Bangladesh Income Tax: Theory and

Practice
Shil, Masud & Alam

Instructor:
Rezwanul Mumtahin Husain
Lecturer
Department of Accounting & Finance
School of Business and Economics
North South University
Chapter 5
Income and Its Classification
◼ Definition of income
◼ Sources of income
◼ Tax Credit Income and Investment
Allowances
Definition of Income

Income means periodical or annual receipt

from one’s work, lands, investments. It
includes any sum that a person or
organization receives either as a reward
for effort (salary or profit) or as a return
on investments (rents or interests).
Sources of income
1. Salaries (S – 21) 6. Capital gain (S-31)

2. Interest on Securities 7. Income from other

(S – 22) sources (S-33)
3. Income from House 8. Share of profit in a
property (S -24) firm
4. Agricultural income 9. Income of the spouse
(S-26) or minor child
5. Income from Business 10.Foreign income
or profession (S-28)
Tax Credit Income and Investment
Allowances (Part B of the Sixth Schedule)
Total Income
If the total income does not exceed
Tk.10,00,000
If the total income exceeds
Tk.10,00,000 but does not exceed
Tk.30,00,000
If the total income exceeds
Tk.30,00,000
Amount of Credit/ Rebate
15% of the eligible amount
i. 15% of the first Tk.2,50,000 of the
eligible amount; and
ii. 12% of the rest of the eligible
amount
i. 15% of the first Tk.2,50,000 of the
eligible amount;
ii. 12% of the next Tk.5,00,000 of the
eligible amount; and
iii. 10% on the rest of the eligible
amount
Tax Credit Income and Investment
Allowances (Part B of the Sixth
Schedule)
Eligible Amount:
Actual Income, or

25% of Total income excluding any

income for which a tax exemption or reduced
rate is applicable under sec 44(4) or any income
from any sources mentioned in sec 82(C), or

Tk. 1,50,00,000; whichever is lower