Role of Income Tax

Role of income tax in the economic development of Bangladesh: A case study of Income Tax
Office, Zone-4, Chittagong.
Chapter: 1
Introduction
1.1 preludes:
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Tax is contribution exacted by the government. It is a non-penal but compulsory and

unrequited transfer of resources from the private to the public sector, levied on the
basis of predetermined criteria.
In a country like Bangladesh it is a major source of revenue for the government. In
Bangladesh the tax revenue for the government accounts for nearly 80 percent of the
total government revenue.
Income Tax is a tax on the income of a person. It is a direct tax and important for
various reasons such as a good source of revenue, a tool for minimizing inequality and
the like. In fact, among different type of taxes that a state levies on its inhabitants for
smooth sailing, income tax holds a potent position.
In the fiscal year 2014-15 the revenue from income tax was Tk. 55,088 core which was
39.16 percent of the total tax revenue. As per budget of the fiscal year 2015-16 income
tax revenue target account for Tk. 71,977 core which is 39.49 percent of total tax
revenue. So the first and foremost aim of income is to raise public revenue to meet the
over increasing public expenditure.
It is also mentionable that in the revenue budget of FY- 2014-15 the Tax- GDP ratio
was 9.29 and the same was 10.62 in the following year. The classical economic were in
view that the only objective of taxation was to raise government revenue. But with the
changes in circumstances and ideologies, the aim of taxes has also been changed.
These days apart from the object of raising the public revenue, taxes is levied to affect
consumption, production and distribution with a view to ensuring the social welfare
through the economic development of a country. It is of no question that income tax is
one of the most important sources of revenue for the government and being used as an
effective tool to reduce incompliance of income and to strengthen the overall economic
structure of Bangladesh.
1.1. (i) Taxation and its history
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Income tax is a tax on the income of a person .It is a direct tax and important for various reasons such
a good source of revenue, a tool for minimizing inequality and the like. In fact among different types
of taxes that a state levies on its inhabitants for smooth sailing, income tax holds a potent position. It
is an important source of revenue for the Government and being used as an effective tool to reduce
the inequalities of income.
Income tax ordinance 1984 that is currently in operation in Bangladesh does not directly define
income tax. However analysis of section16 of the ordinance provides some indication to this
end .It provides that income tax is one which is imposed, charged payable and collected in
relation to the income of a person for income year on the basis of tax rate of the assessment
year.
Peter Merchant Ltd. Vs Steady Ford

In this case it has been said that income tax in reality is a tax on the income
Patiwala State Bank (1941)

In this case the judge stated that income tax is a tax charged on a person. It is not an expense
against the income on which this tax is charged. Here person has widely been used to include
relevant entities too.
Taxation- one of the major sources of public revenue to meet a country's revenue and development
expenditures with a view to accomplishing some economic and social objectives, such as
redistribution of income, price stabilization and discouraging harmful consumption. It supplements
other sources of public finance such as issuance of currency notes and coins, charging for public
goods and services and borrowings. The term Tax has been derived from the French word Taxe
and etymologically, the Latin word Tax are is related to the term 'tax', which means 'tocharge'. Tax
is 'a contribution exacted by the state'. It is a non-penal but compulsory and unrequited transfer of
resources from the private to the public sector, levied based on predetermined criteria. According to
Article 152(1) of the Constitution of Bangladesh, taxation includes the imposition of any tax, rate,
duty or impost, whether general, local or special, and tax shall be construed accordingly. Rate is a
local tax imposed by local government on its residents or the property owners of the locality, a duty is
a tax levied on a commodity, and an impost is a tax imposed for an entry into a country. Under the
provision of article 83 of the Constitution, "no tax shall be levied or collected except by or under the
authority of an Act of Parliament". Bangladesh inherited a system of taxation from its past British and
Pakistani rulers. The system, however, developed based on generally accepted canons and there had
been efforts towards rationalizing the tax administration for optimizing revenue collection, reducing
tax evasion and preventing revenue leakage through system loss. Taxes include narcotics duty
(collected by the Department of Narcotics Control, Ministry of Home Affairs), land revenue
(administered by the Ministry of Land and collected at local Tahsil offices numbered on average, one
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in every two Union Parishads), non-judicial stamp (collected under the Ministry of Finance),
registration fee (collected by the Registration Directorate of the Ministry of Law, Justice and
Parliamentary Affairs) and motor vehicle tax (collected under the Ministry of Communication).
The tax structure in the country consists of both direct (income tax, gift tax, land development tax,
non-judicial stamp, registration, immovable property tax, etc) and indirect (customs duty, excise duty,
motor vehicle tax, narcotics and liquor duty, VAT, SD, foreign travel tax, TT, electricity duty,
advertisement tax, etc) taxes. The present land revenue system of Bangladesh has its base in the East
Bengal state acquisition and tenancy act 1950 which established a direct contract between the
taxpayer and the government. The most important tax on the value of transferred property is the non-
judicial stamp tax (levied under the Stamp Act 1899), which has been in existence since January
1899. Current rates of non-judicial stamp duty are provided in the First Schedule of the Finance Act
1998, ranging from Tk. 4 to Tk. 10,000 in case of absolute rate, or from 0.07% to 1.5% of the value
of consideration in case of advalorem rate. The judicial stamp tax is being levied under the Court Fees
Act 1870, although the levy of court fees originated in the introduction of the Bengal Regulation No.
38 of 1795.The first sales tax was introduced in the former Central Provinces of India in 1938. In
Bengal, sales tax was adopted in 1941. In 1948, sales tax was transferred as central tax under the
General Sales Tax Act of 1948. The Sales Tax Act 1951 came into force on 1 July 1951 by repealing
the Pakistan General Sales Tax Act of 1948.Until 1982, sales tax was being collected under the 1951
Act, which was replaced by the Sales Tax Ordinance 1982. The VAT law was promulgated by
repealing the Business. Income tax was first introduced in the subcontinent by the British in 1860 to
makeup the revenue deficit caused by the sepoy revolt, 1857. After independence of Bangladesh,
income tax was made effective under the Income Tax Act 1922 passed on the basis of the
recommendations of the All-India Income Tax Committee appointed in 1921. Currently, income tax
has been imposed under the Income Tax Ordinance 1984 (ITO) promulgated on the basis of
recommendations of the Final Report of the Taxation Enquiry Commission submitted in April 1979.
Income taxpayers (assesses) are classified as individuals, partnership firms, Hindu undivided
families (HUF), associations of persons (AOP), companies (publicly traded and private), local
authorities, and other artificial juridical persons. Tax rates and scope of taxable income differ based
on residential status of an assesses (resident or non-resident).From fiscal or assessment year, (AY)
2000-01, there is a filing threshold of annual total income of Tk. 100,000 applicable for individuals
(including non-resident Bangladeshis), partnership firms, HUF, AOP and assesses other than
companies and local authorities. In case an identity of this group has a total annual income less than
this level, he is not required to submit tax return but if someone's income is higher, he is to pay a
minimum tax of Tk. 1,000.Bangladesh inherited a system of taxation from its past British and
Pakistani rulers.
My study is based on the assumption that the data provided by the institution was biased free, precise,
and accurate that reflects the present condition of the individual tax assessment. The time period of
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the study is not sufficient enough to cover whole the matter and thus is may not reflect all the objects
under study. The present study is based on empirical as well as theoretical analysis. Collected data
and information were tabulated, processed and analyzed critically in order to make the report
informative
1.1. (ii) Income Tax at a Glance:

Among direct taxes, income tax is the main source of revenue. It is a progressive tax system. Income
tax is imposed on the basis of ability to pay. "The more a taxpayer earns the more he should pay''- is
the basic principle of charging income tax. It aims at ensuring equity and social justice. In Bangladesh
income tax is being administered under the tax legislations named as THE INCOME TAX
ORDINANCE, 1984 (XXXVI OF 1984) and INCOME TAX RULES, 1984.
1.1. (iii) Income Tax Authorities: (Section 3 of the Ordinance)
The National Board of Revenue;

Chief Commissioner of Taxes;
Directors-General of Inspection (Taxes);
Commissioner of Taxes (Appeals);
Commissioner of Taxes (Large Taxpayer Unit);
Director General (Training);
Director General, Central Intelligence Cell;
Commissioners of Taxes;
Additional Commissioners of Taxes (Appeal/Inspecting);
Joint Commissioners of Taxes (Appeal/Inspecting );
Deputy Commissioners of Taxes;
Tax recovery officers;
Assistant Commissioners of Taxes;
Extra Assistant Commissioners of Taxes; and
Inspectors of Taxes.
A Brief overview on NBR &

1.1. (iv)
Income Taxes Zone-4, Chittagong
About National Board of Revenue (NBR):
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Background of NBR
The National Board of Revenue (NBR) is the central authority for tax administration in Bangladesh.
It was established by President's Order No. 76 of 1972.Administratively; it is under the Internal
Resources Division (IRD) of the Ministry of Finance (MoF). MoF has 3 Divisions, headed by 3
permanent Secretaries to the Government, namely, the Finance Division the Internal Resources
Division (IRD) and the Economic Relations Division (ERD). The Secretary, IRD is the ex-officio
Chairman of NBR. NBR is responsible for formulation and continuous re-appraisal of tax-policies
and tax-laws, negotiating tax treaties with foreign governments and participating igniter-ministerial
deliberations on economic issues having a bearing on fiscal policies and tax administration. The main
responsibility of NBR is to collect domestic revenue (primarily, ImportDuties and Taxes, VAT and
Income Tax) for the government. Other responsibilities include administration of all matters related to
taxes, duties and other tax producing fees. Under the overall control of IRD, NBR administers the
Excise, VAT, Customs and Income-Tax services consisting of 3434 officers of various grades and
10195supporting staff positions (Approved set up as on 09 Feb., 2000 AD).Negotiating tax treaties
with foreign governments and participating in inter-ministerial deliberations on economic issues
having a bearing on fiscal policies and tax administration are also NBR's responsibilities. The main
responsibility of NBR is to mobilize domestic resources through collection of import duties and taxes,
VAT and income tax for the government. Side by side with collection of taxes, facilitation of
international trade through quick clearance of import and export cargoes has also emerged as a key
role of NBR. Other responsibilities include administration of matters related to taxes, duties and other
revenue related fees/charges and prevention of smuggling. Under the overall control of IRD, NBR
administers the excise, VAT, customs and income-tax services consisting of 3434 officers of various
grades and 10195 supporting staff positions
Organogram of NBR:
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Overview of Income Tax Office, Zone-4, Chittagong:
In Chittagong, due to huge number of taxpayers NBR has created many zonal office and under each
zone there are many circles are included. Under the taxes zone 4, there are 22 circles are
included(from circle 67 to circle 88) .Before 2012 there were 3 zonal office in chittagong. In july
2012 taxes zone 4 started their journey. Now almost 70000 TIN holders are under this zone and
30000 tax payers are paying tax regularly. In this zone there are also some LTU(Larger Tax Unit) for
large tax payers. Each year, this zone has been achieving thier target vigorously.
National Board of Revenue will receive income tax return online soon. With the introduction of e-
governance at all levels of the administration will be closed a lot of irregularities ways & will be
easier to ensure transparency in all spheres. The current government, e-governance, e-commerce is
going to materialize the vision of Digital Bangladesh is working to meet the expectations, Chittagong
Regions 4, take this initiative. A taxpayer may be aware of their tax jurisdiction, to determine their
own income tax return. Taxes Zone-4, Chittagong aim is to become imbued with the spirit of Digital
Bangladesh Prime Minister wants to create such an environment, the economy, at different levels of
the taxpayers to pay income tax fluently. Tax collection will be increased as the distance between the
taxpayer and dependent on, the more will be covered by taxpayers and tax revenue collection, tolerant
and will develop a sense of responsibility
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Existing officer Income Taxes Zone-4, Chittagong:
SL NO Name Designation
Mr. Ahamad Ullaha Commissioner
Mr. Md. Mofiz Ullaha Additional Commissioner
Sraboni Chakma Joint Commissioner
Mr. Md. Masud Rana Joint Commissioner
Mr. Ashish Kumar Sarkar Deputy Commissioner
Mr. Mir Rezonal Abed Deputy Commissioner
Mr. Ahasan Habib Asstt. Programmer
Mr. Tamij Uddin Ahamed Deputy Commissioner
Mr. A.K.M Ismail Hossain Extra Asstt. Commissioner
Mr. Mizanur Rahaman Extra Asstt. Commissioner
Mr. Mohammaf Shiful Islam Asstt. Commissioner
Mr. Harunur Rashid Deputy Commissioner
Mr. Murad Ahamed Deputy Commissioner
Mr. Zafrul Islam Asstt. Commissioner
Existing Income Tax Circle in Zone-4, Chittagong:

SL Circle Name Assigned Sector
Circle-67 Companies
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Circle-68 Companies
Circle-69 Companies
Circle-70 General
Circle-71 General
Circle-72 General
Circle-73 Companies
Circle-74 Companies
Circle-75 General
Circle-76 Salary
Circle-77 General
Circle-78 General
Circle-79 Companies
Circle-80 Salary
Circle-81 General
Circle-82 General
Circle-83 General
Circle-84 General
Circle-85 Salary
Circle-86 RumaliChara, Coxs Bazar
Circle-87 Taknaf
Circle-88 Chakoria
Income Under Taxes Zone-4,chittagong

Assessment year Total amount of taka(at
core)
2013-14 525.41
2014-15 626.70
2015-16 740
2016-17 476(Upto January,2017)
1.2 Statement of the problems:
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In Bangladesh the tax revenue for the government accounts for nearly 80 percent of
the total government revenue. Income tax plays a vital role for the economic
development of the country.
Tax evasion and avoidance are both phenomena that are probably as old as taxation
itself. Wherever and whenever authorities decide to levy taxes, individuals and firms
try to avoid paying them. The five year plans of the Government of the Peoples
Republic of Bangladesh (As for example The First Five Years Plan of Bangladesh,
1973) have indicated that a sizeable number of persons especially the businessmen
evade & avoid taxes. As a result, the yield of income tax is very low in Bangladesh as a
percentage of Gross Domestic Product (GDP). The statement of the problem is to
define how income tax plays important role in economic development .why economic
development is impossible without income tax. Income Tax collection procedure and
income tax collection of taxes zone-4, Chittagong Office. To identify the tax target and
actual collection .Facing problems in achieving target. Plan of taxes zone-4, Chittagong
Office how to fulfill the target. Determine audit objections, number of objection and
way to solve the problem of audit objection in taxes zone-4 Chittagong office.
1.3 Objectives of the Study:
The main objective of the study is to critically analyze the Role of income tax in the economic
development of Bangladesh: A case study of Income Tax Office, Zone-4, Chittagong. To achieve
the main objective, the study highlights the following specific objectives:
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The main objective of the report is to get lucid ideas about the income tax law and the calculation
process. The objectives of the report can be viewed two ways:
General Objective
Specific Objective
General objective:
The general objective is to understand different aspect of income tax law and return calculation.
Specific Objective:
To have a clear knowledge about income tax
To know how to prepare an individual return file.
To aware people about income tax laws
To know about the taxable income from different income source
To know whole calculation process while preparing the individual assessment return file
To know about the target and achievement from direct tax by NBR.
To know about some changes on rules and rates relating to income tax
Tax collection procedure
Tax target and actual collection
Problems faced in achieving target
Plan of fulfilling target
Audit objection, numbers and problem solution
To know the Modern Management System of Income Tax.
To know how to simplify current tax code because previous code is too complex
To examine the Strength of Legal Wings of Income Tax
To know how to improve Taxpayers Service and Enforcement for Better Compliance
1.4 Limitations of the study:
It was an amazing part of our entire educational life to have internship with an
organization to gather practical experience which we have not seen before. I tried with
all my efforts to properly understand the internship meaningful. Although I have to
admit that there were some barriers. There are some limitations in an every study, I
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also faced some limitations or obstacles in the way of completed my internship report.
The limitations of this study are:
All the time of preparing my report I tried to gather every details of process but
the
major limitation is lack of adequate information.
Sufficient records, publications were not available as per my requirement.
Although Officers have tried their best to help me, their nature of job is such
that gives
them little time to discuss. Such a study was carried out by me for the first
time. So, inexperience is one of the main
The main constraint of the study is inadequate access to information.
The employees did not disclose much information for the sake of the
confidentiality of NBR.
Limitation of time was a major constraint in making a complete study.
As a student, in the research field, I have no past practical experience of data
collection, data processing, data analyzing, integrating and presenting. So it is
a limiting factor for obtain accurate information.
I dont have much financial support to conduct this study. I could not interview
with more respondents covering the survey area.
Chapter 2
Methodology of the
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Concept Of Income Tax
2.1 Definition of concepts and assumptions
Concept Of Income Tax
There is no single definition in tax law of income. Income tax law divides various types of income
into schedules. If an item comes within a schedule it counts as income and income tax must be paid
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on it. The way the tax must be paid will depend on which schedule it falls into. The most common
schedules are Schedule E for employees and Schedule D for the self-employed. So tax is to be paid
by them whose/who have income over the limit of stated level by the authority time.
Income tax is the government Imposed tax on the financial income by all entities in their jurisdiction.
According to law both business and individuals must file an income tax return to determine whether
they are eligible for tax payment or refund. Income tax is an important source of funds for a
government.
In everywhere of the world tax is a common factor for the people to the Govt. by which Govt.
maintain the Infrastructure development, National security, Social security, Education,
Administrational expenses of the state.
What is an Income Tax Return?
Income tax return is a form which is used by a tax payer to represent his or her annual income
summary to the income tax authority. The structure of an income tax return form is developed on the
basis of income tax ordinance. Every tax payer has to submit his or her tax return on every year
according to the income tax ordinance to the revenue board.
Individual Income tax return means submission of return of annual income in the prescribed form to
the Deputy Commissioner of Taxes (DCT) of respective individual taxpayers circle of NBR by a
person. An individual tax payer can easily collect a income tax return form in online and offline.This
tax return form can be filled by the tax payer or an income tax practitioner. A return from can be
collected from any income tax office. A tax payer can collect a return from throughout year from any
income tax office. They can also download a form the revenue board website www.nrb.gov.bd.
Who should submit Income Tax Return?
If total income of any individual other than female taxpayers, senior male taxpayers of 65
years and above, retarded taxpayers and war wounded gazette freedom fighter during the
income year exceeds Tk 2,20,000/-.
If total income of any female taxpayer, senior male taxpayer of 65 years and above during the
income year exceeds Tk 2, 75,000/-.
If total income of any retarded taxpayer during the income year exceeds TK. 3, 50,000.
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If total income of any gazette war-wounded freedom fighter taxpayer during the income year
exceeds Tk. 4, 00.000/-.
If any person was assessed for tax during any of the 3 years immediately preceding the
income year.
A person who lives in any city corporation/paurashava/divisional HQ/district HQ and owns

motor car/owns membership of a club registered under VAT Law.
If any person runs a business or profession having trade license and operates a bank account.
Any professional registered as a doctor, lawyer, income tax practitioner, Chartered

Accountant, Cost & Management Accountant, Engineer, Architect and Surveyor etc. Member
of a Chamber of Commerce and Industries or a trade Association. Any person who
participates in a tender.
Candidate for Paurashava, City Corporation or Parliament elections. Any company registered
under the Company Act, 1913 or 1994.
Anyone-government organization (NGO) registered with NGO Affairs Bureau.
When a Return should be submitted
Every tax payer apart from company will have to submit their return every year starting from July
1stto September 30th. If a tax payer fails to submit his or her return within this time they can increase
the time by submitting an application to the tax commissioner with valid reason. If time extension is
granted the can submit their return under general or universal self format
Where to Submit a Return

A circle is appointed for each and every tax payer; they have to submit their tax return to their
appointed circle. Tax circle is appointed when a tax payer collects their Etin, tax payers can also
learn about their tax circle from their nearest income tax office.
What Is an Etin & How to Collect an Etin?

Etin is a unique number generated to recognize each and every tax payer individually. Tax payers
have to collect their Etin by registering. They can go to www.incometax.gov.bd and the Etin
registration form to collect their unique Etin Number. To register a person has to have his or her NID
or Passport.
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Penalties for not Submitting a Return Form
If a tax payer does not submit his or her return he can be penalized. According to the law if a tax
payer fails to submit their tax return he or she can be fined at a minimum of 10% on their income or
100/ taka at a time and also additional 50/ taka for every passing day. According to the new law a
tax payer can be finned a maximum of 50% of his income or 1000/ taka whichever is higher. For a
new tax payer failing to submit his or her return will result of being a finned up to 5000/ taka
Parts of an Income Tax Return
There are two types of return form one for individual tax payers and other one is for companies only.
Individual return form:
IT11GA: this from is available both in English and Bengali. Every tax payer has to fill up this from.
IT11UMA: This part of the return form has to be filled by the tax payers with salary income.
IT11CHA: Tax Payers involved with any Sort of business with an income not over 300000/ taka
will fill up this part of the form.
IT11GAGA: This part of the return is only specified for doctor, lawyer and business under spot
assessment. Doctors, lawyers who have experience over 10 years and business which have a
maximum capital over 15 lac taka will be allowed to use spot assessment.
IT11GHA: This form is used for companies only.
How to Submit a Return
Nowadays there are two ways to submit a return form 1/ General way 2/ Universal self.
Both of the ways are described below:
General Way:
If a return is submitted without mentioning universal self then it is considered to be submitted in the
general way. Here if a tax payer is not able to provide necessary documents to support his or her
income they can solve the case before the court hearing
.
Universal Self:
Here a tax payer calculates his or her own income and pays his or her tax. It is a world famous way of
return submission. If tax payer submits his or her return the tax authority has to accept it no questions
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ask. Then the tax commissioner appoints a person to verify the tax payers income and all the
supporting documents provided. If a return is submitted with universal self being mentioned then it is
considered to be submitted under universal self. According to the law of 2015 under section 82BB a
commissioner can process the returns submitted under universal self to find for faults or any chance
of less tax being paid, he has the power to send the return to audit. Tax commissioner can also force
the returns to audit if the return does not show 20% increases in income from the previous or it is not
able to fulfill the conditions given below:
The return will not generate refundable tax.
It will not show any kinds of financial help being taken.
It was to provide necessary documents nontaxable income shown in the return
According to the income tax ordinance of 1984 and section 44 any kind of income that
reduces tax cannot be shown.
Loan taken from bank or any financial institution if the amount is more then 500000/ taka
then all to the supporting documents has to be submitted.
According to section 82BB people are allowed to use 4 times the amount of their income for
business capital however this money has to stay like this for 5 years.
It is also need to be said according to section 93 of income tax ordinance if the tax payer is
found to pay less tax then necessary steps can be taken
The Supporting Documents needed to be provided

with an Income Tax Return:
Tax payers have to provide different supporting documents according to their income source. It is
discussed briefly below:
Salary Sector:
i. Salary Certificate.
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ii. Bank statement and income from interest related bank statement.
iii. Life insurance, DPS statements.
Secured interest sector:
i. Photocopy of bonds
ii. If interest income is there then statements of those income
iii. Loan statements of the loan which is used to buy bonds.
Housingwealth sector:
i. Deeds and money receipts of Income from house rent.
ii. Receipts of city corporation tax, land revenue tax.
iii. If a building is bought or builds by taking loan from bank then bank statements
support the loan and the interest being paid.
iv. Insurance paper of the wealth if any.
Business sector:
The income statement and balance sheet has to be submitted.
Income from partnership income:

Income statement and balance sheet has to be submitted of the partnership income.
Capital Profit:
i. Deed of property sale.
ii. Challan or pay order copy the source tax paid.
iii. Statement of profit or loss gained from investing in the stock exchange.
Other sources:
i. Statements supporting cash profit gained.
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ii. Statements of saving certificate.
iii. Statements supporting interest income.
iv. Other income sources statements.
Tax Payments:
i. Challan or pay order copy supporting tax payment. Up to 10000/ taka of tax can be
paid by challan if the amount is more than that then it should be paid by pay order/
bank draft.
If tax is charged from any other income then supporting paper of the source.
How to Fill up a Income Tax Return
For a new tax payer he or she has to submit a passport size picture with the return then the tax payer
has to collect his Etin number. After this the picture has to attested by a first gadget officer. A tax
payer has to submit his or her picture after every five years. Tax payer has to select the return
submission way by marking general way or universal self. Then the tax payer has to fill up the
personal information part. Name, fathers name, mothers name, Etin, Employment information,
address etc.
Assessment Year
Assessment year is the year after the year when a tax payers income is generated. For example a tax
paper is earning from 1 July 2015 to 30 June 2016 therefore the assessment year will be 20162017
.
How to Determine if the tax payer is Resident or Non
Resident
If a tax payer in one income year stays in Bangladesh for 182 day then he is considered resident and if
a person stays in Bangladesh for 90 day and spends 4 years abroad or at least spends 365 day in
abroad is considered nonresident. However employee working in a Bangladeshi mission or
Bangladeshi government institute situated in abroad will be considered as a resident.
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Individual Return
IT11GA is the return form used for individual tax payer. It is available in both English and Bengali
language. It is divided into eight pages. First page contains personal information of the tax payer,
second page contains details of different income sources, income tax details, third page contains
detailed salary income and income from house rent, forth page contains information about
investments and tax rebate information. Fifth and sixth page contains information about tax payers
wealth and liability information, seventh page contains information about expenditures for sustaining
life and the last page contains information about how to fill up a tax return form and return
acceptance slip.
How to Determine Taxable Income from Different

Income Source
According to the income tax ordinance 1984 section 21 and 1984 section 33 a service holders
taxable income consist of basic salary, festival bonus, conveyance allowance, overtime allowance,
special pay, Leave fare allowance, Provident fund, House rent allowance, medical allowance, Car
allowance Etc. however a government employee only has to pay to pay tax on basic salary, festival
bonus and other bonus. How fill up the schedule1 of the return from is explained below:
According to the current law taxable and nontaxable salary income is shown
( in taka):
Salary and allowance Monthly Annual Nontaxable Net Comment

income Income Income taxable
income

Basic Salary 30000/ 360000/ 360000/ Fully taxable

Special Pay 2000/ 24000/ 24000/ Fully taxable

Dearness allowance 6000/ 72000/ 72000/ Fully taxable
Conveyance allowance 5000/ 60000/ 30000/ 30000/ Upto
30000/ taka
nontaxable
annually/
House rent allowance 20000/ 240000/ 180000/ 60000/ 50% of basic
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salary Or
25000/ Per
month,
whichever is
less is non
taxable.
Medical Allowance 4000/ 48000/ 36000/ 12000/ 10% of basic
salary Or
120000/
annually,
whichever is
less.

Servant allowance 1500/ 18000/ 18000/ Fully taxable

Leave allowance 30000/ 30000/ 30000/ Fully taxable

Honorarium/Reward/Fee 50000/ 50000/ 50000/ Fully taxable

Overtime allowance 4000/ 48000/ 48000/ Fully taxable

Bonus/Entertainment 30000/ 30000/ 30000/ Fully taxable
allowance

Contributory provident 3000/ 36000/ 36000/ Fully taxable
Fund
CPF interest income 2500/ 30000/ 30000/ 1/3 of basic
salary Or
Government
fixed
14.50%
whichever is
less is nont

Deemed income from 60000/ If Employer
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transport facility provides Car

for Personal
income then
5% of Basic
salary Or
annually
60000/
whichever is
higher Is
taxable.

Deemed income from 90000/ 1.If
Free furnished/ Employer
unfurnished provides
accommodation housing
facilities
rent Free
then 25% of
basic Salary
will Be
Considered
as Taxable
income.
2. If
Employer
provides
housing
facilities On
a Reduced
rent Then
25% of basic
salary minus
the Rent
paid Is
Considered
as Taxable
income.

Others allowance Fully taxable

Leave cashd 60000/ 60000/ Fully taxable
Gratuatity 3.5 core 2.5 Core 1 core Amount
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over 2.5
core Is
taxable
Workers
participation According to
Fund Bangladesh
labor Law
2006 section
2(65) it Is
nontaxable.
How to determine taxable salary income for

government service holder:
According to SRO no 198law/income/2015 only basic salary, bonus, festival allowance of a

government employee will be considered a taxable income. Other allowances are non taxable
income.
Income from house rent:
a)According to income tax ordinance 1984 section 24 any income from house rent will have to be
shown in schedule 2. How fill up schedule 2 is given below:
Income form Details taka taka

houses Rent
1)Annual rent has to be shown if the house is
vacant then after showing house annual house rent
the rent amount of vacant time has to be shown in
the expenditure part.
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2)Expenditures
Repair(25% of rent)
Tax payment
Land revenue payment
Bank loan and interest
Insurence primium paid
vacancy rebate
others
Total expenditure
3)Net income(Section 1-2)
b) According to the revised SRO no216law/income/2014 if a tax payer have more than
one tenant and he earns up to 25000/ taka as rent then he has to open a bank account
and deposit the money there. If he or she fails to do that they will be fined least 5000/
taka or 50% of income tax paid.
c) A tax payers business related rent payment has to be paid through bank account or else
it will be considered as income and will have to pay tax for it.
Agriculture income:
According to the income tax ordinance there r two way to calculate taxable agriculture
income. The first way is if a person has land size of 2 acor and it produces 45 Mon agricultural
products. He or she sales it at a market price of 800/ taka per mon. therefore his or her taxable
income will be:
2 Acor*45 Mon*800/ = 72000/
taka.
Less: Production = 43200/
Cost 60% taka.
Net Agricultural = 28800/
income taka.
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According to the second process if agricultural income is the only source of income for a tax
payer then up to 200000/ taka of his or her income is nontaxable. Therefore taxable income for a tax
payer with only agricultural income as a income source will be:
Male tax payer of age below 65:

(250000 + 200000) = 450000/ taka.
Female or 65 or above male tax payer:
300000 + 200000) = 50000/ taka
For a physically challenged tax payer:
(375000 + 200000) = 575000/ taka.
For a freedom fighter:
(425000 + 200000) = 625000/ taka.
Business income:
Every tax payer involved in business will have to pay their tax according to their income statement.
They will also have to provide their income statement, profit loss statement and balance sheet with
the return form. They have to calculate net income by subtracting all business related expenditure
from gross profit. They cannot include any personal or other expenditure not related to business to
reduce tax. Any kind of capital expenditure con not be shown as expenditure to reduce tax as well.
Income from Farm:
If a tax payer is a member of a partnership farm his or her income from that farm will be taxable,
however he or she will get rebate at an average rate. For example Mr. x is 1/3 partner of a farm, his
profit from the farm is 95000/ taka. His income from other wealth is 415000/ taka. According to
201516 income tax rates his tax will be 16500/ but he will have pay:
(Total tax*Income from firm)/Total income =(16500*95000)/415000
Tax Rebate=3777 taka
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There tax payers net tax will be= (16500-3777)= 12723 taka
Income from Husband/wife or minor child:
If a tax payers husband/ wife or minor child is not registered for income tax return submission
however they are earning money from different wealth under their name, then the income generated
from the wealth will be taxable.
Income from capital assets:
Any capital asset for example land, building, apartment, share from listed company if sold and a
profit is generated from the sale will be considered as income and will be taxable. However the tax
paid by the tax payer during the registration of the sale of capital asset will be considered as the final
tax payment. Shareholders of companied listed in the stock exchange or mutual fund unit, directors
of listed companies earn also earn capital income which is also taxable income. Even if a shareholder
owning more than 10% share of paid up capital will have to pay tax if he or she sales those share.
Apart from the discussed shareholders others will not have to pay tax on income from share sale.
Other sources of income:
Apart from discussed income sources there are other income sources such as Profit from saving
certificate, lottery, rent from machinery, royalty, FDR & DPS profit etc. in case of Profit from FDR
and DPS source tax is deducted from the profit. The deducted source tax is considered as advance tax.
From the assessment year 20152016 tax paid from all sorts of saving certificate will be considered as
final tax payment from these sectors.
Methodology
2.2. (i) Sources of data:
The sources of primary and secondary data may be shown as under.

Primary Sources:
Practical Deskwork
Interview of the personnel
Observation in the organization
26 | P a g e
Face to face contact with the officials of Income Tax, Zone-4, Chittagong
Secondary Sources:
NBR website
Different publications of NBR
Annual Report of NBR
Past research books & journals.
2.2. (ii) Data collection instruments and plan
Heads of Income: (Section 20 of the Ordinance)
For the purpose of computation of total income and charging tax thereon, sources of income can be
classified into 7 categories, which are as follows :
Salaries.
Interest on securities.
Income from house property.
Agricultural Income.
Income from business or profession.
Capital gains.
Income from other sources.
Personal Taxation scenario of Bangladesh:
Income from salary
Income from Salary is the first one. Generally salary means periodical payment made for work
to an employee from an employer for the services rendered to him. Salary includes such as any pay or
wages; any annuity, pension or gratuity; any fees, commission, allowance, profits; any advance of
salary; any leave encashment.
Basic Salary:
Basic salary is the most important element of salary since some allowance and contribution to various
funds are determined on the basis of this. Even the yearly increment is also computed on the basis of
basic salary. Total amount of basic salary in a year is fully taxable.
Dearness Allowance:
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Dearness allowance is the most popular allowance being given to employees these days. It means the
payment made by the employer to the employee to cope with the higher cost of living, which in
general is certain percentage of the basic salary. The total amount of dearness allowance is taxable
and therefore included under the head of income from salary.
Bonus:
Its meant the payment of extra salary based on the basic salary or otherwise for festival like EID,
Christmas or rewards for good performance. The total amount of bonus is taxable and therefore
included under income salary.
Special Allowance:
Any special allowance, benefit of perquisite specifically granted to meet expenses wholly and
necessarily incurred in the performance of the duties of an office or employment of profit; are totally
exempt from tax.
Medical Allowance:
Where any amount is received or receivable by the employee by way of hospitalization, medical
expense or medical allowance, the amount if any so received exceeds 10% of the basic salary or
taka.120000 annually, whichever is less shall be included in his income.
House rent Allowance:
When house rent allowance is received in cash. Amount exceeding 50% of basic salary or TK 25000
per month whichever is lower, shall be added with salary.
Rent Free Accommodation:
When the employee is provided with rent free unfurnished accommodation, the rental value of the
accommodation or 25% of the basic salary, whichever is less, shall be added with salary income.
Accommodation at a Concession Rate:
28 | P a g e
when the accommodation is given by the employer at a concessional rate, the difference between the
rent actually paid by the employee and the amount determined using the above rule the rental value of
the accommodation or 25% of the basic salary, whichever is less will be added with the salary
income.
Entertainment Allowance:
This is an allowance given to the employee for entertaining customers or clientele of the employer.
The whole amount of entertainment allowance will be included under the head salary income and
there will be no exemption.
Conveyance facility:
When the conveyance facility is provided for partly or fully personal use of the employee higher
up60, 000 or 5% of the basic salary will be added with salary income.
Fees & commission:
Fees is an amount paid for services rendered, the payment of which is with reference to the work
performance and not with reference to any time factor. On the other hand commission is a payment
for transacting a business. Whatever the fee or commission is, if it is received from employer the
entire amount will be added with salary and will be taxable.
Annuity:
Annuity means a yearly allowance or yearly payment for a term of period or for life. The annuity
payable by employer or formal employer is chargeable under the head income from salary.
Employers contribution to Recognized Provident Fund:
In cast of a recognized provided fund an equal amount as contributed by the employee is also given
by the employer. Here only the employers contribution will be added with salary, not the employees
contribution.
Interest on Recognized Provident Fund:
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Interest on recognized provident fund is a taxable income to the employees and amount of interest
exceeding 14.5% or 1/3rd of basic salary will be added with salary.
Accumulated balance of unrecognized provident fund:
Amount received by the employee at the end of service will be added with salary to the extent of
employers contribution and interest thereof.
Special allowance:
If any employee receives any extra allowance for having any special competence, full amount will be
added.
Leave encashment:
If the employee gets any cash benefit for not taking the leave, it is known as leave encashment. The
amount is fully taxable.
Types of investment qualified for the tax rebate are
Life insurance premium up to 10% of the face value.

Investment in savings Certifies.
Employers & Employees Contribution to Recognized Provident Fund.
Self contribution and employers contribution to Recognized Provident Fund.
Contribution to Supper Annulations Fund.
Contribution up to TK 60,000 to deposit pension scheme sponsored by any
scheduled bank or a financial institution.
Investment in mutual funds approved debenture or debenture stock, Stocks or
Shares
Contribution to Benevolent Fund and Group Insurance premium
Contribution to Zakat Fund
Donation to charitable hospital approved by National Board of Revenue
Donation to philanthropic or educational institution approved by the
Government
30 | P a g e
Donation to socioeconomic or cultural development institution established in

Bangladesh by Aga Khan Development Network
Donation to ICDDRB,
Donation to philanthropic institution-CRP, Savar, Dhaka
Donation to Asiatic society of Bangladesh
Donation to Muktijudha Jadughar
Donation to National level institution set up in memory of liberation war;
Donation to National level institution set up in memory of Father of the Nation
Any investment by an individual in Bangladesh Government Treasury Bond;
Investment in purchase of one computer or one laptop by an individual assessee.
Income from interest security
Income from Interest on Securities is the second head of the computing the total income of an
assesses. Interest means the price that someone pays for the temporary use of someone else funds.
According to Section 2(38) - Interest means payable in any manner in respect of any money
borrowed or debt. Security as a document held by a creditor as guarantee of his right to payment.
Broad Sub-categories Basis of Chargeability

Categories
No TDS.
Tax-free government securities No Admissible Expense.
3.Fully exempted
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Government
Securities
1.TDS 5%
Grossing up is required if net
interest amount is given.
Less-tax No grossing up is required if
government investment / value of is given.
securities Admissible expenses are to be
deducted.
5.Fully taxable
1.TDS 5%
Commercial interest amount is given.
Securities Approved Debentures No grossing up is required if
investment / value of is given.
Admissible expenses are to be
deducted.
5.Fully taxable
1.TDS 5%
interest amount is given.
Unapproved No grossing up is required if
Debentures investment / value of is given.
Admissible expenses are to be
deducted.
5.Fully taxable
No TDS.
Zero Coupon No Admissible Expense.
Bond 3.Fully exempted
Income from house property
Income from house property is the 3rd head of income among the heads mentioned in annual
valve of property consisting of any building or lands thereof, of which the assess is the owner, is
chargeable to tax under this head of income after calming deduction under. Rental status of house
property such as -
Fully let out house property:
32 | P a g e
Annual Value in such a case refers to all reasonable income (municipal value) or the actual rental
income from the same property if reasonable income is less than actual rental income.
Partly let out house property:
Annual Value in such a case refers to all reasonable income (municipal value) or the actual rental
income from the let out part of the same property if reasonable income is less than actual rental
income.
Fully occupied let out house property by the owner:
Annual value in such a case is not needed not to be computed & considered as non- assessable
income according at the Income Tax Ordinance.
Admissible expenses of house property
Land development: Any sum payable to government as land development tax or rent on account
of the land comprise in the property.
Insurance premium: The amount of premium to insure the property against the damage.
Interest on mortgage loan: Where the property is subject to mortgage or other capital charge
for the purpose of expansion, improvement, the amount any interest payable to search mortgage for
charge.
Annual tax: When the property is subject to an annual charge include any tax income from property
by authority or government but does not include the tax leviable under this ordinance.
Ground rent: When the property is subject to a ground rent, the amount of such rent is an
admissible expense.
Vacancy allowance: When the property was a vacant during a part of the year, a sum equal to
such of the annual value of the property is admissible as vacancy allowance.
Repair & maintenance: Expenditures of repairs, collection of rent, water, electricity, security
guard, pump man and all other expenditure related to maintain and to provision of basic service,
admissible limited.
(i) An annual equal to 25 % of the annual of the value of the property if the property is let out for
residential purpose.
(ii) An annual equal to 30% of the annual of the value of the property if the property is let out for
commercial purpose.
33 | P a g e
Income from agriculture

Agriculture refers to the production of goods though the growing of plants, animal & others life
forms. Crops or trees of spontaneous growth in forests or any other places where there is no human
effort, is not considered as agriculture. Agricultural income can be classified into following three
categories-
Fully Agricultural Income: Any income derived from any land on the land in
Bangladesh use for agriculture purpose. Gain from the sales of the machinery of the plant use for the
agricultural purpose.
Partly Agricultural Income:

Following income is partly considered as agricultural income:
AI Bo Reference.
P
Income from Tea garden 60% 40 Sec 26(2), rule
% 31
Income from Rubber garden 60% 40 Sec 26(3), rule
% 32
Income from Tobacco/Sugar and other similar
Products industry:
Further processing is done by the assessee 60% 40 Sec 26(3), rule
% 31
No further processing and sole to others 100 0% Sec 26(3), rule
% 32
Other agricultural income

Income from cattle rearing
Income from sale of palm juice and date juice
Income from sale of seeds and grass, if grown by human effort
Income from agricultural cooperative society which was organized for farming and cattle
rearing
Income from land or assets used for processing the agricultural commodities to make them
marketable
Income from land leased for agricultural purpose
Income from any system of sharing of crop generally known as adhi, barga, or bhag.
Income from sale of herbal or medical plants
Income from cultivation of flower and fruits
34 | P a g e
Income from sale of honey if produced in agricultural land using special technologies like
special box for honey-comb.
Income from poultry farm if they are reared in agricultural land.
Income from ferry ghat, mooring terminal and fishing
Income from salt production by flooding the land with sea water and then extracting salt
therefore
Income from cutting and selling of timber on contract
Interest on arrear of rent for agricultural purpose
Income from letting out vacant land for mining, potteries, quarries etc
Sale of soil used for brick field
Income from sale of water used for irrigation
Income from sale of forest tree, flowers tree, and bamboo produced naturally without any
agricultural work
Sale of stone from quarries
Income from salary for working as an agricultural manager
Income from sale of crops which has been purchases from others for resale
Income from dairy firm established for business purpose
Income from poultry firm established separately for business purpose
Income from fisheries
Fish hunting, ship anchor etc
Income derived from butter and cheese making
Income received as commission for working as middle man in argon products
Interest received by an assessee against loan in the form of agricultural produce
Dividend paid by a company out of its agricultural income
SOME OTHER NON-AGRICULTURAL INCOME
Income under Capital Gain
The income the head Capital Gains shall be computed after making the following deduction from
the full value of the consideration received or accruing from the transfers of the capital asset or the
fair market value thereof.
Any expenditure incurred solely in connection with the transfer of the capital asset such
advertisement, brokerage, stamp duty, registration fees, legal expenses.
The cost of acquisition of the capital asset & any capital expenditure incurred for any improvements
thereof but excluding any expenditure in respect of which any allowance is admissible under any
provisions of section - deduction from interest on security, deduction from income from business or
profession, deductions from income from other sources.
35 | P a g e
Any income under the head Capital Gain shall be taxed at the rate as specified
Tax payable on the total income excluding capital gains as per applicable rate.
Tax at the rate of 15% on the whole amount of such capital gains.
On disposal of capital assets within 5 years of acquisition, the amount of capital gain will be included
with total income and taxed accordingly at regular rate.
On disposal of capital assets after 5 years of acquisition, tax payable on the capital gains at the rate
applicable to his total income including the said capital gains or tax at the rate of 15% on the capital
gains, whichever is lower.
Capital gain arising from the transfers of capital asset used for the
purpose of business:
It is used fully or in part to purchase a new capital asset within a period of one year before or after
the date of transfer.
Capital gains arising from the transfer of government securities:
If Capital gains arising from the transfer of capital assets being government securities in Bangladesh.
Capital gains arising from the transfer of capital being building or land
to a new company:
It for setting up of an industry, & if the whole amount of capital gain is invested in the equity of the
said company.
Capital gains arising from the transfer of its capital asset to a new
company:
If the whole amount of capital gain is invested in the equity of the said company by the partners of
the said firm.
Capital gains arising from the transfer of Securities approved by SEC &
traded in Stock Exchanges in some specific cases:
Capital gains arising from the transfer of Securities approved by SEC & traded in Stock Exchanges
such as share, stock, mutual fund units, bond, debenture or any other types of securities but not
government securities in Bangladesh.
Tax Rate (Assessment Year 2016-17) (As per Finance Act,
2016)
(a) Other than Company: For individuals other than female Tk. 2,50,000/- Nil
taxpayers, senior taxpayers of 65 years and above, retarded
taxpayers and gazetted war-wounded freedom fighter, income tax
is payable for the On first upto
On next upto Tk. 4,00,000/- 10%
On next upto Tk. 5,00,000/- 15%
On next upto Tk. 6,00,000/- 20%
36 | P a g e
On next upto Tk. 30,00,000/- 25%

On balance amount 30%
For female taxpayers, senior taxpayers of age 65 years and above, Tk. 3,00,000/- Nil
income tax is payable for the On first upto
On next upto Tk. 4,00,000/- 10%
On next upto Tk. 5,00,000/- 15%
On next upto Tk. 6,00,000/- 20%
On next upto Tk. 30,00,000/- 25%
On balance amount 30%
For retarded taxpayers, tax free income threshold limit is TK.3,75,000/-.

For gazetted war-wounded freedom fighters, tax free income threshold limit is Tk. 4,25,000/-
Minimum tax for any individual assessee living in Dhaka and Chittagong City Corporation area is Tk.
5,000/-.
Minimum tax for any individual assessee living in other City Corporations area is Tk. 4,000/-.
Minimum tax for any individual assessee living in any other areas is Tk. 3,000/-.
Non-resident Individual 30% (other than non-resident Bangladeshi
For Companies:
Publicly Traded Company 25%

Non-publicly Traded Company 35%
Bank, Insurance & Financial institutions (Except Merchant bank):
Publicly listed and 4th generation Banks & FI 40%
Other Banks & FI
42.5%
Merchant bank 37.5%
Cigarette manufacturing company/Others 45%
Mobile Phone Operator Company 45%
Publicly traded mobile company 40%
Any dividend received from company 20%
A Co-operative Society registered under Co-operative Society Act-2001 15%
If any non-publicly traded company transfers minimum of 20% shares of its paid-up capital through
IPO (Initial Public Offering) it would get 10% rebate on total tax in the year of transfer.
37 | P a g e
Least Tax to be paid according to Area
Least tax to be paid for tax payer over the tax free level is determined according to area:
Area Least tax to be paid
Tax payers from Dhaka,Chittagong and 5000/

Narayanganj city corporation area
Other city corporation area 4000/
Areas outside of different city corporation 3000/
Because to the least tax rule every tax payer have to pay the least amount of tax determined
by the area he lives in even if his is her income is generated somewhere else. However if a
tax payer stays in different places in one year he or she will have to pay according to the
area he or she has stayed for long.
For business incomes the area will be the place were the main business is running.
If a service holder is transferred to different places in one year then the area will be
determined by the place where he stayed the longest.
If a tax payer is nonresident they his or her tax area will be determined by the local address
shown.
A tax payer earning over the tax free level will have to pay the minimum tax even he or
she has tax below the least tax amount or if he or she gets tax rebate which reduced their
tax below the least tax level.
Change in the rate of Surcharge (2016-2017):
Tax Rebate for investment:
Amount of allowable investment is - actual investment or 30% of total income or Tk. 150,00,000/-
whichever is less. Tax rebate amounts to 15% of allowable investment.
Rate of Rebate: Change in the rate of Surcharge (2016-2017):
38 | P a g e
Total net worth Rate

Up to tk 2.25 crore Nil
Over tk 2.25 crore to tk 5 crore 10%
Over tk 5 crore to tk 10 crore 15%
Over tk 20 crore 30%
Minimum surcharge tk. 3000
Types of investment qualified for the tax rebate are:-
Life insurance premium up to 10% of the face value.
Contribution to Provident Fund to which Provident Fund Act, 1925 applies.
Self contribution and employer's contribution to Recognized Provident Fund.
Contribution to Supper Annotation Fund.
Contribution up to TK 60,000 to deposit pension scheme sponsored by any scheduled bank

or a financial institution.
Investment in approved debenture or debenture stock, Stocks or Shares Contribution to

Benevolent Fund and Group Insurance premium Contribution to Zakat Fund
Donation to charitable hospital approved by National Board of Revenue Donation to

philanthropic or educational institution approved by the Government
Donation to socioeconomic or cultural development institution established in Bangladesh by

Aga Khan Development Network
Donation to ICDDRB,
Donation to philanthropic institution-CRP, Savar, Dhaka
39 | P a g e
Donation up to five lac to (1) Shishu Swasthya Foundation Hospital Mirpur, Shishu Hospital,
Jessore and Hospital for Sick Children, Sathkhira run by shishu swasthya Foundation, Dhaka.
(2) Diganta Memorial cancer Hospital, Dhaka, (3) The ENT and Head-Neck cancer
Foundation of Bangladesh, Dhaka and (4) Jatiya Prtibandhi Unnayan Foundation, Mirpur,
Dhaka;
Donation to Dhaka Ahsania Mission Cancer Hospital;
Donation to Sylhet Diabetic Samity, Islamia Eye Hospital and MA Ispahani Institute of
Ophthalmology, Kidney Foundation and National Heart Foundation of Bangladesh
Donation to Asiatic society of Bangladesh Donation to Muktijudha Jadughar
Donation to National level institution set up in memory of liberation war; Donation to

National level institution set up in memory of Father of the Nation Any investment by an
individual in Bangladesh Government Treasury Bond; Investment in purchase of one
computer or one laptop by an individual assesses.
Time to submit Income Tax Return: [Section 75(2) of the

Ordinance]
For Company Taxpayers:
By fifteenth day of July next following the income year or, where the fifteenth day of July falls
before the expiry of six months from the end of the income year, before the expiry of such six
months.
For Other Taxpayers:
Submission of withholding tax return and time to submit:
Person who makes any TDS (Tax deduction at source) on payment, must file a separate return of
withholding tax under section 75A of the Ordinance.
15th day of October, January, April and July. Or extended date up to 15 days by DCT.
Statement of TDS, Copy of Treasury challan /pay-orders should be submitted with the return.
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Consequences of Non-Submission of Return and Return of

withholding tax. (Section 124 of the Ordinance):
Imposition of penalty amounting to 10% of tax on last assessed income subject to a minimum
of Tk. 1,000/-
In case of an individual assessee whose income was not assessed previously Tk. 5,000/-.
In case of an individual assessee whose income was assessed previously, fifty per cent (50%)
of the tax payable on the last assessed income or Tk. 1,000/-, whichever is higher.
In case of a continuing default by any type of assessee, a further penalty of Tk. 50/- for every
day of delay.
Consequences of using fake TIN:
DCT can impose a penalty not exceeding TK.20,000/-
For continuous use of fake TIN deliberately- 3 years imprisonment, up to TK. 50,000/- fine or both.
Appeal against the order of DCT: (Under section 153 & 158 of
the Ordinance)
A taxpayer can file an appeal against DCT's order to the Commissioner (Appeals)/Additional or Joint
Commissioner of Taxes (Appeals) and to the Taxes Appellate Tribunal against an Appeal order.
Tax withholding functions :
In Bangladesh withholding taxes are usually termed as Tax deduction and collection at source.
Under this system both private and public limited companies or any other organization specified
by law are legally authorized and bound to withhold taxes at some point of making payment and
deposit the same to the Government Exchequer. The taxpayer receives a certificate from the
withholding authority and gets credits of tax against assessed tax on the basis of such certificate
Major areas for final settlement of tax liability:(Section 82C)
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Tax deducted at source for the following cases is treated as final discharge of tax liabilities.
No additional tax is charged or refund is allowed in the following cases:-
Supply, contract or sub-contract work (Sec 52);
Royalty, fees for technical services (Sec 52A(2);
Commission from clearing & forwarding (C & F) agency (Sec 52AAA);
Band rolls of handmade cigarettes (Sec 52B);
Compensation against acquisition of properties (Sec 52C);
The amount received as interest from any savings certificate for which tax has been deducted
under section 52D;
Rental power companies (Sec 52N);
Salaries of foreign technician of Diamond cutting industry (Sec 52O);
International gateway service (IGW) and Interconnection Exchange (ICX) in respect of

international Phone calls (Sec 52R);
Import of goods, not being goods imported by an industrial undertaking as raw materials
for its own consumption (Sec 53);
Shipping business of a resident (Sec 53AA);
Export of manpower (Sec 53B)
Export of all kind of goods including readymade garments (Sec 53BB & 53BBBB);
Transaction by a member of a Stock Exchange (Sec 53BBB);
Auction purchase (Sec 53C);
Cash subsidy (Sec 52DDD);
42 | P a g e
Real estate or land development business (Sec 53FF);
Insurance agent commission (Sec 53G);
Payment on account of survey by surveyor of a general insurance company (Sec 53GG);
Transfer of property (Sec 53 H);
Income from transfer of securities or mutual fund units by a sponsor share holder (Sec 53M);
Income derived from transfer of share of Stock Exchange on which tax is deducted under
section 53N;
Savings instruments;
Travel agents commission etc;
Agent of foreign buyer;
Winning of lotteries [Sec 19(13)] or (Sec 55).
Tax Recovery System :
In case of non-payment of income tax demand, the following measures can be taken against a
taxpayer for realization of tax:-
Imposition of penalty.
Attachment of bank accounts, salary or any other payment.
Filing of Certificate case to the Special Magistrate/Collector of District.
Advance Payment of Tax:
Every taxpayer is required to pay advance tax in four equal installments falling on 15th
September; 15th December; 15th March and 15th June of each year if the latest assessed
43 | P a g e
income exceeds Taka four lakh. Penalty is imposable for default in payment of any installment
of advance tax.
Tax incentives:
Following are fiscal incentives available to a taxpayer:-
Tax holiday:
Tax holiday is allowed for industrial undertaking and physical infrastructure facility established
between 1st July 2011 to 30th June 2019 in fulfillment of certain conditions.
(a) Industrial Undertaking eligible for Tax holiday : (section 46B)
Active pharmaceuticals ingredient industry and radio pharmaceuticals industry; automobile

manufacturing industry; barrier contraceptive and rubber latex; basic chemicals or dyes and
chemicals;
Basic ingredients of electronic industry (e.g resistance, capacitor, transistor, integrator circuit);
Bi-cycle manufacturing industry;
Bio-fertilizer; (will get tax holiday even it is set up in distict of Dhaka, Narayanganj, Gazipur,
Chittagong, introduced in FA 2012)
Biotechnology;
Boilers;
Brick made of automatic hybrid Hoffmann kiln or Tunnel Kiln technology;
Compressors;
Computer hardware;
Energy efficient appliances;
Insecticide or pesticide;
44 | P a g e
Petro-chemicals;
Pharmaceuticals;
Processing of locally produced fruits and vegetables;
Radio-active (diffusion) application industry (e.g. developing quality or decaying
polymer or preservation of food or disinfecting medicinal equipment);
Textile machinery;
Tissue grafting;
Tire manufacturing industry; or
Any other category of industrial undertaking as the Government may, by notification in the
official Gazette, specify
Physical Infrastructure eligible for Tax holiday: (section 46C)
Deep sea port;
Elevated expressway;
Export processing zone;
Flyover;
Gas pipe line,
Hi-tech park;
Information and Communication Technology (ICT) village or software technology zone;
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Information Technology (IT) park;
Large water treatment plant and supply through pipe line;
Liquefied Natural Gas (LNG) terminal and transmission line;
Mono-rail;
Rapid transit;
Renewable energy (e.g energy saving bulb, solar energy plant, windmill);
Sea or river port;
Toll road or bridge;
Underground rail;
Waste treatment plant; or
Any other category of physical infrastructure facility as the Government may, by notification
in the official Gazette
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Other Exemptions:
Any service charge derived from operation of micro credit by a non-government organization
registered with NGO Affairs Bureau.
Any voluntary contributions received by a religious or charitable institution and applicable

solely to religious and charitable purposes;
Any income accruing to, or derived by, a provident fund to which the Provident Fund Act,
1925 (XIX of 1925), applies;
Any income received by the trustees on behalf of a recognized provident fund, an approved
superannuation fund or pension fund and an approved gratuity fund;
Any amount of income received as pension;
Gratuity received up to Tk. 2.5 core;
Income from dividend amounting to Tk. 25,000 received from a publicly traded company;
Income from dividend of a mutual fund or a unit fund up to taka 25000;
An amount equal to 50% of the income derived from export business is exempted from tax;
Any income, not exceeding two lakh taka chargeable under the head "agricultural income" of
an assesses, being an individual, whose only source of income is agriculture;
Income from Information Technology Enabled Services (ITES) or Nationwide

Telecommunication Transmission Network (NTTN) business is exempted up to 30th June,
2024;
Income derived from export of handicrafts is exempted from tax up to 30th June, 2019;
Income of any private Agricultural College or private Agricultural University derived from
agricultural educational activities;
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Income derived from any Small and Medium Enterprise (SME) engaged in production of any
goods and having an annual turnover of not more than taka thirty lakh is exempt from tax;
Any profits and gains under the head "Capital Gains" arising from the transfer of stocks or
Shares of a public company as defined in Kvvbx AvBb, 1994 (1994 mbi 18 bs AvBb)
listed in any stock exchange in Bangladesh of an assessee being a non-resident subject to the
condition that such assesses is entitled to similar exemption in the country in which he is a
resident;
An amount equal to fifty percent of the income of an assesses derived from the
production of
corn/maize or sugar beet;
Any income earned in abroad by an individual assesses being a Bangladeshi citizen and
brought any such income into Bangladesh as per existing laws applicable in respect of
foreign remittance;
Income of an assesses donated in an income year by a crossed cheque to any girls' school or
girls' college approved by the Ministry of Education of the government;
Income of an assessee donated in an income year by a crossed cheque to any Technical and
Vocational Training Institute approved by the Ministry of Education of the government;
Income of an assessee donated in an income year by a crossed cheque to any national level
institution engaged in the Research & Development (R&D) of agriculture, science,
technology and industrial development;
(V) Tax Holiday for industrial undertaking established in EPZ:
According to S.R.O No. 219-law/Income Tax/2012, Date: 27 June, 2012, any industrial undertakings
set up in EPZ on or after 1 January, 2012, the following Tax benefit will be provided:
(a) Industry set up within Dhaka and Chittagong Division (except Bandarban, Rangamati and
Khagrachari hill districts)-
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Duration of Tax Rebate Rate ofTax rebate
First two years (first and second year) 100%
Next two years (third and fourth year) 50%
Next one year (fifth year) 25%
(b) Industry set up within all other divisions of the country and Bandarban, Rangamati and
Khagrachari hill districts-
Duration of Tax Rebate Rate of Tax rebate
First three years (first, second and third year) 100%
Next three years ( fourth, fifth and sixth year) 50%
Next one year (seventh year) 25%
Tax Exemption for Developers of Economic Zone (BEZA) and

Hi-Tech Park and industrial undertaking established thereon:
(a) According to S.R.O No. 227-law/Income Tax/2015, date: 08 July, 2015 and S.R.O No. 229-
law/Income Tax/2015, Date: 08 July, 2015 developers of Bangladesh Economic Zone
(BEZA) and Hi-Tech Park shall enjoy following tax exemption:
Duration of Tax Exemption Rate of Tax Exemption

First ten (10 ) years 100%
Eleventh (11) year 70%
Twelfth (12) year 30%
(b) According to S.R.O No. 226-law/Income Tax/2015, date: 08 July, 2015 and S.R.O No. 228-
law/Income Tax/2015, Date: 08 July, 2015 industrial undertakings established within BEZA
and Hi-Tech park areas shall enjoy following tax exemption :
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Duration of Tax Exemption Rate of Tax Exemption

First three years (first, second and third year) 100%
Fourth year 80%
Fifth year 70%
Sixth year 60%
Seventh year 50%
Eighth year 40%
Ninth year 30%
Tenth year 20%

Subtracting advance tax paid from total payable tax:
Source tax:
During the income year if source tax is deducted from a tax payers income it has to be
shown in the return form IT11GA section number 16. For example tax paid from
salary, bank interest, profession fee etc with appropriate documents.
Advance tax paid on the basis of section 64/68:

If a tax payer has paid advance tax he or she will have to mention the amount of tax
paid with chalan.
Tax paid according to return (Section 74):
Calculated tax after reducing the source tax and tax rebate will have to be paid by
chalan, payorder, bank draft etc and have to be submitted with the return form.
Tax refund:
If a tax payers has tax refundable from previous year he or she can
show it as tax paid.
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Role of income tax in the economic development of Bangladesh: A case study of
Income Tax Office, Zone-4, Chittagong.
Nontaxable income sources:
If a tax payer has nontaxable income it has to be shown on the return form in section
number 18. Nontaxable income sources a listed below:
If a government employee is paid an especial allowance for doing his or her job
Pension
Capital profit gained from partnership farm
Receiving gratuity up to 25000000/ taka
According to provident fund act 1925 income from provident fund
Earnings from recognized provident farm
Recognized super anuation fund
According to the labor law 2006 earnings from workers participation fund
Earnings up to 25000/ taka from mutual funds
Profit up to 25000/ taka from shares of stock exchange listed companies
Government secured deposit interest
Earnings from work done by inhabitances of Ranghamati, Bandor ban,
Khagrachori.
50% income from export income
Up to 200000/ taka for tax payers with agriculture as only source of income
Income from software development or information technology enables services
business.
Income from poultry farm. However if the income crosses 150000/ taka then the
tax payers will have to buy government bonds from 10% of the income.
Earnings up to 1000000/ from poultry and hatchery is tax free income however 5%
tax rate will be implied if it crosses over till next 1000000/ and 10% tax rate for
higher income.
Earnings from sale of shares of non listed companies.
Earnings from exporting handicrafts.
Earnings from zero coupon bond
Earnings from OS Earners Development Bond, US Dollar Bond, US Dollar
Investment Bond, Pound Starling Premier Bond, Pound Sterling Premier Bond,
Euro Premier Bond, Euro Investment Bond.
Earnings from Pension saving certificate were maximum investment is 500000/
taka.
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Role of income tax in the economic development of Bangladesh: A case study of Income Tax Office, Zone-4, Chittagong.
2.2. (iii) Data processing and analysis technique
Assessment Procedures:
For a return submitted under normal scheme, assessment is made after giving an
opportunity of hearing.
For returns submitted under Universal Self Assessment Scheme, the

acknowledgement slip is considered to be an assessment order of the Deputy
Commissioner of Taxes. Universal Self Assessment may be subject to process and
audit.
Provided that a return of income filed under universal self assessment scheme,
shall not be selected for audit where such return shows at least twenty per cent
higher income than the income assessed or shown in the return of the immediately
preceding assessment year and such return-
is accompanied by corroborative evidence in support of income exempted from

tax;
does not show receipt of gift during the year;
does not show any income chargeable to tax at a rate reduced under section 44;
or
Does not show or result any refund.
Generally the followings steps are followed in case of Assessment of the Company
and the Corporation:
Computation of Business IncomeStep-1

Computation of Total IncomeStep-2
Determination of Total Tax LiabilitiesStep-3
Determination of Net Tax LiabilitiesStep-4
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According to Sections 28, 29 and 30 of ITO, 1984 Income from business is to be calculated after
considering admissible and inadmissible expenses to this end. Total Income of the Company is to be
calculated by adding other income with income from business. Total Tax liabilities are to be
determining by applying prescribed tax rate.Net Tax liability is to be ascertained by deducting the
following tax rebate from Total Tax liabilities:
10% Tax rebate on foreign income

Tax rebate on increased production in case of industrial company, if applicable.
Tax rebate on export income (at rate applicable)
Tax rebate and average rate
Statement of Asset and Liabilities
Tax payers have to provide there Asset and liability statement. They can provide that by filling up
IT10B, IT10BBB and IT10BBBB.
IT10B: Tax payers submitting their return using the return form IT11GA are required to fill this
part of the form.
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IT10BBB: this part of the form is required to be filled by those tax payers whose main source of
income is salary.
IT10BBBB: This part of the form is required to be filled by tax payers who earn up to 300000/
taka doing business.
A tax payer will have to submit their asset and liability statement whatever assets he or she may
hold. A tax payer has to provide the asset and liability statement of the last day of income year for
example for 2015 30/06/2015 is the last day of income year. A tax payer will disclose all of his or
her, their husband or wifes and their minor childs assets and liabilities.
They will also have to provide documents supporting the assets and liabilities and their origin. For
example if an asset is bought or received as gift then it will have to be disclosed with the Etin
number and name of the person giving the asset. If a tax payer is giving a gift or loaned a person
money or asset it will also have to be disclosed with the persons name, address and E tin.
If a tax payer has taken a loan from a bank, person or company it will have to be disclosed under the
less: liabilities section.
Listed conditions have to be fulfilled while filling up asset and liabilities section:
Assets buying price has to be mentioned un till the asset is sold, given away or it has been destroyed.
Buying price has to be mentioned if a new asset is bought.
If an asset is gained by gift or inheritance the current market price will have to be mentioned
If a tax payer does not disclose his or her assets properly it will be considered as hidden assets. Total
asset will have to be calculated by adding family expenditure or if the tax payer has loaned asset then
family expenditure will have to be subtracted. A tax payer will also have to show his or her non
taxable income or other earnings under the Earned funds section. Both assets and liabilities section
has to be similar if it is not then appropriate explanation has to be provided or it will not be
considered as unexplained wealth
How to fill up the Lifestyle Section or IT10BB
On this section a tax payers name, Etin and expenditure related to the daily lifestyle is mentioned.
The process of filling this section is described below:
Section 1: a tax payers annual personal and food expense of his or her family
is mentioned here.
Section 2: on this section total tax paid by the tax payer is mentioned
combining source tax, tax paid and also if any other tax is paid.
Section 3: on this section housing expense is mentioned, if he does not have
any expense then on the comments side own residence or father residence or
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anyone else owns the house it will have to be mentioned and if the tax payer
owns the residence then his maintenance cost has to be mentioned.
Section 4:on this section expense related motor vehicle for example: fuel,
driver, maintenance cost is shown.
Section 5: expenditure related to electricity bills are shown here.
Section 6: expenditure related to water bills is shown here.
Section 7: expenditure related to gas bills is shown here.
Section 8: expenditure related to telephone bills is shown here.
Section 9: expenditure related to education expanse for children are shown
here.
Section 10:if tax payer has traveled to abroad spending his or her money it is
shown here.
Section 11: expenditure related to any festivals, weddings, or any sorts of gifts
given are shown here.
The mentioned expenditure has to be added and shown in the 15(a) section of the return form. It is
not mandatory for tax payers who earn from salary and use IT11UMA or who earn from doing
business and use IT11CHA return form to submit return to fill up IT10BB section
The process to determine income tax on total income for both male and female tax payer is given
below:
For male tax payer: For example lets assume a tax payers total
income is 5000000/
Total income Tax Amount

percentage
Up to First 250000/ of 0% 0
total income
Up to next 400000/ of 10% 40000/
total income
Up to next 500000/ of 15% 75000/
total income
Up to next 600000/ of 20% 120000/
total income
Up to next 3000000/ of 25% 750000/
total income
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For remaining 250000/ of 30% 75000/

total income
Total income tax on 1060000/
5000000/
For female or tax payer of 65 and over
Total income Tax Amount

percentage
Up to First 300000/ of total 0% 0
income
Up to next 400000/ of total 10% 40000/
income
income
income
income
For remaining 200000/ of 30% 60000/
total income
Total income tax on 5000000/ 1045000/
Calculation of direct tax percentage over total collection of

tax;
Rules:
1. Income tax / total tax (direct + indirect)
2. Other tax / total tax (direct + indirect)
3. Total direct tax / total tax (direct + indirect)
In FY 2009-10:
1. 17042.28 / 62042.16 = 27.47%

2. 386.06 /62042.16 = 0.62%
3. 17428.34 /62042.16 = 28.09%
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In FY 2010-11:
1. 23007.53 / 79403.11 = 28.98%

2. 412.04 / 79403.11 = 0.52%
3. 23419.57 / 79403.11 = 29.50%
In FY 2011-12:
1. 28652.43 / 95058.99 = 30.14%

2. 481.15 / 95058.99 = 0.51%
3. 29133.58 / 95058.99 = 30.65%
In FY 2012-13:
1. 37120.65 / 109151.73 = 34.01%

2. 589.81 / 109151.73 = 0.54%
3. 37710.46 / 109151.73 =34.55%
In FY 2013-14:
1. 43207.27 / 120819.85 = 35.76%

2. 641.25 / 120819.85 = 0.53%
3. 43848.52 / 120819.85 = 36.29%
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Chapter 3
Findings &
Analysis
3.1 Role of income tax in the economic

development of Bangladesh
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Income tax ordinance 1984 that is currently in operation in Bangladesh does not directly
define income tax. However analysis of section16 of the ordinance provides some indication
to this end .It provides that income tax is one which is imposed, charged payable and
collected in relation to the income of a person for income year on the basis of tax rate of the
assessment year.
Tax is a contribution exacted by the state. It is a non penal but compulsory and unrequited
transfer of resources from the private to the public sector, levied on the basis of
predetermined criteria. The classical economic were in view that the only objective of
taxation was to raise government revenue. But with the changes in circumstances and
ideologies, the aim of taxes has also been changed. These days apart from the object of
raising the public revenue, taxes is levied to affect consumption, production and distribution
with a view to ensuring the social welfare through the economic development of a country.
For economic development of a country, tax can be used as an important tool in the
following manner:
1. Optimum allocation of available resources:
Tax is the most important source of public revenue. The imposition of tax leads to diversion
of resources from the taxed to the non-taxed sector. The revenue is allocated on various
productive sectors in the country with a view to increasing the overall growth of the country.
Tax revenues may be used to encourage development activities in the less developments areas
of the country where normal investors are not willing to invest.
2. Raising government revenue:
In modern times, the aim of public finance is not merely to raise sufficient financial resources
for meeting administrative expense, for maintenance of low and order and to protect the
country from foreign aggression. Now the main object is to ensure the social welfare. The
increase in the collection of tax increases the government revenue. It is safer for the
government to avoid borrowings by increasing tax revenue.
3. Encouraging savings and investment:
Since developing countries has mixed economy, care has also to be taken to promote capital
formation and investment both in the private and public sectors. Taxation policy is to be
directed to raising the ratio of savings to national income.
4. Reduction of inequalities in income and wealth:
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Through reducing inequalities in income and wealth by using an efficient tax system,
government can encourage people to save and invest in productive sectors.
5. Acceleration of Economic Growth:
Tax policy may be used to handle critical economic situation like depression and inflation. In
depression, tax is set to increase the consumption and reduce the savings to increase the
aggregate demand and vice verse. Thus the tax policy may be used to strengthen incentives to
savings and investment.
6. Price Stability:
In underdeveloped countries, there is another role to maintain price stability to ensure growth
with stability.
7. Control mechanism:
Tax policy is also used as a control mechanism to check inflation, consumption of liquor and
luxury goods and to protect the local poor industries from the uneven competition. Taxation
is the only effective weapon by which private consumption can be curbed and thus resources
transferred to the state. Thus the economy can ensure sustainable development.
Thus it can be said that the economic development of a country depends various reasons one
of them are on the presence of an effective and efficient taxation policy.
IMPORTANCE
Capital formation is important in all economic model.

Means of resource mobilization, highly dependable, no strings attached.
Instrument for transferring purchasing power from individual to government.
Flexible depending on the requirements
DEVELOPING ECONOMIES
Problems related o economic growth, removal of poverty and inequalities, chronic

unemployment and regional disparities for e.g. India
Tax policy to yield increased revenues to the government, also conform to criteria
of buoyancy and elasticity
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Equity and resource mobilizations dictate that the tax burden should be evenly
distributed between sectors and individuals.e.g.agriculture sector vis--vis industries.
Tax system to promote private savings and direct them into investment in priority
industries (India having high saving rate but low investment rate.)
Socio-Economic effects of Tax Evasion & Avoidance:
Tax Evasion and Avoidance has a great impact in economic development. The effects of tax
evasion and tax avoidance in economic development are as follows:
Tax revenue is used to build the infrastructure, to invest in social security programs, in
various poverty elevation programs. But due to tax evasion and tax avoidance above the
development activities are hampered.
Tax evasion and tax avoidance hamper the social welfare. It obliges the government to
borrow loan that affects the economic development.
Economic growth is co-related with budget. It is natural that higher government`s income
support to do large budget and large budget helps to accelerate economic development of a
country. But due to tax evasion and tax avoidance a lot amount of revenue is not collected. As
a result the government has to shortcut the budget.
In capitalist and mixed economy private sector is supposed to play vital role in investment
and development. But sometimes direct investment by the governments is necessary. Due to
tax evasion and tax avoidance the government cannot supply the expected fund for
investment.
The government has to take various plans for economic development. But lack of fund the
plan cannot be implemented. If the people would not evade tax, the government could
implement the plans.
Due to tax evasion and tax avoidance the government cannot ensure the employment
opportunity. Because the government needs fund to create employment opportunity.
It also hampers structural development such as roads, bridges, transportation, industrial

development etc.
Social security cannot be provided fully by the government due to lack of fund. Tax evasion
and tax avoidance is the main obstacle to create sufficient fund.
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If tax rules are not sufficient to check the tax evasion and avoidance, it may lead to the
development of a culture of evasion. So a vicious cycle of tax evasion may take place.
Tax evaded incomes are used for conspicuous consumption in the form of buying luxurious
goods. As a result honest tax payers find various methods of tax evasion and tax avoidance.
So the stability of the society will be endangered. Such illegal money is also transferred
abroad weakening the economy of the country.
Due to tax evasion and tax avoidance a huge amount of tax revenue is lost. As a result the
government cannot provide basic needs for mass people.
Development expenses fall due to tax evasion and tax avoidance. It affects the distribution
function of wealth of the government and adversely affects the economic development of a
country.
From the above discussion it is clear to us that tax evasion and tax avoidance affect the
economic development of a country severely. Because a large part of the government income
is collected by tax revenue.
COMPUTATION OF DIRECT TAX IMPACT ON GDP
Fiscal Year 2009-10 to 2013-14 direct tax collected by NBR &

percentage of GDP
Sources 2009-10 2010-11 2011-12 2012-13 2013-14

Income 17042.28 23007.53 28652.43 37120.65 43207.27
Tax
Other Tax 386.06 412.04 481.15 589.81 589.81
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Direct Tax Impact on GDP

3.50% 3.22%
3.10%
3.00% 2.72%
2.51%
2.50%
2.14%
Income Tax
2.00%
Other Tax
1.50%
1.00%
0.50%
0.05% 0.04% 0.05% 0.05% 0.04%
0.00%
2009-10 2010-11 2011-12 2012-13 2013-14
NON-DEVELOPMENT EXPENDITURE:
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Sources Budget Budget as Budget as Budget as Actual Actual (up

FY14 % of % of % of FY14 (up to June) as
Budget Revised Actual to June) % Revised
FY14 Budget FY13 Budget
FY13 FY14
GPS 30025.8 141.8 272.0 427.6 13535.3 45.1
LGRD 2283.8 108.1 92.8 95.1 2432.6 106.5
Defense 14229.0 112.6 107.1 120.5 14980.7 105.3
POS 9566.5 111.7 106.6 107.3 10521.6 110.0
Educatio 17022.1 115.5 112.7 112.7 18033.4 105.9
n
Health 5868.4 106.5 106.6 112.1 5972.3 101.8
SSW 9193.7 108.6 107.8 123.3 7514.1 81.7
Housing 914.2 105.1 101.6 102.1 932.7 102.0
RCRA 1185.1 109.4 93.3 97.8 1168.0 98.5
F&E 42.3 92.9 93.3 29.2 34.2 80.8
Agricultu 13253.9 131.2 81.8 82.0 13200.0 99.6
re
IES 517.5 117.8 80.6 84.9 536.6 103.7
Trans 4536.1 118.1 110.0 112.7 4302.9 94.9
Interest 27743.2 119.1 118.8 116.0 28186.2 101.6
payment
Total 136381.7 120.8 122.4 130.0 121350.5 89.0
DEVELOPMENTEXPENDITURE:
Sources Budget Revised Actual Budget FY14 Budget Actual FY14

FY14 Budget FY14 (up as % of FY14 as % as % of
FY14 to June ) Revised of Actual Revised
Budget FY13 FY13 Budget FY14
(up to June )
GPS 2069.4 1754.7 840.0 99.9 189.9 47.9
LGRD 12515.8 12885.9 11792.6 102.7 109.7 91.5
Defense 228.1 232.2 135.5 108.6 111.1 58.3
POS 970.3 1084.1 1033.9 146.2 146.2 95.4
Educati 9071.3 9309.6 8600.4 144.0 150.8 92.4
on
Health 3602.0 3815.6 3168.9 105.3 115.1 83.1
SSW 3173.3 2612.8 2391.1 95.3 100.8 91.5
HCS 865.0 783.1 766.5 159.0 163.9 97.9
RCRA 560.5 640.9 631.3 130.7 131.3 98.5
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FE 11308.5 9860.6 6965.5 99.1 97.3 70.6

Agricult 4216.9 4299.2 4048.5 118.2 122.1 94.2
ure
IES 2687.1 3038.4 1876.9 145.1 152.4 61.8
Trans 16059.2 10876.6 9748.5 119.3 128.6 89.6
Total 67327.4 61193.8 51999.6 113.6 120.5 85.0
REVENUE COLLECTION:
Sources Budget Revised Actual FY14 Actual Actual as

FY14 Budget FY14 (June) FY14 (up percentage of
to June) Revised Budget
FY14
Income Taxes 48297 44370 -536 37830 85.3
Other Taxes 1000 919 0 643 70.0
Total 49297 45289 -536 38473 85.0
3.2 Income tax collection
Fiscal Year 2009-10 to 2013-14, total collection of

indirect tax & direct tax (income tax, other tax) revenue
Fiscal Total Income Other Tax Total Total
Year Indirect Tax Direct Tax (indirect
Tax + Direct
Tax)
2009-10 44613.82 17042.28 386.06 17428.34 62042.16
2010-11 55983.54 23007.53 412.04 23419.57 79403.11
2011-12 65925.41 28652.43 481.15 29133.58 95058.99
2012-13 71441.27 37120.65 589.81 37710.46 109151.73
65 | P a g e
2013-14 76971.33 43207.27 641.25 43848.52 120819.85
3.2(i) Tax collection procedure
Steps for collecting Income Tax in Bangladesh
Submission of income tax returns is generally due by:
30th September in case of non-companies and
31st December in case of companies. Assessment is made in several procedures. They are:
Self assessment
Presumptive assessment
Spot assessment
Pre-audit based assessment.
However, certain percent of self assessment cases are selected for audit. Assesses can prefer
appeal if aggrieved by his assessment. There are three primary forums for appeal. They are to
the Appellate Commissioner/Additional Commissioner/Joint Commissioner or to the
Commission for reviews. The decisions of Appellate Commissioner/Additional
Commissioner/Joint Commissioner can be challenged to the next Appellate Court named as
Appellate Tribunal. Withholding tax is levy able on a number of items including contractors,
imports, transfer of urban land/building, bank deposits etc.
3.2(ii) Tax target and actual collection
REVENUE TARGET & COLLECTION:
Collections of revenue by NBR are two types: Direct tax and indirect tax. Income tax, travel
tax and other tax are included in direct tax. Import tax, export tax, VAT, turnover tax is
indirect tax revenue collection chart of NBR is given below
66 | P a g e
Revenue Collection National Board Of Revenue
Direct Indirect tax

tax
Income tax Travel tax & other Export & import Local section
tax section
Travelling Import tax Turnover
tax Export tax tax
Other tax Regulatory Excise duty
tax Service tax
Custom duty VAT
VAT
3.2(iii) NBR Tax Revenue Collection Target & Achieved

from direct tax:
COLLECTION OF INCOME TAX IN THE FISCAL YEAR 2016-17:
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Reve Targ Reve Reve Differ Perce Reve Reve Differ Percentag
nue eted nue nue ence ntage nue nue ence e of the
collec reven collec collec of the collec collec difference
tion ue in tion tion differ tion tion
sector FR in in ence since since
s 16-17 July July July July
15 16 15 16
Inco 7196 2459. 2683. 223.78 9.10% 2459. 2683. 223.78 9.10%
me 8 71 49 71 49
tax
Trave 1400 68.60 73.91 5.31 7.74% 68.60 73.91 5.31 7.74%
lling
tax
Total 7336 2528. 2757. 229.09 9.06% 2528. 2757. 229.09 9.06%
direct 8 31 40 31 40
tax
3.2(iv) Tax Revenue Collection Target & Achieved Of

Income Tax Office , Zone -4, Chittagong Fiscal Year 2014-
2015:
Name Of Fiscal Year 2014-2015

Month
Target Achievemen Acc Acc Percen
t Target Achieve tage
ment Of
Achiev
ement
July 25.00 25.03 25.00 25.03 100.12
%
August 28.00 28.12 53.00 53.16 100.30
%
Septembe 45.00 45.41 98.00 98.57 100.58
r %
October 30.00 30.00 128.58 128.58 100.45
%
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November 22.00 22.03 150.00 150.61 100.41

%
December 75.00 75.14 225.00 225.75 100.33
%
January 40.00 40.28 265.00 266.03 100.39
%
February 25.00 25.83 290.00 291.85 100.64
%
March 80.00 80.37 370.00 372.22 100.60
%
April 50.00 60.51 420.00 432.73 103.03
%
May 56.00 55.91 476.00 488.64 102.66
%
June 118.00 138.06 594.00 626.70 105.51
%
In tax year 2014-15 maximum target was 598.00 core (Revised)
Tax Revenue Collection Target & Achieved Of Income Tax

Office , Zone -4, Chittagong Fiscal Year 2015-16:
Month
Target Achieveme Acc Acc Percentag
nt Target Achieveme e Of
nt Achieveme
nt
July 33.00 33.25 33.00 33.25 100.76%
August 37.00 37.29 70.00 70.55 100.79%
Septemb 60.00 50.12 130.00 120.67 92.82%
er
October 40.00 39.93 170.58 160.60 98.47%
Novembe 30.00 29.77 200.00 190.38 95.19%
r
Decembe 100.00 89.97 300.00 280.35 93.45%
r
January 53.00 48.40 353.00 328.75 93.13%
February 33.00 32.37 386.00 361.12 93.55%
March 107.00 93.63 493.00 454.75 92.24%
April 67.00 61.72 560.00 516.47 92.23%
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May 75.00 65.14 635.00 581.62 91.59%

June 42.00 158.38 677.00 740.00 109.31%
In tax year 2015-16 maximum target was 677.00 core (Revised)
Tax Revenue Collection Target & Achieved Of Income Tax

Office , Zone -4, Chittagong Fiscal Year 2016-17:

Month
Target Achieveme Acc Acc Percentage

nt Target Achieveme Of
nt Achieveme
nt
July 37.00 37.00 37.00 37.00 100.00%
August 56.00 56.00 93.00 93.00 100.00%
Septemb 57.00 57.00 150.00 150.00 100.00%

er
October 68.00 68.00 218.58 218.00 100.00%
Novembe 50.00 50.00 268.00 268.00 100.00%

r
Decembe 138.00 138.00 406.00 406.00 100.00%
r
January 70.00 70.00 476.00 476.00 100.00%
February 48.00 0 528.00 0 0%
March 126.00 0 650.00 0 0%
April 68.00 0 718.00 0 0%
May 94.00 0 812.00 0 0%
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June 188.00 0 1000.00 0 0%
In tax year 2016-17 maximum target is 1000 core.
1800 1703.7
1600 1497.2
1380 1350.26
1400
1255.08
1200 1122.59 1114.22
1035.32
1000
818.7
815.05
800 Target Actual
600
400
200
0
FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16
D
uring the fiscal year 201516 the government plans on raise revenue collection with a view to
socioeconomic development as the government has published a huge budget. It has also plan
71 | P a g e
to increase investment and employment opportunities. Government is still considering direct

tax as the main source of revenue. Government has also taken initiative to widen the tax net,
initiative such as setting up tax office in upazila, it has also reformed the tax structure and tax
related laws to collect more tax.
Despite such initiatives government is finding it hard and challenging to achieve the target
revenue. According to the official figures provided by National Board of Revenue (NBR) the
aggregate revenue collection fell short of the target about Tk 448 billion till February
In the fiscal year 2013-14 the targeted revenue of NBR is 125,000 crore tk. From total target
26.30 % is for import & export sector, 37.48% for local sector, 35.49% for income tax, 0.73%
for other sectors are determined to collect revenue. From the deciding target, NBR collects
120819.85 crore tk. The percentage of collection revenue is 96.66%.Which is 11668.12
croretk or 10.69% more than previous year. From total collected revenue, 27.52% from
export & import, 36.19% from local, 35.76% from income tax and 0.53% revenue collected
from other sources.
Targeted Revenue in 2013-14
37% 35%
Income Tax
Other Tax
Import & Export Tax
Local Tax
1%
26%
72 | P a g e
Collected Revenue in 2013-14
36% 36% Income Tax

Other Tax
Import & Export Tax
Local Tax
1%
28%
Target &Collection of Income Tax:
In the fiscal year 2013-14, the targeted revenue in the income tax sector was 44,360 crore tk.
This target is total targer of NBRs (125,000 corer tk) 35.49 parcent and 97.97 percent
(45,280 croretk) of targeted income tax.in FY 13-14 total collection of income tax is
43207.27 crore tk. Which is less than 1152.73 croretk or 2.60 % from target. Achieving target
is 97.40 percent. Which is more than 6082.62 croretk or 16.40% from last year.
Targeted Direct Tax
Travel Tax; 2%
Income Tax; 98%
73 | P a g e
Collected Direct Tax

Travel Tax; 1%
Income Tax; 99%
Other Taxes:
In FY 13-14, targeted revenue from other sources was 920 crore tk. where collected amount
was 278.75 crore tk. which is 30.30 percent less. Target achieved 69.70 per cent. From the
other sources of revenue income, in travelling sector it was 640.94 crore tk. and .31 crore tk.
from other tax sector.
74 | P a g e
Income Tax collection from different tax zone
Tax Zone-2, Ctg.; 3%

Tax Zone-4, Ctg;Tax
1%Zone,
TazKhulna;
Zone-1,2%
Tax Zone,
Ctg.; 8%Rajshahi; 1% TCtg;
Tax Zone-3, 3%
ax Zone, Rangpur;
Tax Zone,
Tax Zone, 1%
Barisal; 0%1%
Narayangong;
Central Survey; 2% Tax Zone, Shylet; 1%
Tax Zone-15; 0% Large

Tax Zone, Taxpayer;
Gazipur; 1% 29%
Tax Zone-12; 1%
Tax Zone-14; 1% Tax Zone, Comilla; 1%
Tax Zone-8; 3%
Tax Zone-13; 1% Tax Zone, Mymansingh; 0%
Tax Zone-11; 2% Tax Zone-1; 12% Tax Zone, Bogra; 0%
Tax Zone-10; 1% Tax Zone-2; 12%
Tax Zone-9; 1%
Tax Zone-7; 1%
Tax Zone-6; 1%
Tax Zone-5; 1%
Tax Zone-4; 6%
Tax Zone-3; 1%
3.4 Problems faced in achieving target & Plan

fulfilling the target
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Tax avoidance is one of the main problems for collecting Income Tax by the Income Tax
Authority in Bangladesh. It is the legal utilization of the tax regime to one's own advantage,
in order to reduce the amount of tax that is payable by means that are within the law. By
contrast tax evasion is the general term for efforts to not pay taxes by illegal means. The term
tax mitigation is a synonym for tax avoidance. Its original use was by tax advisors as an
alternative to the pejorative term of tax avoidance. Latterly the term has also been used in the
tax regulations of some jurisdictions to distinguish tax avoidance foreseen by the lawmakers
from tax avoidance which exploits loopholes in the law.
Based on these concepts arise the pillars of Tax Protesters as well as Tax Resistance:
Some of those attempting not to pay tax believe that they have uncovered interpretations of
the law that show that they are not subject to being taxed: these individuals and groups are
sometimes called Tax protesters.
An unsuccessful tax protestor has been attempting openly to evade tax, while a successful
one avoids tax. Tax resistance is the declared refusal to pay a tax for conscientious reasons
(because the resister does not want to support the government or some of its activities). Tax
resistors typically do not take the position that the tax laws are themselves illegal or do not
apply to them (as tax protesters do) and they are more concerned with not paying for
particular government policies that they oppose
3.4(i) Problems for collecting Income Tax
Narrow Tax Base, Tax Evasion Culture

Tax Exemptions
Existence of Shadow Economy
Cash Transaction
Complication in taxing real estate sectors
Absence of property tax
Cash Transaction
International tax avoidance and evasion
Transfer mispricing
Business restructuring
Offshore transaction and financial schemes
76 | P a g e
e-transaction (e-commerce, e-banking)
.
Responses to tax avoidance:
Avoidance also reduces government revenue and brings the tax system into disrepute, so
governments need to prevent tax avoidance or keep it within limits. The obvious way to do
this is to frame tax rules so that there is no scope for avoidance. In practice, this has not
proved achievable and has led to an ongoing battle between governments amending
legislation and tax advisors' finding new scope for tax avoidance in the amended rules.
Tax evasion:
By contrast, tax evasion is the general term for efforts by individuals, firms, trusts and other
entities to evade taxes by illegal means. Tax evasion usually entails taxpayers deliberately
misrepresenting or concealing the true state of their affairs to the tax authorities to reduce
their tax liability, and includes, in particular, dishonest tax reporting (such as declaring less
income, profits or gains than actually earned; or overstating deductions). Illegal income and
tax evasion: Who earn income by illegal means (gambling, theft, drug trafficking etc.) is
required to report unlawful gains as income when filing annual tax returns. Suspected
lawbreakers have therefore been charged with tax evasion when there is insufficient evidence
to try them for their non-tax related crimes. Other times, tax evasion can be used as a "one
more nail in the coffin" by prosecutors by stating that if a person earns illegal income, s/he
may also be guilty of tax evasion. Those who attempt to report illegal income as coming from
a legitimate source could be charged with Money laundering.
Control of evasion:
Level of evasion depends on a number of factors one of them being fiscal equation. Peoples
tendency to evade income tax declines when the return for due payment of taxes is not
obvious. Evasion also depends on the efficiency of the tax administration. Corruption by the
tax officials often renders control of evasion difficult. Tax administrations resort to various
means for plugging in scope of evasion and increasing the level of enforcement.
Public opinion on tax avoidance:
Tax avoidance may be considered to be the dodging of one's duties to society, or alternatively
the right of every citizen to structure one's affairs in a manner allowed by law, to pay no more
tax than what is required. Attitudes vary from approval through neutrality to outright hostility.
Attitudes may vary depending on the steps taken in the avoidance scheme, or the perceived
unfairness of the tax being avoided.
Corruption by tax officials:
77 | P a g e
Corrupt tax officials cooperate with the tax payers who intend to evade taxes. When they
detect an instance of evasion, they refrain from reporting in return for illegal gratification or
bribe. Corruption by tax officials is a serious problem for the tax administration in a huge
number of underdeveloped countries.
The distinction in various jurisdictions of Tax Evasion and Tax

Avoidance:
The use of the terms tax avoidance and tax evasion can vary depending on the jurisdiction. In
general, the term "evasion" applies to illegal actions and "avoidance to actions within the
law. The term "mitigation" is also used in some jurisdictions to further distinguish actions
within the original purpose of the relevant provision from those actions that are within the
letter of the law, but do not achieve its purpose.
3.4(ii)Tax Compliance Challenges
Less than 1% of the population pays income tax

The size of the informal economy is quite large
Tax evasion is persistent
Tax-related information is scarce due to limited use of IT in government and private
sectors, and the lack of automatic data sharing with the NBR
Various sectors are out of the tax net due to tax exemptions
Tax management process is mostly manual
Only one unit of Direct Tax (LTU) is working under the functional model; the other 31 units
function under conventional model
3.4(iii) Nature of noncompliance:

Noncompliance falls broadly into four categories:
Non-registration
Non-filing
Tax delinquency
Disclosure of lower-than-actual income
3.4(iv)Plan of fulfilling target:
78 | P a g e
Awareness Gap:
Taxpayers are not aware of the tax obligations and the consequence of noncompliance.
Support and Service Gap:

Taxpayers do not have the proper environment for compliance
Motivation Gap: Taxpayers do not receive a psychological premium to disclose a higher
income
Enforcement Gap: Taxpayers are habitual defaulters and are inclined to disobey tax laws
Tax Awareness Program

NBR observes National Income Tax Day on September 15 and National VAT Day on July 10
each year; NBR also organizes VAT Week to foster awareness about VAT
Rally, processions, tax awareness workshops, and discussions are organized on these
days
Special drama on radio and television is broadcasted with the aim of building tax
awareness among the people
Taxpayer Recognition Program
Under the Taxpayer Recognition Policy (introduced in 2008), the three highest- and two
longest-paying income taxpayers from each of the 64 districts and six city corporations are
given social recognition (certificate, crest) at a state function.
Under the National Tax Card Policy (introduced in 2010), the 10 highest personal and 10
highest corporate income taxpayers are accorded CIP status every year.
NBR awards special recognition to the top VAT payers at the central and field level.
In the years 2011 12, NBR awarded the nine top VAT payers at the national level and 125
top VAT payers at the district level under three categoriesproduction, services and business
to encourage taxpayers to pay tax.
NBR has been organizing Income Tax Fairs for the last three years (2010, 2011, and 2012).
The Tax Fair is a very innovative concept and a huge success.
Taxpayers can register, submit tax returns, and get TIN certificates at tax fairs.
The fairs are receiving an overwhelming response.
NBRs Enforcement Strategies:
79 | P a g e
NBR follows four enforcement measures:
Administrative Penalty
Interruption (e.g., freezing of bank accounts, stoppage of transactions)
Criminal Prosecution
Raising Risk Points (and the probability of being selected for audit
NBRs Enforcement Strategies
NBR follows four enforcement measures:
Administrative Penalty
Interruption (e.g., freezing of bank accounts, stoppage of transactions)
Criminal Prosecution
Raising Risk Points (and the probability of being selected for audit
NBRs Tax Compliance Approaches

Tax Compliance Framework
80 | P a g e
NBRs tax compliance action programs comprise four core

areas:
Ta x
Ta x
Pa y e r
Ta x
S e r v ic
e
Ta x
P o lic y
Ta x p a
yer
81 | P a g e
NBRs Tax Compliance Approaches

NBR Modernization Plan and Nine Strategic Areas
82 | P a g e
HR and
Institutiona
l
Enforc Tax
ement policy
Reform
Outreach Business
education process
&
Restruc Auto
turing mati
o
I Capacity
T Building
Audit Objection Numbers and Problem Solution
Audit Objection
Returns are selected for audit for a number of reasons. Most audits are based on information
provided on a tax return or from the extensive exchange of data with the Internal Revenue
Service and other state and local agencies. In some instances, audits are based on information
obtained from another taxpayer's return. NBR also may look at a random selection of returns to
see whether there are consistent filing problems or issues that need to be addressed.
All information received from other agencies, as well as information already in the files, is
always kept strictly confidential.
3.6(i) Auditors Responsibility
Our responsibility is to express an opinion on the system based on our audit. We conducted our
audit in accordance with the applicable regulations. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance whether the
system-generated individual tax returns are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about returns generated. The
procedures selected depend on the auditors judgment, including the assessment of the risks of
material misstatement of the returns, whether due to fraud or error. An audit also includes
evaluating the appropriateness of taxation policies used and the reasonableness of estimates
made by management, as well as evaluating the overall presentation of the return.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
3.6(ii) Numbers of Audit Objection :
Tax zone- 4 selects 100 tax returns according to previously stated process.
If the increase of income is shown 20 percent more than previous year in any tax return,
the return is deducted from the list.
Then the list is shortened by the tax officials by keeping returns likely to fetch higher tax
revenue.
After that the shortened list is sent to NBR authority for audit approval.
The NBR authority performs necessary tasks to make scrutiny and makes a final list of
tax returns.
Taxes zone- 4 receives the final list.
The inspectors are then entitled to perform the necessary inspections.
Then the officials of the zone runs the audit procedure and takes necessary actions stated
above.
How Returns Are Selected for Examination

The NBR selects returns using a variety of methods, including:
Potential participants in abusive tax avoidance transactions some returns are selected
based on information obtained by the NBR through efforts to identify promoters and
participants of abusive tax avoidance transactions.
Computer Scoring Some returns are selected for examination on the basis of computer
scoring. NBR personnel screen the highest-scoring returns, selecting some for audit and
identifying the items on these returns that are most likely to need review.
Large Corporations The NBR examines many large corporate returns annually.
Information Matching Some returns are examined because payer reports, which do not
match the income reported on the tax return.
Related Examinations Returns may be selected for audit when they involve issues or
transactions with other taxpayers, such as business partners or investors, whose returns were
selected for examination.
Other Area offices may identify returns for examination in connection with local
compliance projects. These projects require higher level management approval and deal with
areas such as local compliance initiatives, return preparers or specific market segments.
3.6(iii) How are audits done?

Typically, an audit is initiated when a tax examiner sends a notice to you requesting additional
information about an item, or items, on the return, or to notify you of an error that needs to be
adjusted. It is very important that you always respond to these notices if you dont, you may be
responsible for any interest, penalties and interest resulting from the audit.
The examiners notice you receive will:
state the nature of the problem and an explanation of possible changes in the tax situation;
ask you to provide additional information or explain why you disagree with these changes;
give you a date by which you should respond; and
give you the name and telephone number of the NBR employee who is handling the case.
Audits are usually conducted for a three-year period, but may be expanded up to six years if the
returns were not filed when they were due.
During the audit, you and the auditor will review the records, and the returns you failed to
resolve any issues or concerns. You will be allowed adequate time to respond to the questions
and to ask the own.
In some cases, you may be asked to voluntarily waive the statute of limitations on the audit
period. This is usually done if additional time is needed to conduct the audit and will prevent a
possible assessment due to lack of time to fully complete the audit.
3.6(iv) How Taxes zone- 4 performs the audit:

Tax zone- 4 selects 100 tax returns according to previously stated process.
If the increase of income is shown 20 percent more than previous year in any tax return,
the return is deducted from the list.
Then the list is shortened by the tax officials by keeping returns likely to fetch higher tax
revenue.
After that the shortened list is sent to NBR authority for audit approval.
The NBR authority performs necessary tasks to make scrutiny and makes a final list of
tax returns.
Chapter: 4
Summary & Conclusion
Conclusion
Though the rate of tax revenue is to GDP is very negligible, despite the
governments trying to maximize its tax revenue through different method. But the
government should also remind the cannon of convenience while collecting tax
from assesses. As we are living in a civilized society - should come forward to pay
taxes to government in order to conduct the administrative, defense and
development activities of the country. Otherwise we would not be able to prove
ourselves as civilized people. Tax is the most important in the hand of the
government to control the economy as well as the inflection. It also helps in push
money to the economy, develop certain source of the economy and control some
other activities of the economy. Nongovernment can run its and perform
administration works without collecting tax as a source of revenue. So, the
Government imposes tax over the company and the corporations. On the other
hand Government can also intensive to the infant and certain basic industry for
protection through its tax policy
4.1 Prelude
Income tax can play a vital role in socio economic development of a country.
Revenue collected through income tax can be used to defray the cost of running
administration of the country and perform social & development activities. Income
tax act can be used as a mean of industrial and economical development of the
country. In this connection it may be mentioned that tax is an important source of
government revenue. For defense, maintenance of law and order, administration,
and overall development of a country government needs a huge money and income
tax is an important source in economic development.
Summary of the findings:
NBR collect 80% total revenue of Bangladesh at 5 major sources Personal

Income Tax, Corporate Tax, Value-Added Tax, Supplementary Duty, and
Customs Duty.
Tax as a percentage of G.D.P is 10.7%
Tax to GDP ratio has been increased last few years
In last three years tax to G.D.P ratio has increased from 8% to 10.7%
In fiscal 2014-15 the revenue from income tax was 55088 core which was
39.16 percent of total tax revenue
In the fiscal year 2015-16 income tax revenue was 71977 core which was
39.49 percent of total tax revenue.
Current tax G.D.P ratio is 10.3%
Our target is 300000 more tax payer with existing 1.2 million
The target to collect 50% of the total revenue from the direct taxation in year
2020-21
The main target is to gain 15.3% tax G.D.P ratio by FY 2019

4.3 Conclusion
People should be encouraged to pay their taxes regularly, because it is very

important for a countries growth. People should feel privileged to pay taxes as they
will be contributing for their countries development. However people in our
country are not reluctant to pay their taxes, the reason for this is the law being
difficult and its putting pressure on the tax payers therefore they are getting
discouraged every day. The government should solve the complications and
encourage new and old tax payers to pay their taxes which will help our country to
develop and reduce our dependency on foreign help. We should come forward to
pay taxes to government in order to conduct the administrative defense and
development activities of the country. It plays a vital role in push money to the
economy, develop certain source of the economy and control some other activities
of the economy .so we can concluded that income tax plays a vital role in
economic development of Bangladesh.
Recommendation
This study has policy implications for the Bangladesh tax regime. During face-to-face interviews and
at the roundtable seminar, a good number of participants provided insightful ideas about combating
tax evasion and fiscal corruption. Based on the empirical findings and secondary evidence, this study
provides policy recommendations for deterring tax evasion. This research makes a contribution to
policy makers, tax officials, taxpayers and tax practitioners.
Implications and Recommendations for Tax Policy

Formulation
This study has identified weaknesses in the tax policy formulation process and existing tax policies
which facilitate tax evasion. Each of the weaknesses revealed in this research may provide the GOB
with a policy directive for combating tax evasion.
Emphasizing Research, Specialization and Reform in Tax Policy

Formulation
Given the importance of undertaking research and comparative study on issues of tax evasion, policy
makers might place greater emphasis on launching and organizing research projects, exchange
programs, training, policy debates and conferences on tax evasion issues within Bangladesh and
across developing and developed countries. Hence, the Bangladesh government might encourage
young political actors and tax officials to pursue higher studies in foreign countries in order to better
understand tax policies and tax evasion. Under the umbrella of the GOB, a permanent and
autonomous tax research cell could be established. Experienced and expert tax scholars, academics
and retired tax officials from Bangladesh and other countries could be appointed to this research cell
to provide ongoing, long-term policy recommendations. Existing tax officials, who are interested in
research, could be posted to this cell.
Ensuring Participation, Opinion and Long-Term Vision
Policy makers might better recognize the importance of the participation, opinions and views of the
public and of opposition political parties in the tax policy formulation process; this is significantly
absent in the Bangladesh tax regime, as revealed in this study. Broader participation would
undoubtedly ensure transparency and accountability in the policy formulation process as well as the
effectiveness of the policy. For ensuring participation of the political parties, parliamentary
discussion on possible finance acts and bills could be encouraged by making clear the incumbent
partys objectives and plans. For the economic betterment of the country, opposition political parties
taxation policies could be considered if those appear more effective and implementation-friendly.
Overcoming the Shortcomings of the Income Tax Laws and Policies

Most importantly, loopholes in the tax laws and policies analyzed in this thesis should be taken into
careful consideration by policy makers. As emphasized here, the continuous promulgation of tax
amnesty policies by most governments has created grave dissatisfaction amongst regular taxpayers. It
is worthy of mention that respondents from both the tax policy formulation and compliance groups
viewed such policies as having detrimental effects on revenue collection and equity and fairness.
Therefore, before further providing this amnesty to black money holders, government should
consider the negative impact and effect of the policy. Indeed, this discriminatory tax treatment should
be stopped immediately.
Implications and Recommendations for Tax Policy Implementation
There have been a number of issues in the tax policy implementation process examined in this study
which policy makers and tax officials should consider. There is no doubt that the tax administration
plays the central role in collecting revenues for the government. It is also understandable that,
without sufficient revenue, government cannot run its developmental programs. It is extremely
important to place greater emphasis on creating an efficient and effective tax administration which
could make the government financially independent. Despite playing the crucial role in strengthening
the economy, Bangladeshs tax administration suffers from weaknesses and disadvantages.
Overcoming the Institutional Weaknesses of the Tax Administration
The weaknesses of the tax department, as highlighted in this thesis, viz., inadequate human resources,
inadequate logistics and infrastructure, weak co-ordination, insufficient automation, and flaws in
enforcement are serious impediments to combating tax evasion. Policy makers should pay attention
to this department and take effective policy measures to overcome the weaknesses. Without an
adequate workforce, it will be not possible for the NBR to work as an efficient organization as well
as to combat tax evasion. For ensuring better performance in revenue collection and reducing the tax-
to-GDP gap, the NBR should be modernized, well-equipped and computerized. At the same time,
Zonal and Circle tax offices situated in Dhaka and other districts need to be strengthened and
renovated. All tax offices need their own buildings equipped with computers. The entire tax
administration has to be brought under a central database so that information about tax returns and
taxpayers can be exchanged.
Ensuring Professional Support for Tax Officials

Tax officials suffer from lack of professional support. Inadequate remuneration of tax officials has
been pointed out as one of the significant issues which compel them to indulge in corruption. Tax
officials are the revenue-earning workforce of the GOB. If the officials themselves suffer from
inadequate income for maintaining their family and a better lifestyle, it is be impractical to expect
that they will perform their duties properly without being tempted to earn more (rent!). This issue
should be urgently addressed by the GOB.
Monitoring Behavioral Aspects of Tax Officials and Corruption in the
Tax Administration
Once the required professional support for tax officials is ensured, emphasis should be placed on
combating corruption in the tax department. This study has examined several issues indicating
corrupt practices of tax officials. Tax officials need to be careful in performing their official duties
and responsibilities in a proper manner. Exemplary punishment for corrupt tax officials can be an
effective policy strategy to check corruption in the tax department. The service rules and regulations
for public officials need to be updated and strengthened to ensure the provision of punishment for
corruption. A clear definition of corruption, together with examples of corrupt practices, should be
included in the Anti-Corruption Act and government service rules and regulations. As an effective
anti-corruption strategy, the definition of corruption and the rules and regulations about punishment
can be highlighted in the print and electronic media to make public officials more aware. An updated
and clear Code of Conduct for tax officials is an urgent requirement. The Tax Ombudsman Office
should again be established by streamlining its functions and rules and regulations in line with the
proposed Tax Code. A strong and effective Tax Ombudsman will play a crucial role in combating
tax evasion and corruption.
Implications and Recommendations for Tax Policy

Compliance
Tax compliance or evasion ultimately depends on the decision of individual taxpayers. Therefore,
policy makers should be extra cautious in dealing with issues which affect tax compliance. This
thesis has examined a number of issues in the context of taxpayers and the tax department, which
influence tax evasion decisions. Policy makers should emphasis these issues.
Creating Awareness about Ethical/Behavioral Aspects of Taxpayers
Despite possessing a high level of tax morale, the citizens of Bangladesh still need to be motivated to
pay their taxes. Hence, moral, social and legal aspects could be taken into account. Increasing social
awareness about the legal obligation for tax compliance could be a better strategy to combat tax
evasion. Radio, television, newspapers and the internet could be utilized to create tax awareness.
Advertisements and short programs could be broadcast emphasizing the moral, social and legal
aspects of tax payment. It has to be strongly advertised that tax non-compliance is unethical and
illegal. Enhancing mass education will also help to increase tax awareness amongst citizens.
Financial Aspects of Taxpayers

The majority of potential taxpayers in Bangladesh indulge in tax evasion without significant variance
in accordance with their income bracket. Therefore a strong monitoring system for tax evasion is
urgently required.
Reducing Complexities in the Tax Regime
Simplification of tax laws has been recommended. The tax payment system also needs to be
simplified. Together with online transactions, tax payments by mobile telephone can also be
After doing this report I have found some scopes were improvements can take place.
Therefore I am suggesting a few solutions below:
Encourage tax payers to pay taxes making the tax laws simple and understandable.
Arrange more income tax fair so that people can easily submit their tax return.
Encourage tax payers to deposit their unused money to banks.
Encourage tax payers to invest their unused money.
Encourage tax payers who work in different private sectors to pay taxes by giving more
tax rebate like government service holders.
Give rebate to tax payer who does small business so that they get encourage to invest
more for the growth of the business.
Get the tax zones and the circles under the zones in the same location.
Reduce the minimum tax amount to be paid.
Encourage people to do transactions which are above 100000/ through bank.
Appendices
Bibliography
1. Taxation in Bangladesh Dr. Monjur Morshed Mahmud, Dr. khanchan Purohit, Dr.
Milan Kumar Battacharjee, Dr. Md. Abdur Rahman
2. Bangladesh Income Tax- Nikhil Chandra Shil, Mohammad Zakaria Masud,
Mohammad Faridul Alam.
3. Alam, D. (1999). Introduction of PSI System in Bangladesh: Facts and Findings
4. Allingham, M.G. and Sandmo, A. (1972). Income Tax Evasion: A Theoretical Analysis,
5. Journal of Public Economics, Vol. 1, pp.323-38.
6. (2014). Annual Budget 2013-2014, Ministry of Finance, GOB Part I and Part II, 10 June.
7. Baree, M. A. (1992). Law and Practice of Bangladesh Income Tax, UPL, Dhaka
8. Chowdhury, F.L (2006). Evasion of Customs Duty in Bangladesh, Desh Prokashon,
Dhaka
9. (1992). Unpublished MBA Dissertation, Graduate School of Management, Monash
University, Australia.
10. Chowdhury, R.A. (2008). The Tax Ombudsman: A new concept for Bangladesh,
11. TheFinancial Express (March 8)
12. Feinstein, Jonathan S. (1991). An Econometric Analysis of Income Tax Evasion and
Its
13. Detection, Rand Journal of Economics 22: pages 14-35.
14. Islam, R. (1999). Structure, Administration of VAT in Bangladesh with special reference
to
15. Evasion Control and Measurement of VAT Potential, NBR, GOB.
16. Income Tax Paripatra -1 , 2016-2017 financial year by NBR
17. Return Filling Guideline 2016-17 by NBR
LIST OF WEBSITE:
http://www.nbr.gov.bd/index. http://taxeszone4ctg.gov.bd/
php?
lan=engwww.taxeszone4.ctg
https://www.slideshare.net/ https://www.imf.org
https://www.adb.org https://www.theigc.org
https://www.tandfonline.com https://www.opendocs.ids.
ac.uk
https://www.oecd.org www.thedailystar.net
www.mof.gov.bd www.info.com/
www.copenhegenconsensus. www.bbc.com
com
www.bangladeshgov.com www.gobfinance.org
en.m.wikipedia.org citeseerx.ist.psu.edu
thefinancialexpress.bd.com shodhganga.inflibnet.ac.in
saadislam.wordpress.com economics.emory.edu
ataic 13.hasil.gov.my bd2.mofcom.gov.cn
document.worldbank.org
APPENDIX-1
FORM OF RETUN OF INCOME UNDER THE INCOME TAX

ORDINANCE, 1984 (XXXVI OF 1984)
IT-
FOR INDIVIDUAL AND OTHER 11GA
TAXPAYERS
Photogra
Be a Respectable ph of the
Taxpayer Assessee
Submit return in due [To be attested on
Put the tick () mark wherever applicable
Self Universal Self Normal
1. Name of the Assessee: ..........................................................................................................
2. National ID No (if any) : .............................................................................................................
3. UTIN (if any): -
4. TIN: -
5. (a) Circle: ............................................ (b) Taxes Zone: ...........................................................
6. Assessment Year: .............................. 7. Residential Status: Resident /Non-resident

8. Status: Individual Firm Association of Persons Hindu Undivided Family
9. Name of the employer/business (where applicable): ..................................................................
10. Wife/Husband's Name (if assessee, please mention TIN): ....................................................
11. Father's Name: .......................................................................................................................
12. Mothers Name: .......................................................................................................................
13. Date of Birth (in case of individual) :

Day Month Year
14. Address (a) Present: ........................................................................................................
........................................................................................................
(b) Permanent: ........................................................................................................
........................................................................................................
15. Telephone: Office/Business ................................... Residential: ............................................
16. VAT Registration Number (if any): ..........................................................................................
Statement of income of the Assessee
Statement of income during the income year ended on....................................................
Serial Heads of Income Amount in

no. Taka
1 Salaries : u/s 21 (as per schedule 1)
2 Interest on Securities : u/s 22
3 Income from house property : u/s 24 (as per schedule 2)
4 Agricultural income : u/s 26
5 Income from business or profession : u/s 28
6 Share of profit in a firm :
7 Income of the spouse or minor child as applicable : u/s 43(4)
8 Capital Gains : u/s 31
9 Income from other source : u/s 33
10 Total (serial no. 1 to 9)
11 Foreign Income:
12 Total income (serial no. 10 and 11)
13 Tax livable on total income
14 Tax rebate: u/s 44(2)(b)(as per schedule 3)
15 Tax payable (difference between serial no. 13 and 14)
16 Tax Payments:
(a) Tax deducted/collected at source
(Please attach supporting documents/statement)
Tk..............
(b) Advance tax u/s 64/68 (Please attach challan )

Tk .............
Tax paid on the basis of this return (u/s 74)

(Please attach challan/pay order/bank
draft/cheque)Tk............
Tk. .................
(d) Adjustment of Tax Refund (if any)
w
Tk ..............
Total of (a), (b), (c) and (d)

17 Difference between serial no. 15 and 16 (if any)
Tk. .................
18 Tax exempted and Tax free income
w
Tk. .................
19 Income tax paid in the last assessment year
w
*If needed, please use separate sheet.
Verification
I ........................................................... Father/husband........................................................
UTIN/TIN: ........................................................ Solemnly declare that to the best of my
knowledge and belief the information given in this return and statements and documents annexed
herewith is correct and complete.
Place:
Date:
Signature
(Name in block letters)

Designation and
Seal (for other than individual)
SCHEDULES SHOWING DETAILS OF INCOME
Name of the TIN - -

Assessee: .................................................................
Schedule-1 (Salaries)
Pay & Allowance Amount of Amount of Net taxable
Income exempted income
(Tk.) income (Tk.) (Tk.)
Basic pay
Special pay
Dearness allowance
Conveyance allowance
House rent allowance
Medical allowance
Servant allowance
Leave allowance
Honorarium / Reward/ Fee
Overtime allowance
Bonus / Ex-gratia
Other allowances
Employers contribution to Recognized
Provident Fund
Interest accrued on Recognized Provident
Fund
Deemed income for transport facility
Deemed income for free
furnished/unfurnished accommodation
Other, if any (give detail)
Net taxable income from salary
Schedule-2 (House Property income)

Location and description Particulars Tk. Tk.
of property
1. Annual rental income
2. Claimed Expenses :
Repair, Collection, etc.
Municipal or Local Tax
Land Revenue
Interest on Loan/Mortgage/Capital
Charge
Insurance Premium
Vacancy Allowance
Other, if any
Total =
3. Net income ( difference between item 1 and 2)
Schedule-3 (Investment tax credit)
(Section 44(2) (b) read with part B of Sixth Schedule)
Tk......................................
1. Life insurance premium
..
Tk......................................
2. Contribution to deferred annuity
..
3. Contribution to Provident Fund to which Provident Fund Tk......................................
Act, 1925 applies ..
4. Self contribution and employers contribution to Recognized Provident Tk......................................
Fund ..
Tk......................................
5. Contribution to Super Annotation Fund
..
Tk......................................
6. Investment in approved debenture or debenture stock, Stock or Shares
..
7. Contribution to deposit pension scheme Tk......................................
..
Tk......................................
8. Contribution to Benevolent Fund and Group Insurance premium
..
Tk......................................
9. Contribution to Zakat Fund
..
Tk......................................
10. Others, if any ( give details )
..
Tk......................................
Total
..
*Please attach certificates/documents of investment.
List of documents furnished
1. 6.
2. 7.
3. 8.
4. 9.
5. 10.
*Incomplete return is not acceptable

IT-10B
Statement of Assets and Liabilities (as on .........................................)
Name of the Assessee: ................. TIN - -
1. (a) Business Capital (Closing balance) Tk. ........

(b) Directors Shareholdings in Limited Companies (at cost) Tk. .........
Name of Companies Number of shares
2. Non-Agricultural Property (at cost with legal expenses): Tk. .........

Land/House property (Description and location of property)
3. Agricultural Property (at cost with legal expenses): Tk. .........

Land (Total land and location of land property)
4. Investments:
(a) Shares/Debentures Tk. ...........
(b) Saving Certificate/Unit Certificate/Bond Tk. ...........
(c) Prize bond/Savings Scheme Tk. ...........
(d) Loans given Tk. ...........
(e) Other Investment Tk. ...........
Total = Tk. .........
5. Motor Vehicles (at cost): Tk. .........

Type of motor vehicle and Registration number
6. Jewellery (quantity and cost): Tk. .........
7. Furniture (at cost): Tk. .........

8. Electronic Equipment (at cost): Tk. .........
9. Cash Asset outside Business:
(a) Cash in hand Tk. ...........
(b) Cash at bank Tk. ...........
(c) Other deposits Tk. ...........
Total = Tk. .........
B/F = Tk. .........
10. Any other assets Tk. .........

(With details)
Total Assets Tk. .........

11. Less Liabilities:
(a) Mortgages secured on property or land Tk. ...........
(b) Unsecured loans Tk. ...........
(c) Bank loan Tk. ...........
(d) Others Tk. ...........
Total Liabilities Tk. .........
12. Net wealth as on last date of this income year

(Difference between total assets and total liabilities) Tk. .........
13. Net wealth as on last date of previous income year Tk. ...........
14. Accretion in wealth (Difference between serial no. 12 and 13) Tk. .........
15. (a) Family Expenditure: (Total expenditure as per Form IT 10 BB) Tk. .......
(b) Number of dependant children of the family:
Adult Child
16. Total Accretion of wealth (Total of serial 14 and 15) Tk..........
17. Sources of Fund:

(i) Shown Return Income Tk. ...........
(ii) Tax exempted/Tax free Income Tk. ...........
(iii) Other receipts Tk. ...........
Total source of Fund = Tk. ..........
18. Difference (Between serial 16 and 17) Tk...........
I solemnly declare that to the best of my knowledge and belief the information given in the IT-
10B is correct and complete.
Name & signature of the Assessee

Date....................
Assets and liabilities of self, spouse (if she/he is not an assessee), minor children and
dependant(s) to be shown in the above statements.
Form No. IT-10BB

FORM
Statement under section 75(2)(d)(i) and section 80 of the Income Tax Ordinance, 1984
(XXXVI of 1984) regarding particulars of life style
Name of Assessee
TIN:
Seria Comments
l No. Particulars of Expenditure Amount of Tk.
1 Personal and fooding expenses Tk.
2 Tax paid including deduction at source of the Tk.
last financial year
3 Accommodation expenses Tk.
4 Transport expenses Tk.
5 Electricity Bill for residence Tk.
6 Wasa Bill for residence Tk.
7 Gas Bill for residence Tk.
8 Telephone Bill for residence Tk.
9 Education expenses for children Tk.
10 Personal expenses for Foreign travel Tk.
11 Festival and other special expenses, if any Tk.
Total Expenditure Tk.
I solemnly declare that to the best of my knowledge and belief the information given in
the IT-10BB is correct and complete.
Name and signature of the Assessee

Date ....................
..............................................................................................................................................
Acknowledgement Receipt of Income Tax Return
Name of the Assessee: ...................................................................... Assessment Year: .......

.
UTIN/TI
- Circle: .......... Taxes Zone .
N:
Instructions to fill up the Return Form
Instructions:
(1) This return of income shall be signed and verified by the individual assessee or person as
prescribed u/s 75 of the Income Tax Ordinance, 1984.
(2) Enclose where applicable:
(a) Salary statement for salary income; Bank statement for interest; Certificate for interest
on savings instruments; Rent agreement, receipts of municipal tax and land revenue,
statement of house property loan interest, insurance premium for house property
income; Statement of professional income as per IT Rule-8; Copy of assessment/
income statement and balance sheet for partnership income; Documents of capital gain;
Dividend warrant for dividend income; Statement of other income; Documents in
support of investments in savings certificates, LIP, DPS, Zakat, stock/share etc.
(b) Statement of income and expenditure; Manufacturing A/C, Trading and Profit & Loss
A/C and Balance sheet;
(c) Depreciation chart claiming depreciation as per THIRD SCHEDULE of the Income
Tax Ordinance, 1984;
(d) Computation of income according to Income tax Law;
(3) Enclose separate statement for:

(a) Any income of the spouse of the assessee (if she/he is not an assessee), minor children
and dependant;
(b) Tax exempted / tax free income.
(4) Fulfillment of the conditions laid down in rule-38 is mandatory for submission of a return under "Self
Assessment".
(5) Documents furnished to support the declaration should be signed by the assessee or his/her authorized
representative.
(6) The assesse shall submit his/her photograph with return after every five year.
(7) Furnish the following information:

(a) Name, address and TIN of the partners if the assessee is a firm;
(b) Name of firm, address and TIN if the assessee is a partner;
(c) Name of the company, address and TIN if the assessee is a director.
(8) Assets and liabilities of self, spouse (if she/he is not an assessee), minor children and dependant(s) to
be shown in the IT-10B.
(9) Signature is mandatory for all the assessee or his/her authorized representative. For individual,
signature is also mandatory in I.T-10B and I.T-10BB.
(10) If needed, please use separate sheet.
..............................................................................................................................................
Total income shown in Return: Tk ......................... Tax paid: Tk ...................................
Net Wealth of Assessee : Tk ........................
Date of receipt of return : ............................................. Serial No. in return

registers.......................
Nature of Sel Universal Self Normal

Return : f
Signature of Receiving
Officer with seal
......
APPENDIX 2
APPENDIX 3
Calculation of income
tax:
Suppose total income of an tax payer is 1500000 taka

then his tax payment will be:
on first 250000 =NIL
Up to next 400000/ of total income is 10%= 40000
Up to next 500000/ of total income is 15%= 75000
On next 600000 @20%
(150000-250000-400000-500000)=350000
so 350000@20%= 70000
Total tax laibility 185000

And if his investment is this year is 400000 taka. He will gat
rebate by following term
25% OF Total income is 375000 or total investment whichone is lower
So the tax payer will get 15% rebate on 375000=56250 taka
Now his tax payment will be (185000-56250)=128750
A Form of tax return is given below

Role of Income Tax

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Role of Income Tax

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Role of income tax in the economic development of Bangladesh: A case study of Income Tax

Office, Zone-4, Chittagong.

Tax is contribution exacted by the government. It is a non-penal but compulsory and

1.1. (i) Taxation and its history

Peter Merchant Ltd. Vs Steady Ford

Patiwala State Bank (1941)

1.1. (ii) Income Tax at a Glance:

1.1. (iii) Income Tax Authorities: (Section 3 of the Ordinance)

The National Board of Revenue;

A Brief overview on NBR &

About National Board of Revenue (NBR):

Existing officer Income Taxes Zone-4, Chittagong:

Existing Income Tax Circle in Zone-4, Chittagong:

Income Under Taxes Zone-4,chittagong

1.2 Statement of the problems:

1.3 Objectives of the Study:

1.4 Limitations of the study:

Concept Of Income Tax

2.1 Definition of concepts and assumptions

Concept Of Income Tax

What is an Income Tax Return?

Who should submit Income Tax Return?

A person who lives in any city corporation/paurashava/divisional HQ/district HQ and owns

Any professional registered as a doctor, lawyer, income tax practitioner, Chartered

Anyone-government organization (NGO) registered with NGO Affairs Bureau.

When a Return should be submitted

Where to Submit a Return

What Is an Etin & How to Collect an Etin?

Penalties for not Submitting a Return Form

Parts of an Income Tax Return

How to Submit a Return

The return will not generate refundable tax.

It will not show any kinds of financial help being taken.

It was to provide necessary documents nontaxable income shown in the return

The Supporting Documents needed to be provided

iii. Life insurance, DPS statements.

Secured interest sector:

ii. If interest income is there then statements of those income

iii. Loan statements of the loan which is used to buy bonds.

ii. Receipts of city corporation tax, land revenue tax.

iv. Insurance paper of the wealth if any.

Income from partnership income:

ii. Challan or pay order copy the source tax paid.

ii. Statements of saving certificate.

iii. Statements supporting interest income.

iv. Other income sources statements.

How to Fill up a Income Tax Return

How to Determine Taxable Income from Different

Salary and allowance Monthly Annual Nontaxable Net Comment

transport facility provides Car

How to determine taxable salary income for

According to SRO no 198law/income/2015 only basic salary, bonus, festival allowance of a

Income from house rent:

Income form Details taka taka

3)Net income(Section 1-2)

Male tax payer of age below 65:

Female or 65 or above male tax payer:

300000 + 200000) = 50000/ taka

For a physically challenged tax payer:

(375000 + 200000) = 575000/ taka.

For a freedom fighter:

(425000 + 200000) = 625000/ taka.

Income from Farm: