On June 2017, Mr. Areean's basic salary falls on Tk. 10,200 in the scale of 9,600-20012-12,000. His date of yearly increment is on 26 April. He received dearness allowance @ 10% of basic salary and medical allowance Tk. 300 per month. He received two bonuses equivalent to one month's basic salary-one received before the date of increment and another after increment. He contributes 10% of his basic salary to a recognized provident fund from which he has also received an interest of Tk. 1,500 @ 14% interest. His employer also contributes the same amount to the RPF.  

He has been provided with a rent-free quarter and a car for both official and personal purpose. He is also provided with cash conveyance allowance of Tk. 2,000 per month. During the year he has also received an entertainment allowance of Tk. 5,000 of which Tk. 4,500 has actually been spent.

His investments during the year were: Purchase of shares of a unlisted company Tk. 2,000; 

Purchase of land Tk. 10,000; Payment of his life insurance premium Tk. 4,000 (Policy value Tk.45,000); Purchase of books. and magazine Tk. 3,000; and Contribution to a Deposit Pension Scheme Tk. 500 on a monthly basis. 

 

Requirement: Compute taxable income and tax liability of Mr. Areean.

 

Problem-2    

 

Mr. Singha is the owner of a three-storied building at Mohakhali. Mr. Singha resides with his family in the  2^nd floor and all other floors (in each floor there are two flats) are let out at a monthly rent of Tk. 8,700 per flat . The municipal value of the house is Tk. 660,000. The following expenses were incurred in the income year 2016 - 2017 for that house: 

Repair expenses Tk. 60,000; 

City Corporation Tax Tk. 18,000; 

Insurance premium Tk. 15,000; 

Caretaker and Night guard salary Tk. 24,000; 

Land revenue paid Tk. 9,000; 

Mortgage interest paid Tk. 6,000; 

Interest paid to HBFC Tk. 4,500; 

Interest during the construction period Tk. 33,000;  (i) Alteration cost for ground floor Tk. 60,000. 

During the year one of the tenants in the ground floor leave the house without paying rent for one month. Mr. Singha even after taking legal action fails to collect this rent. Besides that, the same flat was vacant for two months during the year. Compute income from house property for the income year ended  30  June 2017.

Problem-3      

From the given information compute the income chargeable under the head Interest on Securities for Mr. Taleb for the income year 2016-17: Interest on tax-exempt government securities Tk. 15,000; Value of 15% taxable government securities Tk. 30,000; Tk. 9,500 as interest on 12% debentures; Value of 15% debentures Tk. 80,000 and Interest on Zero Coupon Bond Tk. 10,000. The Bank has charged Tk. 3,500 for collection g above interests. In addition to this he has taken a bank loan of Tk. 100,000 @ 6% interest to purchase additional 10% approved company debenture on October 01, 2016.