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 Personal relief Income tax, legally, reduce income tax

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SUSmxxuang
post Nov 22 2006, 11:23 PM

Retired Ah Long
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2,041 posts

Joined: Dec 2005
From: Klang, Malaysia



Here's a list of personal relief which might help you :

This only apply to resident individuals. These relief are not available to you if you're not an resident individual.

Section 46
a) Personal relief : RM8000
b) (i) Medical expense for parents : RM5000(max)
(ii) Medical expense for taxpayer(you), spouse and children in respect of serious diseases : RM5000(max)*
c) Basic supporting equipment(i.e. wheelchairs, crutches for disabled taxpayers, spouse or child) : RM 5000
d) Disabled tax payer(Hopefully you don't make yourself one) : RM6000
e) Fees for education in law, accounting, technological, vocational or industrial fields scientific and ICT : RM5000(max)
f) Expense on a complete medical examination : RM500(max)*
g) Purchase of books : RM700

*Total of (f) and (b)(ii) should not exceed RM5000

Section 47
a) Wife/Husband relief(Only for combined assesment) : RM3000
b) Alimony payment(only males can claim) : RM 3000
c) Disabled person(only for combined assesment) : RM 3500

Section 48
This section covers reliefs related to your child/children

a) Normal relief : RM1000 per child
b) Disabled child : RM5000 per disabled child
c) 1) For child studying in overseas(degree level and above) : RM4000
2) For child studying in local institution(Diploma level and above) : RM4000
d) Disabled child satisfying criteria (C) above : RM9000

Section 49
a) EPF & Life insurance premium : RM6000
b) Medical and education premium : RM 3000
c) Purchase of an insurance policy utilising his credit in his EPF account : RM1000

There you go...Please keep in mind once you reduce your chargeable income till NIL, you can't claim any relief anymore...Any questions, please ask.

This post has been edited by mxxuang: Nov 22 2006, 11:42 PM
SUSmxxuang
post Nov 23 2006, 12:26 AM

Retired Ah Long
*******
Senior Member
2,041 posts

Joined: Dec 2005
From: Klang, Malaysia



QUOTE(lucifah @ Nov 23 2006, 12:01 AM)
this list is available right out of the income tax booklet

however, all that you had stated must be attached with a valid receipt and supporting documents,

unfortunately, i am very healthy

and no, i am not going agains the law. dun main2 dgn income tax woooo... they know everything wink.gif

i am thinking of "smart" ways that seems to be illegal, but is actually within the governing laws

i know smart accountants and auditors know them. however, when i asked them for advice, they'd cahrge me rm 2,500 for their professional fee, which i am very reluctant to and defeats the main purpose to increase my profit
*
Well, they are accountants, of course they'll try to make money out of you whistling.gif Anyways in case you're caught cheating on your taxes, the one who advices you on how to cheat your taxes can be caught too. So you don't see many accountants giving you free advices.

If you're a self-employed businessman with your own business you there are more ways you can reduce your taxes as you can claim many of your personal expenses as business deductions. But if you're just a regular 'makan-gaji' worker, there's nothing much you can do, except get married, and have lots of children...

Actually I doubt the IRB would ever knock on your house door asking you to produce the receipts. They rather go after the big guns tax evaders and(of course) ask some duit kopi from them.

This post has been edited by mxxuang: Nov 23 2006, 12:28 AM

 

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