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Computation of Chargeable Income of Executor for Ya 2014

Essay by   •  January 21, 2018  •  Coursework  •  362 Words (2 Pages)  •  1,059 Views

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Question 1

Computation of Chargeable Income of Executor for YA 2014

RM

Business I

Business II

Rental

170,000

-

-

Aggregate Income

Less: Current Year Business Loss II

Less: Annuity Payable

170,000

60,000

70,000

Total Income

Less: Personal Relief

40,000

9,000

Chargeable Income

31,000

Tax Payable

RM

First RM20,000

Next RM11,000 @ 6%

300

660

960

Question 2(a)

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Computation of Chargeable Income of Lim Soon Guan for YA 2014

Section 4a

Partnership

Business Income

RM

RM

RM

Business I

Adjusted Income (780,000 x 3/12 x 1/3)

Business II

Rental Income

Less: Allowable Expenses

Assessment Rates

Fire Insurance

Roof Repairs

Interest

(4,000)

(2,400)

(2,200)

(57,000)

80,000

(65,600)

65,000

Adjusted Income

14,400

Deceased’s Share of Rental Income

(14,400 x 3/12 x ½)

1,800

Aggregate Statutory Business Income

Other Non-Business Income

Single Tier Dividend ( Exempt)

66,800

-

-

Total Income

Less: Relief

Self

Wife

Medical Insurance Premium (Restricted)

(9,000)

(3,000)

(3,000)

66,800

(15,000)

Chargeable Income

51,800

Tax Payable

RM

First RM50,000

Next RM1,800 @ 19%

2,850

342

3,192


Note: (Item ii)

  • As two partners survived on Lim Soon Guan’s death, the partnership business is treated as continuing.
  • Accounts continue to be made up to the normal accounting date and the profits for the year to 31 December 2014 can be apportioned (S56).
  • There is no need to make up accounts to the date of Lim Soon Guan’s death as there is no permanent cessation of business.
  • However, actual continuation of business by the two sons after Lim soon Guan’s death results in all of the capital allowances for the year of assessment 2014 being given to them (Income tax [capital allowances and charges] rules 1969)

Question 2(b)

Computation of Chargeable Income for The Executors of Lim Soon Guan for YA 2014

RM

RM

Section 4a

Partnership Business Income

Rental Income from Office Building in JB

(1/2 share is assessable for Lim Kong Kim)

NIL

NIL

Section 4c

Interest Income from Fixed Deposits

On June 2014

On 31 Dec 2014 (3.4% x 100k x 6/12)

2,000

1,700

3,700

Dividend Income (Single Tier)

0

Aggregate Income

Less: Annuity Payable to Sister (500 x 9)

3,700

(3,700)

Chargeable Income

0

...

...

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