Khwaja Yunus Ali University

School of Business
Dept. of Business Administration
Final Examination: Spring 2021
Program: BBA, Batch: KYAU 14th
Course Title: Auditing and Taxation
Course Code: ACT: 303
Total Time: 10 minutes ____________Part 1: MCQ ___ total Marks: 10x1 = 10
(These are single best answer type of questions. Each of the following questions or statements has five suggested
answers or completions. Write down the most appropriate one on the answer script)
01. Income tax is charged on the total income of a person in the –
a) same income year
b) assessment year
c) year assesse like to pay
d) year decided by the tax authority
e) last year
02. Tax holiday scheme states that –
a) Tax is exempted for certain product
b) An entity shall be exempted from tax
c) No tax is applicable for certain business
d) Tax is exempted for specific time period
e) Taxable income for exemption
03. Tax on total income of tk. 1,00,000.00 is 10% but on tk. 5,00,000.00 is 5% - here the taxation is
an example of -
a) proportionate tax
b) regressive tax
c) progressive tax
d) degressive tax
e) indirect tax
04. life insurance premium is an allowable investment but shall not exceed –
a) 15% of policy value
b) 12.50% of policy value
c) 10% of policy value
d) 13% of policy value
e) Full amount
05. For house rent allowance how much is exempted from tax –
a) 50% of basic salary
b) Tk.25,000 per month
c) 25% of basic salary
d) For house rent allowance how
e) Lower of a & b
06. Which of the following contribution employees to PF is not eligible for tax rebate –
a) Contributory provident fund
b) General provident fund
c) Recognized provident fund
d) Unrecognized provident fund
e) Special provident fund
07. Perquisites includes following except –
a) Leave encashment
b) Rent free accommodation
c) Concession rate accommodation
d) Basic salary
e) Insurance premium for dependent child
08. Tax free income is _________________.
 a) Fully non-assessable
b) Subject to rebate on average rate
c) Allowed as investment
d) Subject to 25% tax
e) Tax credit income
09. Motor Vehicle Tax in Bangladesh is an example of -
a) Direct tax
b) Indirect tax
c) regressive tax
d) proportionate tax
e) degressive tax
10. The chairman and members of NBR are appointed by –
a) Ministry of finance
b) Commissioner of taxes
c) Appellate tribunal
d) Government
e) Local Authority

Part 2: SAQ

Total time: 1 hour and 50 minutes Total Marks: 5x6=30

(Answer to the question no. 01 and any Four (4) from the rest)
1. a) Define Income Tax. (6x1) = 06
b) List some characteristics of taxes.
c) Specify the term provident fund.
d) What is assessment year?
e) Discuss annuity for income tax.
f) What is tax shifting?
2. (a) Show the tax structure of Bangladesh. 03
(b) What is the proper reason for tax evasion in Bangladesh? 03
3. Calculate the amount which is to add under the head of income from the salary
a) Mr. Talukdar is paid monthly 60,000 as basic salary and he is also given 60% of basic salary 02
as house rent allowance.
b) Mr. Khan is given 12,000 as medical allowance in a year and his actual medical expense is Tk. 02
10,000; His annual basic salary is Tk. 109,000.
c) Mr. Buyian is paid monthly Tk. 20,000 as basic salary and he has also been provided with a 02
conveyance facility for both personal and official use. Annual maintainable cost Tk. 2,000 has
borne by the employer.
4. On July 2020, Mrs. Silvia’s basic salary falls on tk. 52000 in the scale of (40,000-2,000 x 8- 06
72,000). Her date of yearly increment is on 16th April. She received dearness allowance@ 20%
of basic salary and medical allowance tk. 3,000 per month. She received two festival bonuses and
one performance bonus each equal to one month basic salary in the month of September,
December and May respectively. She contributes 10% of his basic salary to a recognized
provident fund from which he has also received an interest of tk. 1,500@ 15% interest. Her
employers also contributes the same amount of RPF. She has been provided with a rent free
quarter annual rental value of tk. 160,000 a full time car by the employer. The maintenance cost
of the car during the year was tk. 10,000. Company gave her International Air Ticket for a tour as
 a part of her service contract for which the company spent tk. 35,000. During the year she has
also received an entertainment allowance of tk. 31,850 of which tk. 27,500 has actually been
spent. Her taxable income from other sources was tk. 300,000 during the year.
Her investment during the year were Purchases of shares of a private limited company tk. 10,000;
Purchases of shares of a registered partnership firm tk. 8,000; payment of his life insurance
premium tk. 12,000 (policy value tk. 100,000); Purchases of books and magazine tk.3000;
contribution to a superannuation found tk. 500 on a monthly basic; donation to lab Aid hospital
tk.15000.
You are required to compute taxable income from the above information.
5. (a) State the scope of Bangladesh Income Tax Law. 02
(b) Explain the role of income tax in economic development of Bangladesh. 04
6. Differentiate the followings (Any two): (3x2) = 06
a) Progressive vs Regressive
b) Value Added Tax vs Expenditure Tax
c) Tax vs Rates