1,00,000 paid for a peon who was injured
in a road accident while bringing lunch for the manager and Tk. 2,10,000 paid for the
termination of a certain employee.
(iv) Bad Debt Tk. 80,000 and Tk. 60,000 provision for the last year were written off.
(v) Commission paid to a certain Staff Tk. 3,000.
(vi) The sold machine was purchased six years ago and it's book value was Tk. 6,00,000 but
it's book value as per Income Tax Rule was zero. The cost price of the machine was Tk.
30,00,000.
(vii) Tk. 1,00,000 has been donated to a non-recognized school.
(viii) The company has a trading liability with one overseas company to the tune of Tk. 80,000
which has been totally waived by the overseas company under special agreement during
the year.
(ix) The company showed expenditure on foreign travels for holidaying and recreation of an
employee and his dependents and the amount spent was Tk. 2,80,000. The basic salary of
that employee was Tk. 1,20,000. The travel was not oftener than once in two years.
(x) The company sold a scientific apparatus used for scientific research for Taka 75,000 which
was originally purchased for Taka 1,20,000 and fully depreciated. The sale proceed is not
recorded at all.
(xi) Accounting depreciation charged to the account is Taka 14,20,000 but tax depreciation
amounts to Taka 12,00,000 excluding the amount of accelerated depreciation which was
2,50,000.
(xii) Sum of taka 85,000 expended to train employees in connection with a scheme approved by
NBR.
(xiii) The company expensed Taka 1,80,000 for visits abroad as a member of trade delegation
sponsored by the government
Determine the Taxable Income and tax to be paid by the Company.

5) Mr Hiruzzaman is Executive Director of a company. His basic salary is Tk. 87,000 per month.
Particulars of his income are as follows:

(a) Income from Salary:

(i) His basic salary is Tk. 87,000 on 1 July 2018.
(ii) Leave fare allowance - one month basic salary.
(iii) Medical allowance - Tk. 8,000 per month. During the year Mr. Hiruzzaman had to
undergone Kidney surgery and he spent Tk. 3,50,000 for the operation. His employer
reimbursed the whole amount of cost of operation.
(iv) Charge allowance - Tk. 2,500 per month.
(v) He has been provided with a furnished flat and the rent of the flat is Tk. 40,000 per
month.
(vi) He contributed 10% of his basic to approved provident fund and received interest at
the rate of 15% amounting to Tk. 150,000.

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 (vii) He received conveyance allowance Tk. 3,000.
(viii) He also gets full time car for his personal and official use.
(ix) Fuel cost for the car was Tk. 2,40,000 and Driver's salary was Tk. 2,20,000.
(x) Entertainment allowance - Tk. 500 per month.
(xi) Bonus - two months basic salary.
(xii) He travelled to India with his spouse as per the terms of employment. The company
paid him Tk. 3,00,000 for both way tickets. However actual ticket cost was Tk.
2,50,000.
(b) Interest on Securities:
(i) Interest on tax exempted government securities - Tk. 25,000
(ii) Interest on taxable Government securities - Tk. 18,000
(iii) Interest on Debenture (Gross) - Tk. 5,000.
(iv) Interest on Savings certificate Tk. 45,000

(c) Income from House Property:

He has a two storied building in Dhanmondi. The municipal value of the house is Tk.
3,00,000. He lives in 1st floor and the ground floor is let out at Tk. 20,000 per month. He
took loan of Tk. 5,00,000 at 15% interest. Expenses of the house for the year were as
follows:
Repairing Tk. 10,000; Legal expenses Tk. 5,000; Collection expenses Tk. 1,500; Municipal
Tax Tk. 5,000; Electricity installation expense Tk. 10,000; Wasa bill Tk. 2,000; Land Tax
Tk. 2,500; Insurance premium Tk. 1,500.
(d) Agricultural Income:
Sale of agri-products Tk. 2,00,000; Cash rental of agricultural land Tk. 1,00,000 and sale of
honey Tk. 10,000.
Expenses relating to agriculture were - Local rates and taxes Tk. 3,000; Insurance premium
Tk. 6,000; Interest on loan Tk. 15,000 and Land development Tk. 25,000.
(e) Income from Business:
Share of profit from partnership firm Tk. 1,50,000; Income from Sole Tradership Business
Tk. 50,000; Last year' s loss carried forward Tk. 40,000.
(f) Other Income:
(i) Interest on bank deposits (Gross) Tk. 13,000
(ii) Remuneration received as Director Tk. 50,000
(iii) Royalty from Book Tk. 60,000

During the year he incurred the following expenses:

(a) Family expenses Tk. 2,40,000
(b) Insurance premium-own (Policy value Tk. 5,00,000) 48,000
(c) Insurance premium-spouse (Policy value Tk. 3,00,000) 40,000
(d) Purchase of share of partnership 65,000
(e) Purchase Bangladesh savings certificate 80,000

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 (f) Purchased Books 4,000
(g) Donation to Prime Minister's Relief Fund 10,000
(h) Deposit to Pension Scheme (per month Tk. 500) 6,000
(i) Paid to Zakat Fund 6,000

From the above information compute his total income and tax to be paid for the income year 2018-
19.

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 Set: B

1) “Taxation is a way to transfer the resources form private sectors to government sectors in
order to accelerate economic and other development”-explain this statement with light to
purpose of taxation.

2) Describe the importance of determining residential status for calculating tax liabilities.

3) What did you learn from this course? What do you think about the necessity of knowledge of
taxation in choosing a profession in accounting? Do you want to have a career on taxation?
Why or why not?

4) Mr Habib Ullah is General Manager of Diganta Enterprise Limited. His sources of income for
the year ended on 30 June, 2020. His basic salary is Tk. 80,000 and annual increment is Tk.
5,000 and the date of increment is January 1.
(1) Income from Salary:
(a) His basic salary was Tk. 80,000 on 1 July 2019.
(b) Leave fare allowance - one month basic salary.
(c) Medical allowance - Tk. 5,000 per month.
(d) Mr Habib Ullah had a cardiac arrest and had to undergo a heart surgery for which he
had to pay Tk. 3,00,000 to National Heart Foundation. The Company reimbursed the
full amount for heart surgery.
(e) He has been provided with a furnished flat and the rent of the flat is Tk. 35,000 per
month.
(f) He contributed 10% of his basic salary to a contributory provident fund and received
interest at the rate of 15% amounting to Tk. 150,000. The fund is approved by NBR.
(g) He received conveyance allowance Tk. 3,000 per month.
(h) He received entertainment allowance Tk. 2,000 per month.
(i) Bonus - Two months basic salary received in July and September 2019.
(j) During the year Mr. Habib received Tk. 54,000 as allowance for launch.
(k) During the period, Mr. Habib travelled to Germany, as a part of his service contract,
along with his wife. As per the contract his employer has given him both way free
tickets. Besides, he has also been given Tk. 85,000 to meet the expenditure abroad
which is also a part of the service contract.
(l) Before joining this company he worked for a Commercial Bank for 20 years. After
completion of his service in the bank he joined this company in 2018. In September
2019 he received a gratuity payment of Tk. 25,00,000 from the Commercial Bank. The
gratuity fund was approved by NBR.
(2) Mr. Habib Ullah received Tk. 25,000 as interest on Tax Exempt Government Securities. He
also received Tk. 5,000 as interest (Gross) on Debenture.
(3) He has a building at Mohammadpur, Dhaka. The building is let out at Tk. 50,000 per month.
The Municipal value of the house is Tk. 5,00,000. The house remained vacant for 1 month.
Expenses of the house were as follows:
(i) Land development tax Tk. 4,000,
(ii) Repair Tk. 42,000,
(iii) Installment of HBFC loan Tk. 90,000 of which interest is Tk. 30,000

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 (iv) Cost of installing water and electric line Tk. 80,000
(v) City Corporation tax Tk. 20,000, Salary of guard Tk. 84,000,
(vi) Insurance premium Tk. 10,000 and
(vii) Legal Expenses Tk. 12,000.
During the year Mr. Habib received Tk. 300,000 in cash as advance rent.
(4) Mr. Habib has an Insurance Policy (Three Payment Plan) in Metlife. The Policy matured
during the year. The face amount of the policy was Tk. 10,00,000. In addition to the face
amount he received accumulated bonus of Tk. 13,26,000. For this policy he paid a total
amount of Tk. 13,06,284 as premium. Metlife deducted tk. 50,986 as tax deducted at source
(5% of the profit).
Investigation disclosed that he has a Savings bank account with Exim Bank on which he is
to receive interest Tk. 63,000 after deduction of tax at source @ 10%.
(5) During the year his Investment were as follows:
(i) Life Insurance premium Tk. 24,000,
(ii) Purchase of ICB unit certificate Tk. 70,000,
(iii) Donation to President's Relief Fund Tk. 20,000.
Required:
Compute Taxable Income and Tax Liability of Mr. Habib Ullah for the Income year 2019-
2020.

5) Yasna Ltd. is a non-listed manufacturing multinational company doing business in Bangladesh

for last 10 years. The company filed return of income for the assessment year 2020-21.
Showing income of Tk. 46,000,000. Examination of the audited statement of accounts filed
with the return of income revealed the following:
(i) During the year the company received dividend amounting to Tk. 220,000 against the
purchased share of a private limited company. The dividend is included in net profit.
Tax was not deducted at source.
(ii) Salary includes Tk. 330,000 paid to employees against which tax was not deducted at
source. Annual perquisites enjoyed by MD and CFO amounts to Tk. 1,150,000.
(iii) The company sold a scientific apparatus for Tk. 600,000 which was allowed earlier as
expenditure against calculation of profit.
(iv) The company has a trading liability with one overseas company to the tune of Tk.
180,000 which has been totally waived by the overseas company under special
agreement during the year.
(v) During the year the company claimed the following expenses:
Head office expenses (paid to group HQ, Hong Kong) Tk. 3,000,000

Management expenses (paid to Thailand) Tk. 1,900,000

Total Tk. 4,900,000

(vi) Royalty paid Tk. 1,300,000.

(vii) During the year, the company also paid the following expenses:
Fees for technical services Tk. 1,650,000

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 Technical know-how fee Tk. 875,000

Total Tk. 2,525,000

(viii) Annual depreciation charged to the account is Tk. 2,350,000 but tax depreciation
amounts to Tk. 2,100,000.
(ix) The company recovered Tk. 120,000 from bad debt that was written off earlier and
allowed as deduction.
(x) The company showed expenditure on foreign travels for holidaying and recreation of
an employee and his dependents and the amount spent was Tk. 400,000. The basic
salary of that employees was Tk. 120,000. The travel was not oftener than once in two
years.
(xi) Tk. 15,000 has been donated to a non-recognized school.
(xii) A fine of Tk. 80,000 paid for violation of customs law charged to P&L Account.
(xiii) The company sold a motor vehicle for Tk. 870,000. Original cost of the vehicle was Tk.
1,250,000 and the written down value was Tk. 825,000. That has not been reflected
in the accounts.
(xiv) A sum of Tk. 10,000 in respect of travelling expenses is not supported by legal
vouchers.
(xv) Repair and operating expenses included Tk. 25,000 spent for the installation of a
machine in the factory.
(xvi) Total gross receipt of the company is Tk. 95,00,00,000.
Required:
From the above information, compute the total income and tax liability of the company for
the Income year 2019-2020.

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 Set C:

1) Explain the effect of tax free income and tax credit income for determination of total income
and tax liability.
2) What are the contents of the Sixth Schedule of the ITO, 1984? Do you think these contents
are important to assess tax liability of an assessee? Explain.
3) What did you learn from this course? What do you think about the necessity of knowledge of
taxation in choosing a profession in accounting? Do you want to have a career on taxation?
Why or why not?
4) Mr. Moniruzzaman works as an executive in a Local Company. His income for the year ended
on June, 2019 were as follows:
A. Income from salaries:
Basic salary is Tk. 15,000 per month.
Dearness allowance 10% of the basic salary
Two bonuses equivalent to two months basic salary
Medical allowance Tk. 1,000 per month (actual expense Tk. 10,000)
Entertainment allowance Tk. 200 per month
He has been provided with a free car both for official and personal use.
He has also been provided with a rent free quarter, municipal value of which is Tk. 80,000.
Travelling allowance as a part of his contract was Tk. 100,000; from where he saved Tk.
16,500.
He contributes 10% of his basic salary to a Recognized Provident Fund. His employer also
contributed the same. During the year, he received interest of Tk. 1,800 @ 18% on RPF.
He has taken Tk.15,000 as salary advance in the month of June to meet up some of his
financial difficulties.
B. Interest on securities:
Mr. Moniruzzaman received interest on tax exempted Govt. securities Tk. 3,000. Interest on
taxable government securities Tk. 2,850; Interest on debentures Tk. 25,935. He has
borrowed Tk. 20,000 @10% interest to purchase it. Bank also charged Tk. 400 to collect this
interest.
C. Income from house property:
He owns a two-storied house at Dhanmondi. He stays in one floor with his family in addition
to rent free quarter and another floor is let out for residential purpose @ Tk. 9,000 per month.
The municipal value of the house is Tk. 200,000 per annum. During the year he spent the
following expenses:
Repair expense Tk. 30,000
Fire Insurance premium Tk. 4,000
Land development tax Tk. 1,500
Sewerage and utilities expense Tk. 1,000
Payment of HB Loan installment (including interest of Tk. 500)Tk. 5,000.
During the year, the house has remained vacant for two months.
D. Agricultural income:
Sale of crops Tk. 5,000
Income from borga (lease) Tk. 2,000
E. Share of profit from partnership firm Tk. 10,000

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F. Income of spouse and minor children dependent on him Tk. 40,000
G. Income from business:
Profit from sole-proprietorship business Tk. 4,000; last year's loss carried forwarded Tk.
1,000.
H. Income from other sources after deduction of applicable AIT:
(i) Interest income from FDR Tk. 4,500
(ii) Profit from Islami bank Tk. 900
(iii) Dividend from ICB from Mutual Fund Tk. 31,500
(iv) Cash Dividend from a listed company shares Tk. 1,800
(v) Sale of forest timber Tk. 4,000
I. Investment claimed by Mr. Moniruzzaman:
(i) Payment of life insurance premium Tk. 8,000 (Policy value Tk. 100,000)
(ii) Purchase of a listed company's primary share Tk. 5,000
(iii) Purchase of books and magazines Tk. 1,000
(iv) Purchase of a share of co-operative society Tk. 2,000
(v) Contribution to President's Relief Fund Tk. 3,000
(vi) Contribution to Govt. Zakat Fund Tk. 2,500
(vii) Purchase of Furniture Tk. 15,000
Based on the above information, compute Mr. Moniruzzaman's total income and gross & net tax
liability for the assessment year 2019-20.

5) Electra International Limited is a Company doing business of electronic products in

Bangladesh. The Company filed return of income for the assessment year 2019-2020 showing
income of Tk. 65,00,000 with a turnover of Tk. 8,00,00,000. Examination of the audited
statement of accounts filed with the return of income revealed the following:
(i) Salary includes Tk. 450,000 paid to employees against which tax was not deducted at
source. Salaries and allowances of Managing Director include perquisites amounting to
Tk. 7,00,000.
(ii) Miscellaneous expenses include Tk. 1,20,000 paid as salaries to two servants who are
working at the residence of the Managing Director.
(iii) The company recovered Tk. 2,20,000 from bad debt that was written off earlier and allowed
as deduction.
(iv) The company spent Tk. 4,50,000 for establishing a hospital for the benefits of employees
which provides medical services to employees without any charge.
(v) The company has a trading liability with one overseas company to the tune of Tk. 270,000
which has been totally waived by the overseas company under special agreement during
the year.

(vi) Tk. 3,00,000 has been paid as commission to an agent for distribution and marketing of
products. The provision of section 53E of Income Tax Ordinance 1984 (deduction or
collection of tax at source from Commission, discount, fees etc.) has not been complied
with.
(vii) A fine of Tk. 11,000 was paid for violation of customs law charged to P & L Account.
(viii) The company distributed free sample to its customers amounting to Tk. 4,80,000.

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(ix) The company sold a car for Tk. 12,50,000. It was purchased at a total cost of Tk. 12,00,000.
Accumulated depreciation of the car is Tk. 2,00,000. This has not been reflected in the
accounts.
(x) Donations amounting to Tk. 75,000 were paid to Uttara Club to purchase library books,
computers and sports materials.
(xi) During the year the company received dividend amounting to Tk. 1,50,000 against the share
of a private limited company it purchased. The dividend is included directly to net profit.
(xii) The company claimed investment allowance for new machinery installed during the year
costing Tk. 20,00,000 which is entitled to accelerated depreciation (80% for 1st year). Out
of the total amount paid for the purchase of machinery the company failed to deduct tax on
one parts the price of which was Tk. 2,00,000.
(xiii) Annual depreciation charged to the account is taka 2,75,000 but tax depreciation amounts
to taka 2,40,000.
(xiv) Repairs and maintenance expenses amounts to Tk. 2,34,000 which includes Tk. 23,000
spent for the installation of a machine in the factory.
(xv) During the year Electra International Ltd issued 50,000 shares worth Tk. 5,00,000 to a
director. The director made the payment in cash.
(xvi) The company showed expenditure of Tk. 3,00,000 on foreign travels for holidaying and
recreation of an employee and his dependents. The basic salary of that employee was Tk.
1,00,000. The travel was not oftener than once in two years.
(xvii) The company sold a scientific instrument used for scientific research for Tk. 85,000. The
instrument was purchased at a cost of Tk. 1,40,000. The sale proceed was not recorded in
the accounts.
(xviii) Provision of Tk. 35,000 for bad debt was charged in the profit and loss account.
(xix) The company paid Tk. 4,50,000 for royalty. During the year the company also paid Tk.
1,75,000 as fees for technical services and Tk. 1,15,000 as technical know-how fee.
Requirements:
From the above information as a DCT compute the total income and tax liability of the company

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 SET D

1) Write 5 categories of individual tax payee as per ITO 1984 and subsequent amendments
along with their initial tax limit and taxable Income Slab & tax rate on the taxable income.
2) Write short notes on the following:
(i) Permanent Establishment;
(ii) Taxed Dividend;
(iii) International transactions;
(iv) Person;
(v) Perquisite;
3) What did you learn from this course? What do you think about the necessity of knowledge of
taxation in choosing a profession in accounting? Do you want to have a career on taxation?
Why or why not?

4) Mr. Joynul Ahmed worked as an Accounts Manager of SS Tel Enterprises Limited and going
to submit his first tax return through online for the assessment year 2020-2021. His Income
for the year ended on 30 June 2020 were as follow:
(1) Income from salary;
(a) Basic salary is Tk.40,000 per month
(b) Medical allowance Tk.2,00 per month and he received Tk.25,000 for his eye surgery
(c) Mr. Ahmed contributed 10% of his basic salary to a Recognized Provident Fund and his
employer also contributed the same
(d) He received leave encashment Tk.12,000 yearly
(e) Received Tk. 60,000 from Workers’ Participation Fund (WPF), which fund established under
The Bangladesh Labor Act, 2006
(f) Mr. Ahmed has been provided with a car for his private use, in addition he received conveyance
allowance Tk.2,000 per month
(g) Festival bonus amounting Tk. 80,000
(h) House rent allowance yearly Tk. 300,000
(2) Interest on Security:
(a) Received Tk. 45,000 as interest (net of tax) on 3-monthly profit based Sanchaypatra
(b) Interest on Wage Earner’s Bond Tk. 60,000
(c) Investment earlier year Tk. 50,000 on 15% taxable Government Security. The bank charge
commission Tk.200 to realized the interest and deduct TDS @5% on interest.
(3) Income from House Property:
Mr. Ahmed own a commercial floor space at Mohakhali C/A with area 5500 square feet which
Municipal value yearly Tk.120 per sft. He let out this floor space to a Private Limited company.

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Tenant paid annual rental value Tk. 570,000 after deducting tax at source at prescribed rate 5%.
During the year he spent the following expenses:
(a) Repair expenses Tk.171,000 and salary of night guard Tk.36,000
(b) City corporation tax Tk. 8,000
(c) Fire Insurance premium Tk. 7,000
(d) Water and gas bill of tenant Tk. 24,000
(e) Interest on Mortgage Tk. 12,000
(f) Legal expenses Tk. 10,000
(4) Income from Agriculture:
Mr. Ahmed received Tk. 300,000 from sales of robi crop, Tk. 50,000 from borga, Tk. 20,000 from
lease of agricultural land. He paid Local tax Tk. 4,000 crop insurance premium Tk. 6,000 and
allowable depreciation is Tk. 3,000
(5) Income from Business:
Mr. Ahmed solely owned a Software Development firm from where he received Tk. 14,000 as
profit
(6) Income from other Sources:
(a) Received Tk.27,000 as interest on Fixed deposit after deducting TDS @10%
(b) Cash Dividend from a Public Limited company, listed in Dhaka stock exchange Tk.72,000 (Net
of tax)
(c) Dividend received from ICB Mutual Fund Tk.45,000 (Net of tax)
His investment during the year:
(i) Purchases a laptop Tk. 120,000
(ii) Payment of Life Insurance Premium Tk. 60,000
(iii) Donate to CRP, Mirpur Tk. 40,000
(iv) Contribution to monthly deposit pension scheme Tk. 8,000 p.m.
(v) Donate to Asiatic Society, Bangladesh Tk. 50,000
(vi) Purchases Government Treasury Bond Tk. 200,000
Mr. Ahmed’s Net Assets at the end of June 2020 was Tk. 34,000,000
Compute taxable Income and the Net tax liability for the assessment year 2020-2021

5) The following accounts appeared in the XYZ Foods Limited, a non-publicly traded company
established in 2010, for the year ended on December 31, 2019. XYZ reported net sales Tk.
100 million and net profit Tk. 5 million for the year. However, after careful scrutiny of the

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 accounts, you have listed the following items (with actual figure of expenses) that are
inadmissible expenses as per the provisions of income tax law.
i. Salaries and wages Tk. 20,000,000
ii. Free sample distribution 550,000
iii. Technical fee 600,000
iv. Donation to Dhaka University 800,000
v. Travel Expense 3,000,000
vi. Provision for bad debt 500,000
vii. Entertainment 300,000
viii. Sales Promotion 700,000

Additional Information:

* Salaries and allowances include perquisites Tk. 4,000,000 [CEO Tk. 800,000; CFO Tk.
600,000; Chief Research Advisor (person with disability) Tk. 2,600,000], and incentive bonus of
Tk. 600,000

* Provision for Bad Debt includes Tk. 100,000 as Bad Debt Written off.

* One-third of the travel expense is related to overseas travel.

Required:

(i) State the provisions related to the listed items in computing amount of inadmissible portion of
these expenses.

(ii) You have identified that one of the listed items could provide rebate as CSR expense. What
is the maximum amount on which such rebate is allowed (assume total taxable income of XYZ
for the year is Tk. 11,024,000)? How much rebate for the CSR expense would you expect for
the year?

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