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    Anwar Hossain
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    Elements of Perquisite and Explanations Perquisite: Perquisite is a causal emolument or benefit attached to an office or position in addition to salary or wages. Perquisites may be given in a variety of forms. They may be received in cash or in kind. Perquisites received in kind may or may not be convertible into cash. Section 2(45) of the ITO, 1984 defines perquisites as: a. any payment made to an employee by an employer in the form of cash or in any other form excluding basic salary, festival bonus, incentive bonus not exceeding ten percent of disclosed profit of relevant income year, arrear salary, advance salary, leave encashment or leave fare assistance and overtime, and b. any benefit whether convertible into money or not, provided to an employee by an employer, called by whatever name, other than contribution to a recognized provident fund, approved pension fund, approved gratuity fund and approved superannuation fund; Perquisite includes- • The value of rent free accommodation; • The value of any concession in the matter of rent respecting any accommodation; • Any sum payable by the employer, whether directly or indirectly, as insurance premium for the assesses or his spouse or any of his dependent child. • The value of any benefit provided free of cost or at a concessionary rate, and • The sum paid by an employer in respect of any obligation of an employee. Elements of Salary and Explanations Based on the various provisions of the ITO 1984 and practical situation, elements of salary are: 1. Basic Salary: Basic salary is the most important element of salary since some allowances and contribution to various fund are determine on the basis of this. Even the yearly increment is also compute on the basic salary. According to Rule 33(2)A, basic salary is the amount paid or payable by the employer or his representative to the employee on a monthly basis or otherwise, for services other than mechanical involving some intellectual or mental skill or expertise. Total amount of basic salary in a year is fully taxable. In this regard the yearly increment should also be taken into consideration. 2. Dearness Allowance: Dearness allowance is the most popular allowance being given to employees these days. It means the payment made by the employer to the employee to cope with the higher cost of living, which, in general is a certain percentage of basic salary. The total amount of dearness allowance is taxable and therefore included under the head of income from salary,. 3. Bonus: It means the payment of extra salary based on the basic salary or otherwise for festivals like Eid, Christmas etc. or rewards for good performance. The total amount of bonus is taxable and therefore included under income from salary. 4. Special Allowance: According to Part A, Sixth Schedule (Paragraph 5) of the ITO, 1984, any special allowance, benefits or perquisite specifically granted to meet expenses wholly and necessarily incurred in the performance of the duties of an office or employment of profit; are totally exempt from tax. 5. Medical Allowance (Rule 33I): When any amount is received or receivable by the employee by way of hospitalization. Medical expenses or medical allowance, the amount, if any, so receivable or received exceeds 10% of the basic salary or Tk.120,000 annually, whichever is less, shall be included in this income. 6. House Rent Allowance in Cash (Rule 33A): This sort relief is granted by the employer to the employee in order to compensate him in the matter of higher rent prevailing in big cities. When house rent allowance is received in cash, amount exceeding 50% of basic salary or tk. 25,000 per month (annually Tk. 300,000) whichever is lower, shall be added with salary. 7. Rent Free Accommodation (Rule 338): When the employee is provided with rent free unfurnished/furnished accommodation, the rental value of the accommodation or 25% of the basic salary, whichever is less, shall be added

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    Elements of Perquisite and Explanations Perquisite: Perquisite is a causal emolument or benefit attached to an office or position in addition to salary or wages. Perquisites may be given in a variety of forms. They may be received in cash or in kind. Perquisites received in kind may or may not be convertible into cash. Section 2(45) of the ITO, 1984 defines perquisites as: a. any payment made to an employee by an employer in the form of cash or in any other form excluding basic salary, festival bonus, incentive bonus not exceeding ten percent of disclosed profit of relevant income year, arrear salary, advance salary, leave encashment or leave fare assistance and overtime, and b. any benefit whether convertible into money or not, provided to an employee by an employer, called by whatever name, other than contribution to a recognized provident fund, approved pension fund, approved gratuity fund and approved superannuation fund; Perquisite includes- • The value of rent free accommodation; • The value of any concession in the matter of rent respecting any accommodation; • Any sum payable by the employer, whether directly or indirectly, as insurance premium for the assesses or his spouse or any of his dependent child. • The value of any benefit provided free of cost or at a concessionary rate, and • The sum paid by an employer in respect of any obligation of an employee. Elements of Salary and Explanations Based on the various provisions of the ITO 1984 and practical situation, elements of salary are: 1. Basic Salary: Basic salary is the most important element of salary since some allowances and contribution to various fund are determine on the basis of this. Even the yearly increment is also compute on the basic salary. According to Rule 33(2)A, basic salary is the amount paid or payable by the employer or his representative to the employee on a monthly basis or otherwise, for services other than mechanical involving some intellectual or mental skill or expertise. Total amount of basic salary in a year is fully taxable. In this regard the yearly increment should also be taken into consideration. 2. Dearness Allowance: Dearness allowance is the most popular allowance being given to employees these days. It means the payment made by the employer to the employee to cope with the higher cost of living, which, in general is a certain percentage of basic salary. The total amount of dearness allowance is taxable and therefore included under the head of income from salary,. 3. Bonus: It means the payment of extra salary based on the basic salary or otherwise for festivals like Eid, Christmas etc. or rewards for good performance. The total amount of bonus is taxable and therefore included under income from salary. 4. Special Allowance: According to Part A, Sixth Schedule (Paragraph 5) of the ITO, 1984, any special allowance, benefits or perquisite specifically granted to meet expenses wholly and necessarily incurred in the performance of the duties of an office or employment of profit; are totally exempt from tax. 5. Medical Allowance (Rule 33I): When any amount is received or receivable by the employee by way of hospitalization. Medical expenses or medical allowance, the amount, if any, so receivable or received exceeds 10% of the basic salary or Tk.120,000 annually, whichever is less, shall be included in this income. 6. House Rent Allowance in Cash (Rule 33A): This sort relief is granted by the employer to the employee in order to compensate him in the matter of higher rent prevailing in big cities. When house rent allowance is received in cash, amount exceeding 50% of basic salary or tk. 25,000 per month (annually Tk. 300,000) whichever is lower, shall be added with salary. 7. Rent Free Accommodation (Rule 338): When the employee is provided with rent free unfurnished/furnished accommodation, the rental value of the accommodation or 25% of the basic salary, whichever is less, shall be added

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    Scope, Characteristics & Classification of Agricultural Income

    Uploaded by

    Anwar Hossain
    Elements of Perquisite and Explanations Perquisite: Perquisite is a causal emolument or benefit attached to an office or position in addition to salary or wages. Perquisites may be given in a variety of forms. They may be received in cash or in kind. Perquisites received in kind may or may not be convertible into cash. Section 2(45) of the ITO, 1984 defines perquisites as: a. any payment made to an employee by an employer in the form of cash or in any other form excluding basic salary, festival bonus, incentive bonus not exceeding ten percent of disclosed profit of relevant income year, arrear salary, advance salary, leave encashment or leave fare assistance and overtime, and b. any benefit whether convertible into money or not, provided to an employee by an employer, called by whatever name, other than contribution to a recognized provident fund, approved pension fund, approved gratuity fund and approved superannuation fund; Perquisite includes- • The value of rent free accommodation; • The value of any concession in the matter of rent respecting any accommodation; • Any sum payable by the employer, whether directly or indirectly, as insurance premium for the assesses or his spouse or any of his dependent child. • The value of any benefit provided free of cost or at a concessionary rate, and • The sum paid by an employer in respect of any obligation of an employee. Elements of Salary and Explanations Based on the various provisions of the ITO 1984 and practical situation, elements of salary are: 1. Basic Salary: Basic salary is the most important element of salary since some allowances and contribution to various fund are determine on the basis of this. Even the yearly increment is also compute on the basic salary. According to Rule 33(2)A, basic salary is the amount paid or payable by the employer or his representative to the employee on a monthly basis or otherwise, for services other than mechanical involving some intellectual or mental skill or expertise. Total amount of basic salary in a year is fully taxable. In this regard the yearly increment should also be taken into consideration. 2. Dearness Allowance: Dearness allowance is the most popular allowance being given to employees these days. It means the payment made by the employer to the employee to cope with the higher cost of living, which, in general is a certain percentage of basic salary. The total amount of dearness allowance is taxable and therefore included under the head of income from salary,. 3. Bonus: It means the payment of extra salary based on the basic salary or otherwise for festivals like Eid, Christmas etc. or rewards for good performance. The total amount of bonus is taxable and therefore included under income from salary. 4. Special Allowance: According to Part A, Sixth Schedule (Paragraph 5) of the ITO, 1984, any special allowance, benefits or perquisite specifically granted to meet expenses wholly and necessarily incurred in the performance of the duties of an office or employment of profit; are totally exempt from tax. 5. Medical Allowance (Rule 33I): When any amount is received or receivable by the employee by way of hospitalization. Medical expenses or medical allowance, the amount, if any, so receivable or received exceeds 10% of the basic salary or Tk.120,000 annually, whichever is less, shall be included in this income. 6. House Rent Allowance in Cash (Rule 33A): This sort relief is granted by the employer to the employee in order to compensate him in the matter of higher rent prevailing in big cities. When house rent allowance is received in cash, amount exceeding 50% of basic salary or tk. 25,000 per month (annually Tk. 300,000) whichever is lower, shall be added with salary. 7. Rent Free Accommodation (Rule 338): When the employee is provided with rent free unfurnished/furnished accommodation, the rental value of the accommodation or 25% of the basic salary, whichever is less, shall be added

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    of 4

    Term Paper

    Course Title:

    Taxation Accounting

    Course Code:

    FAC- 604

    Topic Name:

    Scope, Characteristics &


    Classification of Agricultural income

    Submitted To
    Md. Emdadul Hoque
    Lecturer,School of Business,
    UITS

    Submitted By
    Name
    Md. Anwar Hossain
    Md. Shafiqul Islam Al-Helali
    Md. Abdullah Al-Mehedi
    Md. Imran Hossain

    Dept.
    IMBA
    IMBA
    IMBA
    IMBA
    IMBA

    Submitted Date: 05-04-2016

    ID No.
    16102539
    16102540
    16102542
    16102545

    Acknowledgements
    We want to thank, MD. Emdadul Hoque, an honorable faculty of UITS, for his
    guidance, supervision & suggestion through out of the study period of our term paper. His
    continuous support and re-enforcement has encouraged us to do the study work properly. We
    are thankful towards all the students of this course who give valuable opinion and honest
    replies, which were very essential to complete the report. We are also very thankful to the
    UITS. Whos supported us a lot for making our efforts successful? All over again we want to
    give our millions of thanks and our honest respect to her who always time try to teach us new
    difficult things in a easy way, he is our honorable course instructor MD. Emdadul Hoque. At
    last we are grateful to our almighty Allah, because we have been able to complete the
    term paper within the given time period.

    5th April, 2016


    MD. Emdadul Hoque,
    School of business,
    University of Information Technology & Sciences (UITS).
    Subject: Submission of a Term Paper.
    Dear Sir,
    With due regards and respect we state that we are very thankful to you as you assigned us this
    report on "Scope, Characteristics & Classification of Agricultural income. It is a great
    opportunity

    for

    us

    to

    acquire

    theoretical

    knowledge

    Scope,

    Characteristics

    &

    Classification of Agricultural income. We have tried our best to gather what we believe to be
    the most complete information available. Your kind acceptance and any type of appreciation
    would surely inspire us.
    We would always be available and ready to explain further any of the context of the
    whenever asked.

    Sincerely yours,
    Md. Anwar Hossain
    ID: 16102539
    (On behalf of the Group)

    Contents
    Introduction
    Income from Agriculture
    Scope of agricultural income
    Characteristics of Agricultural Income
    Classification of Agricultural income
    Conclusion
    Referances

    Page No.
    01
    02
    03
    04
    05
    08
    09

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