Bangladesh Income Tax: Theory and

Practice
Shil, Masud & Alam

Instructor:
Rezwanul Mumtahin Husain
Lecturer
Department of Accounting and Finance
School of Business and Economics
North South University
 Chapter 2
Bangladesh Income Tax

• Definition of Income Tax

• Characteristics of Income Tax
• Role of Income Tax in Economic
Development of Bangladesh
• Scope of Bangladesh Income Tax Law
 Definition of Income Tax

Income tax is a tax on income.

Income tax is a direct tax and single tax

charged on the total income of a person
for a relevant income year in relevant
assessment year
 Characteristics of Income Tax

• Is a direct tax
• It is levied or imposed by the government on an
annual basis
• Charged as per the provisions of the income tax
law
• Charged on total income of an income year of a
person in an assessment year
• The income tax rate is determined by the
government
 Role of Income tax in
Economic Dev. Of Bangladesh

• Tax holiday scheme

• Investment allowance
• Tax incentive for small and cottage
industries
• Tax incentive for foreign investors
• Tax incentive for remittance
 Scope of Bangladesh Income
Tax Law

1. The Income Tax Ordinance, 1984

2. The Income Tax Rules, 1984
3. Finance Act
4. SRO
5. Income Tax Case Law