Income tax authorities:

1. NBR:
1. Income tax:
o Income tax
o Gift tax
o Travel tax
2. Customs
3. VAT
2. Commissioner of taxes
3. Additional commissioner of taxes
4. Joint commissioner of taxes
5. Deputy commissioner of taxes (DCT- TRO)
6. Assistant commissioner of taxes (ACT-TPO)
7. Extra assistance commissioner of taxes
8. Inspector of taxes
Direct tax vs Indirect tax (page-21):

Some important schedule of income tax:

1. 2nd schedule: rates of income tax in certain special cases
2. 3rd schedule: Depreciation and amortization
3. 6th schedule:
I. Part-A (tax free income)
II. Part B (investment allowance)
Objectives of income taxes:
Role of income tax
Concept and definitions relating to tax:
Rate of income tax (for individual):
Tax is not payable by tax residents on income below Tk. 300,000 (for men).
Residents including non-resident Bangladeshi
Total income Tax rate
First Tk. 300,000* Nil
Next Tk. 100,000 5%
Next Tk. 300,000 10%
Next Tk. 400,000 15%
 Next Tk. 500,000 20%
On the balance 25%
*Initial exemption limit for:
— women and senior citizens aged 65 years or above it is Tk. 350,000,
— physically challenged persons it is Tk. 450,000, and
— gazetted war-wounded freedom fighters it is Tk. 475,000.

In case of parent/legal guardian of a physically challenged person, he/she (only

one assessee if father and mother both are taxpayer) will get a further initial
exemption of Tk. 50,000 in addition to above limit.
All taxpayers who will file their tax return first time through online will enjoy tax
rebate of Tk. 2,000.

Non-residents:
Non-residents other than Bangladeshi non-residents shall pay tax on the total
income at the rate of 30%.

Capital Gain:
1. for companies: @15%
2. other than companies:
a. sales within 5 years of acquisition : at normal slab rate
b. sales after 5 years of acquisition: at normal slab rate applicable on
total income or @15% on capital gain and slab rate on other income
(normal income), whichever is lower.

Minimum tax payable:

Minimum tax payable by an assessee is as follows:
Location Minimum
tax
Within Dhaka and Chattogram City Tk. 5,000
Corporation
Any other City Corporation Tk. 4,000
Other than City Corporation Tk. 3,000
Dividend income (6th schedule-Part A- Para-11A):
Dividend income received by an individual assessee from companies listed with either/both
exchange(s) in Bangladesh is exempted from tax up to Tk. 50,000.

Charge of surcharge (Sec-16A):

Surcharge is payable by an individual assessee on total tax payable if the total net worth
of the assessee exceeds Tk. 30 million/3 crore in the following manner:

Total net worth Rate

Over Tk. 30 million/ 3 crore to Tk. 50 million/5 crore or owner of more 10%
than 1 motor car or owner of a flat of 8,000 square feet size within City
Corporation area
Over Tk. 50 million to Tk. 100 million/ (5-10 crore) 15%
Over Tk. 100 million to Tk. 150 million/ (10-15 Crore) 20%
Over Tk. 150 million to Tk. 200 million/ (15-20 crore) 25%
 Over Tk. 200 million 30%

However, the minimum surcharge will be Tk. 3,000 for net worth up to Tk. 100 million,
and Tk. 5,000 if net worth exceeds Tk. 100 million.

Furthermore, if the total net wealth is Tk. 500 million/ 50 Crore or more, surcharge will be higher
of the following:
a) 0.1% of net wealth; and
b) 30% of surcharge on total tax.

Rate of income tax (for company):

Residential and non-residential status:
Charge of additional tax (Section 16B)
Additional tax will be charged to the employer who employs or allows an individual not
being a Bangladeshi citizen to work at their business or profession without prior
approval of Bangladesh Investment Development Authority (BIDA) or any other
competent Government authority. This additional tax is 50% of the tax payable on his
income or Tk. 500,000 whichever is higher.