CMA JANUARY 2023 EXAMINATION

ADVANCED LEVEL-II,
LT453 ADVANCE INCOME TAX & VAT

MODEL SOLUTION

Solution to the Q no.2

Calculation of Total Income, Taxable Income & Tax Liability of Mr. Ruhul for the tax year 2022-23:

a) Income from Salary Monthly Month Yearly Allowances Taxable

Basic Salary 62,500 12 750,000 - 750,000
House Rent Allowance 34,375 12 412,500 300,000 112,500
Medical Allowance 6,250 12 75,000 60,000 15,000
Conveyance Allowance 2,500 12 30,000 30,000 -
Entertainment Allowance 3,125 12 37,500 - 37,500
Utility Allowance 3,125 12 37,500 - 37,500
Festival Bonus 125,000 1 125,000 - 125,000
Baishaki Allowance 7,813 1 7,813 - 7,813
CPF 6,250 12 75,000 - 75,000
Total 1,550,313 390,000 1,160,313

b) Income from House property 582,000 97% 600,000 180,000 420,000

Less Repair Charges @30%
c) Dividend Income 81,000 90% 90,000 50,000 40,000
Income before income u/s 82C 2,240,313 620,000 1,620,313
d) Sanchay Patra Income u/s 82C (See
904,800 - 904,800
note below)
Total Income & Total Taxable Income 3,145,113 620,000 2,525,113

Slab Rate of Income

Income Tax Calculation
Amount Interest Tax
Slab 1 Tk. 3.00 lac 300,000 0.00% -
Slab-2 Tk. 1.00 lac 100,000 5.00% 5,000
Slab-3 Tk. 3.00 lac 300,000 10.00% 30,000
Slab-4 Tk. 4.00 lac 400,000 15.00% 60,000
Slab-5 Tk. 5.00 lac 500,000 20.00% 100,000
Above 20,313 25.00% 5,078
Total Taxable Income & Gross Tax
1,620,313 200,078
Payable except 82C
Less Investment Rebate (see below) 46360
Tax Liability Except 82C 153718
Add Tax on Sanchay patra 904,800 90480
Tax Liability 2,525,113 244198
Surcharge for Net Wealth 3.50 Crore 162,953 10.00% 15371.8
Total Tax Liability 259569.8

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Less Tax Paid
Last Years refundable 5,555
Advance tax paid quarterly 75,000
Deducted from Sanchay patra 90,480
Deducted from Dividend 90,000 10% 9,000
Deducted from Salary 1,000 12 12,000
Deducted from House Rent 600,000 3% 18,000 210,035
Net Tax Liability Tk. 49535
Details of Sanchay Patra Income
Net
Rate of Tenure Gross Income Tax
SL & Scheme Principal Interest
Interest in years Interest deducted
received
1. BSP 1,000,000 11.28% 5.00 564,000 56,400 507,600
2. 3MAMVSP 1,000,000 11.04% 1.00 110,400 11,040 99,360
3. PSP 2,000,000 11.52% 1.00 230,400 23,040 207,360
Total 4,000,000 904,800 90,480 814,320
Details of Investment
Not
SL & Heads Gross Eligible
allowable
1. PSP 50,000 - 50,000
2. Replacement of Laptop 50,000 50,000 -
3. DPS 90,000 30,000 60,000
4. Contribute to Benevolent Funds 15,000 - 15,000
5. Super Annuation Funds 6,250 - 6,250
6. CPF 150,000 - 150,000
7. Life Insurance Premium 50,000 10,000 40,000
8. Educational expenses 150,000 150,000 -
Total 561,250 190,000 321,250
Total Income except CPF & u/s 82C 1,545,313 25% 309062.6
Maximum Limit to invest 10,000,000
Therefore, entitled investment getting rebate 3,09,062.6
Allowable rate of rebate 15%
Amount of rebate 46,360

Solution to the Q No. 3

Calculation of total income & tax liability in BDT of XYZ company for the Tax Year 2022-23.
Net profit shown in the Finanacial Statement 788,140
Add Accounting Depreciation 950,000
Profit before adjustment 1,738,140
Add Disallowances
Rental Expenses 122,000
Legal Expenses 24,000
Excess perquisite 100,000
Capital Gain -
Dividend Income 6,000

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Capital Expenses 110,000
Personal Expenses of Directors 25,000 387,000
Profit before allowances 2,125,140
Less Allowances
Tax Depreciation 800,000
Cash received against car sale 48,000
Loss on sale of car 24,000 872,000
Assessed Net Profit 1253140
Rate of Income Tax 216,739 788,140 27.50%
Income Tax Payable 344613.5

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