“Any income of a farmer is to be treated as agricultural income” – Do you agree? Explain.
b) Mr. Khalid purchased 200 computers @ Tk. 25,000 each and earns Tk.50 on first 50 computers, Tk.80 on next 50 computers, Tk.110 on next 50 computers and Tk.120 on rest 50 computers. He pays VAT@ 10%. What will be the total sales price of these 200 computers and how much VAT he has to pay?
c) Compute taxable income and tax liability of Md. Bazlur Rahman, who is a 60 years old farmer, from the given particulars related to the year ended 30 June, 2020: Sale of rice 700 maunds @ Tk. 1000 per maund; Sale of potato 100 maunds @ Tk. 400 per maund, Income from lease of agricultural land Tk. 80,000; Income from ferry ghat Tk. 60,000; Income from sale of water used for irrigation Tk. 35,000; Income from sugar industry Tk. 160,000; Income from sale of forest tree Tk. 40,000; Income from sale of honey from honey comb Tk. 10,000; and sale of mud to the brickfield for Tk. 12,000.
When the income tax authority ask for the books of accounts regarding cultivation expense Md. Bazlur Rahman failed to provide proper records for both rice and potato though he claimed Tk. 100,000 as production cost. His other expenses are: Union Parishad tax Tk. 1,500; Crop insurance premium Tk. 5,500; Allowable depreciation for tractors as per ITO 1984 was Tk. 30,000.
Md. Bazlur Rahman had a tractor which was purchased for Tk. 29,000 and sold for Tk. 18,000 (accumulated depreciation Tk. 22,000). Moreover, he has also sold a weighing machine for Tk. 12,500 purchase price of which was Tk. 25,750. At the time of sale the written down value of the machine was Tk. 15,250.

Required:
i. Compute taxable income for the relevant income year.
ii. Compute tax liability for the relevant assessment year.