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Question 1 (a) Kavita has a home bakery selling cakes and cookies from which she derived profits of RM70,000 during the Year of Assessment 2020.

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Question 1 (a) Kavita has a home bakery selling cakes and cookies from which she derived profits of RM70,000 during the Year of Assessment 2020. She also works part time as a lecturer at the Baking Academy for which she receives a monthly salary of RM1,000 She has also written a recipe book on bread making for which she received a sum of RM5,000 from the Baking Academy for the right to use her recipe book. Kavita owns a single storey house for which she has been receiving rental income during YA 2020. She has been loaning the money which she receives from the rental income to her friends. Her friends pay her an interest when they return the principal sum to her. Kavita does not have a licence to loan money. Required: Identify the classes of income and the relevant sections under which Kavita's income will be chargeable to tax for YA 2020. (10 marks)

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