Many people still do not know clearly about the income tax for the assessment year 2009. Some of them was asking that why personal relief did not increased from RM8,000 to RM9,000 which is under Budget 2010.
Besides that, most of the people will confuse and asked why we do not have tax relief for the Internet broadband subscription, which was announced by our government in the beginning of the year under Budget 2010.
To make the clarification, I would like to re-emphasize that those relief supposed to be given for the year of assessment 2010. In the other words, LHDN Malaysia will have some changes on personal income tax for next year income tax filing. It concludes that our government is actually working towards recovery of our country economic by reducing the tax rates. This is also welcome message to Malaysian as we are facing a tough time following the economic downturn in year 2008.
Income Tax For the Year of Assessment 2010
i) Tax relief up to RM 500 per year for Internet Broadband subscription fee will only be effective from year 2010 to 2012. So, it’s time to start keeping your broadband bill.
ii) Personal relief is increasing from RM 8000 to RM 9000.
iii) Also, the EPF contribution and life insurance increased from RM 6000 to RM 7000.
However, I personally think that the increment still not insufficient as compare with the increase of the cost of living. An increment of RM1,000 per year is only about RM80 per month. Do you think is this enough for us to cope with the rising cost of our daily spending? The ideal personal relief should be higher ranging from RM10,000 to RM12,000 per year.
Furthermore, government should also increase the child relief for taxpayers in order for them to relieve the burden of taxpayers having children. Do you think child relief of RM1,000 per year still sufficient in these days?
Anyway, with the knowledge of above income tax changes, you may start doing your tax planning for next year 2010 e-filing in order to fully utilize the tax relief given.