Question one’s Answer

Mr Nass

Tax Computation for the year of assessment 2008

Section 4 (b) Employment income RM RM RM

SECTION 13 (1) a

Salary 174,000

Travelling allowance 18,000

Re-imbursement of driver’s salary 11,400 203,400

SECTION 13 (1) b

Car (5000 x 9/12) 3,750

Car (7000 x 9/12) 1,750

Petrol (1800 x 3/12) 450

Leave passage (restricted to RM 3,000 overseas) 1,600

SECTION 13 (1) c

Define value (8,000 x 6) 48,000

30% of section 13 (1) a 61,020

Whichever is lower, i.e., the define value 48,000 55,550

GROSS INCOME 258,950

(-) Less deductible expenses

Claimed travel expenses (19,000)

STATUTORY INCOME/ADJUSTED INCOME 239,950

SECTION 4 (c) – DIVIDEND & INTEREST RM RM RM

DIVIDEND INCOME - Telecom bhd (note 1) 3,567

- NMC society bhd EXEMPTED

- Bersatu bhd EXEMPTED

INTEREST INCOME – Simpanan Nasional EXEMPTED

– Government Bond EXEMPTED

SECTION 4 (d) Royalty & Rental income

Royalty income 32,000

Rental income – House in Damansara (note 2) 15,700

– House in Seremban (note 3) 25,275

AGGRGATE INCOME 316,492

Approved donations – cash donation 1,000

TOTAL INCOME 315,492

Less Reliefs:
9,000
Personal relief
5,000 (max.)
Parent medical expenses
1,000
2nd Child
600
Purchase of magazines
10,000
Child relief (note 4)
6,000
Life insurance
1,200 32,800
Medical insurance

CHARGEABLE INCOME 282,692

NOTES TO COMPUTATION

Note 1: Dividend income RM

Telekom Bhd 3,947 (2,960 x 100/75)

Less interest expenses (380)

Brokage fee Capital expenditure

Total income 3,567

Note 2: Rental Income

House in Damansara RM RM

Rental:(June 2008 –march 25,000

2009)

Less: Expenses: -

Advertisement to find tenant 2,400

Fire insurance 3,600

Interest paid to bank 1,800

Quit rent and assessment -

Renovation cost 1,500 (9,000)

Replacement of damaged tiles 15,700

ADJUSTED INCOME

Note 3:
House in Seremban RM RM

Rental: ( January 2008–June 2009) 12,000

July 2008 – September 2008 -

October 2008 – December 2008 18,000 ( 6000 x 3)

TOTAL RENTAL 30,000

Less: Expenses:

Interest on loan 1,200

Quit rent and assessment 2,400

Repainting (1000 x 6/12) 500

Repair of electronic cables (1,500x5/12) 625 (4,725)

ADJUSTED INCOME 25,275

Note 4: child relief

RM

Kavitha 4,000

Hamit 4,000

Satvin 1,000

Sheetal 1,000

Total child relief 10,000

Madam Jass

Chargeable income for the year assessment 2008

 Section 4 ( c ) – Dividend & interest RM RM

Interest income- interest remitted (Note 1) Exempted

Section 4 (d) Rental & Royalty

Rental income from shop-house remitted (note 2) Exempted

Rental income from Bangalore (note 3) 10,000

AGGREGATE INCOME 10,000

Approved donations – cash donations (note 4) (500)

- Computer (3,000)

TOTAL INCOME 6,500

Less reliefs:

Personal reliefs 9,000

Parents medical expenses 1,800

Life insurance 1,500

Medical insurance 3,000 (max.)

CHARGEABLE INCOME NILL

Question 2’s Answer

Year of Assessment Period of stay No. of days Resident status
2005 1/7/2005 – 21/12/2005 174 He is a non-residence by virtue
of section 7 (1) because he has
stayed for only 174 days and not
182 days or more.
2006 4/1/2006 – 30/5/2006 147
2007 28/9/2007 – 29/12/2007 93
2008 3/1/2008 – 4/4/2008 115