Sources of Income

s 4(a) Gains or profits from a business for whatever period of time carried on.

s 4(b) Gains or profits from an employment

s 4(c) Dividends, Interest or Discounts

s 4(d) Rents, Royalties or Premiums

s 4(e) Pensions, annuities or other periodical payment not falling under any of the foregoing paragraphs

s 4(f) Gains or profits not falling under any of the foregoing paragraphs.

s 4(A) Special classes of income.

Income Tax Planning

Objectives:

a. to eliminate, minimize or defer income tax within the ambit of the law

b. to understand anything relates to personal taxation

c. be able to minimize the amount of taxes that have to be paid

d. be able to maximize disposable income

Self assessment

a. Taxpayer is required to complete and submit return form by the required dates but no notice of assessment sent to the taxpayers.

b. Taxpayer have to compute their own tax and make full amount at the time return form were sent.

c. Taxpayers are allowed to make monthly payment to IRB.

d. Scheduler Tax Deduction Scheme allow tax payment deducted from the monthly salary and remitted to the IRB by the employer.

Separate assessment: all income of a married women is automatically assessed separately from that of her husband and no election is required.

Combined assessment: the wife/husband can elect to have their total income to be combined and assessed either in the name of husband or wife.

Separation / Divorced Cases

a. the husband continues filling his tax return under his own tax reference number. Assessed as an individual.

b. the wife reverts to her format tax status prior to the marriage. Previous tax file reopen/register new file if none.

c. the wife file her own separate tax return and report her own income including alimony, if any.