Followings are the particulars of Mr. Lutfur Raman’s (Age 60 years, having no disabled child)
income from different sources for the income year 2019-2020:
Income from salary:
Basic salary following the pay scale of 50000 – 5000 * 4 – 70000. In the month of June, 2020; he
received basic salary of 55000 and his annual salary increment date is on 1 January each year.
He received two bonuses equivalent to two months basic salary (one in October and another in
February); Medical allowance Taka 10000 per month (Actual expense Taka 150,000); he has
been provided a full time car and fully furnished apartment as rent free accommodation. He
contributes 10% of his basic salary to a Recognized provident fund. During the year he received
18% interest on said provident fund of Taka 5400; he also received leave encashment of Taka
13970 during the year. His employer has deducted tax at source from salary Taka 60000.
Income from interest on securities:
Interest on tax exempt govt. securities Taka 5000; interest on 15% taxable govt. securities Taka
1425; interest on debenture Taka 25935. Bank has deducted 10% of interest collected as bank
charge.
Income from house property:
Mr. Rahman is the owner of a three storied building (in each floor there are two flats) at
Mohakhali. He resides with his family in the First floor and let out all the other flats at a
monthly rent of Taka 8700 per flat for residential proposes. The municipal value of the house is
Taka 660,000. The following expenses were incurred in the income year 2019-2020 for that
house:

 Repair expenses Taka 60,000
 City corporation tax Taka 18000
 Insurance premium Taka 15000

 Caretaker and night guard salary Taka 24000
 Land revenue paid Taka 9000
 Mortgage interest paid Taka 6000
 Interest paid to HBFC Taka 4500
 Interest during the construction period Taka 33000
 Alteration cost for ground floor Taka 60000

During the year one of the tenants in the second floor leave the house without paying rent for
one month. The same flat was vacant for two months during the year.
Investment claimed by Mr. Rahman
 Payment of life insurance premium Taka 8000 (Policy value Taka 100,000)
 Purchases of a listed company’s primary share Taka 5000
 Purchase of books and magazines Taka 1000
 Contribution to President’s relief fund Taka 3000
 Payment of Zakat to poor people of his village Taka 10000
 Purchase of one laptop Taka 120000

Requirements:
a) Calculate taxable salary income of Mr. Rahman for the income year 2019-2020
b) Calculate taxable income from interest on securities
c) Calculate taxable income from house property
d) Calculate total taxable income
e) Calculate actual investment allowance and allowed investment allowance
f) Calculate tax liability of Mr. Rahman for the assessment year 2020-2021 assuming that
the tax exempt limit is Taka 300,000