The Tax season has once again knocked the doors of all working class people to file their tax returns till April 30. However, all business partners and sole proprietors can breathe a sigh of relief as the deadline to file their tax returns has been extended till April 30. However, with the technology of e-filing system, you must not wait longer until the last minute. If you have forgotten or in case unable to file your tax returns, certainly you will be slapped with a penalty between 20% – 35% for late filing returns. If you don’t give a damn of paying the penalty or spending 6 months in prison then go ahead.
There are many employees showing a keen interest to this tax season, as this is an opportunity where they can demand money from the government if in case, they have paid that excess tax. In this case, the government or the revenue officer is liable to pay that excess amount of money along with the interest.
If in case, you have your own business, then but obvious you end up paying a huge amount from your hard earned money to the Inland Revenue Department. As an employee, you can maximize whatsoever allowable items are within the “Part D: Deductions” section when you file your tax return. Form BE is particularly for resident who does not have any business in Malaysia and whenever you log in e-filing system, the interface is very similar to this form.
Part D is the most significant part since this part defines your taxable amount. This is the part that is equal for deductable expenses. To start with, every individual is given andefault reliefs.
• D2 – Medical Treatment, Special Needs and Carer Expenses for Parents
The limit is RM5, 000 so there is enough space to spend for medical care or dental treatment delivered by nursing home.
• D5 – Education Fees (self)
You must further study at Masters or Doctorate level and declare this item for a deduction of upto RM5, 000.
• D7 – Complete Medical Examination For Self, Spouse or Child
You must use the RM500 limit, for instance, medical checkup or complete blood-check from Pathlab or BP Healthcare.
• D8 – Purchase of books/magazines/journals/similar publications
This is another area where you can spend the limit of RM1, 000. Some magazines you can consider such as The-Edge, automobile, business, smartphone,finance and stock related magazines. You can also purchase tons of books either printed or electronic from Amazon or Apple Inc.’s AppStore for yourself.
• D9 – Purchase of Personal Computer for Individual
Till such time, you must at least own a netbook, notebook, or a desktop at your home. The current trend is about tablet so why don’t you go and get yourself a new iPad 3? Perhaps, many people are not aware that iPad is capable for tax relief under this D9′s purchase of personal computer.
• D11 – Purchase of Sports Equipment for any Sports Activity
You can invest in sports equipment with short lifecycle as shuttlecocks and golf balls, and not on sports attire like sports shoes and swimsuits.
• D12 – Purchase of Broadband and Subscription
An amount limited to a maximum of RM500 is deductible with regards to expenses spend by the individual for broadband subscription under his or her name.
• D13 – Interest on Housing Loan
An amount limited to a maximum of RM10, 000 is reduced for a period of three successive years of valuation beginning from the date where the interest is first used. However, the Sale and Purchase (S&P) Agreement must be created in between 10 March 2009 to 31 December 2010.
• D16 – Children helps you to Claim for Tax Relief
Yes, if you have broods then you are liable for claiming the tax benefit. However, if it is vice versa, you can ignore it.
• D17 – Life Insurance and Provident Fund
Since it is limited to RM6, 000, you must not ignore this part because of the huge sum of tax relief allowed. This part consists of both EPF contribution and life insurance premium paid.
• D19 – Education and Medical Insurance
A relief not surpassing RM3, 000 is obtainable on insurance premiums with regards to education and medical benefits for an individual, wife, husband, or child. With the rising medical expenses currently, most people might have some kind of medical plan already, like the infamous 36 critical illnesses insurance coverage. So, don’t forget to add this for the tax relief.
Remember, all the above 11 items are the most significant deductions that you need to look into.
Part E, Tax Payable, Is the Second Best Part
This trial figure will define which bracket of taxable rate you are into. If your chargeable income is above RM100,000 then cheers because you have stretched the highest tax rate of 26%. You need to calculate the total income tax according to the tax rate schedule.
Part F – Status of Tax for Year of Assessment (Year)
This is the highpoint since you will be aware know how much amount the government will have to refund you.
