Definition (Section 2)

Prepared by
Md. Safiuddin
Senior Lecturer, Department of Accounting
Independent University, Bangladesh
 Section 1: short title
Section 2: Definition
Section 3-10: Administration
Section 11-15: Tax Appellate Tribunal
Section 16-19BBB: Charges of Income tax
Section 20-43: Computation of income
ITO 1984 at a
Section 44-47: Exemption and allowance
glance by Section 48-74: Payment of tax before
section wise assessment
Section 75-80: Return of assessment
Section 81-94A: Assessment
Section 123-133: Penalty
Section 134-143: Recovery of tax
Section 144-rest: Double taxation relief
Assessee

Person
includes
Assessee means a • Individual
person by whom tax • Partnership firm
• Association of
is payable under ITO person
1984. • Hindu undivided
family
• Local authority
• company
Definition
 Tax base is the total income (taxable total income)

 Total income means both domestic income and foreign

income of a resident assessee, only domestic income of a
non -resident assessee.
  Resident
For individual person
 Who resides in Bangladesh for 182 days in an
income year or
Definition  At least 90 days in an income year and at least
365 days in preceding 4 income years.
(section 2)
Company: control and management of affairs
situated wholly in Bangladesh.
 Non resident: who is not a resident.
Problem on residential status
1. Following is the particulars of Mr. Bablu’s stay in Bangladesh over a period of last
five years:
year 2011-12 2012-13 2013-14 2014-15 2015-16
days 40 55 182 200 94

Calculate residential status of Mr. Bablu for those years.

Year days stayed in BD previous 4 years status IY: 182/(90+365)

2011-12 40 0 non-resident
2012-13 55 40 non-resident
2013-14 182 95 resident
2014-15 200 277 resident
2015-16 94 477 resident
Problem on residential status
2. Dr. Hasan Mahmood works as a professor in a university in
Australia. He left Bangladesh in 2001. After 7 years of that,
he first visited Bangladesh in the year 2008. After wards he
visited Bangladesh every year to see his parents. The
following table shows the information about the time period
he stayed in Bangladesh in different years from 2008 to
2016. Determine his residential status during these income
years:

year 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Date of 16.09.09 12.10.10 11.02.12 09.12.12 01.07.13 28.12.14 15.07.15
entrance
Date of 28.03.10 19.03.11 14.03.12 01.03.13 28.09.13 28.06.15 12.03.16
exit
Year days stayed in BD previous 4 years status IY: 182/(90+365)
2009-10 194 0 resident
2010-11 159 194 non-resident
2011-12 33 353 non-resident
2012-13 83 386 non-resident
2013-14 90 469 resident
2014-15 183 365 resident
2015-16 242 389 resident
Resident vs non- resident (Bangladeshi / foreigner)

Resident Non-resident
foreigner
Tax rate Slab rate 30%
Tax exempt limit Yes No
Tax rebate Yes No
 Income year is the period for which the total income of
an assessee is calculated. The period begins at the first
day of July and ends on 30 June. For bank, insurance
and other financial institution January to December.
Income year
Assessment year is the year following the income year. It
and starts on 1 July and ends on 30 June. Income tax is
assessment calculated based on the rate of assessment year.
year For example:
Income year assessment year
01.07.2014 - 30.06.2015 01.07.2015 – 30.06.2016
2014 – 15 2015 - 16
 Name of the Closing date of Beginning date Income year Assessment year
Company accounts

Nitol Motors 15 April, 2013  15 April 2012  1 July 2012-30  1 July 2013-30
June 2013 June 2014

Uttara Limited 31 August, 2013  1 September 2012  1 July 2013 -30  1 July 2014 -30
June 2014 June 2015

Ventura Properties 31 March, 2014      

Ltd

Pran Limited 31 July, 2014      

Vertex Fashions 31 Dec, 2015      

Exercises: Calculate income year and assessment year for the followings;
 Exercises : case 7 (Page 59) to case 19 (Page 62)
[chapter 2]