Taxation: Theory & Practice

MGT-207
Assignment

Question 01: Explain the process of calculating VAT.

Question 02: Describe the tax structure of Bangladesh. Explain the minimum tax rate and
tax ceiling.

Question 03: Here are the incomes of Mr. Mamun from salary in 2019-2020 as follows:

1. Basic salary 30,000 Tk.

2. Dearness allowance 25% of the basic salary.
3. Festival bonus 2 times in a year. Each one is equal to one month of
basic salary.
4. Medical allowance Tk. 10,000 per month. He had a heart surgery which
was cost Tk. 1,00,000 and it was paid by his employer.
5. Entertainment allowance Tk. 50,000.
6. His office provides him a flat in Mirpur. The rental of the flat is Tk.
35,000 per month.
7. He gets conveyance allowance of Tk. 50,000 annually. His office also
provides him transport facility of Tk. 20,000 for official purpose.
8. For an official meeting he traveled to Cox’s Bazar. He was allotted Tk.
25000 from the office. During the tour he paid Tk. 10,000 for hotel rent,
Tk. 5,000 for bus fare and Tk. 12,000 for foods.
9. His club membership fees of Tk. 18,000 was paid by his employer.
10. His contribution to RPF is Tk. 10,000 per month. His employer is also
contribute the same amount.
11. The interest from RPF is 15%.

He donated Tk. 25,000 in Govt. Zakat Fund. He invested Tk. 20,000 in stock
exchange. He also paid insurance premium of Tk. 15,000 which policy value
is Tk. 2,50,000.

Find out the net taxable income of Mr. Mamun. Also calculate the tax liability
considering his investment allowance.