FAST FOOD INDUSTRY Introduction Fast food

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Case study

Mr. Ashraf is serving in a Multinational company. From July 2010 to June 2011 he has the following income.

Salary income:

Basic salary: Tk. 40,000/- per month.

House rent: Tk. 25,000/- per month. (or you can think here he has got a furnished apartment for which he has to

pay a concessional rent TK. 15.000/- whose actual rent is TK.30,000/- Guess what happened )

Conveyance allowance: TK. 4,000/- per month. (or you can think here that company gave him a whole time car.

There is a loan arrangement of twenty lacs between Mr. Ashraf and the company that every month he pays TK.

10,000/- as loan refund and when loan is fully paid he would be the owner of the car. Beside this, Mr. Ashraf got

the salary of the driver, fuel & maintenance as needed from the company. Guess what happened?).Only for

discussion.

Medical allowance; TK.48,000/- Actual Expense TK.40,000/- per annum

Entertainment allowance: TK. 2000/- per month (or you can think he has got lunch allowance tk.2,000/- per month.

Guess what happened).

Bonus: TK. 80,000/- per year

Incentive bonus TK. 80,000 per year

Leave Encashment-one month salary

Deposited to Provident fund by him: TK. 48,000/- per year and also by employer:

TK.48,000/- per year.

He has a maid servant whose salary TK. 3000/- per month is bore by the company

Tax deduction at source from salary 8,000/- per month.

Income from House property:

Mr. Ashraf has a flat from which he has following income and expenses.

Rent received: TK 25,000/- per month.

Municipal tax: TK. 8,000/- per year

Land revenue: TK. 500/- per year.

Installment of HBFC loan: Principal-TK.80,000/- and interest TK. 60,000/- per year.

Business Income:

He has a pharmacy from which he has a net income of TK. 2,50,000/- per year.

He has also income from capital gain of selling share TK.5,00,000/-

Agricultural Income:

He has 7.5 bighas of agricultural land.

Income from other sources:

He has TK. 15,00,000/- three monthly saving certificates from which he got interest income

45,000/- per quarter and tax deducted at source at a rate of 10%.

He has a savings account from which he got TK. 50,000/- interest and deduction at source TK.5000/-.

He has paid an amount of 95,000/- as advance tax. He has also paid TK.8000/- as advance tax in time

of renewal of fitness of his car

Foreign Income: He went to USA for a training for 3 months and saved US$ 5,500 and declared in the

custom authority at ZIA on arrival , cashed at a money exchange and got TK.3,82,250/-

Investment for tax rebate:

He has life insurance in his name with ALICO, premium paid TK.12,000/- (Face value of the

insurance is TK.1,00,000/-)

He has an education insurance policy in his son’s name, premium paid TK.5,000/-

He has purchased Bangladesh Sanchaypatra at an amount of TK. 2,00,000/-.

He has purchased Primary share and mutual fund at an amount of TK. 3,00,000/-.

He has purchased secondary share at an amount of TK. 2,00,000/-.

Please calculate Total income of Mr. Ashraf and tax payable by him.

Mr Ashraf’s last year IT 10B was as follows:

1(a).Business capital- 10,50,000/-

2.Non- agricultural property- 40,00,000/-

4(a). Shares- 18,00,000/-

4(b). Sanchaypatra- 15,00,000/-

-------------------------------------------------33,00,000/-

5. Motor vehicle 15,00,000/-

9. Cash asset Outside Business:

(a) Cash in hand Tk. 48,25,000/-

(b) Cash at bank Tk. 2,25,525/-

Total gross wealth 1,49,00,525/-

Total liability 20,00,000/-

Total net wealth as on 30 June 2010 1,29,00,525/-

Assume family expenditure during the year is 10,50,000/-

Please calculate total net wealth as on 30 June 2011.

Solution:

Salary income:

Salary Income

Basic salary

40,000/- 12 month

4,80,000/-

House rent (25,000/- 12)

3,00,000-1,80,000

1,20,000/-

Conveyance allowance (4,00012)

48,000-24000

24,000/-

Medical allowance (4,00012)

48,000-40,000

8,000/-

Entertainment Allowance

2,000/- 12 month

24,000/-

Bonus

80,000

80,000/-

Incentive bonus

80,000

80,000/-

Leave encashment

40,000

40,000/-

Servant salary

3,000/-x 12 month

36,000/-

Employers contribution to provident fund

48,000/-

Salary Income

9,40,000/-

House property Income

Annual rent received(25,000/- 12month)

3,00,000/-

Repair & maintenance (3,00,000/4)

75,000/-

Municipal tax

8,000/-

Land revenue

500/-

Interest on HBFC loan

60,000/-

Total allowable expenditure

(1,43,500/-)

Income from house property

1,56,500/-

Business Income

2,50,000/-

Agricultural Income

7.5 bigas  15 mond paddy  market price

(TK. 900/-)

1,01,250/-

Less production (1,01,250/-60%)

60,750/-

Agricultural Income

40,500/-

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Case study Mr. Ashraf is serving in a Multinational company. From July 2010 to June 2011 he has the following income. Salary income: Basic salary: Tk. 40,000/- per month. House rent: Tk. 25,000/- per month. (or you can think here he has got a furnished apartment for which he has to pay a concessional rent TK. 15.000/- whose actual rent is TK.30,000/- Guess what happened ) Conveyance allowance: TK. 4,000/- per month. (or you can think here that company gave him a whole time car. There is a loan arrangement of twenty lacs between Mr. Ashraf and the company that every month he pays TK. 10,000/- as loan refund and when loan is fully paid he would be the owner of the car. Beside this, Mr. Ashraf got the salary of the driver, fuel & maintenance as needed from the company. Guess what happened?).Only for discussion. Medical allowance; TK.48,000/- Actual Expense TK.40,000/- per annum Entertainment allowance: TK. 2000/- per month (or you can think he has got lunch allowance tk.2,000/- per month. Guess what happened). Bonus: TK. 80,000/- per year Incentive bonus TK. 80,000 per year Leave Encashment-one month salary Deposited to Provident fund by him: TK. 48,000/- per year and also by employer: TK.48,000/- per year. He has a maid servant whose salary TK. 3000/- per month is bore by the company Tax deduction at source from salary 8,000/- per month. Income from House property: Mr. Ashraf has a flat from which he has following income and expenses. Rent received: TK 25,000/- per mo ...
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