Question
Humaira is the sole owner of Humaira Beauty Enterprise in Sungai Rambai, Melaka. The following is the Statement of Profit or Loss for the year ended 31 December 2024:
| Notes | RM | RM |
|---|---|---|
| Sales | 766,000 | |
| Less: Cost of sales | (280,000) | |
| Gross Profit | 486,000 | |
| Add: Other income | 21,000 | |
| Total | 507,000 | |
| Less: Operating expenses: | ||
| Bad debts | 5,200 | |
| Donations and contributions | 37,400 | |
| Entertainment | 10,000 | |
| Fees | 5,600 | |
| Miscellaneous | 17,600 | |
| Remunerations | 164,000 | |
| Rent expenses | 36,000 | |
| Repair and maintenance | 11,200 | (287,000) |
| Net profit | 220,000 | |
Notes:
1. Cost of sales:
During the year, Humaira has taken out a washing machine worth RM2,400 for her personal use and the transaction has not been recorded. The market price of the washing machine was RM2,700.
2. Other income comprises of:
| Description | RM |
|---|---|
| Bad debt recovered from a bankrupt debtor which was previously allowed for tax deduction | 2,600 |
| Insurance claimed on stock damaged in an accident | 5,200 |
| Rent received | 13,200 |
3. Bad debts comprise:
| Description | RM |
|---|---|
| Debt from a customer who has died in a car accident | 1,500 |
| Loan to a friend which cannot be collected | 3,000 |
| General provision for doubtful debts | 700 |
4. Donations and contributions comprise:
| Description | RM |
|---|---|
| Donation of cash to public libraries [s 34(6)(g)] | 20,000 |
| Donation of two units of television to Rumah Orang Tua Cheng (approved institution) | 5,400 |
| Business zakat | 12,000 |
5. Entertainment comprises:
| Description | RM |
|---|---|
| Annual dinner for employees | 4,200 |
| Discount given to customers | 1,900 |
| Humaira’s family gathering | 3,900 |
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6. Fees comprise:
| Description | RM |
|---|---|
| Accounting fees | 840 |
| Annual membership fees to Malacca Trade Association | 2,410 |
| Renewal of business license fees | 1,270 |
| Tuition fees for Humaira’s daughter | 1,080 |
7. Miscellaneous expenses comprise:
| Description | RM |
|---|---|
| Depreciation of non-current assets | 9,800 |
| Premium on fire insurance for the shop | 7,800 |
8. Remunerations comprise:
| Description | RM |
|---|---|
| Salaries and bonuses paid to the owner | 55,000 |
| Salaries and bonuses paid to employees (including RM28,000 paid to senior citizen who is 62 years old and hired on a full-time basis since 1 January 2024) | 92,000 |
| Contribution to Employees Provident Fund (EPF) for the owner | 6,050 |
| Contribution to EPF for the employees | 10,950 |
9. Rent expenses:
The rent is in respect of a rental payment of a shop-lot cum office for 1,500 square feet. Out of 1,500 square feet, 500 square feet are sublet to another business.
10. Repair and maintenance comprise:
| Description | RM |
|---|---|
| Cost of extending the store room | 6,000 |
| Motor vehicles expenses (2/5 of the total cost is for Humaira’s personal car) | 4,400 |
| Repair of broken business’s shop glass windows | 800 |
Additional information: The capital allowances for the year of assessment 2024 were RM11,300.
The following details relate to Humaira’s other income:
-
-
- Dividend income: RM12,500 from Lembaga Tabung Haji.
- Interest income: RM1,800 on savings with Bank Islam Malaysia Berhad.
- Rental income and expenditure for a year for an apartment at Bukit Beruang:
Description RM Monthly rental 1,200 Cost of installation CCTV 1,000 Annual quit rent and assessment 700 Repairs and maintenance 1,800
-
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Ahmad Zaidi’s Incomes and Benefits:
-
-
- Monthly net salary: RM8,345 after deducting EPF (11%), RM800 under STD system, and monthly zakat payment RM200.
- Bonus: Equivalent to one month salary, received on 31 October 2024.
- Entertainment allowance: RM2,000 per month.
- Travelling allowance: RM800 per month for official duties.
- Childcare allowance: RM200 per month.
- A car with cost price RM140,000 and a driver provided since July 2023.
- In the year 2024, he incurred RM9,600 on travelling expenses while performing his official duties..
-
Besides employment income, Ahmad Zaidi also derived the following income for the year of assessment 2024:
-
-
- Interest income of RM3,000 received from saving in fixed deposit at Public Bank Berhad.
- He received RM22,000 as royalty on publication of a book on financial literacy.
- He also received a rental income from his terrace house in Alor Gajah. Below w is the
information relating to the house which was rented out starting on 1 October 2024;Description RM Monthly rent 1,200 2-months refundable deposit (received on 1 October 2024) 2,400 Fire insurance (per annum) 1,000 Annual quit rent and assessment 600
-
Details of Humaira and Ahmad Zaidi’s Children:
-
-
- Ammar – 21, married and studying Diploma in Entrepreneurship at Kolej Profesional MARA Melaka.
- Sumaiyah – 19 years old and studying Diploma in Al-Quran and As-Sunnah at Kolej Al-Quran Saidina Ali, Melaka.
- Nukman – 15 years old and studying at SMK Paya Rumput, Melaka.
- Maryam – 11 years old, adopted and disabled, studying at Sekolah Pendidikan Khas Cheng, Melaka.
- Ainul – 6 years old, attending Little Caliph Kindergarten, Melaka.
-
Note: Humaira elected to claim child reliefs on Maryam while Ahmad Zaidi claims the rest.
Expenses Incurred for the Year Assessment 2024:
| Expense | Humaira (RM) | Ahmad Zaidi (RM) |
|---|---|---|
| Medical and education insurance (Nukman) | 3,600 | – |
| Medical and education insurance (Maryam) | 3,600 | – |
| Medical and education insurance (Ainul) | 2,500 | – |
| Parental care and medical expenses for Humaira’s mother | 7,000 | – |
| Purchase of special bed for Humaira’s mother | 2,800 | – |
| Life insurance premium (self) | 3,200 | 2,700 |
| Complete medical examination for Maryam | 1,500 | – |
| Net deposit in SSPN for children | 9,000 | – |
| Wi-Fi subscription at home | 1,500 | – |
| Medical treatment for Maryam | 4,100 | – |
| Educational fees for pursuing CIMA studies | – | 6,300 |
| SOCSO | – | 600 |
| Purchase of sport equipment | – | 800 |
| Childcare fees (Little Caliph Kindergarten) | 5,500 | – |
| Electric vehicle charging facility | 1,800 | – |
Contributions:
| Contribution | Humaira (RM) | Ahmad Zaidi (RM) |
|---|---|---|
| Zakat (personal) | 3,000 | 9,000 |
| Majlis Bandaraya Melaka Bersejarah | 6,200 | – |
| Rumah Anak Yatim Permai (approved) |
The following are personal information and background details of both Humaira and her husband Ahmad Zaidi:
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Personal Information
| Details | Humaira | Ahmad Zaidi |
|---|---|---|
| Full name | Humaira binti Zainuddin | Ahmad Zaidi bin Salleh |
| I/C no. | 781013-03-5378 | 760512-04-2339 |
| Tax Reference no. | SG 011358477877 | OG 011358477876 |
| H/p no. | 011-2347584 | 012-3578989 |
| Bank account no. | Maybank Berhad 0123456789103 |
CIMB 012457323331 |
| Email address | Ira78@gmail.com | Azaidi76@gmail.com |
| Name of business | Humaira Beauty Enterprise | – |
| Type of business | Cosmetic and beauty products | – |
| Business premise | No.18 Bandar Baru Sg. Rambai, 77400 Sg. Rambai, Melaka |
– |
| Premise email | irabeauty@gmail.com | – |
| Employer name | – | SmartPocket Sdn Bhd |
| Position | – | Financial Consultant |
| Employer ref. no. | – | E 7458912673 |
Required:
Part A: Computation of Personal Tax Liability
Prepare the following computation:
a. Statutory Business Income of Humaira Beauty Enterprise for the year assessment 2024;
(10 marks)
b. Total income of Humaira and Ahmad Zaidi for the year of assessment 2024 and;
(10 marks)
c. Income tax payable / tax refund in respect of Humaira and Ahmad Zaidi under separate assessment for the year of assessment 2024.
(10 marks)
Part B: Filing in Tax Return
Complete the 2024 Form e-B and e-BE in respect of Humaira and Ahmad Zaidi.
(20 marks)
(Total: 50 marks)
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