Assessment

Assessment
Assessee :
Assessee means a tax payer,that is , a person who is to pay tax.

Classification of assessee:
A. On the basis of person:
1. Individual
2. Firm
3. AOP
4. HUF
5. Local authority
6. Company
7. AJP
B. On the basis of residential status:
8. Resident
9. Non-resident
a) non-resident Bangladeshi
b) non-resident foreigner
 Assessment
Income year:
According to sec 2(35)of IT ordinance ,1984-Income year means the financial year immediately preceding the
assessment year or any other accounting period as adopted by the assessee and ending within the said
financial year.
Finance Act ,2015 has changed the definition of income year for –
 Newly started Business
 Liquidation and discontinuance of business
 Share of partnership
 Banks, insurance and financial institution
 Different sources of income.
Why it is important to determine the income year?
 Assessment year:
According to sec 2(9)of IT ordinance ,1984- assessment year means that period of twelve months commencing
on the first day of July every year.

Why it is important to determine the assessment year?

 Assessment
 Assessment procedure:
1. Submission of return
2. Determination of tax liability
*Forms Of assessment-
A. Regular assessment
a. on the basis of return filed
b. on the basis of evidence produced
c. on the basis of report of CA
d. on the basis of Ex-parte or best judgment
e. on the basis of directive of NBR
B. Universal self assessment
C. Provisional assessment
D. Emergency assessment
E. Spot assessment
Assessment
 3. Collection of taxes:
A. Payment with return
*Advance payment of Tax
*Tax deducted at source
*Refund of Tax
B. Penalty for default in payment of tax.

TIN(Tax identification number):

introduced by FA,1993
Applicable from 1st July ,1994
12 digit TIN- FA,2014 has made 12 digit TIN compulsory
 Assessment
Methods of determining residential status:
1. Individual
2. Residential status of HUF,Firm.AJP
3. Residential status of company
Effect of residential status in determining tax liability
4. To determine the amount of total income
5. Minimum limit of taxable income
6. Tax rate
7. Income tax rebate
 Resident Non-resident Bangladeshi Non-resident
Foreigner
Total income Global income No global income -
Minimum limit of taxable Taxable income-more than 350000 , Taxable income-more than Not applicable
income women and elderly cityzen-400000, 3rd 350000 , women and elderly
gender and disable person- cityzen-400000, 3rd gender and
4,75,000.gazette wounded freedom disable person-4,75,000.gazette
fighter-500,000 wounded freedom fighter-
500,000

Tax rate 1st 350000-0%, next 1 lakh-5%,next 3 1st 350000-0%, next 1 lakh- 30%
lakh-10%, next 4 lakh-15%,next 5 lakh- 5%,next 3 lakh-10%, next 4
20%,on the balance-25% lakh-15%,next 5 lakh-20%,on
the balance-25%

Income tax rebate Rebate on investment allowance and Rebate on investment Not applicable
tax exemption allowance and tax exemption

Tax liability Same as tax rate

 Effects of residential status in assessing income.

Particulars Status of the income Residential Non-residential

Income received or deemed to be received Bangladeshi income Taxable Taxable

in BD

Income accrued or deemed to be accrued Bangladeshi income Taxable Taxable

in BD

Income accrued or arose outside BD Foreign income Taxable Non-taxable

 Prob-1
 Income year Stay in BD
2012-13 60 days
2013-2014 70days
2014-2015 180 days
2015-2016 220 days
2016-2017 95 days
a)Determine the residential status of 2016-2017
b)Determine residential status of 2013-2014 if stayed 170 days in 2013-14
c)What will happen if he stays in BD for 190 days in 2016-17 his stay over the last four years was 300 days.
 Prob-2:
Selina Aktar ,a Bangladeshi citizen ,for the 1 st time left Bangladesh for higher studies on
October 01,2010.For celebrating eid she came to Bangladesh on October 12,2011 and
stayed for 90 days,again ,she came to Bangladesh in her brother marriage ceremony on
August 15,2012 and stayed for 68 days. She also stayed in Bangladesh for 115 days from
September 17,2013 in Bangladesh for research purpose. Finally after completing her
studies she came to Dhaka on April 01,2015. Determine her residential status for the
income year 2014-2015.
 Prob-3
. Hasan Mahmood works as a professor in a university in Australia. He left BD in 2000. After 7 years of
that ,he first visited BD in the year 2007.After wards he visited BD every year to see his parents. The
following table is providing the information about the time period he stayed in BD in different years from
2007-2015.Determine his residential status during these income years:
Year 2008-09 2009-10 2010-2011 2011-12 2012-13
Date of entrance 16.09.08 12.10.09 11.02.11 09.12.11 01.07.12
Date of exit 28.03.09 19.03.10 14.03.11 01.03.12 28.0912