Malaysian income tax subject

Mr. Raja

i. He works as a senior officer at National Audit Department, Putrajaya since year 1990. He received RM8,200 per month as salary and RM300 for the monthly entertainment allowance. He retired on 31 August 2018, when his age is 55 years old.

ii. During his period of working with government, Mr. Raja has been provided with the following benefits:

1. A fully- furnished house with monthly rental of RM2,100 of which RM480 is for furnishings. The furnished house was provided to Mr. Raja since year 2010.

b. Medical cost of RM8,700 for her sons treatment in Hospital Serdang.

iii. He has been paid a gratuity amounting to RM200,000 upon his retirement.

iv. On 1 September 2018, he was employed as senior manager by an audit firm, PriceWaterhouseCooper (PwC) in Kuala Lumpur. His gross salary is RM10,340 per month. He is also entitled to a travelling allowance of RM100 per month.

Additional information:

i. Mr. Raja is suffered with a cancer and thus RM15,000 was incurred for his medical treatment (paid by Mrs. Kumari).

ii. Mrs. Kumari and Mr. Raja were blessed with three children.

1. Jeshwari, married, aged 24 years old, university students in United Kingdom.
2. Arvind, single, aged 20 years old, working as a cashier at Giant Hypermarket.
3. Rabin, single, aged 15 years old, a student in a secondary school.

iii. Both Mrs. Kumari and Mr. Raja purchased books and magazines worth RM1,600 and RM790 respectively.

iv. For the year 2018, Mrs. Kumari incurred the following expenses:

RM

Medical care treatment for her father, Mr. Suraj 7,400

Medical expenses for her mother in law 1,100

Deposit to National Educational Deposit Scheme (SSPN) 3,900

Type of policy Premium paid per annum

(RM)

Life Insurance for Mrs. Kumari 5,200

Life Insurance for Mr Raja 3,800

Insurance education for Arvind 4,200

v. For basis year 2018, Mrs. Kumari donated cash of RM1,500 to orphanage house, an approved institution.

vi. Mr. Raja donated cash of RM800 to the National Library, an approved institution.

Required:

a) Compute the income tax payable for the year of assessment 2018 for :

1. Mr. Raja