Problem 9-6: Compute taxable income and tax liability of Mr.

Athar Ali, a 67 years

old farmer, from the particulars related to the income year ended on 30th June,
2019, which are: (i) Sale of Paddy 200 maunds @ Tk. 400 per maund; (ii) Sale of
Jute 150 maunds @ Tk. 600 per maund; (iii) Sale of Rabi Crops Tk. 60,000; (iv)
Income from agricultural co-operative society which was organized for farming Tk.
25,000; Income from lease of agricultural land Tk. 100,000; (vi) Income from Barga
Tk. 125,000; (vii) Income from sale of herbal or medicinal plants Tk. 30,000;
(viii) Income from lease of storehouse used for storing crops Tk. 20,000; (ix)
Income from tobacco industry Tk. 20,000; (x) Income from sale of sugar Tk. 35,000;
and (xi) Income from sale of tea Tk. 20,000. Mr. Athar Ali had a pump machine which
was purchased for Tk. 40,000. To acquire an advance technology in the irrigation
plant he has sold the pump machine for Tk. 42,000. At the time of sale the amount
of accumulated depreciation of the pump machine was Țk. 18,000. Moreover, he also
had a weighing machine which was purchased at Tk. 18,000. It has become obsolete
and has been discarded at Tk. 9,500. At the time of sale the written down value of
the machine was Tk. 13,000. He didn't maintain the books of accounts properly.
Expenses claimed by him are: Production costs Tk. 200,000; Land revenue paid Tk.
8,000; Interest on loan Tk. 2,500; Union parisad tax Tk. 4,000; Installation of
irrigation plant Tk. 70,000; Maintenance of the irrigation plant Tk. 12,000. In
addition, during the year Mr. Athar Ali also incurred the investments and expenses
for: (i) Family expenses Tk. 50,000; (ii) Life Insurance premium (policy value Tk.
3,00,000) Tk. 25,000; (iii) Purchase of debenture from primary market Tk. 25,000;
(iv) Donation to Aga Khan Development Network Tk. 20,000; (v) Donation to a local
mosque Tk. 6,000; (vi) Donation to Government Zakat fund Tk. 30,000; and (vii)
Purchase of Furniture Tk. 27,000.