Yippeee my LHDN Refund cheque is here already...that's so efficient.

BUT my wife's refund didn't come even she submitted 2 weeks earlier than me.

I thought the rule of the thumb is, if no receipt, do not try your luck by putting into deductions. 

Receipt lost/misplaced/don't have/don't know is not acceptable by LHDN audit. They will take out the amount and re-calculate the taxable amount. Worse, they fine you for wrong/falso submission. The small fine RM50 maybe 10x more than the amount deducted.

New tax deduction system from July
By SARBAN SINGH


PORT DICKSON: A new schedular tax deduction system from this month will eliminate the need for employees to pay an additional lump sum at the year-end to make up for the shortfall in monthly deductions.

Inland Revenue Board (IRB) chief executive officer Datuk Hasmah Adullah said that under the current system implemented in 2004, the board had on many occasions taken a big cut of the individual’s bonus to make up for the shortfall.

“We had cases where an employee’s entire bonus would go to the IRB (to make up for the shortfall). We do not want to do this any more as it is unfair to the taxpayer.

“It is better for us to make higher deductions every month. This is a better arrangement,” she said, adding that under new system, the taxpayer would have paid up almost all his dues by the end of the year.

She added that the new system would also allow for employees to submit their claims for rebates every month, along with a range of new reliefs.

Previously, the taxpayer was allowed to claim relief for himself, his spouse, their children, his Employees Provident Fund and insurance contributions, and zakat payment (if any), and claim other reliefs only when filing his returns at the end of the assessment year.

Under the new system, Hasmah said an employee can submit claims for rebates such as parents’ medical bills, purchase of a computer, tertiary education fees, medical check-ups, and book and sports equipment purchases to his employer every month using the PCB/TP1 form.

“When this is done, the tax to be paid for that particular month will be reduced automatically. This would practically be a real-time tax payment system.

“We want the taxpayer to benefit straightaway rather then wait till the end of the year,” she said.

She said under the new system, the employee could make monthly claims for 17 other reliefs announced in Budget 2009.
The employee, she added, would not have to submit receipts for the claims to the employer.

Among the new reliefs announced are for travelling allowance, petrol claims, parking fees, food allowance, caretaker fee, maternity and traditional medicine treatment (ayurvedic, acupuncture, etc) and subscription to broadband services.

She said taxpayers could submit their claims for rebates monthly, quarterly or twice a year.

Hasmah said employers who needed assistance on the workings of the new structure could enter the board’s website at www.hasil.gov.my and look for the schedular tax deduction (PCB) calculator icon.

For some reason, I can't load the hasil website.
Anyway I have been wondering about this new schedular tax deduction. How should one goes about to claim the tax relief every month since the PCB is deducted automatically every month by my company.
Should I go and inform them everytime I buy a book or something that's tax deductible? Isn't this a lot of hassle for the company HR?
Is anyone's company actually practicing this?

Even under the previous PCB system, my monthly income was also over-deducted. I have roughly calculated and found out that I need to claim back quite a large sum for my 2009 income tax.

Thanks but what to chat and how to negotiate? I work in a public-listed company with hundreds of employees. I don't think the company would "customise" my payroll only.

E-filing. I also don't know why it took so long. I submitted early also.

I think IRB very desperate for money.

I received a letter from them, demanding me to pay them 2010 bonus income tax. I was like wtf, this year dunno got bonus or not and amount also unsure, you want me to pay what!!

Apparently a few in my company also get it. We are some sort of partnership among relatives, therefore low salary but compensate with higher bonus depending on company performance. IRB really dare to abuse their power.

a very complex formula is used... let the payroll/HR system handle that

would like to ask your kind assistance here.

under the sports equipment bracket...can you count running shoe as excemption?

do we need to keep all of the receipts? Sorry for the stupid question. First time filing the income tax.

I guess we only need to produce the receipts upon request?

Guys, I need clarifications on these issues:

1. Sports equipment - tax relief (RM 300)

What is considered as sports equipment? A running shoes is the only equipment for a runner, so will it be considered as sports equipment? Or the definition only covers non-attire sports related thingies - like balls, bicycles, etc?
2. Book & publications - tax relief (RM 1,000)

I know newspapers are not included. But how about useless mags (i mean those pop mags that teens buy - mangga, urtv, celo, etc etc)?

Does school children textbook counts?

Morality issue aside, what if we collect a bunch of receipts from med studensts (theybuy expensive textbooks every year) and use it as a tax relief?