Question 4 (25 Marks) Encik Khairul, a professional engineer and his wife Puan Katrina, an auditor in a local audit firm are tax residents in the basis year for the year of assessment 2019. The following are the income of Encik Khairul and Puan Katrina for the basis year 2019. Encik Khairul: Monthly salary of RM10,500.00. He also received bonus amounting to RM15,000.00, monthly travelling and entertainment allowances of RM2,200.00 and RM2,500.00 respectively. Income from other sources: RM i Dividend from Tenaga Nasional Berhad 15,000.00 Interest from RHB Bank 9,500.00 ii. Rental income from semi-detached house located in Emerald. The house was rented out since January 2015 Below is the information related to the house: RM Rental income 1,500.00 per month Repair and maintenance 2,500.00 Renovation to kitchen and bathroom 8,000.00 Quit rent and assessment 850.00 (including RM50 penalty for late payment) Fire insurance 1,900.00 Puan Katrina: Puan Katrina received salary of RM9,500.00.00. Her employer also provided medical and dental services for her amounted to RM3,000.00. She also earned royalty income RM20,000.00 from translation of textbook requested by the Malaysian Ministry of Higher Education. Income from other sources: RM i Dividend from Amanah Saham Bumiputera 5,000.00 ii. Interest from Maybank 3,500.00 Puan Katrina incurred RM800.00 from purchasing books and magazines for herself and Encik Khairul. To maintain a healthy lifestyle, Puan Katrina signed up at Anytime Fitness near their home for a fees amounted to RM1,200.00 Other information: i Encik Khairul and Puan Katrina were blessed with three children. The detailed information regarding their children were as follows: Name Date of Birth Particulars Kazarul 3 August 1996 Disabled, Studying in Universiti Pendidikan Sultan Idris Kazim 1 May 1997 Married Kazmina 17 March 1998 Studying in Universiti of Tasmania, Australia Note: Encik Khairul claimed all the child relief. ii. Medical expenses incurred in respect of RM Encik Khairul's parents 900.00 Puan Katrina's parents 2,000.00 iii. During the year, they made some donations and payments: Encik Khairul RM Puan Katrina Political party 1,000.00 MAKNA (Approved 2,000.00 institution) Zakat 3,000.00 Zakat 2,000.00 Hospital Sungai Buloh 2,000.00 School library 850.00 RM iv. Insurance policies taken by them were as follows: Type of insurance Encik Khairul (RM) Life 2,600.00 Medical 3,500.00 Puan Katrina (RM) 1,900.00 Required: i Compute the income tax payable of Encik Khairul and Puan Katrina for the year of assessment 2019. Puan Katrina did not elect for joint assessment. 122 Marks ii. Discuss briefly three (3) circumstances of which a wife may elect for joint assessment. 13 Marks/
