Tax return outcomes

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Tax return

A tax return is a document filed with state or federal authorities that declares a taxpayers liability for being taxed, based on their yearly income. Three outcomes are possible from filing a tax return, either the taxpayer has either been charged too much or too little for their income, or they have been charged the correct amount. If they have been charged too much, the government must refund them, whereas if they have been charged too little, they must pay the difference.

Income Tax Payable

A type of account in the current liabilities section of a company's balance sheet. This account is comprised of taxes that must be paid to the government within one year. Income tax payable is calculated according to the prevailing tax law in the company's home country.

Statutory income

Statutory income from Susceptible to this specific act, the statutory income for the source for evaluation which involves season (season includes evaluating get in this particular field are often called year) would consist of:

The amount of revenue they anticipate if any which comes from where the source for of the basis period for the relevant season and also how much of it and any request or handling may be combined the level of operating costs.


In the tax return form BE income tax for individual, it has General Rules for this Form BE. That are the Basic Information for Fill in relevant information only. Firstly, Particulars of Individual in. Part A for in relevant information only. Secondly, Part B, Statutory Income, Total Income, Tax Payable and Status of Tax, in this part it was joint assessment, the individual who elects to be assessed in the name of the spouse is required to fill in until item B6 only. Items B7 to B19 need not be filled. And, Declaration, This part has to be completed. If the form is not affirmed and duly signed, it will be returned to you and deemed not received by LHDM. Thirdly, Part C it was Particulars of Husband or Wife relevant answer information. Fourth, Part D was Other Particulars .fifth, for part E, Income of preceding years not declared sixth. Part F, deductions, this part has to be completed. The individual who elects for joint assessment to be raised in the name of espouse does not have to fill in this section. Lastly Part G, Particulars of Tax Agent who completes this Return Form.

Part A was a basic information.

Part B : Statutory Income, Total Income ,Tax Payable and Status of tax .

B1) Statutory income from employment

Statutory income from employment like salary, bonus, director’s fee, commission and any perquisite [such as share option scheme, insurance premium, school and tuition fee paid by the employer, have to be declared. The entertainment and travelling expenditure incurred in the production of gross employment income and discharge of official duties are allowable deductions. Deduction of entertainment expenditure is restricted to the amount of entertainment allowance included as gross income from employment. However, reimbursements by the employer in respect of both types of expenditure are neither deductible nor liable to tax.

B2) Statutory income Enter dividends and rent

Enter dividends or distribution of income received from dividends companies and unit which have been charged to tax at 25%. It was submit together with Form BE if the entitled to a tax refund in item B17.Rents these are rental received in respect of houses, shop houses, land, plant, machines, furniture and other.

B3) Statutory income from interest, discounts, royalties, premiums, pensions, annuities, other periodical payments, and other gains or profit.

Interest Income in respect of interest received by individuals resident in Malaysia from money deposited with the following institutions is tax exempt. A bank or a finance company licensed or deemed to be licensed under the Banking and Financial Institutions Act Discounts these relate to earnings from discounting transactions such as dealings in treasury bills. And Royalties, royalties received in respect of the use of copyrights or patents are taxable if they exceed the following exemption limits. In addition , Pensions ,pensions derived from Malaysia and paid to a person on reaching the age of 55 years or compulsory age of retirement or if the retirement is due to ill-health, are exempt from tax. Moreover , Annuities ,these are sums of money received in accordance with a will or an investment of money entitling the annuitants or investors to a series of annual payments, whether or not received regularly or for a limited period only. Next, Periodical Payments, these refer to recurring payments received at fixed times. Lastly , Other Gains Or Profits Other income such as payments received for part-time or occasional broadcasting, lecturing, writing and so forth.

B4) Aggregate Income (B1+B2+B3)

Aggregate income any person in for the year which involves guest and the year of assessment in section referred to as the person concerned and the year respectively must be made of:

the aggregate statutory income from, if any, for the year in respect of each source of business, reduced by any deduction falling to be made for the relevant year pursuant to subsection (2) or the year in respect of all other sources; and for any additions fall to be made for the year according to Schedule 4A.

B5) Less Approved donation , contributions , or give

Gift of money to approved Institutions or organizations like approved by the director general of Inland Revenue. Gift of money or cost of contribution in kind for any approved sports activity or sports body and minister or any sports body approved by the commissioner of sports appointed under the Sports Development Act 1997.

B6) Total Income B4 -B5.

B7) Total Income transferred from name the joint assessment is to be raised.

Husband/Wife* for Joint assessment.

Items b7 and b8 have to be filled in by the individual in whose name the joint assessment is to be raised. Transfer the total income of the spouse which is to be aggregated with the total income of the individual to this item.

B8) Aggregate of Total Income B6 + B7 .

B9) Total Relief Amount from F19.

B10) Chargeable Income B6- B9 or B8 - B9 .

B10a) Special Relief RM2, 000 if B4 does not exceed RM96,000.

Refer to Income Tax (Exemption) Order [P.U. (A) 361/2013]

Leave the item blank if the Aggregate Income is exceeding


B10b) CHARGEABLE INCOME ( B10 – B10a )

B11) Income tax computation

A new tax computation is the pledge that show any tax on accounting profit to achieve the income chargeable to tax. Put the load on changes combines the expenses cannot be deducted, the bill without tax broke and also fund additional allowances. The organization needs to send the tax computation and also record audited for along with the type H each year.The Company filed a type are not forced to send the records of the economy, tax calculations and also promote daily activities. They still had to prepare their records, especially the economy, tax calculation and also encourage daily activities and also send them to IRAS after asking.

B11a Tax on the first

B11b Tax on the balance

B12 TOTAL INCOME TAX ( B11a + B11b)

B13 LESS: Total Rebate

SELF rebate of RM400 is granted to an individual whose chargeable income does not exceed RM35,000.


HUSBAND/WIFE rebate of RM400 is granted to an individual whose chargeable income does not exceed RM35,000 and where he or she has been allowed a deduction of RM3,000 for the spouse.

ZAKAT AND FITRAH is a rebate is granted for payments of any zakat, fitrah and other obligatory Islamic religious dues in the basis year.

B15 LESS: section 51 of finance act 2007(dividends) ,section 110(other) and section 132 and 133.

B16 TAX PAYABLE ( B14 – B15 )

B17 OR: TAX REPAYABLE ( B15 – B14 )

B18 Instalments / Monthly Tax Deductions paid for 2013 income – SELF and HUSBAND / WIFE for joint assessment

Use his excludes payments made in respect of outstanding tax for previous years of assessment.

Monthly Tax Deductions made in 2013 in respect of bonus or director’s fee (including bonus or director’s fee for previous years of assessment paid in 2013) has to be included in this item.

B19 Balance of Tax Payable ( B16 – B18 ) or Tax Paid in Excess ( B18 – B16 )

The balance of tax payable must be paid within the stipulated period.

Payment can be made as follows:

Bank - Counters of CIMB Bank Berhad (CIMB), Public Bank Berhad (PBB), Malayan Banking Berhad (Maybank), Affin Bank Berhad (ABB) and Bank Kerjasama Rakyat Malaysia Berhad (Bank Rakyat) by using the bank payment slip.

(b) LHDNM - e-Payment through FPX (Financial Process Exchange) at LHDNM website.

(c) Pos Malaysia - counter and or at pos online

Declaration - If the return form is not affirmed and duly signed, it shall be deemed incomplete and returned to you.

The use of signature stamp is not allowed. Penalty will be imposed in case of late resubmission of the return form to LHDNM.

PART E: Income of preceding years not declared

E1)Income received in respect of any earlier year not previously declared such as payment of

salary in arrears.

E2) Please use attachment in case of insufficient writing space. Bonus or director’s fee shall, when received in the basis year, be treated as part of the gross

PART F: Deductions

F1 Individual and dependent relatives

Relief of RM9,000 for an individual in respect of himself and his dependent relatives is granted automatically.

F2 Medical treatment, special needs and carer expenses for parents certified by medical practitioner.

Medical treatment, special needs and carer expenses incurred on parents is limited to RM5, 000.

Medical expenses which qualify for deduction include:

Medical care and treatment provided by a nursing home, a dental treatment limited to tooth extraction, filling, scaling and cleaning but excluding cosmetic dental treatment expenses such as teeth restoration and replacement involving crowning, root canal and dentures.

F3 Basic supporting equipment for disabled self, spouse, child or parent

F4 Disabled individual

F5 Education fees (self):

other than a degree at Masters or Doctorate level for acquiring law, accounting, Islamic financing, technical, vocational, industrial, scientific or technological skills or qualifications and degree at Masters or Doctorate level for acquiring any skill or qualification .

F6 Medical expenses on serious diseases for self, spouse or child

Medical expenses on serious diseases includes the treatment of acquired immune deficiency syndrome (AIDS), Parkinson’s disease, cancer, renal failure, leukemia and other similar diseases such as heart attack.

F7 Complete medical examination for self, spouse or child (restricted to 500)

Complete medical examination refers to thorough examination.Amount expended on own self, husband or wife or child is deductible up to a maximum of RM500 but the total of both deductions (F6 and F7) is limited to a maximum of RM5,000.

F8 Purchase of books or magazines or journals or similar publications (except newspapers and banned reading materials) for self, spouse or child.

An amount limited to a maximum of RM1,000 is deductible in respect of the purchase of books, magazines, journals or other similar publications (in form of hardcopy or electronic but exclude newspapers or banned reading materials) for enhancing the knowledge of the individual, husband/wife or child.

F9 Purchase of personal computer for individual (deduction allowed once in every 3 years)

An amount limited to a maximum of RM3,000 is deductible in respect of the purchase of personal computer. No deduction will be granted if the computer is used for business purpose. This deduction is allowed once in 3 years.

F10 Net deposit in Skim Simpanan Pendidikan Nasional (total deposit in 2012 minus total withdrawal in 2013)

Amount deposited in SSPN by an individual for his children’s education is deductible up to a maximum of RM6,000 (with effect from the year of assessment 2012 to 2017). The allowable deduction is limited to the net amount deposited in that basis year only.

F11 Purchase of sports equipment for any sports activity as defined under the Sports Development Act 1997

An amount limited to a maximum of RM300 is deductible in respect of expenses expended by the individual for the purchase of sports equipment for any sports activity as defined under the Sports Development Act 1997.

F12 Interest on housing loan (Conditions for eligibility to claim must be fulfilled)

The Sale and Purchase Agreement has been executed within 10/03/09 - 31/12/10 .An amount limited to a maximum of RM10,000 is deductible for each basis year for a period of three consecutive years of assessment beginning from the date in which the interest is first expended.

F13 Husband or Wife or Payment of alimony to former wife

Relief of RM3,000 is given in respect of a husband living together in the basis year on condition that the husband has no total income or has elected for joint assessment.

F14 Disabled husband or wife

Additional deduction of RM3,500 is given in respect of a disabled husband or wife living together with the individual.

F15 Child - Refer to Working Sheet HK-13 for computation.

F15a Child - Under the age of 18 years

F15b Child - 18 years & above and studying

F15c Child - Disabled child

F16 Life insurance and provident fund

Refer to Working Sheet HK-14 for computation.

Insurance premiums paid for policies taken on the life of an individual, husband or wife are allowable deductions. Insurance premiums on the life of the child do not qualify. Contributions to the Employees Provident Fund or other provident funds or pension schemes approved by the Director General of Inland Revenue.

F17 Private Retirement Scheme and Deferred Annuity

An amount limited to a maximum of RM3,000 is deductible in respect of contribution made to a private retirement scheme approved by the Securities Commission and total payment of deferred annuity.

F18 Education and medical insurance

F19 Total relief (F1 to F18) (Transfer this amount to B9)

Task 2

Dr Aron

Section 4(b)


Section 13(1)(a)

Salary (RM 8000 x 12)

Bonus (RM 160002)=8000


Share option scheme

(2.50-1.00) =1.50

(1.50 x 3000)=4500



Section 13(1)(b)

Furnished (280 x 12 x 70 )=2352


Driver (600 x 12 )=7200


Gardener (300 x 12 )=3600


Domestic servent (400 x 12)=4800


Utility bills


Child care benefits



Section 13(1)(c)


Rental(4500-1500 x 12 x 70 )=25200

Section 13(1)(a) x 30




Section 13(1)(d)


Up proved pension

(RM80000-RM25000-RM12000) = 43000

43000 + RM12000=RM 55000


Section 4(c)

Malaysia dividend

18000 x 100

Interest form Malaysia Banking BHD for 15 month fixed deposit



Interest on convertible bonds issued by flying color BHD a listed Co



Section 4(d)


Royalties form the publisher of his book “Wonder of the Malay Culture” (23000-20000)=3000

Section 4(e)

Annuity from his late fathers estate


Aggregate income












First child

Second child

Third child

Fourth child

Fifth child

Handicapped child

EPF and life insurance premium

8000 x 11%=880




Chargeable income


Income tax computation

Tax on the first



Tax on the balance






See 110 set off (24000-18000)



Mdn Arina

Salary (RM4000 x 12 )









Adjusted apportiment income





(-)EPF and life insurance premium

4000 x 11%=440



Chargeable income


Income tax computation

Tax on the first

Tax on the balance


2470 x 19%




Mdn Ardhia

Section 4 (a) business income


Restaurant Ardhia

Adjusted income

(+) Balancing charge



(-) Capital allowance for the year


Statutory income


DE fashion Boutique


Profit before taxation

ADD non allowable expenses






Adjusted income


(-)Capital allowance


Statutory income


(+)Restaurant Ardhia

DE Fashion Boutique



Statutory for business income


Section 4(c)

Dividend income

(10800 x 100 )

(+)Statutory for business income



Aggregate income





(-)Donation approved institution



Income tax computation

Tax on the first



Tax on the balance





See 110 set off (14400-10800)