thanks, b00n. just to verify, here's my situation:
I have small amount of income undeclared in 2007 which is around RM2.5K. EPF contribution let say is around WM300. and the PCB during that time is RM137.
I know i need to put in all these data in PENDAPATAN PADA TAHUN KEBELAKANGAN but there's no column for the PCB that i've paid that time (which is RM137).
and i CANNOT add RM137 into the 2008 PCB, is that correct?
if i can't, what will happen to this RM137 that i've paid previously?

Correct.
Previously I added the RM137 into total PCD deducted/paid. That's why last year I received the notice to pay up due to I've constantly done that for 3 years. i.e. I under declared. I learned the mistake through the hard way

The RM137 would be in their system as it's PCB already paid. They can trace back, so no worries on that.
In the event if it's not enough to cover, they would come back to you and request for money.
Otherwise, you can actually do a yearly check on your account to see whether or not there's any excess payment and the ppl in LHDN would advise you on what to do.

You can actually use their help line. Quite efficient; I phoned in through the help line to request for installment payment for 6 months.

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Added on April 8, 2009, 10:36 pmYou have to compute the annual income to know.
The common misconception that everyone had is "no need to declare" if below certain amount of pay. It's wrong.
Any income also need to declare. The only issue is whether or not need to pay income tax.

Last time the officers of LHDN would tell you no need to declare as it's quite manual for them also. But since it's computerised, there's no worries.
The first time I declare, I'm requested to back date 2 years because there's some PCB contributions during than, so can't escape. But if you're sure you never got any PCB deduction before, than can close one eye no need to declare. But if you do....it's already in their system. You can't run.


This post has been edited by b00n: Apr 8 2009, 10:36 PM

Hi all,

I have a question:

Basically, I have 1 full time job and 2 part time jobs. My part time jobs are copywrite/translation and piano teacher. For copywriter/translator, i earned an average of RM300 per month, sometimes have jobs but sometimes not, sometimes few month consecutively no jobs at all. For piano teacher, I have around RM1k per month.

Do i have to declare the income i earned from my 2 part time jobs?

This post has been edited by debbieyss: Apr 9 2009, 12:29 AM

Yes, you have to declare.

thanks, b00n!
that solved my issue regarding the undeclared income in previous year.

Issue left is regarding the housing rent that i'm not sure how to declare.
tried to call the helpline today at around 6 something, the automated system talked so long, end up i gave up and close the phone since i'm in a hurry. will try to call some other day.

but i was told that i do not have to declare piano teaching as is by commission based.

last year I didn't declare.

need guidance as this is the first time i got to declare....no idea on it although finished reading the entire BE form....

If you have other business income, than it's Borang B instead of Borang BE.

hi b00n thanks for reply.

Few questions:

1. My piano lessons is not business. It's part time job and I got these students all by myself. I'm not under any music centres. I receive cash and I don't have any registered company or bank account to receive the piano fees. Does it mean I do still have to declare?

2. i have to go to LHDN office by myself and get the Borang B?

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Added on April 9, 2009, 11:29 amalso, i wonder if any one of you have ever called up LHDN to check if you have outstanding income tax to be remitted?

This post has been edited by debbieyss: Apr 9 2009, 11:29 AM

Debbie,

1. Income tax as the name suggests, is tax on 'income'. You need to ask yourself whether the money that you get from piano lessons are your income. The answer is quite obvious. However, you need to know exactly how you derive your income. Earlier you said 'commission'. Now you say you got all the students by yourself.

Do you get commission or do you get the full fees paid by your students ? Whether you receive cash or through bank, whether you are attached with a centre or not is immaterial here.

2. Yes, you need to go to the LHDN office to get a number allocated to you and get the Form B.

hi gtchye, sorry for my misleading statements.

From Dec 2007 till Nov 2008, my piano lesson fees were commision based as I was attached with a music centre. The music centre would pay me commissions and remitted it into my saving account.

Dec 2008 till now, I am recruiting students all on my own. I receive cash from all the students.

However, I have never declared my income tax regading piano lesson fees before. That's why I just wonder if I am having increase in tax. Also, I have checked Borang B, it requires business particulars, which is not applicable to me as the piano lessons is part time job, not registered under any company even I'm now recruiting students on my own. I just want to double confirm if I really need to declare.

Secondly, my translation/copywrite jobs are project based. I will get paid via cheques normally. Do i have to declare?

Debbie,

As I mentioned before, you need to ask yourself if the money that you receive from piano lessons (whether commission or direct), translation work, type setting work, etc. are your income ? Your case is very clearly 'yes'. All income need to be declared.

You have to know that the IRB usually requires the payer of commissions or fees to list down who they pay them to, I/C No., address etc. Therefore, there is no escape for your income from the music centre and translation/typesetting jobs, unless the music centre and the company that you do translation work do not submit their tax returns.

As for your income from piano lessons received directly from individual students. Chances are your students are not going to tell the IRB that they have paid so much to you. The IRB is not likely to know if you have received such income. Of course the right thing to do is to declare. You may be able to claim some expenses as a deduction from your fees, eg. traveling, petrol, advertising, teaching materials, etc. if you treat this as your business.

Hi gtchye,

Thanks for your reply again. If that is the case, i will declare all my incomes.

1. Can you please check for me if i have got the right form http://www.hasil.org.my/english/pdf/B%2020...-%20English.pdf
In Part C, should i fill in the total income (piano lessons and copywrite and translation) in C15? If not, which blank should I fill in?

2. May I know what does IRB stand for?

3. What would happen if someone's deductions are more than his income tax?

You are welcome.

You have got the right form but the English version is 'for reference only'. You should use the Bahasa Melayu version for filing.

I think you should fill up C1, C2 etc for each of your businesses, i.e. translation/typesetting and piano lessons instead of C15.

2. IRB stands for the Inland Revenue Board (Lembaga Hasil dalam Negeri)

3. Do you mean PCB deduction or deduction for expenses ? If your question is 'What would happen if someone's PCB deductions are more than his income tax?' Then the answer is "the LHDN will refund to you the overpayment".

OK thanks.

I have got all first 2 questions answered.

Back to number 3, what is PCB deduction?

I'm not meaning PCB deduction. My actual question is: What would happen if someone's deduction for expenses are more than his income tax?

You do not deduct expenses from the income tax. You deduct expenses from your income. Then only you will get your 'chargeable income'. Income tax is levied on your chargeable income.

debbie, dont declare to income tax laa the one from student, IRB cannot check one..go give the "taxable portion" to poor people better lorr

Oh ok...

Noted.. thanks thanks.....

hi guys and girls. Anyone got software or PDF copy of form BE 2008 which we can type in as still using computer version. Thanks alot .

I also got 1 part-time job as teacher, Home tuition teacher. I didn't declare. What is the akibat if don't declare?

Penalty or jail or both. But IRB will go for compound for more money.

But seriously.. at this time.. we earn so little.. its best to keep to ourself if not put in bank. Its hard to trace except you give receipt to your client. The rich one should pay more and we are just small fries.. Except you got too much money or someone who abid by the rule.. feel free to declare it . ^^ Just my 2 cents though