Significant Differences between The Income Tax Act, 2023
& The Income Tax Ordinance, 1984
Including the Important Aspects of Finance Bill, 2023 of Bangladesh
Ishtiaq Mainuddin | Md. Adnan Mansur Khan
Tazwar Uroj | Jannatul Naim Sweety | Maymuna Akther Islica
Master of Business Administration (MBA), 24th Batch
Department of Accounting & Information Systems
Faculty of Business Studies
University of Dhaka – 1000, Bangladesh
1
Table of Contents
Summary of Important Changes Introduced by the Finance Bill, 2023 of
Bangladesh ........................................................................................................... 4
Features of The Income Tax Act, 2023 ............................................................. 8
Changes in the Head of Income ....................................................................... 11
Changes in Income from Employment (2023) vs. Salaries (1984) ................ 11
Changes in Sections ............................................................................................................. 11
Changes in Definition........................................................................................................... 12
Exemption Limit .................................................................................................................. 12
Determination of Benefits (Section 33) ............................................................................... 12
Investment Allowances (Section 78).................................................................................... 13
Changes in Areas Eligible for Investment Rebate ............................................................... 13
Exemption of Interest from Provident Fund ........................................................................ 14
Changes in the Provisions of Income from Business ..................................... 15
Changes in the Provisions of Tax Deduction at Source (TDS) ..................... 17
Other Provisions Related to TDS ......................................................................................... 26
Definition of Specified Person (Section 140) ...................................................................... 26
Return of Withholding Tax (Section 177)............................................................................ 26
Changes in Provisions of Minimum Tax......................................................... 27
Changes in Provisions of Set off & Carry Forward ...................................... 28
Changes in the Provisions of Definition .......................................................... 28
Repeal & Savings .............................................................................................. 30
Major Changes in Method of Accounting ...................................................... 31
Changes in Tax Exemption .............................................................................. 31
Changes in Depreciation & Amortization (3rd Schedule) .............................. 33
Changes in Return, Statements, Audit & Assessment................................... 34
Statement of Asset and Liabilities & Rule for Return Submission ...................................... 34
Return After Tax Day & Delay Interest ............................................................................... 35
Revised Return on Incomplete Return ................................................................................. 36
Self-Assessment ................................................................................................................... 36
Audit ..................................................................................................................................... 37
Assessment ........................................................................................................................... 38
Changes in Proof of Submission of Return (PSR) ......................................... 39
Changes in Penalty ............................................................................................ 39
2
Miscellaneous ..................................................................................................... 40
Income from Rent................................................................................................................. 40
Registration and Cancellation .............................................................................................. 41
Electronic Tax Management ................................................................................................ 42
Collection of Information ..................................................................................................... 42
General Provisions Relating to Prevention of Tax Evasions ............................................... 43
Refund .................................................................................................................................. 44
3
Summary of Important Changes Introduced by the
Finance Bill, 2023 of Bangladesh
1. Personal Income Tax Rates for Individual (including Non-resident Bangladeshi),
Partnership Firm and Hindu Undivided Family:
AY 2023-24
AY 2022-2023
Level of Income
Rate
Level of Income
Rate
Up to BDT 3,00,000
Nil
Up to BDT 3,50,000
Nil
Next BDT 1,00,000
5%
Next BDT 1,00,000
5%
Next BDT 3,00,000
10%
Next BDT 3,00,000
10%
Next BDT 4,00,000
15%
Next BDT 4,00,000
15%
Next BDT 5,00,000
20%
Next BDT 5,00,000
20%
On Balance
25%
On Balance
25%
2. Tax- Free Income Thresholds for Individuals (including
Bangladeshi), Partnership Firms and Hindu Undivided Families:
Proposed for
Tax Exempted
Income for
AY 2022-23
(BDT)
AY 2023-24
(BDT)
Non-resident
Increased
(BDT)
General Tax Payers
3,00,000
3,50,000
50,000
Women & Senior
Citizens above 65
3,50,000
4,00,000
50,000
Years of Age
Physically Challenged
4,50,000
4,75,000
25,000
Persons
War-wounded
Gazette Freedom
4,75,000
5,00,000
25,000
Fighters
Third Gender
3,50,000
4,75,000
1,25,000
Taxpayers
The Income tax-free threshold for parents or legal guardians of a physically
challenged child or dependent will be increased by BDT 50,000 for each
child/dependent.
4
3. Tax Rate for Non-resident Individuals has been Proposed to be Unchanged:
30% (except Non-resident Bangladeshi)
4. Minimum Tax Payable by Individuals:
Area of Residence
Minimum Tax (BDT)
Dhaka North City Corporation
5,000
Dhaka South City Corporation
5,000
Chattogram City Corporation
5,000
Any Other City Corporation
4,000
Other Areas
3,000
5. Surcharge (Net Wealth Attracting Surcharge has been Proposed to be Increased to
BDT 4 Crore):
AY 2022-2023
AY 2023-2024
Total Net Wealth
Rate
Total Net Wealth
Rate
Up to BDT 3 Crore
Nil
Up to BDT 4 Crore
Nil
Over BDT 3 Crore up to BDT
10 Crore
Assessee having more than 01
motor vehicle in his/her own
name or having at least 8,000
square feet of house property
in any city corporation area
Over BDT 4 Crore up to BDT
10 Crore
10%
Assessee having more than 01
motor vehicle in his/her own
name or having at least 8,000
square feet of house property
10%
Over BDT 10 Crore up to
BDT 20 Crore
20%
Over BDT 10 Crore up to BDT
20 Crore
20%
Over BDT 20 Crore up to
BDT 50 Crore
30%
Over BDT 20 Crore up to BDT
50 Crore
30%
Over BDT 50 Crore
35%
Over BDT 50 Crore
35%
5
6. Corporate Income Tax:
Particulars
Existing Tax Rates for
AY 2022-2023
Tax
Rate
Publicly Traded Company that
Issues Shares worth more than
10% of its Paid-up Capital
through Initial Public Offering
- IPO
Failure to Comply
with Conditions
22.5%
20%
Proposed
Tax Rates
for AY
2023- 2024
Unchanged
Publicly Traded Company that
Issues Shares worth 10% or
less than 10% of its Paid-up
Capital through Initial Public
Offering - IPO
22.5%
Non-publicly Traded Company
27.5%
30%
Unchanged
One Person Company (OPC)
Publicly Traded Bank,
Insurance and Financial
Institution (except Merchant
Bank)
22.5%
25%
Unchanged
37.5%
N/A
Unchanged
40%
N/A
Unchanged
Merchant Bank
37.5%
N/A
Unchanged
Private University, Private
Medical College, Private
Dental College, Private
Engineering College or Private
College Solely Dedicated to
Imparting Education on ICT
15%
N/A
Unchanged
Non-publicly Traded Bank,
Insurance and Financial
Institution (except Merchant
Bank)
25%
6
Unchanged
7. Proposed Amendments in Travel Tax, 2023:
Mode of Travel and Destination
Travelling by Air to North America,
South America, Europe, Africa,
Australia, New Zealand, China,
Japan, Hong Kong, North Korea,
Vietnam, Laos, Cambodia, Taiwan
Travel by Air to SAARC Countries
Travel by Air to Any Other
Country
AY 2022-23
(BDT)
AY 2023-24
(BDT)
4,000
6,000
1,200
2,000
3,000
4,000
Travel by Air within Bangladesh
N/A
200
Travel by Road to Any Country
500
1,000
Travel by Waterways to any
Country
800
1,000
Impact
Cost of
'Travel by
Air’ and
'Travel to
Abroad'
will
Increase
However, the aforementioned rates of the proposed Travel Tax will be Half for
Travelers from 05 to 12 Years of Age.
Exemptions
→
→
→
→
→
→
→
→
→
Traveler aged up to 05 Years;
Traveler to Saudi Arabia for Hajj;
Blind or Cancer Patients or Disabled Persons using Stretchers;
Officials of the United Nations and their family members;
Members with the Diplomatic Status of the diplomatic missions in Bangladesh
and their family members;
Employees of the World Bank, German Technical Organization, and JICA,
working in Bangladesh and their family members;
On-duty Crew of Aircraft;
VISA-free Transit passengers who will not Stay in Bangladesh for More Than
72 Hours;
Bangladeshi Citizen Working in Any Airline who is travelling abroad at free
or concessional fare.
7
8. VAT & Supplementary Duty:
→ VAT on the purchase of any vehicle cannot be considered as an input anymore.
→ VAT consultants will now be eligible to represent any entity.
→ Invoices issued by a digital payment gateway shall be considered as a tax invoice
subject to fulfillment of certain conditions.
→ To obtain a VAT refund without carrying the balance forward, Supplementary
Duty (SD) at the import stage needs to be eligible for decreasing adjustment and
goods subject to Supplementary Duty (SD) cannot be supplied at the stage of local
supply by the concerned person.
VAT Rates have been Proposed to be Increased for the Following Products:
Particulars
Existing
(2022-23)
Proposed
(2023-24)
Handmaid Biscuits
5% Per KG @
150 BDT
5% Per KG @
200 BDT
Biscuits
5% Per KG @
250 BDT
5% Per KG @
300 BDT
39.24
All Plastic Tableware,
Kitchenware, Household
Products, Hygienic and
Toiletries Products and Other
Similar Products
5%
7.5%
48.18
Kitchen Towel and Toilet Tissue
5%
7.5%
76.15
Aluminum and Aluminum
Products
5%
7.5%
90.04
Sun Glass
5%
7.5%
H.S. Code
19.05
→ VAT Rate for Confectionary Stores (Service code S022.00) has been proposed
to be Reduced from 15% to 7.5%.
→ The definitions of “Online Retail Sale” and “Marketplace” have been newly
introduced under Service code S099.60 (e-commerce services).
→ Exporters Can Now Submit Application to the Commissioner without
Submitting Process Realization Certificate (PRC) to adjust the supplementary
duty in cases of export of goods through Mushak 7.1.
8
→ If an entity fails to claim the VAT credit or make adjustments within the stipulated
timeline, VAT returns cannot subsequently be amended/updated on a later date.
→ Only supplies which are eligible for input rebate can be included in the
computation of partial input tax rebate.
Supplementary Duty (SD) Rates have been Proposed to be Increased for the
Following Products:
H.S. Code
Particulars
Existing
(2022-23)
Proposed
(2023-24)
24.04
Products Containing Tobacco,
Reconstituted Tobacco,
Nicotine, or Tobacco or
Nicotine Substitutes, Intended
for Inhalation without
Combustion; Other Nicotine
Containing Products Intended
for the Intake of Nicotine into
the Human Body
100%
150%
48.13
Cigarette Paper Imported by
Other Importers
-
150%
___________
9
Features of The Income Tax Act, 2023
→ Conversion of existing Ordinance into simple Bangla.
→ Aggregation & Synchronization of the Provisions relating to similar subjects in
the same chapter.
→ Inclusion of Provisions as regards Accounting Procedures, Depreciation and
Amortization Rules, Capital Gains, Income from Intangible Assets, Transfer
Pricing, Alternative Dispute Resolution Provisions, etc., in the proposed Act.
→ Proposal on Legal Provisions regarding Business Restructuring-Mergers &
Demergers [8th Schedule, Part-1].
→ Proposal on Startup Sandbox to strengthen the Startup environment in Bangladesh
[8th Schedule, Part-2].
→ Inclusion of Provisions to Reduce the Arbitrary Power of the Officers.
→ Proposal on Provision for filing 12 Statements/Returns instead of 29
Statements/Returns to facilitate business and investment.
→ Inclusion of Best International Practices to Simplify the Tax Compliance
Proceedings.
→ Proposal on various rules, including Earnings Stripping Rules (ESR), to prevent
Tax Evasion through various types of compromise and arrangement.
Summary of The Income Tax Act, 2023
Particulars
The Income Tax Act,
2023
The Income Tax
Ordinance, 1984
Total Sections
345
187
Total Schedules
8
7
Parts
25
(Contain Different Chapters)
10
23
Changes in the Head of Income
The Income Tax Ordinance,
1984
The Income Tax Act, 2023
Reference
Head of Income
Reference
Head of Income
Section 32
Income from Employment
Section 21
Salaries
Section 35
Income from Rent
Section 24
Income from House
Property
Section 40
Income from Agriculture
Section 26
Agricultural Income
Section 45
Income from Business
Section 28
Section 57
Capital Gain
Section 31
Income from Business or
Profession
Capital Gain
Section 22
Income from Securities
Section 33
Income from Other
Sources
Section 62
Section 66
Income from Financial
Assets
Income from Other
Sources
Changes in Income from Employment (2023) vs. Salaries (1984)
Changes in Sections
The Income Tax Act, 2023
Particulars
Income from
Employment
Determination of
Monetary Value of
Perquisites and
Allowances
Exclusion from
Income from
Employment
The Income Tax Ordinance, 1984
New Sections
Particulars
Old Sections
21
2 (58)
32
Salaries
Definition of Salaries
Definition of Profit
instead of Salary
Definition of Perquisites
Definition of Employer
Definition of Basic
Salaries
2 (50)
2 (45)
2 (27)
Rule – 33 (2)
33
Valuation of Perquisites
and Allowances
6th Schedule
(Part –1, Para
27)
11
Rule – 33A to
Rule – 33J
Changes in Definition
1. Income from Employment
Inclusion
Exclusion
→ Income Earned from Employee
Share Schemes
→ Any Amount/Benefit received from
Any Previous/Future Employer
Conveyance, Travelling and Daily
Allowance Received and Incurred Fully
and Exclusively for the Performance of
Official Duty
2. Income from Perquisites
Inclusion
Incentive Bonus (Tax Burden for Employer)
3. Definition of Profit instead of Salary
Inclusion
Any Sum Received at the Time of Joining a Job
Exemption Limit
The Income Tax Act, 2023
The Income Tax Ordinance, 1984
→
Deduct from Income from Employment
Lower of 1/3rd of Assessed Income or
Tk. 4,50,000 BDT
→
→
→
Deduction from Salary
House Rent Allowance: Lower of
50% of Basic Salary or 25,000 BDT
Conveyance Allowance: 30,000 BDT
Medical Allowance: Lower of 10%
Basic Salary or 1,20,000 BDT
Leave Fare Assistance:
Actual Fare Cost – Local Travel (Every
Year) & Foreign Travel (Once in Every
Two Years)
Determination of Benefits (Section 33)
Allowances
Criteria
Fully Paid or
Arranged by
Employer
Accommodation Facilities
Concessional Rate
12
Value of Benefits
Annual Value of Accommodation
(Earlier, it was lower of 25% of
Basic Salaries or AV)
Difference between Annual
Value and Actually Paid
Motor Car Facilities
Up to 2500 CC
Exceeding 2500 CC
Any Other Perquisites,
Allowances or Facilities
N/A
Monthly Tk. 10,000/Monthly Tk. 25,000/Monetary Value or Fair Market
Value of Such Perquisites,
Allowances or Facilities
Investment Allowances (Section 78)
The Income Tax Act, 2023
The Income Tax Ordinance, 1984
Lower of:
→ 3% of Total Assessed Income
Excluding Exempted
Income/Income on Which
Reduced Rate or Minimum Tax
is Applicable
→ 15% of Investment Made as per
6th Schedule, Part 3
→ BDT 10 Lac
15% or 7.5% Lower of:
→ Investment Made as Per 6th Schedule,
Part B
→ 20% of Total Assessed Income
Excluding Exempted Income/Income on
Which Reduced Rate or Minimum Tax
is Applicable
→ BDT 1 Crore
Changes in Areas Eligible for Investment Rebate
Heads
The Income Tax
Act, 2023
The Income Tax
Ordinance, 1984
Limit
Ref.
Limit
Ref.
Govt. Treasury Bond
Savings Certificates
5,00,000 BDT
Para 7
N/A
N/A
Para 28
Para 10
Unit Certificate/Mutual Fund
5,00,000 BDT
Para 7
N/A
Para 10
Govt. Securities
5,00,000 BDT
Para 7
N/A
Para 10
N/A
Para 10
Shares of Specified Investment
Companies
Deposit Pension Scheme (DPS)
Shares of Listed Companies
Deleted
1,20,000 BDT
Para 7
60,000 BDT
Para 11
N/A
Para 8
N/A
Para 27
13
Exemption of Interest from Provident Fund
The Income Tax Act, 2023
The Income Tax Ordinance, 1984
Deduction from Interest from Provident Fund
Lower of 33% of Income from
Employment (excluding interest from
Provident Fund) or Actual Interest
Lower of 1/3rd of Income from Salary or
14.5% as per the Statutory Regulatory
Orders (SRO)
(Para 5 of 2nd Schedule, Part 3)
(Para 27 of 6th Schedule, Part-A)
14
Changes in the Provisions of Income from Business
References
The Income Tax Act, 2023
Income from Business:
Fair Market Value of any benefit from the relationship of any
person's past, present or prospective future business, whether it is
explained in monetary terms or not.
Section 45
New Inclusion:
→ Any Management Fee by Management Company, including
Mudaraba Company
→ Any amount receivable by the Lessor Bank, Insurance or
Financial Institutions
→ Realized Gains from Currency exchange subject to the 3rd
Schedule
→ Any income received from a Discontinued Business
Section 46 (2)
“Ka and Kha” do not include sale proceeds (Capital Gain), and
hence application of the formula would be challenging where
asset is sold.
Section 46 (11)
Interest Income of a Financial Institution (Bank) on Bad or
Doubtful Debts will be considered in the income year it was
credited or actually received.
Section 49
Admissible General Deductions:
→ Inventory Write-off
→ Duties Taxes, Municipal Taxes, Local Taxes, Land
Development Taxes, etc., Paid for Business Purposes
excluding Income Tax and Gift Tax
→ Realized Foreign Exchange Loss Subject to 3rd Schedule
→ Payment to Workers Welfare Foundation Fund Not
Exceeding 5% of Disclosed Net Business Profit
Section 51
Bad Debt Allowances:
→ All Reasonable Steps for Recovery of Bad Debt
→ Bad Debt was Considered as Income in Any Income Year
→ For Banks and Financial Institutions, Bad Debt has been
Confirmed as Irrecoverable by Them and under IAS
Section 52
Proportionate Interest Expenses will be Allowed:
→ If borrowed money is used outside business
→ If asset acquired with borrowed money, but transferred
outside business
15
Section 53
Special Ceiling for Allowance of Interest:
→ Interest paid by a resident to an associated enterprise will be
allowed to the extent and in the manner specified by the
National Board of Revenue (NBR).
→ Not applicable to interest not exceeding BDT 15,00,000.
Deduction Not Admissible in Certain Cases:
Section 55
→ Royalty, License Fee, Technical Service Fee, Technical
Strategy Fee, Technical Assistance Fee or Expenditure of
similar nature incurred for the use of the intangible asset as
exceeds 10% of net profit from the business.
→ Head office or intra-group expense exceeding 10% of net
profit from the business.
→ Allowance of foreign travelling expenditure exceeding 0.5%
of turnover subject to production of evidence and justification
→ Advertisement excluded from promotional expenses for
computation of 0.5% of turnover.
→ Payment of any amount considered as income from employee
employment except banking channel.
→ Capital expenditure or personal expenses.
→ Any liability not calculated.
→ All such expenses are not related to business activities.
→ Depreciation allowance and deduction of interest claimed for
the Right of Use of an asset as per IAS, but rent payable for
land or premises and development and maintenance expense is
allowed.
→ Impairment loss (obsolescence allowance if not sold).
→ Payment to any fund not approved by NBR.
→ All unsubstantiated expenses in case of non-compliance with
the prescribed accounting method.
Explanations:
Net profit from business refers to business profits directly
operated by an entity but excluding Any Profit Earned from A
Subsidiary or Associate, or Joint Venture.
Section 56
Computation of Special Business Income:
→ Applicable to inadmissible expenditure under Section 55
except Provision related to Right of Use - RoU (TDS from
the rent of land or premises, development and maintenance
expenditure)
→ No allowance of expenditure, no adjustment or carry forward
of loss and no depreciation allowance.
16
Changes in the Provisions of Tax Deduction at Source (TDS)
Reference
Particulars
Rate
Minimum
Tax
Average
Rate
No
Earlier Section: 50
Average
Rate
No
Earlier Section: 50B
Remarks
TDS from Income from Employment
Section 86
Section 87
Inclusion: TDS on payment from Accumulated
Balance of Approved Provident Fund as per 2nd
Schedule, Part 3, Para-6
TDS from Remuneration to Members of
Parliament
Earlier Section: 52DD
Section 88
TDS from payment to Workers’ Profit
Participation Fund - WPPF
10%
Yes
Changes in Rate: 5%
Deleted: Conditions for
non-deduction
Earlier Section: 52
Section 89
TDS from payment to Contractors, Suppliers etc.
Less than or Equals
to 10%
Yes
Deleted: Provisions &
conditions
Rule 16 of the ITO, 1984,
is applicable.
17
Earlier Section: 52AA
Section 90
Section 91
TDS from the Payment of Services
Less than or Equals
to 20%
Yes
TDS from payment for Intangible Assets
10% & 12%
(Base Value BDT
25 Lacs or more)
Yes
Deleted: Service-wise
table
Earlier Section: 52A
Earlier Section: 53K
Section 92
TDS from Advertising Bill of Media Broadcasting
5%
Yes
Rate: 4%
Deleted: Conditions for
non-deduction
Earlier Section: 53D
Section 93
TDS from payment to Actors, Actresses,
Producers, etc.
10%
No
Deleted: Conditions for
non-deduction
10%
Section 94
Deduction or Collection at source from
Commission, Discount, Fees, etc.
1.5% for Marketing
Purposes
Yes
Earlier Section: 53E
Yes
Earlier Section: 52JJ
Tobacco: 3%
Section 95
Collection of tax from Travel Agent
0.3%
18
Section 96
TDS from the Commission of LC
5%
No
Earlier Section: 52I
Section 97
TDS from payment on account of Local LC
3%, 1%, 2%
No
Earlier Section: 52U
Section 98
TDS from payments by Cellular Mobile Phone
Operators
10%
No
Earlier Section: 52V
Section 99
TDS from any payment in Excess of Premium Paid
on Life Insurance Policy
5%
No
Earlier Section: 52T
Section
100
TDS from Insurance Commission
5%
Yes
Earlier Section: 53G
Section
101
TDS from Fees of Surveyors of General Insurance
Company
Earlier Section: 53GG
15%
Yes
Changes in Rate: 10%
Receiver
Company: 20%
Other than
Company: 10%
Section
102
TDS from Interest on Saving Deposits and Fixed
Deposits
Public Universities,
MPO Listed
Institutions, ICAB,
ICMAB, ICSB:
10%
Various Funds: 5%
19
Yes
Earlier Section: 53F
Section
103
TDS from Interest in Deposit of Post
Office Savings
10%
No
Earlier Section: 53I
New Section
Section
104
TDS from Interest Income of Resident
10%
No
Not applicable for
Bank/NBFI
Option for Nondeduction/lessdeduction Certificate
Section
105
Section
106
TDS from Interest in Saving Instruments
10%
Yes
Earlier Section: 52D
TDS from Interest on Securities
5%
Yes
Earlier Section: 51
Earlier Section: 50A
Section
107
TDS from Discount on The Real Value of
Bangladesh Bank Bills
Maximum Rate
No
Section
108
TDS from Receipts from International Phone Calls
IGW: 1.5%
Others: 7.5%
Yes
Earlier Section: 52R
Section
109
TDS from The Rental Value of Water Body or
Vacant Land or Plant or Machinery (Merged with
Earlier Section 53J)
5%
No
Earlier Section: 53A &
53J
20
Deleted: Provision for
Non-deduction
Earlier Section: 52P
Section
110
Section
111
TDS for rendering Services from Convention Hall,
Conference Centre, etc.
TDS from Compensation against Acquisition of
Property
5%
Yes
Deleted: Provision for
non-deduction
Inside City
Corporation,
Municipality &
Cant. Board: 6%
Yes
Earlier Section: 52C
Outside City
Corporation,
Municipality &
Cant. Board: 3%
Section
112
Section
113
Section
114
TDS from Export Cash Subsidy
10%
Yes
Earlier Section: 53DDD
TDS from Freight Forward Agency Commission
15%
Yes
Earlier Section: 53M
TDS against Purchase of Electricity
6%
Yes
Earlier Section: 52N
Section
115
TDS from Income Received from Real Estate
Developer to Land Owner
15%
Yes
Earlier Section: 53P
Section
116
TDS from Commission or Remuneration Paid to
Agent of Foreign Buyer
10%
Yes
Earlier Section: 53EE
Section
117
TDS from Dividends
With TIN: 10%
Without TIN: 15%
Yes
Earlier Section: 54
21
Section
118
Earlier Section: 55
TDS from Income from Lottery, Pseudo Code,
Card Game & Online Game
20%
Yes
Included: Online Game
Earlier Section: 56
Deleted: Service-wise
table
Section
119
Less than or Equals
to 30%
TDS from Income of Non-residents
No
TDS must be in the
Name of the Nonresident
Not applicable in case of
arbitration fee, the
amount paid for Hajj,
Priority Pass, etc.
Section
120
TDS from Collection of Tax from Importer
Less than or equal
to 20%
Yes
Earlier Section: 53
Section
121
TDS from Collection of Tax from
Export of Manpower
10%
Yes
Earlier Section: 53B
Section
122
TDS from Collection of Tax from Clearing and
Forwarding Agents
10%
Yes
Earlier Section: 52AAA
Section
123
TDS from Collection of Tax from Export Income
1%
Yes
Earlier Section: 53BB
22
Section
124
TDS from any Income Remitted from Abroad in
Connection with Any Service, Revenue
Sharing, etc.
10%, 7.5%
Yes
Earlier Section: 52Q
BDT 20 Lacs per
Katha (1.65
decimal) for Land;
Section
125
BDT 1,000 Per
sqm for any
Structure,
Building, Flat,
apartment or Floor
Space;
TDS from Transfer of Property
Earlier Section: 53H
Yes
Changes in Rate
10% of the Deed
Value
Section
126
Not exceed Higher
of the following:
→ Tk 1,600/sqm
→ Tk 6,500/sqm
→ 5% of the Deed
TDS from Real Estate or Land Developer
Earlier Section: 53FF
Yes
Changes in Rate
Value
Section
127
TDS from Commission on Govt Stamp, Court
Fees and Cartridge Paper
10%
Yes
New Section
Section
128
TDS from Lease of Property
4%
Yes
Earlier Section: 53HH
23
Section
129
Section
130
TDS from Cigarette Manufacturers
10%
Yes
Earlier Section: 52B
TDS from Brick Manufacturers
Section Wise Rate
No
Earlier Section: 52F
No
Earlier Section: 52K
DSCC, DNCC,
CCC: 3000 BDT
Others: 2000 BDT
Section
131
TDS at the time of Issuance or Renewal of Trade
License
Municipality
(District): 1000
BDT
Municipality
(Upazilla): 500
BDT
Section
132
Section
133
TDS from the Shipping Business of a Resident
5%, 3%
Yes
Earlier Section: 53AA
TDS on Sales by Public Auction
10% or 1%
Yes
Earlier Section: 53C
New Section
Proceeds through
Banking Channel
Section
134
TDS from Transfer of Share of Private Limited
Company
15% on Face Value
or Fair Value
Yes
Proper Disclosure in
Return
Fair Value based on
Valuation Report
24
Section
135
TDS from Collection from Transfer of Securities
5%
Yes
Earlier Section: 53M
Section
136
TDS from Collection from Transfer of Share of
Shareholder of Stock Exchanges
15%
Yes
Earlier Section: 53N
Earlier Section: 53BBB
Section
137
TDS from Collection from Member of Stock
Exchanges
0.05% on
Transaction Value
Yes
Deleted: 10% on
Commission
New Condition
Section
138
TDS from Motor Vehicles Plying Commercially
Rate as per
No. of Seats,
AC/Non-AC,
Double Decker,
Cargo Truck, TaxiCab
Section
139
TDS from Operation of Marine Vessels
Rate as per Table
25
Earlier Section: 53Q
Yes
Yes
The new section will not
be applicable in case of
the owner of a vehicle is
War-Wounded Gazette
Freedom Fighter
Earlier Section: 53R
Other Provisions Related to TDS
Deletion of
Existing TDS
Sections
50% Higher
TDS Rate in
case of No PSR
& No Bank
Transfer
Section 52O: Collection of tax from a foreign technician
serving in the diamond-cutting industry
Section 53CCC: Deduction or Collection of tax at source from
courier business of a non-resident
As per section 142, the TDS rate will be 50% Higher in case
of Proof of Submission of Return - PSR (other than payment
to a non-resident) and Transactions without Bank Transfer.
This provision applies to all TDS sections unless otherwise
provided therein. Earlier, it was for some specific heads.
Definition of Specified Person (Section 140)
→ Any Company, Firm, Association of Persons, Trust or Fund
→ Public-Private Partnership
→ Any Foreign Contractor, Foreign Enterprise, Association or Body Established
Outside Bangladesh
→ Any Hospital, Clinic or Diagnostic Center
→ Any E-commerce Platform, not being any other specified Person called by
whatever name, having an Annual Turnover exceeding BDT 1 Crore
→ Hotel, Community Center, Transport Agency having an Annual Turnover
exceeding Tk. 1 Crore
→ Any person, not a Farmer, engaged in the Production and Supply of Tobacco
Leaves, Cigarettes, Bidi, Jorda, Gul, and Other Tobacco Products.
Return of Withholding Tax (Section 177)
Required to Submit by any Company other than the Local Authority, An Autonomous
Body, Any Authority of Government, Primary or Pre-primary School Teaching in
Bengali Language, Govt. Secondary or Higher Secondary, or Any Educational
Institution under MPO, Firm, Association of Person, Private Hospital, Clinic,
Diagnostic Center.
Deadline of Submission
→ Within the 15th day of every month
→ Time can be extended up to 15 days
Withholder Identification
Number (WIN)
Who is required to withhold tax needs to obtain WIN
under Section 263
26
Changes in Provisions of Minimum Tax
→ Deduction from payment to the Workers Profit Participation
Inclusion of →
New Heads
→
under
Minimum →
Tax
→
→
Deletion of
List of Final
Discharge
of Tax
Liabilities
→
→
→
→
→
→
Fund - WPPF [Section 88]
Deduction of tax from the Advertising Bill of Media
Broadcasting [Section 92]
Deduction of tax for rendering services from Convention Hall,
Conference Center, etc. [Section 110]
Deduction of tax from Freight Forward Agency Commission
[Section 113]
Deduction of tax from Dividends [Section 117]
Collection of tax from Lease of Property [Section 128]
TDS from compensation against acquisition of property
TDS from interest on saving instruments
TDS from export cash subsidy
TDS from interest on saving deposits and fixed deposit
Collection of tax on the transfer of property
TDS from any sum paidby the real estate developer to land
owner
Rates of Minimum Tax on Gross Receipts
Tax Payer
Minimum Tax Rate
on Gross Receipts
Manufacturer of Cigarettes, Bidi, Chewing Tobacco,
Smokeless Tobacco or Any Other Tobacco Products
3%
Mobile Phone Operator
2%
Individuals other than Individuals engaged in the
Manufacturing of Cigarettes, Bidi, Chewing Tobacco,
Smokeless Tobacco or Any Other Tobacco Products
Carbonated Beverage (Newly Classified)
0.25%
5%
Any Other Cases
0.6%
Turnover Limit
Assessee
Limit of Gross Receipt
Any Individual
Firm or AoP
Any Company
Minimum BDT 3 Crore
Minimum BDT 50 Lacs
No Limit
27
Changes in Provisions of Set off & Carry Forward
All the relevant sections from the ITO, 1984, have been
aggregated, and the provisions have been simplified.
Major
Changes
Business Loss will only be Set Off with Business Income
Earlier: As per the ITO, 1984, Business Loss was allowed to be
set off with any income from any other heads, except ‘Income
from House Property.’
Changes in the Provisions of Definition
References
The Income Tax Act, 2023
Section 2(22)
Assessee
Inclusion:
→ Against whom any proceeding under any provisions of the Act
has been drawn
Section 2(23)
Tax Day
Inclusion:
→ 90 days from the date of return to Bangladesh for any individual
who stays abroad for:
• Higher Education on Leave or Employment under Lien
• Earning Money with a Valid Visa or being Permit Holder
Section 2(26)
Tax
Exemption
As per the new definition, payment of tax at a reduced rate will
be considered as Tax Exemption.
Section 2(31)
Company
Mentioning of Various Entity:
Liaison Office, Representative Office, Branch Office, Permanent
Establishment of Foreign Entity/Individual, Local Authority,
Autonomous Body, Statutory Government Authority, NGO, Trade
Chamber, Academic Institution, Foundation.
Section 2(32)
Assessee in
Default
The Assessee in Default:
→ Any person who fails to pay any tax as per this Act
→ Any person is deemed an assessee in Default as per the
provisions of this Act
Trust means a trust established under the Trust Act, 1882, or the
Specific Relief Act, 1877.
Section 2 (38)
Trust
Provided that where a trust is established as a pre-condition for the
formation of a company/fund or for managing a company/fund,
such company/fund will be considered a taxable entity, not
the trust.
28
Section 2(40)
Demerger
Demerger means demerger as defined in the 8th Schedule.
Section 2(42)
Fund
Fund means any fund constituted or approved under any prevailing
law.
Section 2(91)
Local
Authority
Includes City Corporation, Zilla Parishad, Upazila Parishad,
Paurasabha and Union Parishad.
Section 2(45)
Resident
Changes:
→ 183 Days instead of 182 Days
→ Local Authority has been Deleted from the List
Section 2(45)
Fair Market
Value
A new rule regarding the determination of FMV will be required.
Section 2(49)
Goods
Goods means all kinds of tangible movable property other than
securities or money.
Section 2(69)
Person
Deletion:
Local Authority, Entity, Artificial Juridical Person
Section 2(70)
Business
Inclusion:
→ Exchange of goods or services by profitable/non-profitable
entity
→ Any profession or occupation
Inclusion:
Section 2(72) Payment of any fee, charge, or duty tax determined by Govt. or any
Bank Transfer authority of Govt. or any other payment to Govt. or any authority
of Govt. through Challan
→ Any item produced or manufactured.
→ Any item acquired or purchased for manufacturing, sale or
Section 2(73)
Inventory
exchange.
→ Any material or supplies used in the process of production or
manufacturing.
→ But the said definition does not include shares or stock.
Section 2(87)
Securities
Inclusion:
→ Govt. issued treasury bills, bonds, saving certificates,
debenture, sukuk or securities run on Islamic principles
→ Shares of stock, mortgage or charge issued by the company or
legal entity or instrument issued by way of hypothecation,
bonds, debentures, derivatives, mutual funds or alternative
investment funds including mutual investment scheme, Sukuk
29
or similar instruments issued based on Shariah and right of
purchase or warrant for acquiring aforesaid documents.
Provided that it does not include: currency or note, draft, cheque,
bill of exchange, bank acknowledgement receipt, trade
receivables or trade payables.
Repeal & Savings
The Income Tax Ordinance, 1984 (“The Repealed Ordinance”) will be repealed now,
as soon as the effectiveness of the Income Tax Act, 2023.
However,
→ Any rules made, order or instruction passed, notification or policy published,
notice issued, any legal instrument finalized under the said repealed Ordinance,
being in force immediately before the said repeal, shall, so far as they are
consistent with the provisions of this Act, continue to be in force until they are
repealed or amended under this Act.
→ Any case or legal proceedings pending at Court shall be settled so that the said
Ordinance has not been repealed.
30
Major Changes in Method of Accounting
Reference
The Income Tax Act, 2023
Section 72
(3)
NBR may, in the case of any business, or any class of business, or any
source of income, by notification or determine The Method or Other
Verification Criteria.
Section 73
Compulsion of Audited Financial Statement for New Entity:
→ Firm, association of person, fund having turnover more than
BDT 3 Crore.
→ Any person having income from long-term contracts.
Section 73
New Certifications required on the standards, prescribed by NBR from
time to time, are to be followed.
Section 74
The percentage of completion method will be applied per the relevant
IFRS for Long-term construction contracts.
Changes in Tax Exemption
Particulars of the Income Tax Ordinance, 1984
Para-8
Para-5
Para11A
Para-22A
Para-24
Reference of
the Income
Tax Act 2023
Any special allowance, benefit or perquisite
specifically granted to meet expense wholly and
necessarily incurred in performing the duties of an
office or employment of profit.
Fully Deleted
Any pension due to or received by the assessee from
the Government or approved by the pension fund.
Para-4 of the
6th Schedule
Part-1
Any sum or aggregate of the sum received as a dividend
by a person being an individual from a company or
companies listed to any stock exchange in Bangladesh
up to BDT 50,000.
Fully Deleted
Income from a mutual fund or a unit fund up to BDT
25,000.
Any interest classifiable under the head “Interest on
Securities” receivable by an assessee on any security of
the Government, which is issued with the condition that
the interest thereon shall not be liable on tax.
31
Fully Deleted
Fully Deleted
Any income received by an assessee from wage earners
development bond, US dollar premium bond, US dollar
Para-24A investment bond, Euro premium bond, Euro investment
bond, Pound sterling investment bond or pound sterling
premium bond.
Fully Deleted
Para-25
Any sum representing interest credited on the
accumulated balance of an employee in a recognized Fully Deleted
provident fund, in so far as it does not exceed one-third but Included in
of the salary of the employee for the year concerned Para 5 of 2nd
and in so far as it is allowed at a rate not exceeding such
Schedule
rate as the Board may, by notification in the official
Part 3
Gazette, fix in this behalf.
Para-37
Income of any Private Agricultural College or Private
Agricultural University derived from Agricultural
Educational Activities.
Fully Deleted
Para-43
Any profits and gains under the head “Capital Gains”
arising from the transfer of stocks or shares of a public
company as defined in the Company Act, 1994, listed in
any stock exchange in Bangladesh of an assessee being
a non-resident subject to the condition that such assessee
is entitled to similar exemption in the country in which
he is a resident.
Fully Deleted
Income derived from Cinema Hall or Cineplex
Income derived from industrial undertaking engaged
in the Production of Rice Bran Oil
Income derived from the production of Corn/Maize or
Sugar Beet
Fully Deleted
Para-49
Income of an assessee donated in an income year by a
crossed cheque or bank transfer to any girls’ school or
girls’ college approved by the Ministry of Education of
the Government.
Fully Deleted
Para-50
Income of an assessee donated in an income year by a
crossed cheque or bank transfer to any Technical and
Vocational Training Institute approved by the Ministry
of Education of the Government.
Fully Deleted
Not Any
Income of any inter-government organization or any
international organization, of which income is
exempted from income tax under any law made by
parliament or any treaty signed by the Government, or
any of its employees.
Para-01
Para-44
Para-45
Para-46
32
Income of Followings Recognized by BSEC:
Para-54 Mutual Fund
Amended Alternative Investment Fund
Real Estate Investment Trust Exchange Traded Fund
Not Any
Cost of Employee Reimbursement by Employer:
Such cost is wholly and necessarily incurred in the
performance of the duties of an employee.
Para-10
Para-14
Such expenditure incurred by the employee is
profitable for the employer.
Any income not exceeding BDT 2 Lacs chargeable
under the head ‘Agricultural Income’ of the individual
Para-29
assessee, who is a farmer by profession, has income
Amended
from only cultivation of land and interest income not
exceeding BDT 20,000 in an income year.
Para-20
Lower of 4,50,000 BDT or 1/3rd of assessed income
under the head income from employment.
Para-27
Not Any
Changes in Depreciation & Amortization (3rd Schedule)
Reference
The Income Tax Act, 2023
The ITO,
1984
Part-1
Para 2
Depreciation under this para will not be allowed unless
the claim of use of the said asset for business purposes is
reflected in the assessee's return
Not Any
Part-1
Para 3
Bar of Cost of Motor Vehicle: BDT 30 Lacs instead of
BDT 25 Lacs
Para 6
(11) (a)
Part-2
Para-3
Research & Development Expenses:
Amortization@10%
Not Any
Part-2
Para-4
Bangladeshi-made Software: Amortization@20%
Rate
Change,
Previous
50%
Part-2
Para-5
Expenditure Disallowed considering Capital Expenditure:
Amortization@10%
Not Any
33
Changes in Return, Statements, Audit & Assessment
References
Section 165
The Income Tax Act, 2023
Return Includes:
→ Statement of all income
→ Statement of all assets and liabilities in Bangladesh and abroad
→ Statement of expenses relating to lifestyle, if applicable
Submission of Return:
Section 166
→ Any person eligible to be registered as a taxpayer under Section
261
→ Public employee (Basic Salary BDT 16,000)
→ Membership of a club registered under VAT law
→ An institution or a fund subject to exemption/reduced rate, not
established solely for a charitable purpose
Submission of Return Not Obligatory for:
Section 166
→ Any person eligible to be registered as a Taxpayer under Section
261
→ Primary/Pre-primary/Government Secondary or Higher
Secondary School providing Tuition in the Bengali language
→ Bangladesh Bank
→ Local Authority
→ Statutory Government Authority/Autonomous Body having no
income except Government Funds and Interest.
→ Entity established/formed by/under any law having no income
except Government Funds and Interest
→ Government Provident and Pension Fund
Statement of Asset and Liabilities & Rule for Return Submission
References
The Income Tax Act, 2023
Section 167
Submission of Assets and Liabilities Statement:
→ Own any asset abroad at any time in the income year
→ Travels abroad personally other than for medical or religious
purposes in the income year [Proposed in Bill]
→ Becomes shareholder director of a company
34
Section 168
Statement of Expenses Relating to the Lifestyle:
→ Total income exceeds BDT 5 Lacs
→ Owns a motor car in the income year
→ Having income from business
→ Investments in a house property or an apartment in the city
corporation area
Section 169
General Rules for Submission of Return:
→ Company or person receiving income from the execution of
long-term contracts
→ Enclose with the return is the evidence of compliance with the
standards prescribed by NBR for verification
Return After Tax Day & Delay Interest
References
The Income Tax Act, 2023
Obligation to Submit Return under Self-Assessment:
Persons under compulsion to submit a return as per section 166
Section 170
Section 174
Normal returns may be submitted by a company or a person leaving
Bangladesh except One Person's Company, Bank, Insurance, and
Financial Institutions. Normal return refers to a return submitted for tax
assessment under Section 183 or 184.
Computation of Tax for Submission of Return after Tax Day:
→ Ga = Ka × (1 + 0.04 × Kha), here delay interest 4% per month
(2% Per Month)
→ Ka = Tax Payable on Tax Day (includes minimum tax, surcharge,
and simple interest, but excludes penalty/other tax) + tax computed
at the regular rate on exempted income (includes Reduced Rate)
→ Kha = Number of Months not exceeding 24 after Tax Day
→ Fraction of a month be considered one month
35
Revised Return on Incomplete Return
References
The Income Tax Act, 2023
The ITO,
1984
Submission of Revised Return in the Case of Normal
Return:
Section 175 Minimum 6 months before the date of assessment order
or before the date of 1st hearing – whichever occurs first
(at any time before the assessment is made)
Section 78
Consequence of Submission of Incomplete Return:
→ Considering return or revised return as incomplete
if Section 169 or guideline of NBR is not followed
→ Sending notice by Deputy Commissioner of Tax for
submission of information/documents
Section 176
→ For failure to follow notice, considering
return/revised return cancelled or void as if it was
not submitted
→ For acknowledgement receipt, the return will not be
considered complete
Not Any
Self-Assessment
References
The Income Tax Act, 2023
The ITO,
1984
Self-Assessment:
→ Considering return as normal for non-compliance
Section 180
with Section 169
→ No revised return again after 1st time submission of
the revised return
Not Any
Initial Capital:
No question as to the source of the initial business capital
of a new individual assessee if –
→ Income is shown under such head, which is not tax
exempted
Section 180
→ Submission of evidence as to the existence of shown
business
→ Mentions in writing that the return is not a previous
return (this return falls under a specific sub-section)
82BB (11)
36
Audit
References
Section 182
Earlier:
82BB (7)
The Income Tax Act, 2023
→ Sending Draft Audit Report by the audit team to assessee and
obtaining Written Explanation from Him.
→ Submission of Audit Report by audit team to audit curator
within 300 Days from submission of inquiry report.
→ Requesting Commissioner by audit curator for Completion of
Audit within 7 Working Days of Submission of Audit Report,
where –
• return reflects all information and
• there is no scope for claiming additional tax from
assessee
→ Permitting Deputy Commissioner of Tax by audit curator for
Completion of Audit Functions within 7 Working Days of
Submission of Audit Report, where –
• return does not reflect all information and
• any other proceedings should be initiated against
assessee
→ Providing Decision by Commissioner within Working 7 Days
of Receiving Recommendation from Audit Curator.
→ Within 7 working days of receiving permission from the audit
curator, send the audit report by the DCT to assessee and notice to
submit a revised return reflecting audit finding and to make tax
payments.
→ Acceptance of revised return that reflects audit finding and fulfils
other conditions and sending a letter to assessee informing him
about completion of audit.
→ No tax determination under section 183 or 184, as the case may
be, if:
• Inquiry and audit are not completed
• Assessee is not informed of audit report
• Revised return is submitted
• Audit findings are reflected in revised return
• Makes payment of tax on the basis of audit result
→ No selection of return for audit before completion of 60 days from
submission of return; Completion of all processes and
proceedings within 24 months of issuance of notice by the DCT
to assessee.
37
Assessment
Reference
The Income Tax Act, 2023
The ITO,
1984
Tax Determination on The Basis of Return:
Section
183
→ DCT will specifically mention issues of hearing and
consequences of failure to comply with those in the
notice.
→ DCT shall not disallow any expense claimed by the
assessee without giving him an opportunity of being
heard.
Not Any
Section
184
Best Judgment Assessment:
→ Reflection of the basis of best judgement assessment
in assessment order passed by DCT (showing lack of
proper evaluation of legal and factual aspects which
has resulted in an arbitrary and injudicious
assessment was construed as misconduct).
Section 84
Section
195
Spot Assessment:
→ No question as to the initial business capital not
exceeding 5 times such assessed income.
Section 82
(D)
Section
197
Limitation for Assessment:
→ Where the return is not filed on or before Tax Day,
within 1 year from the end of the assessment year in
which it was first assessable.
Section 94
Section
212
Tax Escaping Payment:
→ Where the asset was acquired before 6th Accounting
Year, the asset shall be deemed to have been acquired
in the 6th Accounting Year.
Section 93
Authorized Representative for Appearance:
Section
327
→ Each tax lawyer shall be registered with a tax lawyer
association (Lawyer, CA, CMA, CS).
→ NBR shall grant Registration to Tax Layer
Association.
38
Not Any
Changes in Proof of Submission of Return (PSR)
Reference
Section
264
Earlier:
184A
The Income Tax Act, 2023
Obligation to Provide Proof of Submission of Return (PSR):
→ Applying for a loan exceeding BDT 20 Lacs (BDT 5 Lacs from
a bank or a financial institution) subject to no taxable income
→ License under Hindu Marriage Registration Act, 2012, and
Special Marriage Act, 1872
→ Opening & Continuing Term Deposit exceeding BDT 10 Lacs.
→ Receipt of salary and allowances by the public employee
(drawing a basic salary of BDT 16,000 or more)
→ Receiving any supply of goods or services by any company or
firm
→ House owner, when renting or leasing the house in the city
corporation area by any specified person
→ Supplier or service provider when accepting the supply of goods
or services by any specified person
→ Registration, license or enlistment of the vendor of the stamp,
court fee and curtis paper or deed writer
→ Bank account opening and maintenance by trust, fund,
foundation, NGO, microcredit organization, society and
cooperative society
Changes in Penalty
Reference
Section
266
The Income Tax Act, 2023
Penalty for Failure to Issue TDS Certificate: Maximum
BDT 5,000 or, in case of continuing default, a further
penalty of BDT 1,000 per month.
The ITO,
1984
Section
124
Penalty for Failure to Furnish Information:
BDT 50,000 instead of BDT 25,000
Section
272
Penalty for Concealment of Income (A+B):
Section
128
A= 15% of Tax Avoided
B= 10% of Tax Avoided × Year [15%]
39
Section
270
Penalty for Non-Compliance with Notice:
Non-compliance with the notice issued for the Process of
Return.
Section
126
Miscellaneous
Income from Rent
Reference
The Income Tax Act, 2023
Section 35
If the property is owned by more than one person and the
respective share is not definite, such persons will be
considered Acquirers of the Property.
Section
38 (GHA)
Deductions for expenditures as regards repairs, Collection
of rent, water & sewerage, electricity, maintenance and
various basic services:
→ For House Property Used for Commercial
Purposes: 30%
→ For House Property Used for Non-Commercial
Purposes: 25%
→ For Other Property (Where Applicable): 10%
The ITO,
1984
Section
24 (2)
Section
25(1)(h)
Provided that where the tenant pays service charge for the
expenditures mentioned above apart from rental payment,
the above deduction will not be applicable.
Section
39
No deduction shall be allowed in respect of any
expenditure on which tax has not been deducted or
collected, where applicable, or duly deposited in
government treasury (interest or annual charge payable
outside Bangladesh).
40
Section
25(2)
Registration and Cancellation
Reference
Section
261
The Income Tax Act, 2023
The ITO,
1984
Registration as a Taxpayer is Required for a Person:
• Who is a taxpayer?
• Who is obligated to submit a return u/s 166?
• Who is obligated to provide the PSR u/s 264?
• Who is willing to pay tax or submit a return?
Not Any
→ NBR will assign a TIN to a registered taxpayer.
→ If a registered taxpayer fails to obtain a TIN, the
appropriate income tax authority may assign a TIN
to him.
Application for Cancellation of Registration of
Taxpayer: Who is not eligible to support PSR and,
→ is not defined as taxpayer Under Section 2(22)
→ having no taxable income for the last 3 consecutive
years
→ is not required to submit a return under Section 166
→ having taxable income nil in the future due to
physical incapacity or any other reasons
Application for Cancellation of Registration of
Taxpayer:
Section
262
→ Ceased to exist due to death, dissolution or any such
reason
→ Leaving Bangladesh permanently and won’t be
engaged in any earning activities in Bangladesh
→ Obtained duplicate or wrong Registration
→ Changing legal status
→ Showing any other legal reasons
Before Cancellation of Registration, Tax Authority will
Make Sure:
→
→
→
→
Taxpayer does not have any outstanding dues
There is no pending assessment against him
There is no unresolved tax dispute at any forum
Reasons mentioned by the taxpayer are true
41
Not Any
NBR may Cancel Registration If:
→ Taxpayer does not have a real or legal source of
income
→ Registration was taken for financial crime or money
laundering
→ Information provided in the process of Registration
is wrong and untrue
→ NBR may Cancel Registration if:
Electronic Tax Management
Reference
The Income Tax Act, 2023
The ITO,
1984
Section
197
Electronic Tax Management:
→ Notice, order, certificate, acknowledgement receipt,
etc., may be sent from a specified computer/electronic
system approved by NBR
→ NBR may order for ensuring appearance before
income tax authority or taxes appellate tribunal
through electronic media
Not Any
Section
341
Power to Amend Schedule of the ITA, 2023:
NBR may, by notification in the government gazette,
amend any schedule of the ITA, 2023 (6th schedule)
Section
44(4)
Provided that any tax cannot be imposed or rate of tax cannot
be imposed by such amendment.
Collection of Information
Reference
Section
198
The Income Tax Act, 2023
Income Tax Investigation Authority: DG (Inspection), DG (CIC),
Tax Commissioner, Income Tax Authority empowered by NBR or Tax
Commissioner
Income-Related Records: Any books of accounts, documents,
electronic records and system
42
Inquiring Source of Income:
Section
203
If the income tax authority considers it necessary for incomplete
searching or investigation –
→ Inquiry of information related to the source of income
→ Collection of copies of information and record
→ Compulsion to provide a copy of information and record
General Provisions Relating to the Prevention of Tax Evasions
Reference
The Income Tax Act, 2023
The ITO,
1984
Section
231
Adjustment of Tax Benefits: For obtaining a tax
advantage by abusing tax arrangements, DCT may make
necessary adjustments following the specified
methodology.
Adjustment
includes
Income
enhancement, Correction of tax liability, Adjustment of
tax refund, Correction of allowances and rebates.
Not Any
Method of Adjustment:
Notice issued by the Deputy Commissioner of Tax will
include the following:
→ Tax benefit by abusing tax arrangement, the
purpose of adjustment, desirous steps, etc.
Section
232
→ Hearing date for appearance Documents, statement
and information for submission
→ Assessee shall be given an opportunity of being
heard
→ Assess will be allowed 30 days from the date of
intimation of the issued notice of hearing till the
date of hearing
→ DCT will issue an order for adjustment subject to
the prior approval of the Commissioner
→ Assessee will be communicated within 30 days of
the order
43
Not Any
Refund
Reference
The Income Tax Act, 2023
Section
225
Adjustment of Refund against tax payable under the
Section
226
Gift Tax Act, 1990
The Claim of Refund:
→ If the refundable amount is not transferred
electronically to the bank
→ account of the assessee, he can claim for Refund
in a prescribed manner
Corresponding E-mail: ishtiaq.aisdu@gmail.com
44
The ITO,
1984
Section 152
Not Any