From the following information calculate taxable income and tax liability of Mr. Zawad for the income year ended 30th June, 2018. Basic pay Tk. 20,000 per month; House rent allowance Tk. 8000 per month; Entertainment allowance Tk. 6000 per quarter; He contributed 10% of basic salary in a recognized provident fund and his employer contributed half the amount in the fund; He contributed Tk. 5000 as the said fund as interest for the year @ 14.5%; Two festival bonuses, One for Eid-ul Fitr and another for Eid-ul-Adha. In Eid-ul-Fitr One full months basic and 50% of a full months basic in Eid-ulAdha; He received rent from his house property Tk. 400,000 during the year; whereas municipal value of the house is Tk. 320,000; He incurred Tk. 120,000 for repair and Tk. 6000 city corporation tax for the house rent during the year; He received interest from post office savings bank account Tk. 4500 and dividend from a limited company Tk. 8100; Sale of forest timber Tk. 10,000; He paid the life insurance premium of Tk. 30,000; purchased savings certificate Tk. 50,000 and also purchased primary share of a listed public company Tk. 40,000 during the year. Why do people avoid paying taxes? How to compute total income and tax liability? Mr. Zawad is a sole trader & the profit and loss account of his sole trader ship business results net income of taka 8,00,000 for the accounting year ended on June 30, 2020 as follows: Mr. Zawads Profit & Loss Account For the Year Ended on June 30, 2020 Debit Taka Credit Taka Salary Commission Rent of Premises Fund Embezzlement Donations Bad Debt Insurance Premium Depreciation Exp. Provision for income tax Repair Expenses License Renewal fee Penalty & Fine Bonus Royalty Interest on Bank Loan Household Expenses Net Profit 460,000 25,000 75,000 25,000 100,000 50,000 47,000 35,000 45,000 15,000 5,000 73,000 100,000 100,000 30,000 10,000 8,00,000 19,95000 Gross Profit Interest on Securities Interest on Bank Deposit 18,70,000 100,000 25,000 19,95,000 Other Information: a) Salary includes TK. 125,000 paid to an supervisor during December 1, 2019 to June 30, 2020, who failed to submit the return within tax day nor get extension; b) Fund Embezzlement occurred during office hour; c) One third of the premise is used as residence by Mr. John; d) Donations includes tk. 50,000 paid to a charitable clinic that is approved under paragraph 11A of part B of Sixth Schedule of ITO, 1984; e) Tk. 7,000 of insurance premium is the payment for policy purchased in the Mr. Johns name; f) Tax Depreciation amount to tk. 50,000; g) Of repair expense 5,000 in spent for the space used for residential purpose; h) Commission includes tk. 10,000 paid to shareholder director. Mr. Helal is a sharecropper and his income is only from crop growing. He received income from sale of rice 120 maunds @ Tk. 705.15 per maund; Sale of onion 285.50 maunds @ Tk. 160.22 per maund; Income from Borga Tk. 35,000; Lease of farming land Tk. 2, 97,375. Expenses relating to all the income are: Cost of seeds and fertilizers Tk. 36,500; Labor Charge Tk. 40,000; Maintenance costs of agricultural equipment Tk. 3870; Union Parishad tax Tk. 5500; Crop insurance premium tk. 8200; Depreciation on tractor @ 20% Tk. 14000. Mr. Helal has borrowed fund from Agrani Bank by Tk. 40,000 at an annual interest rate of 15% on 10th October 2017. Allowable depreciation for tractor as per the 3rd schedule of the ITO 1984 is at the rate of 15%. Cost of Seeds includes Tk. 1500 spent against Borga. He maintains books of accounts properly. Compute taxable income for MR. Helal for the year ended on 30th June, 2017.