Q.
a) Mr Adam rents out his residential property for RM1,000 per month under a tenancy agreement with a contract term of 12 months. During the year, he pays RM500 for assessment tax, RM50 for quit rent, RM5,000 for property repairs, and RM1,500 as commission to the property agent.
Based on the above information, calculate the net rental income for the year of assessment. (10 marks)
b) Income arising from property, movable or immovable, situated in Malaysia is taxable under section 4(d) of the Income Tax Act, 1967. Rental income has always been considered as non-business source.
Using appropriate examples, explain what are the deductible expenses from rental income. (10 marks)
(20 marks, 2025 Q5)
A.