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 Income Tax Issues

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firee818
post May 22 2011, 08:24 AM

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QUOTE(500Kmission @ May 21 2011, 10:32 PM)
Please check this link http://www.hasil.gov.my/goindex.php?kump=5...4&unit=1&sequ=1. If your donation is related to the link, sure is allowed.
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Gift of money = donate in monetary term.
Gift of painting, artifact, manuscipts = yes, can

What about gift of stuff/goods, e.g. sugar, rice, flour and so on are not mention in your link. Kindlly/enlighten? whistling.gif
SUSDavid83
post May 22 2011, 09:11 AM

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QUOTE(firee818 @ May 22 2011, 08:24 AM)
Gift of money = donate in monetary term.
Gift of painting, artifact, manuscipts = yes, can

What about gift of stuff/goods, e.g. sugar, rice, flour and so on are not mention in your link. Kindlly/enlighten?  whistling.gif
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I also wondering that too. I doubt you'll get receipt for this kind of donation. Usually treated as anonymous donation.
500Kmission
post May 22 2011, 04:39 PM

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QUOTE(firee818 @ May 22 2011, 08:24 AM)
Gift of money = donate in monetary term.
Gift of painting, artifact, manuscipts = yes, can

What about gift of stuff/goods, e.g. sugar, rice, flour and so on are not mention in your link. Kindlly/enlighten?  whistling.gif
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For those donation and gift (D&G) which is not related to link, we will need to check the receipt has noted LHDN approved or not. If LHDN approve the D&G, we can see LHDN note on the receipt.
rain55
post May 22 2011, 09:47 PM

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HI guys,

If i return my BE form to the other branch not the Pusat Pemprosesan Pandan Indah, will i get the pengesahan penerimaan form like what i received from e-filing?
Nepo
post May 23 2011, 08:53 AM

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QUOTE(cute_boboi @ May 20 2011, 03:57 PM)
It's subjective, depending on the individual and the organisation, the people or network you know, whether they willing to help or not, to provide you the receipt. Or you may want to ask first before donating, tell them frankly you want the receipt for tax purpose.

Also, you must ask/check if the organisation is under the approved list or not. Otherwise, they give you Popular-receipt, you can't use it for tax claim purpose also.  doh.gif
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Really not convincing for the one highlighted.

Rules and regulations are written in black and white. A receipt which can be issue means it can be issued. A receipt which cannot be issued mean it cannot be issued. The rules and regulations must be followed. It is quite straight forward.

Not the case like Mr. A can claim but Mr. B cannot claim who donate to the same charity organisation.

If it is the case, then we will seem a lot of court cases sueing each other like no tomorrow! whistling.gif

This post has been edited by Nepo: May 23 2011, 11:47 AM
cute_boboi
post May 23 2011, 02:41 PM

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QUOTE(Nepo @ May 23 2011, 08:53 AM)
Really not convincing for the one highlighted.

Rules and regulations are written in black and white. A receipt which can be issue means it can be issued. A receipt which cannot be issued mean it cannot be issued. The rules and regulations must be followed. It is  quite straight forward.

Not the case like Mr. A can claim but  Mr. B cannot claim who donate to the same charity organisation.

If it is the case, then we will seem a lot of court cases sueing each other like no tomorrow! whistling.gif
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Simple.

You donate to Charity A. The person issue normal Popular-receipt, with no mention of e.g. "Income Tax Exempted under Section 44(6) of Income Tax Act 1967 Ref: JHDN 01/35/42/51/179-x.xxxx Govt. Gazette No: xxxx"
You cannot use it for tax deduction.

I donate to Charity A. The person issue same normal Popular-receipt, but remember to chop it with their rubber-stamp on "Income Tax Exempted under Section 44(6) of Income Tax Act 1967 Ref: JHDN 01/35/42/51/179-x.xxxx Govt. Gazette No: xxxx"
I can use it for tax deduction.

When audited by tax department, your receipt is not valid for tax deduction, unless you go back and get the chop/stamp.

This is assuming Charity A is under LHDN approved list.

Nepo
post May 23 2011, 02:51 PM

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QUOTE(cute_boboi @ May 20 2011, 03:57 PM)
It's subjective, depending on the individual and the organisation, the people or network you know, whether they willing to help or not, to provide you the receipt. Or you may want to ask first before donating, tell them frankly you want the receipt for tax purpose.

Also, you must ask/check if the organisation is under the approved list or not. Otherwise, they give you Popular-receipt, you can't use it for tax claim purpose also.  doh.gif
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Added on May 23, 2011, 2:52 pm
QUOTE(cute_boboi @ May 23 2011, 02:41 PM)
Simple.

You donate to Charity A. The person issue normal Popular-receipt, with no mention of e.g. "Income Tax Exempted under Section 44(6) of Income Tax Act 1967 Ref: JHDN 01/35/42/51/179-x.xxxx Govt. Gazette No: xxxx"
You cannot use it for tax deduction.

I donate to Charity A. The person issue same normal Popular-receipt, but remember to chop it with their rubber-stamp on "Income Tax Exempted under Section 44(6) of Income Tax Act 1967 Ref: JHDN 01/35/42/51/179-x.xxxx Govt. Gazette No: xxxx"
I can use it for tax deduction.

When audited by tax department, your receipt is not valid for tax deduction, unless you go back and get the chop/stamp.

This is assuming Charity A is under LHDN approved list.
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u answer is not relevant to the one highlighted above.


This post has been edited by Nepo: May 23 2011, 02:55 PM
ronnie
post May 23 2011, 03:06 PM

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Donations is from the heart.... tax relief is secondary, right ?
cute_boboi
post May 23 2011, 03:19 PM

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QUOTE(Nepo @ May 23 2011, 02:51 PM)

Added on May 23, 2011, 2:52 pm

u answer is not relevant to the one highlighted above.
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The answer to your high-lighted portion, is my answer to the person who asked about donating goods/food and would request a receipt. If you say you donate rmXXX amount of goods/food to a charity, and you don't know anyone there (or they don't know you), most likely they will not issue you a receipt if you just say it is worth RM1k, without proof. Even if you have proof, they still may not want to issue you receipt, due to the ambiguity of the goods. Near expiry date ? problem or not ? etc. Even if you demand for receipt, they may say no receipt, either you donate it or take it back if you so troublesome want receipt.

If I'm already kam-ching with the charity and their people, even donating discounted goods/food at RM1k, I can still ask the person to write me rm1.5k full-price receipt for tax deduction.

Get the point ?

Again, it is assuming the charity is in LHDN list.

cute_boboi
post May 23 2011, 03:21 PM

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QUOTE(ronnie @ May 23 2011, 03:06 PM)
Donations is from the heart.... tax relief is secondary, right ?
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Correct, that's the main point thumbup.gif

However, for income tax sake, we're discussing on the receipt is priority, donation secondary. doh.gif

hyzam1212
post May 24 2011, 10:25 AM

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Anybody knows what is the percentage on the amount of overall tax deduction regarding charity? Lets say per RM100

But I agree "Donations is from the heart.... tax relief is secondary". But if your heart said to give and they provide receipt, just take lor smile.gif. Other than that segan already to ask
Nepo
post May 24 2011, 11:37 AM

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In giving advise regarding to tax matters, we should giving advice sincerely with professional advise and best to be support by tax laws. If don't know just keep silence. Otherwise, those who taking your advise will be misled . U will not suffer any loss but the one who listen will be suffered. Tax law is a serious topic.

Donation come first but relief is a plus point, otherwise u would not be here in this thread. biggrin.gif

Donation = money to charity
Relief = claim from goverment (is your money)

One stone two birds, why not ! unless u are not human! smile.gif

This post has been edited by Nepo: May 24 2011, 03:10 PM
cute_boboi
post May 24 2011, 05:45 PM

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QUOTE(hyzam1212 @ May 24 2011, 10:25 AM)
Anybody knows what is the percentage on the amount of overall tax deduction regarding charity? Lets say per RM100

But I agree "Donations is from the heart.... tax relief is secondary". But if your heart said to give and they provide receipt, just take lor smile.gif. Other than that segan already to ask
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Generally limited to 7% of aggregate income.

Kicap

DarkNite
post May 27 2011, 07:37 PM

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Hi, my friend didn't submit his income tax yet! doh.gif
Ask me for help but I also dunno how to help?

Any suggestion or advice? can still do online?
patricktoh
post May 27 2011, 08:46 PM

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MCH! Called to Income Tax enquire why still no refund after 2 months. They asked me bring receipts, proof of purchases to nearest office minum kopi.
500Kmission
post May 27 2011, 09:15 PM

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QUOTE(DarkNite @ May 27 2011, 07:37 PM)
Hi, my friend didn't submit his income tax yet! doh.gif
Ask me for help but I also dunno how to help?

Any suggestion or advice? can still do online?
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Definitely get penalty (10%+late submission). If he/she still doesnt submit within 60 days, he will get futher 5%. I think you can ask for his tax status and advise him. e.g if his taxable is just abt RM500-1000, just submit, because penalty no much. If his taxable is RM50k or more, you ask him why doesnt he submit tax return? If forget, of course no use. Some reason like oversea work or sole proprietor change to director salary, maybe can write a letter to waive the penalty.

DarkNite
post May 28 2011, 04:34 PM

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QUOTE(500Kmission @ May 27 2011, 09:15 PM)
Definitely get penalty (10%+late submission). If he/she still doesnt submit within 60 days, he will get futher 5%. I think you can ask for his tax status and advise him. e.g if his taxable is just abt RM500-1000, just submit, because penalty no much. If his taxable is RM50k or more, you ask him why doesnt he submit tax return? If forget, of course no use. Some reason like oversea work or sole proprietor change to director salary, maybe can write a letter to waive the penalty.
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Submit online or go & pick up form from IRB?
500Kmission
post May 29 2011, 02:01 PM

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QUOTE(DarkNite @ May 28 2011, 04:34 PM)
Submit online or go & pick up form from IRB?
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I recommend submit online which is faster for LHDN to process, so that your friend can settle it faster.
munkeyflo
post May 30 2011, 05:41 PM

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QUOTE(patricktoh @ May 27 2011, 08:46 PM)
MCH! Called to Income Tax enquire why still no refund after 2 months. They asked me bring receipts, proof of purchases to nearest office minum kopi.
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Did they send you a letter to say that your refund is in process?
They send me a letter saying that and ask me to call back if by 3 months still no news from them.
patricktoh
post May 31 2011, 12:44 AM

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QUOTE(munkeyflo @ May 30 2011, 05:41 PM)
Did they send you a letter to say that your refund is in process?
They send me a letter saying that and ask me to call back if by 3 months still no news from them.
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They sent me letter indicating "semakan" (audit) in mid Apr. I declared housing loan interest 10k tax relief because bought house in Aug-2009 and 1st instalment on 3-Jan-2010. Monthly interest is ~1.1k. That save me about 2.4k because I am in 24% bracket.

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