This document discusses income from other sources under the Income Tax Ordinance (ITO) 1984 in Bangladesh. It covers the scope of income from other sources, dividend income, interest income other than securities, unexplained investments under section 19, and income not classified under any other head as per section 33. It provides examples of dividend and interest income tax exemptions and tax deducted at source rates. It includes a demonstration problem calculating the taxable income from other sources for an individual with various sources of income such as interest, dividends, profits, and sale of forest timber.
This document discusses income from other sources under the Income Tax Ordinance (ITO) 1984 in Bangladesh. It covers the scope of income from other sources, dividend income, interest income other than securities, unexplained investments under section 19, and income not classified under any other head as per section 33. It provides examples of dividend and interest income tax exemptions and tax deducted at source rates. It includes a demonstration problem calculating the taxable income from other sources for an individual with various sources of income such as interest, dividends, profits, and sale of forest timber.
This document discusses income from other sources under the Income Tax Ordinance (ITO) 1984 in Bangladesh. It covers the scope of income from other sources, dividend income, interest income other than securities, unexplained investments under section 19, and income not classified under any other head as per section 33. It provides examples of dividend and interest income tax exemptions and tax deducted at source rates. It includes a demonstration problem calculating the taxable income from other sources for an individual with various sources of income such as interest, dividends, profits, and sale of forest timber.
Agenda 1. Scope of “Income from Other Sources” 2. Dividend Income 3. Interest income other than interest on securities 4. Unexplained Investments as per the sec 19 5. Income not classified under any head as per sec. 33 1. Scope of “Income from Other Sources” As per section no. 33 of the ITO 1984, the following incomes should be reported under the head income from other sources: (a) Dividend and Interest (b) Royalties and fees for technical services (c) Income from letting of machinery, plants, building or furniture belonging to the assessee (d) Any income to which section 19 applies (e) Any other income of any kind or from any source that can not be assigned under any of the heads of the section no 20 of the ITO 1984. 2. Dividend income •Tax exemption on dividend Up to Tk. 50,000 for income received from dividend from the listed company Up to Tk. 25,000 for income received from dividend from the mutual fund •TDS on dividend For non-resident foreigner (for company 20% and for other than company 30%) For resident or a non-resident Bangladeshi (for company 20% and for other than company 10% if having TIN otherwise 15%) •Grossing up of dividend income 3. Interest income •Tax exemption on interest Interest on DPS from any govt. approved bank Interest up to Tk. 25,000 from interest on Bangladesh Industrial Development Bond •TDS on Interest Rate of TDS will be 10% if having TIN otherwise 15 •Grossing up of interest income 4. Unexplained investments • Unexplained credits as per section 19(1) • Unexplained investment as per section 19(2) • Unexplained expenditure as per section 19(3) • Unrecorded Investment as per section 19(4) • Unrecorded money, jewellery et.. as per section 19(5) • Goodwill money and compensation as per section 19(10) • Unpaid loan as per section 19(21) • Etc. Demonstration Problem From the following particulars of MR. Muaj determine the taxable income from other sources as per the ITO 1984 for the income year 2019-2020: • Interest income from fixed deposit account by Tk. 9500. • Profit from Islami bank by Tk. 1800. • Dividend from ICB Mutual Fund by Tk. 31,500. • Dividend from a listed company share by Tk. 28,000. • Sale of forest timber by Tk. 10,000. • Income from interest on DPS Tk. 1200 Solution of DP 1 Particulars Details (Tk) Total (Tk.) 1. Income from interest on fixed deposit [9500/0.90] 10556 2. Profit from islami bank [ 1800/0.90] 2,000 3. Dividend from ICB Mutual fund [31,500/0.90] = 35,000 Less: exemption up to tk. 25,000 10,000 4. Dividend from listed company [28000/0.90] = 31,111 Less: exemption up to tk. 50,000 - 5. Sale of forest timber 10,000 6. Income from interest on DPS 1200 Less: Fully exempted -
Total taxable income from Other source 32, 556
Self concept check From the following particulars of Mr. Muaj determine the taxable income from other sources as per the ITO 1984 for the income year 2019-2020: • Interest income from savings certificate by Tk. 38,000. • Profit from Islami bank by Tk. 1800. • Dividend from ICB Mutual Fund by Tk. 31,500. • Sale of forest timber by Tk. 10,000. • Interest Income lottery by Tk. 32,000. Thank you