how to calculate individual tax and process

2.  Md. Enamul Islam Shemul
 Student of Patuakhali Science and
Technology University
 Faculty of Business Administration and
Management
 Session 2013-14

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Md. Enamul Islam Islam
Roll No: 1303082,
Reg. No: 04327

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Objectives of the report
 To know about the tax and taxation policy.
 To identify individual’s tax liabilities
 To know the policy regarding tax implication and tax
exemption.
 To know how tax is calculated and what rate is
applicable on specific items.

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Limitations of the Report:
 People were very restricted in giving the information.
 Lack of proper knowledge about taxpaying system.
 Minimum knowledge of resources.
 Lack of sufficient experiences.

7. Methodology of the Report:
Sources of Data Collection
Data Analysis
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Assessment Year
"The word ‘assessment’ is used in the Ordinance as meaning sometimes
the computation of income, sometimes the determination of the amount
of tax payable, and sometimes the whole procedure laid in the ordinance
for imposing liability on the tax-payer. An ‘individual’ is the only human
being among the assesses, enumerated in the Act. The term includes both
a male and female.
"Assessment year" means the period of twelve months commencing on the
first day of July every year; and includes any such period which is deemed
to be assessment year in respect of any income for any period.
Individual Assessment

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Different Sectors of Income
 Income from Salaries.
 Income from Interest on securities.
 Income from house property.
 Income from Agricultural income.
 Income from business or profession.
 Income from Capital gains.
 Income from other sources.

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Taxable Income from salary
Salary & Allowance Amount of
Income (Tk.)
Amount of
Exempted income
(Tk.)
Net taxable
income
(Tk.)
Basic Salary 284606 -- 284606
Dearness Allowance 56921 -- 56921
Reward 46600 -- 46600
Others Allowance 10000 -- 10000
House Rent
Allowance
102000 102000 --
Medical Allowance 8400 28461 --
Total Tk.398127

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Income of the Assesse
Statement of income during the income year ended on 30-06-15
 Income from Salaries is 398127. The assesse have no other sources
of income.
 His income only come from Salary.
 His monthly total income is taxable income from salary.

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Determination of Tax Credit Income:
Investment Fund
Amount (Tk)
Details (Tk) Actual(Tk)
Social Welfare Tk. 600
Insurance Fund TK. 1356
Future Fund Tk. 28461
Total Investment=
600
1356
28461
31417
Rebate @ 25% on Total income of Assesse or
Real Investment or 5 lakhs taka from these
three whichever is less 10% impose on that.
After aii calculation I look after that Real
Investment is less from those. Hence he will
get rebate on Tk 31417 @ 10% = Tk. 3142
Total tax credit income 3142

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Tax Calculation
Total income : TK. 398127
Net total income tax= (Total Income Tax- Total Tax Credit Income/Tax Rebate)
= (17813- 3142) = TK. 14671
The total taxable income is TK. 365330. It is only come from Salary. His total tax is
Tk. 17813 and Tax rebate is TK. 3142. So, his Total Net Tax is Tk. 14671.
Particulars Percentage Amount of Taka
On first
Tk.220000
0% -------
On next
Tk.178127
10% Tk. 17813

14. Findings of the Report:
His total income comes from Salary.
Normally he is a good tax payer
according to his previous record,
Tax leviable on total income tk. 17813
Tax rebate tk. 3142
Tax payable tk. 14671
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CONCLUSION
 Tax is a compulsory payment for all. Tax is one of the most impotent
income sources for any govt. So, it should be paid for all to govt.
 In this report I highlighted the tax and taxable income of Md.
Nurnabi who is a Assistant professor, Faculty of BAM.
 He is the assesse and his sources of income and taxable income is
described in this report.
 His only sources of income is income from salary.

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THE
END

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THANKS TO ALL
FOR BEING WITH
ME