The stupid thing with the LHDN income declaration form is that even if you have non-taxable source of funds (capital gains or profit distribution), putting it into any column of income will incur taxes.

Because there’s no column for non taxable income.

I asked LHDN before on the phone and via email. They told me to declare. I already emphasised that I have funds coming from overseas but they are capital gains. I get some boiler plate answer. I called and same thing. Sumber kewangan yang tidak dikenakan cukai perlu dilaporkan. Ask where to put, they say put at lain-lain pendapatan. But put there will increase tax payable. Then I gave up. Anyone can give a clearer answer will be appreciated.

That is why this is stupid.

Yeah that’s why I keep all my investment statements properly so that it can be proven that those are capital gains and not from active income.