Income Tax

Income tax is a source of income of government of Bangladesh. Main Income source of government of Bangladesh is Income Tax. VAT or Value added tax is another big income source of Bangladesh Government. Bangladesh has more than 20 income source like VAT, TAX from Company, Individual TAX, Income from semi government Farm, Income from Autonomous bodies and other public transport railway and BRTC. These rules may be called the Income Tax Rules, 1984. 

What is Income Tax?

Income tax is a tax on income on company or individuals. Income tax can be earn at source or early submitted return. ―officer‖ means a ―public officer‖ as defined in the Code of Civil Procedure, 1908 (Act V of 1908), or a ―public servant‖ as defined in section 21 of the Penal Code (Act XIV of 1860), including a person subordinate to the Tax Recovery Officer whom the Tax Recovery Officer authorises to execute an order of attachment or sale or arrest;

To be maintained by medical practitioners, that is, doctors, surgeons, physicians, dentists, psychiatrists, homeopaths, tabibs, vaids, veterinary surgeons or by any other name (other than medical practitioners, who do not make any separate charge for consultation but make a charge for the medicines supplied by them

Rate of exchange.

The rate of exchange for the calculation of the value in taka of any payment which is payable to the assessee in a foreign currency shall be the rate of exchange determined or recognized by the Government, on the date of such payment, for the conversion of foreign currency into Bangladesh currency.]

Particulars to be furnished on interest on securities by a person other than the Government

In the case of income chargeable under the head ―Interest on securities‖, where the deduction is not made by or on behalf of the Government, the person responsible for paying the interest shall, at the time of deduction send to the Deputy Commissioner or Taxes concerned, a statement showing the following particulars:-
(i) Description of securities,
(ii) Numbers of securities,
(iii) Dates of securities,
(iv) Amounts of securities,
(v) Period for which interest is drawn,

(vi) Amount of interest,
(vii) Amount of tax; and
(viii) Date on which tax was deducted.

Time limit for payment of tax deducted at source.

sums deducted or collected in accordance with the provisions of Chapter VII of the Ordinance shall be paid to the credit of the Government within 2[two weeks from the end of the month] of such deduction or collection by the person making the deduction or collection, as the case may be: Provided that the Deputy Commissioner of Taxes may, in a special case and with the approval of the Inspecting Additional Commissioner of Taxes or the Inspecting Joint Commissioner of taxes, permit an employer to pay the tax deducted from any income chargeable under the head “Salaries” quarterly on September 15, December 15, March 15 and June 15.

Manner of payment of tax deducted at source.

The person responsible for making deduction or collection of tax under Chapter VII of the Ordinance shall pay the amount of tax so deducted or collected to the credit of the Government within the time specified in rule 13 by— (a) remitting it through an income tax challan into the Bangladesh Bank or the Sonali Bank, as the case may be; or (b) transferring the amount electronically.]
(2) Notwithstanding anything contained in sub-rule (1) or rule 13, the person responsible for making deduction, with respect to supply of goods or execution of contract under section 52, fees for professional or technical services under section 52A, 5[****] house property under 53A 6[or commission or fees under section 53E] of the Ordinance,

shall issue a cheque equivalent to the amount of tax deducted at source in favour of the concerned Deputy Commissioner of Taxes and hand over the same to the person from whom such tax has been deducted and such person shall deposit the cheque through income tax challan form to Bangladesh Bank or the Sonali Bank, as the case may be, and on production of the counter foil of the challan, he shall be entitled to get his remaining dues on the concerned account:
1 [Provided that where tax is deducted from payment made to a person who is not a resident in Bangladesh, the person making such deduction shall deposit the deducted amount through challan to the Bangladesh Bank or the Sonali Bank, as the case may be.]

Deduction of tax from payment to contractors, etc.

For the purpose of making a deduction of tax under section 52, persons responsible for making any payment (including a payment by way of an advance) to any other person (including a company, firm, association or Hindu undivided family) 3[on account of supply of goods or execution of a contract] 4[***]to or with 5[the 5[the Government or any authority, corporation or body, including including its units, the activities or the principal activities of which are authorised by any Act, Ordinance, order of instrument having the force of law in Bangladesh,] or 6[any company as defined in clause (20) of section 2 of the Ordinance7[***]] or any banking company, or any insurance company or any co-operative bank established by or under any law for the time being in force] or any Non-government Organization registered with 1[N.G.O Affairs Bureau or any university or medical college or dental college or engineering college], shall deduct an amount calculated on the payment made at the rates laid down in the Schedule below:
Provided that the tax to be deducted 2[or collected] at the time of making payment shall be according to the rates applicable appropriate to the slab of total payments in case the payments are made in part in any financial year:

Collection of tax from importers.-

For the purpose of making collection of tax under section 53 of the Ordinance, the Commissioner of Customs or any appropriate officer shall collect tax in the case of any import of goods at the following rate:
(a) five per cent on the value of the imported goods in case of import of goods excluding the goods mentioned in clause (b) and clause (c);
(b) two per cent on the value of the imported goods in the case of import of goods specified below:
(1) Petroleum oils and oils obtained from bituminous minerals, crude (H.S Code: 2709.00.00);
(2) Motor spirit of H.B.O.C Type (H.S Code 2710.12.11);
(3) Other motor spirits, including aviation spirit (H.S Code 2710.12.19);
(4) Spirit type jet fuel (H.S code 2710.12.20);
(5) White spirit (H.S Code 2710.12.31);
(6) Naphtha (H.S Code: 2710.12.32);
(7) Other (H.S Code 2710.12.39);
(8) J.P. 1 kerosene type jet fuels (H.S code 2710.12.41);

(9) J.P. 4 kerosene type jet fuels (H.S code 2710.12.42);
(10) Other kerosene type jet fuels (H.S code 2710.12.43);
(11) Other kerosene (H.S code 2710.12.49);

Collection of tax from income derived on account of account of export of manpower.

For the purposes of making a collection of tax under section 53B of the Ordinance, the Director general, Bureau of manpower, Employment and Training shall, before giving clearance for exporter concerned as advance tax on income on account of such export at the rate of 10% of service charge or fees mentioned in clause (n) and clause (r) respectively, of section 19(2) of the Emigration Ordinance, 1982 (XXIX of 1982).]

House rent allowances receivable in cash.

Where the house rent allowance is receivable by the employee in cash, the amount, if any by which the house rent allowance so receivable exceeds fifty per cent of the basic salary or taka 3[25,000] per month, whichever is less, shall be included in his income.

Rent free accommodation.

(1) Where the employee is provided with rent free accommodation, the rental value of the accommodation or twenty five per cent of the basic salary of the employee, whichever is less, shall be included in his income.
(2) Where the accommodation is provided to the employee at a concessional rate, the difference between the rent actually paid by him and the amount determined to be includable in an employee‘s salary under sub-rules (1) shall be added to his income.]

The ‗%‘ column for each item in PART-I represents the total value of international transactions of that item as the percentage (up to two decimal places) of the total value of all transactions under the item.]

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