Problem # CT-1
The trading and profit and loss accounts of Mas & Co.
Ltd., a private limited company not enlisted with any stock exchanges for the last
income year were as follows: uuu
Trading Account for
the last income year
Taka
|
Taka
|
||
To
Opening stock
”
Purchases
”
Wages
” Gross
profit c/d
|
5,00,000
50,00,000
15,00,000
30,00,000
|
By
Sales
”
Closing stock
|
92,50,000
7,50,000
|
1,00,00,000
|
1,00,00,000
|
Profit and Loss
Account for the last income year
Taka
|
Taka
|
||
To
Salaries and allowances
”
Rent, rates and taxes
” Law
charges
”
Donation
” Bad
debts
”
Provision for bad debts
”
Depreciation
”
Miscellaneous expenses
” Net
profit
|
5,00,000
1,75,000
1,00,000
2,00,000
1,00,000
50,000
3,00,000
2,50,000
20,25,000
|
By
Gross profit b/d
” Compensation from insurance company
|
30,00,000
7,00,000
|
37,00,000
|
37,00,000
|
The
following further information has been furnished:
(1) Depreciation on fixed assets granted as per Third Schedule Tk.
1,50,000.
(2) Law charges include Tk. 35,000 paid as compensation for injury
received by a person run over by one of the directors of the company while
coming to the office. The car belongs to the company.
(3) Donation was made to a Milad Celebration Committee.
(4) Bad debts include a loan of Tk. 80,000 made to a friend of one
of the directors six years ago.
(5) Miscellaneous expenses include entertainment expenses of Tk.
1,50,000.
Required:
Calculate
the total income and tax payable by the company.
Problem # CT-2
Auto Glass Manufacturing Ltd. is a publicly traded
company enlisted with the stock exchanges of Bangladesh having a paid up share
capital of Tk. 50,00,000. Its Profit and Loss Account for the last income year was
as follows:
Taka
|
Taka
|
||
To
Opening stock
”
Purchase of jute
”
Purchase of coal
”
Wages
”
Salaries and allowances
”
General expenses
”
Income tax
” Fess
for technical services
”
Interest on loan
”
Director’s remuneration
”
Stock damaged in fire
”
Bonus to employees
”
Depreciation on fixed assets
” Net
profit
|
12,00,000
40,00,000
10,00,000
5,00,000
6,00,000
3,00,000
1,00,000
60,000
50,000
1,25,000
2,65,000
3,00,000
5,00,000
23,13,500
|
By Sales
”
Closing stock
”
Share transfer fees
”
Sale proceed of old machine
” Rental income from office space let out
” Dividends
|
90,00,000
11,00,000
11,500
11,00,000
8,500
93,500
|
1,13,13,500
|
1,13,13,500
|
On
examination of the books of account of the company, the following additional
information was revealed:
(1) The company has valued the closing stock of Tk. 11,00,000 at
cost price and opening stock would have been Tk. 10,00,000, if valued at cost
price.
(2) Dividend received from a public limited company having its
registered office in Bangladesh, and which had paid a dividend distribution tax
(DDT) u/s 16D.
(3) General expenses include: Tk.
Employee club building
construction 50,000
Opening of night school for
the workers 10,000
Legal fees related to other
taxes 15,000
Embezzlement of cash by
cashier 5,000
Distribution of free sample
1,50,000
Repair and maintenance
expenses for office space let out 4,250
(4) The cost price of the machine sold was Tk. 10,00,000 whereas its written down value was
Tk. 3,70,740. The machine was bought 6 years back.
(5) Interest on loan was paid to a non-resident, the company did not
deduct tax at source while making the payment thereon.
(6) Depreciation on fixed assets granted as per Third Schedule Tk.
4,50,000.
(7) The company disclosed total income in its return Tk. 23,13,500
and paid Tk. 6,66,000 as tax on the basis of return (including the income tax
shown in the Profit & Loss A/C) as follows:
Source
of income
|
Amount
(Taka)
|
Tax (Taka)
|
|
Dividend
income
|
93,500
|
Exempted
under para 22, Part A, Sixth Sch.
|
nil
|
Other
income
|
22,20,000
|
@
30%
|
6,66,000
|
Total income |
23,13,500
|
Total tax payable u/s 74 |
6,66,000
|
Tax
paid on the basis of return
|
6,66,000
|
||
(8) The company paid dividend @ 10% during the last
income year. Its
accumulated profit and free reserve up to the end of the last income year were Tk. 2,51,278 and Tk. 37,00,000 respectively.
Required:
Calculate total income and tax
payable by the company for the relevant assessment year.
Problem # CT-3
Pedia Bangladesh
Ltd. is a publicly traded company having paid-up capital of Tk. 90,00,000. The
net profit of the company was Tk. 18,50,000 for the last income year. On
scrutiny, the following facts were revealed:
(1) Accounting depreciation as per audited
accounts was Tk. 5,40,000, but it should be Tk. 499,200 as per Third Schedule.
(2) Telephone Expenses included Tk. 54,000 and
Car Maintenance Expenses included Tk. 1,00,500 as of personal nature.
(3) General Expenses included entertainment
expenses Tk. 1,20,000.
(4) Cost of distribution of free sample was Tk.
6,50,000.
(5) Provision of bad and doubtful debts was Tk.
1,00,000.
(6) Dividend income received ICB Unit Fund Certificates
Tk. 85,000 (net of tax @ 15% u/s 54).
(7) During this income year,
the company had sold some of its furniture at Tk. 2,00,000. The cost of the
furniture was Tk. 1,50,000 while it was purchased 8 years back. As per Third
Schedule, depreciation is allowed for 7 years on this furniture sold from the
year of acquisition to the year preceding to the last income year. The surplus
after deducting a capital loss of Tk. 15,000 occurred in the year preceding the
last income year was directly credited to capital reserve.
(8) The company paid Tk. 22,95,000 as dividend
to its shareholders in last income year.
(9) In the last income year, the turnover of
the company was Tk. 3,02,58,000 of which Tk. 2,26,93,500 from export sales.
Required: Compute total income and tax
liability of the company for the relevant assessment year.
Problem # CT-4
Texol Bank Ltd. is a commercial banking company enlisted
with the stock exchanges of Bangladesh having a paid-up share capital of Tk. 30
crore. Its Profit and Loss Account for the year ended 31 December 2003 was as
follows:
Taka
|
Taka
|
||
To Interest paid
”
Salaries and allowances
”
General expenses
”
Income tax
”
Director’s remuneration
”
Depreciation on fixed assets
”
Other expenses
” Net
profit
|
703,905,000
7,600,000
750,000
500,000
1,125,000
9,550,000
500,000
240,471,875
|
By
Interest income
”
Interest on Govt. securities
”
Sale proceed of shares/stocks
”
Rent from office space let out
”
Dividends
|
955,063,000
7,495,500
1,500,000
150,000
193,375
|
964,401,875
|
964,401,875
|
On examination of the books of account of the
company, the following additional information was revealed:
(1) Dividend received (net of tax deducted at source @ 15% u/s 54) from ICB
Mutual Fund Certificates.
(2) Interest received on Government securities purchased in July 2002 (net
of tax deducted at source @ 5% u/s 52D).
(3) General expenses include: Tk.
Construction of employee residential
quarters 150,000
Opening of a garments for
the workers 100,000
Litigation cost for loan
recovery 25,000
Bad debt written off 20,000
Provision for classified bad
and doubtful debt 10,000
Repair and maintenance
expenses for office space let out 4,250
(4) The particulars of shares/stocks sold are as follows:
Shares/stocks of
|
Cost (Tk.)
|
Sale
proceeds (Tk.)
|
Listed
public limited companies
|
1,000,000
|
1,100,000
|
Other
private limited companies
|
200,000
|
400,000
|
Total
|
1,200,000
|
1,500,000
|
(5) Depreciation on fixed assets granted as per Third Schedule Tk. 9,050,000.
(6) The banking company disclosed total income in
its return Tk. 240,471,875 and paid Tk. 105,180,975 as tax (including
income tax shown in P & L Account) on the basis of return as follows:
Source
of income
|
Amount
(Taka)
|
Tax (Taka)
|
|
Dividend
income
|
193,375
|
Deducted
at source @ 15%
|
34,125
|
Interest
on Govt. securities
|
7,495,500
|
Deducted
at source @ 5%
|
394,500
|
Other
income
|
232,783,000
|
@
45%
|
104,752,350
|
Total income |
240,471,875
|
Total tax payable u/s 74 |
105,180,975
|
Less: Tax deducted at source
|
428,625
|
||
Tax paid on
the basis of return
|
105,180,975
|
||
(7) The banking company paid dividend @ 10%
during the year 2002. Up to 31 December 2003, its accumulated profit was Tk. 185,280,125, free reserve Tk. 13,700,000,
and statutory reserve Tk. 95,000,000.
(8) Income tax rates for current and preceding assessment
years (AYs) for bank, insurance, and financial institutions are as follows:
Type of Income
|
AY 2002-03
|
AY 2003-04
|
AY 2004-06
|
|
(1)
Capital gain arising out of
|
- Transfer of stocks & shares of private limited company1
|
15%
|
15%
|
10%
|
- Transfer of other capital assets
|
15%
|
15%
|
15%
|
|
(2) Dividend income
|
- Subject to dividend distribution tax u/s 16D2
|
15%
|
nil
|
nil
|
15%
|
15%
|
15%
|
||
(3) Other income
|
40%
|
45%
|
45%
|
|
1Capital gain from transfer
of Government securities and stocks or shares of listed pubic companies are
exempted from tax u/s 32(7) for resident taxpayers and capital gain from
transfer of stocks or shares of listed pubic companies are exempted from tax
under proviso to sec. 31 for a non-resident, if he is entitled to similar
exemption in the country where he is resident.
2Applicable for dividend distributed on or after 1
July 2003.
2Other issues introduced by
the Finance Act 2002 from assessment year 2002-03:
Under section 16C of the ITO 1984, there is
a provision to impose excess profit tax on a banking company @ 15%, where,
Excess profit = Profit shown in return of income
– 50% of (Paid up capital + Reserve).
Here reserve means
both ‘statutory reserve’ and free reserve’.
|
||||
Required: (a) Calculate the total
income of Texol Bank Ltd. showing head-wise income.
(b) Calculate the tax payable by the bank for the relevant assessment
year.
Solution # CT-1
Mas & Co. Ltd.
Income
Year: 2003-04 Assessment
Year: 2004-05
Particulars of Income |
Amount (Taka)
|
|
1.
|
Income
from Business or Profession: u/s 28 (W-1)
|
26,16,200
|
| Total Income |
26,16,200
|
Calculation
of Tax Liability:
Amount (Taka)
|
||
1.
|
On
Business Income (26,16,200 @ 37.5%)
|
9,81,075
|
Gross tax on Total Income |
9,81,075
|
|
| Tax deducted at source on Dividend |
nil
|
|
| Advance tax paid |
nil
|
|
| Tax Liability before penalty |
9,81,075
|
Workings:
W-1:
Calculation of Income from Business or Profession:
Taka |
Taka |
|
Net Profit as per Profit and Loss Account |
20,25,000 |
|
Add: Items of deductions
disallowed:
· Compensation for injury
·
Donation to a Milad Celebration Committee
·
Provision for bad debts
·
Bad Debt for loan given not for business purpose
|
35,000
2,00,000
50,000
80,000
|
3,65,000
|
Add: Items of deductions to
be considered as per ITO:
·
Depreciation on fixed asset (as per accounts)
·
Entertainment expenses
|
3,00,000
1,50,000
|
4,50,000
|
Less: Deductions allowed as
per ITO:
· Depreciation as per Third schedule |
1,50,000
|
(150,000)
|
Profit
before charging Entertainment expenses
|
26,90,000 |
|
Less: Deductions allowed as
per ITO:
·
Entertainment expenses u/s 30(f)(i) and u/r 65:
On first
Tk 10,00,000 @ 4%
On balance Tk. 16,90,000 @ 2%
|
40,000
33,800
|
(73,800)
|
Income from Business or Profession: u/s 28 |
26,16,200 |
Solution # CT-2
Zaman Glass Manufacturing
Ltd.
Income
Year: 2003-04 Assessment
Year: 2004-05
Particulars of Income |
Amount (Taka)
|
|
1.
|
Income
from House Property: u/s 24 (W-2 and Note-3)
|
5,950
|
2.
|
Income
from Business or Profession: u/s 28 (W-1)
|
22,02,407
|
3.
|
Capital
Gains: u/s 31 (W-3)
|
nil
|
4.
|
Income
from Other Sources: u/s (W-4)
|
11,500
|
Total Income |
22,19,857
|
Calculation
of Tax Liability:
Amount (Taka)
|
||
1.
|
On
Dividend Income
|
nil
|
2.
|
On
other income (22,19,857 @ 30%)
|
6,65,957
|
Gross tax on Total Income u/s 74 |
6,65,957
|
|
4.
|
Additional tax @ 5% on undistributed profit Tk. 62,64,778 u/s 16B (W-5) |
3,13,239
|
Total tax |
9,79,196
|
|
Less: Tax deducted at source |
nil
|
|
Less: Advance tax paid |
(6,66,000)
|
|
Tax Liability before penalty |
3,13,196
|
Workings:
W-1:
Calculation of Income from Business or Profession:
Taka |
Taka |
|
Net Profit as per Profit and Loss Account |
23,13,500 |
|
Add: Items of deductions
disallowed/allowed for other income-head:
· Over-valuation of opening stock (12,00,000 – 10,00,000)
·
Employee club building construction
·
Interest to non-resident, tax not deducted at source u/s 30(aa)
·
Income tax (shown in P. & L. A/C)
·
Repair & maintenance expenses (for office space let out)
|
2,00,000
50,000
50,000
1,00,000
4,250
|
4,04,250
|
Add: Items of deductions to
be considered as per ITO:
· Cost of distribution of free sample
·
Depreciation on fixed asset (as per
accounts)
·
Fees for
technical services
|
1,50,000
5,00,000
60,000
|
7,10,000
|
Less: Income to be shown
under other heads:
· Dividend received – DDT paid u/s 16D
·
Sale proceeds of old machine
·
Share transfer fees
·
Rent received
|
93,500
11,00,000
11,500
8,500
|
(12,13,500)
|
Add: Income not yet
included:
· Revenue profit from sale of old machine (10,00,000 – 3,70,740) |
6,29,260 |
6,29,260
|
Less: Deductions allowed as
per ITO:
· Depreciation as per Third schedule
·
Cost of distribution of free sample u/s 30(f)(iv) and u/r 65C (up to turnover Tk. 5 crore
@ 1.5%, i.e., 1.5% of Tk. 90,00,000)
|
4,50,000
1,35,000
|
(5,85,000)
|
Profit before charging the above expense |
22,58,510 |
|
Less: Deductions allowed as
per ITO:
·
Fees for
technical services u/s 30(h)
[up to 2.5% of above profit]ª
|
(56,463)
|
|
Income from Business or Profession: u/s 28 |
22,02,407 |
ªN.B.: Following three expenses are not to exceed
the limit specified in this behalf. The calculation of the limit will be based
on the profit before charging the
expenses.
(i) Entertainment expenses u/s 30(f)(i) and u/r 65: On first Tk 10
lakh @ 4% and on balance @ 2%.
(ii) Head Office expenses for
branch company u/s 30(g): up to 10% [Effective from 1-7-2003].
(iii) Payment by way of royalty, technical
services fee, technical know how fee or technical assistance fee u/s 30(h):
up to 2.5% [Effective from 1-7-2003].
W-2:
Calculation of Income from House Property:
Annual
value (Rental income from office space let out)
|
Tk. 8,500
|
Less:
Repair & maintenance – Actual Tk. 4,250
Allowed equal to 30% of annual
value u/s 25(1)(h)
|
2,550
|
Income from House
Property
|
Tk. 5,950
|
W-3:
Calculation of Capital Gains:
Sale
proceeds of old machine
|
Tk. 11,00,000
|
Less:
Cost of
acquisition of the machine
|
10,00,000
|
Capital
Gains (long-term), non-assessable u/s 32(5) & para 31A, Part A, 6th
Sch.
|
1,00,000
|
W-4:
Calculation of Income from Other Sources:
Share
transfer fees
|
Tk. 11,500
|
Dividends
– DDT paid u/s 16D Tk. 1,10,000 [non-assessable
under para 22, Part A, 6th Sch.]
|
nil
|
Income
from Other Sources
|
11,500
|
W-5:
Calculation of “Undistributed Profit” u/s 16B:
Disclosed
income
|
Tk. 23,13,500
|
|
Accumulated
profit
|
2,51,278
|
|
Free
reserve
|
37,00,000
|
|
Undistributed
profit
|
Tk. 62,64,778
|
Notes:
(1) Cost for ‘opening of night school for the workers’ is allowable deduction u/s 29(1)(xiii).
(2) Embezzlement of cash by cashier is allowable deduction.
(3) Rent received from office space let out is to be calculated under the head “Income from House Property” from AY 2002-03 due to amendment in section 24(1) by the FA 2002.
Solution # CT-3
Yello Bangladesh Ltd.
Income
Year: 2003-04 Assessment
Year: 2004-05
Particulars of Income |
Amount (Taka)
|
|
1.
|
Income
from Business or Profession: u/s 28 (W-1)
|
14,90,995
|
2.
|
Capital
Gains: u/s 31 (W-2)
|
40,000
|
3.
|
Income
from Other Sources: u/s (W-3)
|
75,000
|
Total Income |
16,05,995
|
Calculation
of Tax Liability:
Taka
|
||
1.
|
On
Dividend Income (75,000 @ 15%)
|
11,250
|
2.
|
On
Capital Gain (40,000 @ 15%)
|
6,000
|
3.
|
On
other income (14,90,995 @ 30%)*
|
4,47,299
|
| Gross tax on Total Income |
4,64,549
|
|
Less: Tax rebate 10% [for dividend payment at more than 20%]* |
(46,455)
|
|
Less: Tax deducted at source on Dividend |
(15,000)
|
|
| Tax Liability, if not paid |
4,03,094
|
*Dividend
payment @ 25.5% (=22,95,000/90,00,000)
Workings:
W-1:
Calculation of Income from Business or Profession:
Taka |
Taka |
|
Net Profit as per Profit and Loss Account |
18,50,000 |
|
Add: Items of deductions
disallowed:
· Telephone expenses (personal)
·
Car maintenance expenses (personal)
·
Provision for bad and doubtful debts
|
54,000
1,00,500
1,00,000
|
2,54,500
|
Add: Items of deductions to
be considered as per ITO:
·
Depreciation on fixed asset (as per accounts)
·
Entertainment expenses
·
Cost of distribution of free sample
|
5,40,000
1,20,000
6,50,000
|
13,10,000
|
Less: Income to be shown
under other heads:
· Dividend received – post-tax (as shown in accounts) |
85,000
|
(85,000)
|
Add: Income not yet
included:
· Revenue profit from sale of old furniture (W-4) |
78,256 |
78,256
|
Less: Deductions allowed as
per ITO:
· Depreciation as per Third schedule
·
Cost of distribution of free sample u/s 30(f)(iv) and u/r 65C (up to turnover Tk. 5 crore
@ 1.5%, i.e., 1.5% of Tk. 3,02,58,000)
|
4,99,200
4,53,870
|
(9,53,070)
|
Profit
before charging Entertainment expenses
|
24,54,686 |
|
Less: Deductions allowed as
per ITO:
·
Entertainment expenses u/s 30(f)(i) and u/r 65:
On first
Tk 10,00,000 @ 4%
On balance Tk. 14,54,686 @ 2%
|
40,000
29,094
|
(69,094)
|
Gross Income from Business or Profession: |
23,85,592 |
|
Less: Non-assessable income (50% of export income Tk. 17,89,194 under para-31, Part-A, Sixth Schedule) [W-5] |
8,94,597 |
|
Income from Business or Profession: u/s 28 |
14,90,995 |
W-2:
Calculation of Capital Gains:
Sale
proceeds of old furniture
|
Tk. 2,00,000
|
Less:
Cost of
acquisition of the furniture
|
1,50,000
|
Capital
Gains (long-term)
|
50,000
|
Less: Capital Loss carried
forward (15,000 – 5,000)
|
10,000
|
Capital
Gains (long-term), adjusted
|
40,000
|
W-3:
Calculation of Income from Other Sources:
Dividends
– pre-tax [85,000/(1-15%)]
|
Tk. 1,00,000
|
Less:
Non-assessable under para 22A of Part A, Sixth Sch. up to
|
25,000
|
Income
from Other Sources
|
75,000
|
W-4:
Calculation of Revenue profit from sale of old furniture:
Sale
proceeds of old furniture
|
Tk. 2,00,000
|
Less:
Written
down value
|
71,744
|
Total
profit
|
1,28,256
|
Capital
Gains (W-2)
|
50,000
|
Revenue
profit from sale of asset
|
78,256
|
Cost
of acquisition of the machine: Tk. 1,50,000
Less: Annual depreciation for 7
years (from year of acquisition up to preceding year of sale):
Year-1 [10% of Tk. 1,50,000] Tk.
15,000
Year-2 [10% of Tk. (1,50,000 – 15,000] Tk. 13,500
Year-3 [10% of Tk. (1,35,000 – 13,500] Tk. 12,150
Year-4 [10% of Tk. (1,21,500 – 12,150] Tk. 10,935
Year-5 [10%
of Tk. (1,09,350 – 10,935] Tk. 9,842
Year-6 [10%
of Tk. (98,415 – 9,842] Tk. 8,857
Year-7 [10% of Tk. (88,573 – 8,857] Tk. 7,972
Total accumulated depreciation Tk. 78,256
Written down value = Tk. (1,50,000 – 78,256) = Tk. 71,744.
W-5:
Export income:
Total
Sales (A)
|
Tk. 3,02,58,000
|
Export
sales (B)
|
2,26,93,500
|
Share
of export sales in total sales (B/A)
|
75%
|
Share
of export income (75% of Tk. 23,85,592)
|
Tk. 17,89,194
|
Solution # CT-4
Requirement
(a)
Texo Bank Ltd.
Income
Year ending on 31.12.2003 Assessment
Year: 2004-05
Particulars of Income |
Amount (Taka)
|
|
1.
|
Income
from House Property: u/s 24 (Note-4)
|
150,000
|
2.
|
Income
from Business or Profession: u/s 28 (W-1)
|
240,995,288
|
3.
|
Capital
Gains: u/s 31 (W-3)
|
200,000
|
4.
|
Income
from Other Sources: u/s (W-4)
|
202,500
|
Total Income |
241,547,788
|
Requirement
(b)
Calculation
of Tax Liability:
Amount (Taka)
|
||
1.
|
On
Capital Gain on Ltd. Companies’ shares (Tk. 200,000 @ 10%)
|
20,000
|
2.
|
On
Dividend Income (Tk. 202,500 @ 15%)
|
30,375
|
3.
|
On
other income (Tk. 241,145,288 @ 45%)
|
108,515,380
|
Gross tax on Total Income u/s 74 |
108,565,755
|
|
Excess profit tax @ 15% on excess profit Tk. 36,121,875 u/s 16C (W-5) |
5,418,281
|
|
Total tax |
113,984,036
|
|
Less: Tax deducted at source on Dividend and Interest on Govt. Securities
[34,125 + 394,500]
|
(428,625)
|
|
Less: Advance tax paid |
(105,180,975)
|
|
Tax Liability before penalty |
8,374,436
|
Workings:
W-1:
Calculation of Income from Business or Profession:
Taka |
Taka |
|
Net Profit as per Profit and Loss Account |
240,471,875 |
|
Add: Items of deductions
disallowed/allowed for other income-head:
·
Construction of
employee residential quarters
·
Income tax (shown in P. &
L. A/C)
·
Repair & maintenance expenses (for office space let out)
|
150,000
500,000
4,250
|
654,250
|
Add: Items of deductions to
be considered as per ITO:
·
Depreciation on fixed asset (as per accounts)
|
9,550,000
|
9,550,000
|
Add: Item to be considered
as per ITO to make income as pre-tax:
·
Income tax deducted at source on Interest on Govt. Securities [W-2]
|
394,500
|
394,500
|
Less: Income to be shown
under other heads:
· Dividend received – post-tax (as shown in account)
·
Sale proceeds of old machine
·
Rent received
|
193,375
1,500,000
150,000
|
(1,843,375)
|
Add: Income not yet
included:
· Revenue profit from sale of old machine (1,300,000 – 481,962) |
818,038 |
818,038
|
Less: Deductions allowed as
per ITO:
· Depreciation as per Third schedule |
9,050,000
|
(9,050,000)
|
Income from Business or Profession: u/s 28 |
240,995,288 |
W-2:
Calculation of Income Tax Deducted at Source on Interest on Govt. Securities:
Interest
on Govt. Securities – pre-tax [7,495,500/(1-5%)]
|
Tk. 7,890,000
|
Tax
deducted at source @ 5%
|
394,500
|
W-3:
Calculation of Capital Gains:
Sale
proceeds of stocks and shares of Listed
public limited companies
Less: Cost of acquisition of the shares/stocks
|
Tk. 1,100,000
100,000
|
Tk.
|
Capital
Gains (long-term), non-assessable u/s 32(7)
|
1,000,000
|
nil
|
Sale
proceeds of stocks and shares of Other
private limited companies
Less: Cost of acquisition of the shares/stocks
|
Tk. 400,000
200,000
|
|
Capital Gains (long-term),
not non-assessable u/s 32(7)
|
200,000
|
200,000
|
Capital Gains u/s 31
|
2,00,000
|
W-4:
Calculation of Income from Other Sources:
Dividends
– pre-tax [193,375/(1-15%)]
|
Tk. 227,500
|
Less:
Non-assessable under para 22A of Part A, Sixth Sch. up to
|
25,000
|
Income
from Other Sources
|
202,500
|
W-5:
Calculation of “Excess Profit” u/s 16C:
Profit
shown in return
|
Tk. 240,471,875
|
|
Less: 50% of (Total of
Capital & Reserve)
|
||
Paid-up capital
|
Tk. 300,000,000
|
|
Free reserve
|
13,700,000
|
|
Statutory reserve
|
95,000,000
|
|
Total of Capital and Reserve
|
408,700,000
|
|
50% Total of Capital and Reserve
|
(204,350,000)
|
|
Excess
profit
|
36,121,875
|
Notes:
(1) Cost for ‘opening of a hospital for the workers’ is allowable deduction u/s 29(1)(xiii).
(2) Litigation cost for loan recovery is allowable deduction.
(3) “Bad debt
actually written off as irrecoverable” is allowable deduction u/s 29(1)(xvi)
and “provision for classified bad and doubtful debt” is allowable deduction u/s
29(1)(xviiiaa) for commercial banks including BKB and RKUB up to AY 2004-05 @ 2%
of outstanding loan or actual provision, whichever is less. It is
assumed that the provision is within the limit. [Rate has been reduced from 3%
to 2% by the FA 2003.]
(4) Rent received from office space let out is to be calculated under the head “Income from House Property” from AY 2002-03 due to amendment in section 24(1) by the FA 2002.
(5) “Interest on Government securities” is an “Income from Business or Profession” for banking companies.
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