This is under Singapore Tax Laws. For the year ended 30 September 2020, Maximus Pte Ltd’s trading profit was $200,000. The company also derived other income, details of which are provided below: Interest income of $7,600 credited to the income statement arising from $300,000 fixed deposit placed with HSBC since 1 July 2019, renewable every 6 months. The following interest matured during the respective periods: - $4,000 matured on 31 December 2019 - $3,800 matured on 30 June 2020 - $3,600 matured on 31 December 2020 The amount of interest income accrued as at 30 September 2020 was $1,800. Calculate the company’s statutory income for Year of Assessment 2021. Why is the interest income of 7,600 not included in the statutory income?
This is under Singapore Tax Laws. For the year ended 30 September 2020, Maximus Pte Ltd’s trading profit was $200,000. The company also derived other income, details of which are provided below: Interest income of $7,600 credited to the income statement arising from $300,000 fixed deposit placed with HSBC since 1 July 2019, renewable every 6 months. The following interest matured during the respective periods: - $4,000 matured on 31 December 2019 - $3,800 matured on 30 June 2020 - $3,600 matured on 31 December 2020 The amount of interest income accrued as at 30 September 2020 was $1,800. Calculate the company’s statutory income for Year of Assessment 2021. Why is the interest income of 7,600 not included in the statutory income?
Step by step
Solved in 2 steps
