Illustration:

X is a teacher in a renowned school in Dhaka and is going to submit his income tax return in the
assessment year 2022-23. Considering the following information, compute his tax liability for the
assessment year 2022-2023.

Income from Salary:

Basic salary Tk. 32,540 per month; two festival bonuses, each equal to one month’s BS; house rent
allowance is Tk. 17,045 per month; medical allowance Tk. 900 per month (actual expense Tk. 0). Mr.
Rahman and his employer contributed 15% of his BS to a recognized provided fund (RPF). He received
no interest on the RPF.

Income from House Property:

He owns a house at Y area in which he has an apartment let out for residential purpose at Tk. 120,000
per annum. Expenses that were incurred during the income year for the house includes: repair expense
Tk. 30,000

Income from Agriculture:

Sale of Paddy Tk. 50,500

Other Income:
Tuition income Tk. 245,500

Investments during the income year 2021-22:

Life Insurance Premium Tk. 179,450
DPS monthly @ Tk. 60,000 [Tk. 5,000 per month]
Contribution to Benevolent Fund and group insurance premium Kalyan Trust Tk. 19,524

Assets as on 30.06.2021
Opening cash in hand and at Bank Tk. 15,588
Net wealth as on last date of previous income year Tk. 8,778,679

Assets as on 30.06.2022
Land and House Property
1. Dewl, Birulia, Savar, Dhaka. 08.25 Decimal Tk. 467,500
2. Satarkul, Satarkul Union, Badda, Dhaka. 04.95 Decimal Tk. 654,500
3. Flat # E-2, 474 Vertex Tower, Shajhanpur, Dhaka.1323 sft Tk. 3,621,200
4. Flat # G-1,474 Vertex Tower, Shajhanpur,Dhaka.1223 sft Tk. 1,952,000
Shares and Debentures Tk. 243,713
Saving Certificate and DPS Tk. 80,000 and Tk. 120,000;
Prize bond/Savings Scheme/P.Fund- Tk. 537,471;
Other Investment Tk. 505,187;
Motor Vehicle Tk. 1,677,500
Jewellery (29 Tola) Tk. 146,250
Furniture Tk. 79,820;
Electronic items Tk. 67,950;
Other Deposits Tk. 14,845

Salary Allowance Tk. 765,472

Bank Interest Tk. 554
Agriculture Tk. 50,500
House Income Tk. 90,000
Tuition Fee Tk. 245,500

Expenses
Family Expenses Tk. 290,692
Tax Paid Tk. 45,058
DPS. Tk. 120,000
Sun Life Tk. 179,500
Share purchases Tk. 10,005
Loan Paid Tk. 400,000
P. Fund Tk. 58,572
Cash in hand. Tk. 63,787

Liabilities on 30.06.2022
Unsecured loans Tk. 700,000
P. Fund Loan Tk. 170,000

Tax paid including deduction at source of the last financial year Tk. 45,058