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R2 TAX ML Solution CMA June 2020 Exam.
R2 TAX ML Solution CMA June 2020 Exam.
MANAGEMENT LEVEL
SUBJECT: R2. TAXATION
MODEL SOLUTION
Solution of the Q. No. 2(a)
Assesse: Mr. Karim
Computation of Capital Gain and tax liability
Income year: 2019-20; Assessment Year: 2020-21
Income under capital gain under section -31 Tk. Tk. Tk.
Sale proceeds of capital assets (tk. 2000 x 2000 shares) 4,000,000
or FMF value at the time of transfer whichever is higher 4,000,000 4,000,000
Less; Allowable deduction
a. Expenditure incurred to transfer shares (1% on Tk.
4000000) 40,000
b. Cost of acquisition (Note 1) 1,598,625 1,638,625
Capital Gain 2,361,375
Less: Exempted [sec 32 (7)] 2,361,375
Capital gain tax liability -
Note: 1
In July 2012, Shares purchase (5000 shares x Tk. 1575) 7,875,000
Add: Brokerage fee (1.5% on 7875000) 118,125
Total 7,993,125
Total Shares sold 2,000
Less: Bonus shares received 1,000
Shares sold from original purchase 1,000
(b)
Assesse: Mr. Zaman
Computation of Taxable income
Income year: 2019-20; Assessment Year: 2020-21
Sl.
Tk. Tk.
No. Income from other sources Section -33
1 Dividend from ICB unit fund (Tk 31500/90 x 100) 35,000
Less: Exempted up to Tk 25000 25,000 10,000
2 Interest on post office savings bank (Tk 36000/90 x 100) 40,000
3 Fees for technical service from Government (Tk 18000/90 x 100) 20,000
4 Prize of winning prize bond lottery (Tk 20000/80 x 100) 25,000
5 Income from talk show 2,000
6 Interest on fixed deposit from leasing company (Tk 9000/90 x 100) 10,000
7 Income from copyright and royalty from a person 4,000
8 Unexplained investment (Tk 1175000-Tk 1000000) 175,000
Total 286,000
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(c)
(i) Gift to the younger brother : Exempted full, as per section 4(1)(h)
(ii) Gift to a friend : Taxable, FMV less cash received, i.e., Tk.
750,000
(iii) Donation to a local charitable institution : Fully taxable
(iv) Donation to registered charitable institution : Exempted – lower of 20% of total income (i.e.,
Tk. 600,000) and Tk. 100,000 [section
4(1)(c)(iv)]
(v) Gift to sister-in-law : Exempted full, as per section 4(1)(a)
(vi) Gift to brother in law : Exempted [maximum Tk. 20,000 {section
4(1)(d)}]
(d)
(i) Mr. Karim : Nil
(ii) Mr. Howlader : Nil
(iii) Mr. Shakawat : Tk. 500 for a single journey
(iv) Mr. Belal : Tk. 1,500 for a single journey
(v) Ms. Nowshin : Tk. 500 for a single journey
(vi) Mr. Ali : Nil
(e)
(i) not applying for registration or enlistment within the
prescribed time-limit : Tk. 10,000
(ii) not displaying the registration or turnover tax
certificate in a visible place : Tk. 10,000
(iii) not making inclusion of the output tax in the return : Double of output tax not included
(iv) taking more input tax credit than entitlement in the : Double of input taxirregularly taken
return
(v) willingly evading/attempting to evade assessment and
payment of taxes : Twice the amount of taxes evaded
(vi) non-submission of Input Output coefficient within the
prescribed time : Tk. 10,000
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Interest from taxable Government
Security Note: 4 7,300 - 7,300
Total 57,300
Income from House Property:
Annual Rental Value: Tk. 570,000/(1-5%) 600,000
Less: Tenant's expenses paid by
owner (water and gas bill) 24,000
Actual Rental Value 576,000
Municipal Value (5,500 sft X Tk. 120) 660,000
Annual Value (Higher one) 660,000
Unspent repair expenses (Tk.198,000-171,000) 27,000
687,000
Less: Admissible expenses:
Repair & Maintenance
(Tk.675,000X30%) 198,000
City corporation tax 8,000
Fire Insurance premium 7,000
Interest on Mortgage 12,000 225,000
Total 462,000
Income from Agriculture:
Income from sale of robi crop 300,000
Income from borga 50,000
Income from lease of agricultural
land 20,000
370,000
Less: Admissible expenses:
Production cost (Tk.300,000 X 60%) 180,000
Local tax 4,000
Crop insurance premium 6,000
Allowable depreciation 3,000 193,000
Total 177,000
Income from Business: Tax
exempted full Note: 6 -
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Eligible amount for rebate
Particulars of rebatable investment
Payment of Life Insurance Premium 60,000
Contribution to monthly deposit
pension scheme (not exceeding allowable
limit) 60,000
Donate to Asiatic Society, Bangladesh 50,000
Purchases Government Treasury Bond 200,000
A. Total allowable investment 370,000
B. 25% of the total income Tk.15,05,300
[TK.15,55,300- 50,000 interest on
Sanchaypatra, which is mentioned of section
82C.] 376,325
C. 1.5 crore 15,000,000
Less: Exemption:
Eligible amount of CSR expense on which rebate will be allowed is Tk. 800,000.So, Rebate
@10% is = (800,000 × 10%) = Tk. 80,000
(b)
Tk. Tk.
Raw materials, January 1 90,000
Add, Purchase of raw material 750,000
Raw materials available for use 840,000
Less, Raw materials, December 31 60,000
Raw materials used in the production 780,000
Direct labor 150,000
Manufacturing overhead 640,000
Total manufacturing cost 1,570,000
Add, Work in process, January 1 180,000
1,750,000
Less, Work in process, December 31 100,000
Cost of goods manufactured 1,650,000
Add, Finished goods inventory, January 1 260,000
Goods available for sale 1,910,000
Less, Finished goods inventory, December 31 210,000
Cost of goods sold 1,700,000
Add, Profit [1,700,000 × 15%] 255,000
Selling price 1,955,000
Value Added Tax:
VAT on output [1,955,000 × 15%] = 293,250
Less, VAT on input i.e. Raw material used [780,000 × 15%] = 117,000
VAT payable = 176,250
= THE END =
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