July-2017

Solution:

Assessment year: : 2020-21

Name of the Assessee : Mercury Ltd.
Class : Public limited company
Status : Resident
Period of accounts : 01.07.2019 to 30.06.2020

Calculation of taxable income:

Particulars
Net Profit as per the profit and loss account

Amount added for separate consideration:

a) Depreciation (f) 770,600
b) Sample Expenses (j) 950,300
c) Foreign tour expenses (h) 910,000
d) Entertainment (j) 228,700

Less : Non-operating Income for separate consideration:

Rental income 1,140,000
Dividend income 108,000
Share trading Income 570,500

Add : Inadmissible
Admin expenses included penalty for tax return and advance tax (C ) 150,000
Excess perquisite [9,70,000] -(5,50,000 X2)] (e ) -
Finished goods damaged (g) (4,00,000-3,00,000) 100,000
contribution to unrecognized PF 380,000
Financial expenses for deffered payment of loan 500,000

Less: Admissible expenses

Tax depreciation (f) 770,600
Sample Expenses (Note-1) 212,675
Foreign tour expenses (NOTE-4) 910,000
Entertainment (Note-2) 192,557

Income from business

Add: Non-operating income:
Income from house property:
Rental income (1140000 X95)/100 1,200,000
Less: Admissible expenses
Repair & maintenance (12,00,000 X30%) 360,000
DCC tax 34,500
Development tax 5,300 399,800
Cash loan from directors (i)
Share trading Income
Dividend Income (Tk. 108,000/80X 100)
Total taxable income

Tax liability:

Tax on business income excluding dividend & share trading 9,685,469 25%
Tax on share trading 570,500 10%
Tax on dividend 135,000 20%
10,390,969

Less: payments:
Advance payment of tax 1,150,000
Tax deducted at source 220,000
TDS from rental income 60,000
TDS from dividend income 27,000
Net tax payable

Sample u/s-65C (Note-1)

Rate Tax (Tk.)
Turnover upto Tk.5 crore 0.50% -
From 5 crore to 10 crore 0.25% 85,070,000 212,675
Excess 10 crore 0.10% -
85,070,000 212,675

Entertainment u/s-65 (Note-2

on 1st Tk.10.00 lac on business income befor charging entertainment 1,000,000 4%
Balance 7,627,825 2%
8,627,825 ###

Foreign tour expenses (Note-4)

Turnover Rate Taka
1.25% of disclosed turnover 85,070,000 0.0125 1,063,375
1,063,375
Actual expenditure or slab basis which ever is lower.
Amount (Tk.)
8,350,000

2,859,600
11,209,600

(1,818,500)
9,391,100

1,130,000
10,521,100

2,085,832
8,435,269

800,200
450,000
570,500
 135,000
10,390,969

2,421,367
57,050
27,000
2,505,417

1,457,000
1,048,417

40,000
152,557
192,557