could anyone answer my question

saw in the magazine Personal Money today, homeloan interest can be used as relief.. which part should i put tat information during e-filing??

I'll try to help out

i) If he is self employed, it will be business income. Being taxed under this category allows a person to deduct all expenses that is incurred against his business income provided the expense is used wholly and exclusively in the production of his gross income. It must not have any personal element in it. No limit as to the expenses he can incurr. But it doesn't make sense to spend more than what you can earn. All claims must be with a receipt, otherwise you risk getting penalise in event of a field audit.

a) Yes, it must be converted into RM. If he uses RM to buy a TT, use that actual cost. If he uses a foreign account to pay off the the expense (USD pay USD), convert using spot rate on the date of purchase.

ii) Your claim must be substantiated. The premium must be paid at 2008 in order for you to claim a deduction. I don't think the actual amount paid is fixed as there is always a discount on it, more as the years go by. So, I don't think you can use the prev year figures.

i) should be correct, all receipts have to be kept and its deductibility would be judge by Income Tax, make sure that friend is doing it the right way

a) there is a conversion rate stated in the budget book, just calculate according to it.

ii) don't just follow last year figure, for EPF, follow your EA Form and insurance premium follows the insurance statement then total them up

Insurance companies would send a yearly statement for the amount paid for Life Insurance and Medical/Education insurance for tax submission purposes.

Thanks. But he is not self employed. He is contracted to a management company. so how to I do the calculation for him? Also, which class to choose under the E-filing system?


The problem is everyyear I am paying the same premiun. So can I use back to same figure, save as, my EPF contribution which will have to work out differently, to see if by adding both items, it is more than RM6000.00?

thanks for the reply

Does anyone know how should the insurance be calculated especially with things like riders? For example, in my insurance policy, certain portion is clearly stated as life, one item is for medical but there is another portion that is life/medical. It says life is 100%, medical is 60%.

So, if the amount for medical/life is RM1000 - does that mean i can apply RM1000 in the tax relief under life insurance and at the same time RM600 under medical insurance? Or I need to select or choose whether to apply under life or under medical?

home loan interest only can claim for Year of Assesment 2009, the S&P must be between 10 Mac 2009 till 31/12/2010..
this was announce during mini budget

Best to ask your insurance company to provide a statement of the correct breakdown of life vs medical insurance to ensure you do not under/over declare.

you can either claim RM1000 under life insurance or RM600 in medical insurance provided it shows life/medical

this is very common in the Great Eastern Insurance Statement

for ING, you will see Critical Illness too, same rule applies. please refer to the back of the insurance statement

This post has been edited by nothingz: Apr 24 2009, 02:50 PM

From ACCA

Part 1: Easy guide to tax filing

Part 2: More tips

Answer please thanks.

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Added on April 24, 2009, 3:24 pmAlso for this.

Cheers.

This post has been edited by de.crystal: Apr 24 2009, 03:24 PM

Q1

Since your case is so special, why don't you call IRB to confirm?

Q2

As i have said, claim according to your EA Form + Insurance Statement maximum to RM6000

Prudential Assurance shows a very clear breakdown how much is apportioned to life and medical... just follow only.

oic, for new home buyer only la..

ok, thanks. So I should claim in either category and not both....

while doing e-filing i noticed there were two sections under perlepasan.. section 132 and 133
What deductions are these for?

For D5 - Yuran Pendidikan, what type of education fee can be included for relief?
Stated in the instruction from LHDN, the kursus needs to be certified or approved by MoF.
Does MBA count?

You will have to look at the terms of the contract. However, from my interpretation, he seems to be more of an employee. Does he have a EA? Just a guide, the word "employee" is defined in the act as :

“Employee” in relation to an employment means -
a. the servant, where the relationship of master and servant subsists;
b. where the relationship of master and servant does not subsist, the holder of the appointment or office which constitutes the employment.

If he is a contracted employee, he is not allowed to deduct any of his direct expenses.

With regards to the insurance premium, as mentioned, all claims must be substantiated. You must have supportings/documentation for your claims. Even if the premium is the same but you couild not prove that you've incur such expenses, your claim could be disallowed. (at the discretion of the tax officer) If both EPF + life ins premiun > RM6k, claim RM6k as it is the max limit.

Sec 132/133 deals with unilateral and bilateral relief. This deals with situation where you've suffered foreign tax and will be allowed to claim a relief against it (to avoid being taxed twice), only applicable with countries that has a DTA with Malaysia though. However, as foreign income is already exempted, there would be much need of this provision any longer.

This post has been edited by legiwei: Apr 25 2009, 12:30 AM

MBA is not included