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Income Tax at A Glance
Income Tax at A Glance
Income Tax at A Glance
Among direct taxes, income tax is one of the main sources of revenue. It is a progressive tax system. Income tax is imposed on
the basis of ability to pay. The more a taxpayer earns the more he should pay''- is the basic principle of charging income tax. It
aims at ensuring equity and social justice.
Income Tax Authorities:
Income Tax Authorities are :-
Sources of Income:
For the purpose of computation of total income and charging tax thereon, sources of income can be classified into 7 categories,
which are as follows :
Salaries
Interest on securities
Income from house property
Income from agriculture
Income from business or profession
Capital gains
Income from other sources.
Tax Rate (Assessment Year- 2011-2012) :
Other than Company :
For individuals (other than female taxpayers, senior taxpayers of 65 years and above and retarded taxpayers), tax payable for the
First
Next
Next
Next
Rest Amount
1,80,000/3,00,000/4,00,000/3,00,000/-
Nil
10%
15%
20%
25%
For female taxpayers, senior taxpayers of age 65 years and above, tax payable for the
First
Next
Next
Next
Rest Amount
2,00,000/3,00,000/4,00,000/3,00,000/-
Nil
10%
15%
20%
25%
2,50,000/3,00,000/4,00,000/3,00,000/-
Nil
10%
15%
20%
25%
On Dividend income
20%
For Companies
Publicly Traded Company
27.5%
37.5%
42.5%
45%
35%
If any publicly traded company (excluding Mobile Operator Company) declares more than 20% dividend, 10% rebate on total
tax allowed.
Tax Rebate for investment :
Rate of Rebate:
Amount of allowable investment is either actual investment in a year or up to 20% of total income or Tk. 100,00,000/whichever is less. Tax rebate amounts to 10% of allowable investment.
Types of investment qualified for the tax rebate are :-
If total income of any individual (other than female taxpayers, senior taxpayers of 65 years and above and retarded
taxpayers) during the income year exceeds Tk 1,80,000/-.
If total income of any female taxpayer, senior taxpayer of 65 years during the income year exceeds Tk 2,00,000/If total income of any retarded taxpayer during the income year exceeds Tk 2,50,000/-.
If any person was assessed for tax during any of the 3 years immediately preceding the income year.
A person who lives in any city corporation/paurashava/divisional HQ/district HQ and owns a building of more than
one storied and having plinth area exceeding 1,600 sq. feet/owns motor car/owns membership of a club registered
under VAT Law.
If any person subscribes a telephone.
If any person runs a business or profession having trade license and operates a bank account.
Any professional registered as doctor, lawyer, income tax practitioner, Chartered Accountant, Cost & Management
Accountant, Engineer, Architect and Surveyor etc.
Member of a Chamber of Commerce and Industries or a trade Association.
Any person who participates in a tender.
A person who has a Taxpayer's Identification Number (TIN).
Candidate for Union Parishad, Paurashava, City Corporation or Parliament elections.
Any company registered under Companies Act, 1930 or Kv vbx AvBb, 1994.
Any Non-government organisation (NGO) registered with NGO Affairs Bureau.
imposition of penalty amounting to 10% of tax on last assessed income subject to a minimum of Tk. 1,000/In case of a continuing default a further penalty of Tk. 50/- for every day of delay.
Assessment Procedures :
For a return submitted under normal scheme, assessment is made after hearing.
For returns submitted under Universal Self Assessment Scheme, the acknowledgement slip is determined to be an
assessment order. Return filed under Universal Self Assessment is of course subject to audit.
Table
Sl
1.
2.
3.
4.
Head of
withholding
Salaries [section-50]
Withholding authority
10%
Payment
to Any person responsible Upto Tk. 2,00,000/--Nil.
contractors & sub- for
making
such
contractors [section- payment.
From 2,00,001 to Tk 5,00,000/52] [rule-16]
------------1%
From 5,00,001 to Tk.
15,00,000/- ------- 2..5%
From 15,00,001 to Tk.
25,00,000/- ------- 3..5%
From 25,00,001 to Tk.
3,00,00,000/- ------4%
where the
payment exceeds Tk.
3,00,00,000 ----------5%
in case of oil supplied by oil
marketing companies
upto Tk 2,00,000 -- Nil
5.
6.
Payment on
indenting
commission or
shipping agency
commission.
[section-52, rule-17]
Fees for Doctors
[section-52A(1)]
where the
payment exceeds Tk 2,00,000 ------- 0.75%
on indenting commission ----------------------7.5%
on shipping agency commission
---------5%
10%
Limitation
7.
8.
9.
10.
11.
12.
13.
Interest on saving
instruments [section
52D]
14.
Brick
Manufacturer
[section 52F]
15.
10%
10%
10%
10%
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
52I]
Renewal of trade
license by City
Corporation or
Paurashava [section
52K]
Freight forward
agency commission
[section 52M]
Rental Power
Company
[section 52N]
Foreign technician
serving in diamond
cutting industries
[section 52O]
Convention hall,
convention centre
etc. [section 52P]
Service charges,
remunerations,
consulting fees,
commissions
remitted from
abroad for services
works done by
persons living in the
country
[section 52Q]
Importer [section
53]
House property
[section 53A] [rule
17B]
Shipping business of
a resident [section
53AA]
Export of manpower
[section 53B, rule17C]
credit.
City Corporation or
Paurashava.
15%
4%
5%
The Commissioner of
Customs.
The Government or any
authority, corporation
or body or any
company or any
banking company or
any co-operative bank
or any NGO run or
supported by any
foreign donation or any
university or medical
college or dental
college or engineering
college as tenant.
Commissioner of
Customs or any other
authority duly
authorised.
5%
Up to Tk. 20,000/per month [p. m] ---- Nil
From Tk 20,001/- to Tk.
40,000/- p.m. -------3%
More than Tk 40,000/- p.m.--5%
26.
27.
28.
29.
30.
Export of Knit-wear
and woven
garments, terry
towel, jute goods,
frozen food,
vegetables, leather
goods, packed food
[section 53BB]
Member of Stock
Exchanges [section
53BBB]
Export or any goods
except knit-wear
and woven
garments, terry
towel, jute goods ,
frozen food,
vegetables, leather
goods, packed food
[section 53BBBB]
Goods or property
sold by public
auction [section53C]
[rule 17D]
Courier business of a
non-resident [section
53CC]
31.
Payment to actors,
actresses, producers
etc [section 53D]
[rule 17E]
32.
Commission,
discount or fees
[section 53E]
33.
Commission or
remuneration paid to
agent of foreign
buyer
[section 53EE]
Interest on saving
deposits and fixed
deposits
[section 53F]
34.
35.
Bank.
0.10%
--
No deduction or deduction at a
reduced rate to be made if an
exporter produces certificate from
NBR regarding having fully or
partly exempted income.
5% of sale price.
--
--
10%
--
10%
In case of Building/Apartment
constructed for residential
purchases:
(i) Tk. 2,000 per square meter for
building
or
apartment
situated at Gulshan Model
Town,
Banani,
Baridhara,Motijheel
and
Dilkusha. Tk 8,000/- for
those other than residential
purposes;
(ii) Tk. 1,800 per square meter
for building or apartment
situated at Dhanmandi,
Defense Officers Housing
Society
(DOHS),
Mahakhali,
Lalmatia
Housing Society, Uttara
Model Town, Bashundhara
10%
7.5%
36.
Insurance
commission
[section 53G]
37.
Fees of surveyors of
general insurance
company
[section 53GG]
Transfer of property
[section 53H]
38.
39.
40.
41.
15%
42.
43.
44.
Collection of tax
from sale of share at
a premium over face
value [section 53L]
Collection of tax
from transfer of
shares by the
sponsor shareholders
or placement holders
of a company listed
on stock exchange
[section 53M]
Dividends
[section 54]
45.
46.
Income of non
residents
[section 56]
5%
Resident/ non-resident
If the DCT certifies, deduction in
Bangladeshi company ----- 20% this regard may not be made or
made at a rate less than the
Resident/ non-resident
maximum rate.
Bangladeshi person other than
company -----10%
Imposition of penalty,
Attachment of bank accounts, salary or any other payment,
Filing of Certificate case to the Special Magistrate.
b)
Accelerated depreciation: Accelerated depreciation on cost of machinery is admissible for new industrial
undertaking in the first year of commercial production 50%, in the second year 30% and in the third year 20%.
c) Income derived from any Small and Medium Enterprise (SME) engaged in production of any goods and
having an annual turnover of not more than taka twenty four lakh is exempt from tax.
d) Industry set up in EPZ and commencing commercial production or operation before December 31, 2011 is
exempt from tax for a period of 10 years from the date of commencement of commercial production. Industry
to be set up after January 1, 2012 will enjoy tax holiday for five years.
e) Income from poultry is exempt from tax up to 30th June, 2013, subject to investing at least 10% of the
exempted income that exceeds one lakh and fifty thousand Taka, in government securities or bonds.
f) Income derived from export of handicrafts is exempted from tax up to 30th June, 2013.
g) An amount equal to 50% of the income derived from export business is exempted from tax.
h) Listed companies are entitled to 10% tax rebate if they declare dividend of 20% or more.
i) Income from Information Technology Enabled Services (ITES) business is exempted up to 30th June, 2013.
(j) Income of a private power generation company subject to certain conditions included in private sector
power generation policy of Bangladesh is exempted from tax for 15 years form the day of commencement
of commercial production before June 30, 2013. Income of a private power generation company
commencing commercial production from July, 2013 will enjoy tax holiday for 10 years subject to certain
limits and conditions.
Avoidance of Double Taxation Agreement :
There are agreements on avoidance of double taxation between Bangladesh and 28 countries which are:(1) United Kingdom of Great Britain and Northern Ireland, (2) Singapore (3) Sweden (4) Republic of Korea (5) Canada (6)
Pakistan (7) Romania (8) Sri Lanka (9) France (10) Malaysia (11) Japan (12) India (13) Germany (14) The Netherlands (15)
Italy (16) Denmark (17) China (18) Belgium (19) Thailand (20) Poland (21) Philippines (22) Vietnam (23) Turkey (24)
Norway (25) USA (26) Indonesia (27) Switzerland.
Name of the
Office
(2)
Commissioner
Taxes Zone-1, Dhaka
Name of the
Officer
(3)
Mr. Dr. Mahbubur
Rahman
2.
Commissioner
Taxes Zone-2, Dhaka
Commissioner
Taxes Zone-3, Dhaka
Commissioner
Taxes Zone-4, Dhaka
Commissioner
Taxes Zone-5, Dhaka
Commissioner
Taxes Zone-6, Dhaka
Commissioner
Taxes Zone-7, Dhaka
Commissioner
Taxes Zone-8, Dhaka
Commissioner (in
charge)
Large Taxpayer's Unit
(LTU)
Commissioner
Central Survey Zone,
Dhaka
Commissioner
Taxes Zone-1,
Chittagong
Commissioner
Taxes Zone-2,
Chittagong
Commissioner
Taxes Zone-3,
Chittagong
Commissioner
Taxes Zone-Rajshahi
Commissioner
Taxes Zone-Khulna
Commissioner
Taxes Appeal Zone-1,
Dhaka
Commissioner
Taxes Appeal Zone-2,
Dhaka
Commissioner
Taxes Appeal Zone-3,
Dhaka
Commissioner
Taxes Appeal ZoneChittagong
Ms. Rahela
Chowdhury
Mr. Md Sirajul Islam
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
Phone No.
(4)
8362944
8333855
(PA)
831 2416
831 2402
933 6788
831 6049
835 0603
831 2472
717 4224
Mr. Ramendra
Chandra Basak
031-715190
031-710840
031-725897
0721812320
041-760669
933 7533
833-3116
833 3116
031-714217
934 6364
934 0075
Fax No.
(5)
(6)
20.
21.
22.
23.
24.
25.
26.
Commissioner
Taxes Appeal ZoneKhulna
Director General
Central Intelligence Cell
Director General
Tax Inspection, Dhaka
Director General
Tax Training Academy
Commissioner
Taxes Zone-Rangpur
Commissioner
Taxes Zone-Barisal
Commissioner
Taxes Zone-Sylhet
041-760349
833 1011
835 9444
933 3520
0431-72202
0821716403
0521-61772