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Direct Taxes In Bangladesh
Direct Taxes InBangladesh
Md Syedur RahmanId:053-218-530Parvez Akhter Linkon Id:053-225-530
Act-322 {MBR}
 
Direct Taxes In Bangladesh
A tax is a financial charge or other levy imposed on an individual or a legal entity by a state or afunctional equivalent of a state. Taxes consist of direct taxes and indirect taxes.“Pecuniary burden laid upon individuals or property to support the government a payment exacted bylegislative authority”.Tax is not a voluntary payment or donation but an enforced contribution, exacted pursuant to legislativeauthority and is any contribution imposed by government whether under the name of VAT, Custom,Excise or other name.
Taxation means
 
imposition of a non-penal yet compulsory levy for transfer of resources from private to public sector, imposed by the public representative based onpre-determined criteriaand without reference to any specific commitment, in order to accomplish some nation’seconomic and social objective. These are dues that we pay for the privileges of membership in anorganized civil society. Tax is imposed in the assessment year based on income year.
 Assessment year 
:
The assessment is a period of 12 months just following the income year meanscomputation of total income and tax payable there on.
 Income year:
Income year is the year when the income is earned.The income tax is administrated Income Tax Ordinance, 1984 and the Income tax Rules, 1984 aswell as notification made under the Ordinance. The charge of tax of a person depends on itsresidential status. Total world Income of a resident is charged to tax in Bangladesh. Whereas, anon-resident's Bangladesh income is only charged to tax in Bangladesh. There are seven heads of income. They are salary, interest on security, house property, agriculture, business and profession, capital gain and other sources.Submission of income tax returns is generally due by 30
th
September in case of non-companiesand by 31st December in case of companies.Assessment is made in several procedures. They are self-assessment, presumptive assessment,spot assessment, pre-audit based assessment. Certain percent of self-assessment cases areselected for audit.
Act-322 {MBR}
 
Direct Taxes In Bangladesh
The assessee can prefer appeal if aggrieved by his assessment. There are three primary forumsfor appeal. They are to the Appellate Commissioner/Additional Commissioner/JointCommissioner or to the Commission for reviews. The decisions of AppellateCommissioner/Additional Commissioner/Joint Commissioner can be challenged to the nextAppellate 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.Bangladesh has Agreement on Avoidance of Double Taxation with 20 countries. Negotiationswith some other countries are on way.Taxation one of the major sources of public revenue to meet a country's revenue anddevelopment expenditures with a view to accomplishing some economic and social objectives,such as redistribution of income, price stabilization and discouraging harmful consumption. Itsupplements 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 theFrench word taxe and etymologically, the Latin word taxare is related to the term 'tax', whichmeans 'to charge'. Tax is 'a contribution exacted by the state'. It is a non-penal but compulsoryand 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 impositionof any tax, rate, duty or impost, whether general, local or special, and tax shall be construedaccordingly. Rate is a local tax imposed by local government on its residents or the propertyowners 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 belevied 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 towardsrationalizing the tax administration for optimizing revenue collection, reducing tax evasion and preventing revenue leakage through system loss.
Act-322 {MBR}
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