Class 1

Online Training session on Organized by :
Practical Aspects of Income Tax Laws Dhaka Regional Committee

For CA Students (2023-24) (DRC), ICAB
Online Training session on

About the Resource PersonDhakaOrganized
“Practical Aspects of Income Tax Laws”
by :
Regional Committee
Rtn. Md. Anwaruzzaman FCA
VAT Agent and VAT Consultant (NBR Licensed)
Partner, Rahman MostafaAlam & Co., Chartered Accountants
Consultant & Trainer, enroute.com.bd
Faculty Teacher and Member, Bangladesh VAT Professional Forum (BVPF)
Faculty Teacher, The Institute of Chartered Accountants of Bangladesh (ICAB)
Past Chairman, Dhaka Regional Committee (DRC)- ICAB
Fellow Member, The Institute of Chartered Accountants of Bangladesh (ICAB)
Fellow Member, The Instituteof Internal Auditors Bangladesh (IIAB)
Member, Bangladesh Accounting Association (BAA)
Member, Dhaka Taxes Bar Association (DTBA)
Member, DU Accounting Alumni (DUAA)
Resource Person : Rtn. Md. Anwaruzzaman FCA, ( VAT Agent & VAT Consultant )
Partner, Rahman Mostafa Alam & Co., Mobile : 01914- 284 705; Email: mazamanrma@gmail.com
Date : 03 January 2024 (Wednesday)
Class : 1
Contents of this Class :

SL Particulars Reference
01 Introduction
02 Some important Definitions: Part 1, Sec 2
03 Basic Structure of Tax Authority Part 2, Sec 4-12

Basic Structure of DCT, Range, Commissioner, Appeal, Part 3, Sec 13-17
04
Tribunal
02 Some important Definitions: Part 1, Sec 1-2
Income Tax Act, 2023

(Act No. XII of 2023)
Part-I
Preliminary
1. Short Title and Commencement.-
(1) This Act shall be called the Income Tax Act, 2023.
(2) It shall come into force immediately.
2. Definition.-
Unless there is anything contrary to the subject or context, in this Act, -
(1) "Depreciated Value" means depreciated value as defined in Part 1 of the Third Schedule;
(2) "Additional Commissioner of Taxes (Appeals)" means the Additional Commissioner of Taxes
(Appeals) and the Joint Commissioner of Taxes (Appeals) referred to in section 4;
(3) "Extra Assistant Commissioner of Taxes" means the Extra Assistant Commissioner of Taxes
referred to in section 4;
(4) "Non-resident" means any such person who is not a resident;
(5) "Approved Provident Fund" means the gratuity fund approved by the Board under the
provisions of Part II of the Second Schedule;
(6) "Approved Superannuation Fund or Pension Fund" means any superannuation fund or
pension fund approved by the Board under the provisions of Part 1 of the Second Schedule;
(7) "Partner" means a partner within the meaning defined in the Partnership Act, 1932 (Act No. IX
of 1932) and shall include any minor deemed to be a partner by way of receiving dividends;
(8) "Partnership" means a partnership as defined in the Partnership Act, 1932 (Act No. IX of
1932);
(9) "Legal Representative” means a legal representative as defined in clause ( 11) of section 2 of
the Code of Civil Procedure, 1908 (Act No. V of 1908);
(10) "Relative" means the husband or wife, son, daughter, brother, sister or lineal predecessor
or successor of any person;
(11) "Financial Institution" means a financial institution as Defined in The Financial Institutions
Act, 1993 (Act No. 27 of 1993);
(12) "Appellate Tribunal” means the Taxes Appellate Tribunal established under section 13;
(13) "Income" shall include-
(a) income, receipts, profits or gains arising from any source chargeable to tax under
any provision of this Act;
(b) any amount deductible or collectable at source under any provision of this Act;
(c) any loss relating to the income, profits or gains referred to in sub-clause (a);
(d) profits or receipts derived from any insurance business carried on by a mutual insurance
association levied under paragraph 8 of the Fourth Schedule;
(e) any sum deemed to be income or any income accruing or arising or received or deemed to
accrued or arised or be received in Bangladesh under any provision of this Act;
(f) Taxes are levied on any such amount, payments or transactions;
(14) "Income Tax" means any tax or surcharge leviable or payable under this Act;
(15) "Income Year" means the financial year immediately preceding the assessment year and shall
include-
(a) the period from the date of first commencement of any business to the 30th day of June
next following;
(b) if any new income arises up to the 30th day of June next following;
(c) the period commencing on the first day of July to the date of winding up of any business
or, as the case may be, the date of dissolution of an unincorporated body or winding up
of a company;
(d) the period from the first day of July to the date of retirement or death of a partner in an
unincorporated firm;
(e) from the date immediately following the date of retirement or death of a partner in an
unincorporated firm or the date of retirement or death of another partner in such
unincorporated firm or, as the case may be, the 30th day of June immediately following
the date of such retirement or death;
(f) in the case of any bank, insurance or financial institution or any of its subsidiaries,
for the next 12 (twelve) months period commencing from the first day of January of
the relevant year:
Provided that in the case of a subsidiary company of a parent company incorporated outside
Bangladesh, including subsidiary companies of the subsidiary company, or any of its holding
companies or any of its branches, representatives or liaison offices, if such company has a
different income year for the purpose of reconciling its accounts with those of the parent
company expresses the intention to follow, with the approval of the Deputy Commissioner of
Taxes, any separate 12 (twelve) months may be treated as an income year;
(16) "Tax Payable on Income" means the sum chargeable or payable on the basis of income under
this Act;
(17) "Deputy commissioner of Taxes" means any person appointed as Deputy Commissioner of
Taxes referred to in section 4, and shall also include Transfer Pricing Officer, Assistant
Commissioner of Taxes, Extra Assistant Commissioner of Taxes and Tax Recovery Officer;
(18). "Merger" means a merger as defined in the Eighth Schedule;
(19) "Commissioner" means the Commissioner of Taxes referred to in section 4 or the
Commissioner of Taxes (Large Taxpayer Unit);
(20) "Commissioner (Appeal)" means the Commissioner of Taxes (Appeals) referred to in section 4;
(21) "Tax" means tax payable on income, and shall include any additional tax, additional taxes on
profit, fine, super tax, penalty, interest, fee or other sum leviable or payable under this Act;
(22) "Taxpayer" means any person earning taxable income and includes the following persons,
namely:-
(a) any person liable to pay any tax or any other sum under this Act;
(b) every such person-
(i) whose income, or with whose income the income of any other person is assessable;
or
(ii) proceedings under this Act have been taken to determine the amount due to him
or any other person;
(c) to whom the minimum tax is payable;
(d) any person liable to file or furnish any return, document or statement;
(e) any person intending to assess tax and filing a return;
(f) any person deemed to be a taxpayer or defaulting taxpayer under any provision of
this Act;
(g) against whom any proceedings under this Act have been taken;
(23) "Tax Day" means-
(a) in the case of a taxpayer other than a company, the 30th (thirtieth) day of November next
following the closing of the income year;
(b) in the case of a company, the 15th (fifteenth) day of the seventh month following the end
of the income year or, where the fifteenth day falls before the 15th (fifteenth) day of
September, the fifteenth day of the month of September following the end of the income
year;
(c) the 30th day of June next following the end of the income year in the case of an
individual taxpayer who has never filed a return before;
(d) in the case of an individual taxpayer residing abroad, the 90th (ninetieth) day from the
date of his return to Bangladesh, if such person-
(i) stays outside Bangladesh on leave for higher education or on deputation or lien for
employment; or
(ii) resides outside Bangladesh in possession of a valid visa and permit for the purpose
of earning money;
(e) if the day mentioned in sub-clauses (a) and (b) is a public holiday, the next working day
after that day;
(24) "Tax Year" means the period of 12 (twelve) months commencing from the first day of July
in every year and shall include any period deemed to be a tax year under the provisions
of this Act;
(25) "Employee" means, in relation to a company, the director finance or any other director and
includes any such person, irrespective of title, performing any duties connected with the
management of the company;
(26) "Tax Exemption" means a partly or fully exemption from any tax arising under this Act by
granting the following benefits to a person, namely:-
(a) concession, respite, exemption;
(b) payment of tax at a reduced rate; or
(c) the exclusion of any income from the computation of total income;
(27) "Tax-free Limit" means any limit of total income subject to zero tax rate;
(28) "Taxed Dividend" means dividend income on which income-tax has already been paid under
this Act;
(29) "Cost and Management Accountant" means a Cost and Management Accountant as defined in
the Cost and Management Accountants Act, 2018 (Act No. 70 of2018); (30) "Technical
Service Fee" shall include remuneration received for providing financial management,
technical or consultancy services, including lump sum remuneration, and any technical or other
professional services, but shall not include the following, namely:-
(i) remuneration received from any construction work, pairing assignment work, mining
work or similar project undertaken by the recipient; or
(ii) any remuneration classifiable as "income from employment" income of the recipient;
(31) "Company" means a company within the meaning defined in the Companies Act, 1994 (Act No.
18 of 1994), and shall include-
(a) the liaison office, representative office or branch office of a foreign establishment;
(b) any permanent establishment of any foreign entity or person;
(c) any association or organization registered by or under the laws of any country outside
Bangladesh;
(d) any bank, insurance or financial institution;
(e) any industrial and commercial organization, foundation, society, co-operative
society and any educational institution;
(f) any organization registered with the NGO Affairs bureau or the Microcredit
Regulatory Authority;
(g) any firm, partnership, joint venture or association of persons, by whatever name called, if
any such person is a company or foreign entity within the meaning of the Companies
Act, 1994 (Act No. 18 of 1994);
(h) statutory public authorities, local authorities, autonomous bodies;
i) any entity established or constituted by or under any law for the time being in force;
(j) all entities other than natural persons, firms, associations, trusts, Hindu undivided
families and funds;
(k) not incorporated by or under any Act, any such foreign association or body which may,
by the Board, by general or special order, be declared a company for the purposes of
this Act;
(32) "Defaulting Taxpayer" means-
(a) any person who has failed to pay any tax under this Act; or
(b) any person who is deemed to be a defaulting taxpayer under this Act;
(33) "Research and Development" means systematic, investigative and experimental studies
which-
(a) any such work never happened before and having or technical risk;
(b) shall be from the field of science or technology;
(c) should be conducted for the purpose of acquiring new knowledge; or
(d) be conducted for the purpose of using the results of studies for the purpose of production
or development of materials, equipment, products, agricultural products or processes,
Studies conducted for the following purposes shall not be included in the meaning of research or
development, namely:-
(i) quality control or routine testing of materials, equipment or products;
(ii) research conducted in the arts and humanities and social sciences;
(iii) creation and development of financial instruments or financial products;
(iv) market research or sales promotion, routine data collection, efficiency surveys or
management studies;
(v) routine substitution or alteration of materials, equipment, products, processes or production
methods;
(vi) minor (cosmetic) alterations or style changes in materials, equipment, products, processes
or production methods; or
(vii) create or improve trademarks or reputation;
(34) "Public Servant" means a public servant as defined in section 21 of the Penal Code, 1860 (Act
No. XLV of 1860); (35) "Employment" shall include;-
(a) any post in which the person appointed is entitled to fixed or, from time to time, fixed
remuneration;
(b) any directorship or any position connected with the management of the company;
(c) holding or acting in any capacity in public office;
(36) "Chartered Accountant” means a Chartered Accountant as defined in the Bangladesh Chartered
Accountants Order, 1973 (President's Order No. 2 of 1973);
(37) "Trading Account" or "Profit and Loss Account" means income statement and other similar
accounts prepared under International Financial Reporting Standards (IFRS);
(38) "Trust" means a trust constituted under the Trust Act, 1882 (Act No. II of 1882) and shall also
include a trust as defined in the Specific Relief Act, 1877 (Act No. II of 1877) :
Provided that where the trust is constituted as a prerequisite for the formation of a company or
fund or for the purpose of managing the company or fund, the said company or, as the case may be,
the fund shall be a taxable entity and the trust shall not be treated as a taxable entity;
(39) "Tax Recovery Officer" means a person appointed as a tax recovery officer referred to in section
4;
(40) "Demerger" means demerger as defined in the Eighth Schedule;
(41) "Scheduled Bank" means a scheduled bank as defined in article 2(i) of the Bangladesh Bank
Order, 1972 (President's Order No. 127 of 1972);
(42) "Fund" means any fund created or recognized under any law or regulation for the time being in
force;
(43) "Charitable Purpose" means-
(a) relief for the poor, education relief, medical relief; and
(b) the improvement or expansion of any purpose of general public utility:
Provided that the improvement or extension of any purpose of general public utility shall not be
deemed to be a charitable purpose-
(i) unless it is approved by the National Board of Revenue; And
(ii) if it engages in any of the following activities:-
(a) any activity in the nature of trade, commerce or business of whatever kind or
nature; or
(b) if any service is provided in exchange for goods and the total value of such goods
in any income year exceeds Tk 20 (twenty) lakhs;
(44) "Borrowed Amount" shall include, in the case of a banking company, money received by way
of deposit;
(45) "Resident" means in any income year-
(a) any such person who has stayed in Bangladesh for the period specified below-
(b) a minimum of 183 (one hundred and eighty-three) or more days consecutively or in the
aggregate in the said year; or
(i) a total of 90 (ninety) days or more in the said year consecutively or in the
aggregate and a total of 365 (three hundred sixty-five) or more days
consecutively or in the aggregate during the immediately preceding 4 (four)
years;
(ii) any Hindu undivided family, firm or association of individual whose control and
management functions are wholly carried on within Bangladesh during the said
year;
(c) any Bangladeshi company or any other company whose control and management
functions are controlled exercised from within Bangladesh during the said year;
and
(d) any trust, fund, entity or artificial person created by law the creation of which under to
any law in force in Bangladesh or the control and management of which is wholly
within Bangladesh during that year;
( 46) "Prescribed" means prescribed by law;
(47) "Employer" includes former employer;
(48) "Fair Market Value" means the value determined by the Board;
(49) "Commodity" means all kinds of tangible movable property other than securities and money;
(50) "Supply of Goods" means-
(a) sell, exchange or otherwise transfer the rights of the goods; or
(b) includes the sale of goods under lease, hire, installments or otherwise and the sale of
goods under finance lease;
(51) "Inspecting Additional Commissioner of Taxes" means the Inspecting Additional
Commissioner of Taxes and the Inspecting Joint Commissioner of Taxes referred to in
section 4;
(52) "Inspector" means the Inspector of Taxes referred to in section 4;
(53) "Director" or "Manager" means a director or manager as defined in the Companies Act,
1994 (Act No. 18 of 1994);
(54) "Principal Officer" in relation to any company, organization or association of individual
shall include the following persons, namely:-
(a) the managing director, chief executive officer, chief financial officer, manager, secretary,
treasurer, agent or accountant, by whatever name called, or any officer responsible for the
management of the affairs or accounts of the said authority, company, organization association
who has been notified by the Commissioner of taxes to be the principal officer of that organization;
(55) "Perquisite" means perquisite as defined in section 32;
(56) "Person with Disability" means a person registered as a disabled person under section 31 of
The Rights and Protection of disabled person Act, 2013 (Act No. 39 of 2013);
(57) "Speculative Business" means any business in which contracts for the purchase or sale of
goods are entered into in such a manner as to result in the goods being settled within a specified
period or without final transfer or delivery, but shall not include any such business in which-
(a) a producer enters into an agreement to distribute or supply raw materials or products
properly in order to secure its price in order to avoid loss due to future price fluctuations;
(b) contracts are entered into with dealers or investors in respect of stocks and shares in order
to avoid the risk of loss of stocks and shares in their possession due to fall in price; and
(c) any member of an advanced market or stock exchange enters into an agreement to
indemnify him against loss of business of a wholesale and brokerage nature, which may
arise in the normal course of business of such member;
Explanation. - For the purposes of this clause,-
(i) commodity shall include shares or stocks;
(ii) investment in any securities and purchase and sale of securities on any stock
exchange shall not be deemed to be speculative transactions;
(58) "Firm" means a firm as defined in the Partnership Act, 1932 (Act No. IX of 1932);
(59) "Year” mean financial year;
(60) "Fair Market Value" means-
(a) Where agricultural produce is sold in the general market in its raw state or is processed
and made fit for sale through a farmer engaged in production, the tax shall be assessed
in the first year on the income arising from the produce at the price at which it was sold
during the entire preceding year its average value; and
(b) in cases where the said agricultural produce is not normally sold in the raw state in the
market, the amount of the following sums:-
(i) cost of cultivation;
(ii) land development tax or rent on which the produce is grown; and
(iii) the rate of profit reasonably determined by the Commissioner of Taxes on the sale
price of the disputed as agricultural produce taking into account the
circumstances;
(61) "Bangladeshi Company" means a company formed and incorporated under the Companies Act,
1994 (Act No. 18 of 1994), and shall includes any such entity established or constituted under
or under any law for the time being in force in Bangladesh and having its registered office in
Bangladesh;
(62) "Annual Value" means the rent of any property-
(a) the reasonable rent of the property at the end of the year; or
(b) where the annual rent exceeds the amount determined under sub-clause (a), the annual
rent;
(63) "Sale Proceeds" means-
(a) if the asset is sold, the proceeds or the fair market value of the asset, whichever is
higher;
(b) if the asset is transferred by way of exchange, the fair market value of the asset acquired
by the said transfer;
(c) if the asset is transferred by any means other than sale or exchange, the consideration
received in return for such transfer;
(d) any asset abandoned, wiped out, destroyed or lost, the scrap value of the asset, or the
amount recovered by sale, together with any amount received or due for insurance,
salvage or indemnity against the asset;
(e) if the asset is acquired compulsorily under any law in force in Bangladesh, the
compensation paid for the acquisition;
(f) if the use of the asset in the agricultural work of the taxpayer is ended, the fair market
value of the asset at the time of ending;
(g) export value received if any plant or machinery is exported or transferred outside
Bangladesh after its use in Bangladesh;
(h) if the value of any passenger vehicle is subject to the ceiling under the Third Schedule, the
amount shall be-
a x (b/c), where-
a = sale proceeds of the vehicle;
b = the amount specified in the Third Schedule;
c = actual expenditure incurred to acquire the vehicle;
Explanation.-"Sale" shall include exchange or otherwise transfer or acquisition compulsorily under
any law in force;
(64) "Foreign Company" means a company which is not a Bangladeshi company;
(65) "Rules" means rules made under this Act;
(66) "Scientific Research" means any activity carried on in the natural or applied sciences for the
purpose of developing knowledge;
(67) "Scientific Research Expenditure“ shall include donations made to any university, college,
technical school or other institution approved by the Board, but shall not include any
expenditure incurred in the following cases, namely:-
(a) acquisition of any such assets or intangible assets to which depreciation or amortization
allowance is applicable;
(b) acquisition of fixed assets; or
(c) any expenditure incurred for the purpose of determining the existence, location, extent or
value of any natural resource;
(68) "Board" means the National Board of Revenue established under clause ( 1) of article 3 of the
National Board of Revenue Order, 1972 (President's Order No. 76 of 1972);
(69) "Person" includes any natural person, firm, association, Hindu undivided family, trust, fund
and company;
(70) "Business" shall include-
(a) any trade, commerce or manufacture of goods;
(b) undertake any risk or endeavor in any trade, commerce or production of goods;
(c) the exchange of goods or services of any for-profit or non-profit entity; or
(d) any profession or occupation;
(71) "Bank Company" means a banking company as defined in the Banking Companies Act, 1991
(Act No. 14 of 1991 ), and any such statutory body established or constituted under or under
any law for the time being in force in Bangladesh and carrying on banking business in
Bangladesh;
(72) "Bank Transfer" shall include-
(a) transfer of money from one bank account to another by crossed check or any
other method approved by Bangladesh Bank;
(b) transfer money from one account to another through Mobile Financial Services;
(c) payment of fees, charges, duties or other sums prescribed by the Government
or any authority of the Government through challan in favor of the
Government or any authority of the Government;
(73) "Stock" means in the ordinary course of business-
(a) anything produced or manufactured;
(b) anything extracted or purchased for the purpose of manufacturing, sale or
exchange; or
(c) all such materials or supplies used in the manufacturing or manufacturing process, But
it shall not include shares or stocks;
(74) "Director General (Central Intelligence Cell)" means the Director General (Central
Intelligence Cell) referred to in section 4;
(75) "Director General (Inspection)" means the Director General (Inspection) referred to
in section 4;
(76) "Director General (Training)" means the Director General (Training) referred to in section
4;
(77) "Capital Asset" means-
( a) property of any nature or kind held by any taxpayer;
(b) any business or undertaking as a whole or as a unit;
( c) any share or stock,
However, it shall not include the following matters, namely:-
(i) any stocks, consumables or raw materials held for the purpose of the taxpayer's business;
(ii) personal goods, such as wearable clothing, gold ornaments, furniture, fixtures or
handicrafts, machinery and vehicles included in the meaning of immovable property,
which are used by the taxpayer or any member of his dependent family only for personal
purposes and not for the purpose of his business;
(78) "Total Income" means the total income mentioned in section 26 computed in the manner
prescribed in this Act, and including any other income which may be added to the total income
of a taxpayer under the provisions of this Act;
(79) "Royalty" means any such remuneration as may be earned as under and includes any lump sum
other than remuneration treated as income of the recipient under "Capital Income", namely:-
(a) by transfer of all or any rights, including the permitted license of patents, industrial designs
or trademarks or any other intellectual property;
(b) by providing information regarding the use of patents, industrial designs or trademarks or
any other property related to intellectual property;
(c) by using such property of patent, industrial design or trademark or any other property
related to intellectual property;
(d) by providing information relating to technical, artistic, commercial or scientific
knowledge, experience or skill;
(e) any transfer of rights, including copyright or licensing of the film, other than the sale,
distribution or exhibition of the cinematograph film; or
(f) by providing any services in connection with the aforesaid activities;
(80) "Export" means the supply of goods or services from within Bangladesh to outside the
geographical limits of Bangladesh and includes the supply and export of locally produced raw
materials and other materials to export-oriented industries under domestic back-to-back LCs;
(81) "Dividend" shall include-
(a) any distribution of the accumulated profits, whether capitalized, to the shareholders of the
company, if such distribution results in a reduction in whole or in part of the assets or
reserves of the company;
(b) any distribution of accumulated profits to the shareholders of the company by way of
debentures, debenture stock or certificates of deposit of any kind, whether capitalized;
(c) on the winding up of a company, whether capitalized, distribution to its shareholders out
of the accumulated profits of the company immediately before such winding up;
(d) distribution of retained earnings owned by the company to the shareholders of the
company, whether capitalized;
(e) any profits remitted out of Bangladesh by any such company not incorporated under the
Companies Act, 1994 (Act No. 18 of 1994);
(f) distribution of profits of any mutual fund, real estate investment trust, exchange traded
fund or alternative investment fund;
(g) any amount paid by a private company as an advance or loan to any shareholder out of the
accumulated profits owned by it, whether forming part of the assets of the company, or
any amount paid by such company on behalf of or for the personal benefit of any such
shareholder,
However, it shall not include the following matters, namely:-
(i) in the case where no shareholder or debenture holder is entitled to a share in the surplus
assets of the company on the winding up of the company, in respect of any shares
including preference shares in accordance with sub-clause (c) or (d) the distribution in
full in cash, or the redemption of debentures or debenture-stock;
(ii) advances or loans made to any shareholder in the ordinary course of business where
the principal business of a company is lending;
(iii) any dividend paid by the company which has been adjusted by the company against any
amount previously paid in whole or in part and treated as a dividend within the meaning
of sub-clause (e), to the extent so adjusted;
(iv) bonus shares issued by any company; Explanation.-"accumulated profit" shall include,-
(a) in this section, any allowance, deduction or exemption admissible under this Act,
partially or wholly reserve created;
(b) in respect of sub-clauses (a), (b) and (d), all profits of the company up to the date
of such distribution; and
(c) in the case of sub-clause (c), all the profits of the company up to the date of
winding up;
(82) "Shareholder" shall include preference shareholder;
(83) "Member (Taxes)" means a person appointed as Member (Taxes) of the National Board of
Revenue;
(84) "Child" in the case of any natural person, shall include step children and adopted children of
such person;
(85) "Co-operative Society" means a co-operative society registered under the Co-operative
Societies Act, 2001 (Act No. 47 of 2001), or any law for the time being in force relating to the
registration of co-operative societies;
(86) "Assistant Commissioner of Taxes" means a person appointed as Assistant Commissioner of
Taxes under section 4;
(87) "Securities" shall include-
(a) Treasury Bills, Bonds, Savings Certificate, Debentures, Sukuk or Shariah-based
securities or similar instruments issued by Government;
(b) shares or stocks issued by any company or legal entity or issuer, instruments issued by
way of mortgage or charge or hypothecation, bonds, debentures, derivatives,
units of any collective investment scheme including mutual funds or alternative investment
funds, sukuk or similar instruments issued based on Shariah , and the purchase right or power
of attorney (warrant) to receive the aforesaid documents:
Provided that it shall not include any currency or note, draft, cheque, bill of exchange, bank acceptance,
trade receivables or trade payables;
(88) "Interest" shall include-
(a) any form of financial assistance, such as - interest or financial liability of any kind paid
against loans, borrowings, trade credit, advances, security or guarantees; or
(b) service fee or any such charge or payment which shall be treated as interest on monetary
equivalent, However, it shall not include expenses involved in raising money or capital;
(89) "Service" means any service, but shall not include goods, immovable property and money;
(90) "Recognised Provident Fund" means such provident fund as is approved by the Commissioner
under the provisions of Part 3 of the Second Schedule;
(91) "Local Authority" means the City Corporation, Zilla Parishad, Upazila Parishad,
Municipality and Union Parishad;
(92) "Permanent Establishment" means, in relation to business income, the fixed place or place of
business through which such business of a person is wholly or partly carried on, and shall
include-
(a) any place of management; (b) any branch; (c) any agency;
(d) any office; (e) any warehouse; (f) any factory; (g) any workshop;
(h) any mine, oil or gas well, underground mine or any other place for exploration, extraction
or extraction of natural resources; (i) any farm or plantation;
(j) any construction site, any construction, installation or addition project or any supervisory
activity related thereto;
(k) provision of any services, including consultancy services, by any person or by any
manpower engaged for the purpose by such person, if such activities are carried on in
Bangladesh (in the same work or in any other work connected with the said work); and
(l) a subsidiary of a. non-resident person or any person commercially dependent on such
non-resident person who carries on any activity connected with any sale made by the
non-resident person in Bangladesh;
(93) "Transfer" in the case of capital asset, shall include sale, exchange or relinquishment or
extinguishment of any title to the asset, but shall not include the following matters, namely:-
(a) if the transfer of capital assets takes place by way of donation, under will, bequest or an
irrevocable trust;
(b) if the assets of the company are distributed in any way to the shareholders on the winding
up of the company; and
(c) at the time of dissolution of a firm or other association of individual or if any capital asset
is distributed on partition of the Hindu Undivided Family.
3. Precedence of Law.-
(1) Notwithstanding anything contained in any other law for the time being in force, the provisions
of this Act shall prevail.
(2) If any other law or any provision thereof is inconsistent with any provision of this Act, the said
Act or the provision of that Act shall be deemed to be invalid to the extent of the inconsistency.
03 Basic Structure of Tax Authority Part 2, Sec 4-12
Part - 2
Tax Administration
4. Income Tax Authority.-
For the purposes of this Act, there shall be the following Income Tax Authorities, namely:-
(a) National Board of Revenue;
(b) Commissioner of Taxes;
(c) Director General (Inspection);
(d) Commissioner of Taxes (Appeals);
(e) Commissioner of Taxes (Large Tax Paying Unit);
(f) Director General (Training);
(g) Director General (Central Intelligence Cell);
(h) Commissioner of Taxes;
(i) Additional Commissioner of Taxes who is Additional Commissioner of Taxes (Appeals)
or Additional Director General (Central Intelligence Cell), Additional Director General
(Training), Additional Director General (Inspection) or Inspecting Additional
Commissioner of Taxes;
(j) Joint Commissioner who is Joint Commissioner (Appeals), Director (Training), Director
(Central Intelligence Cell), Director (Inspection) or Inspecting Joint Commissioner,
(k) Deputy Commissioner of Taxes;
(l) Tax Recovery Officer nominated by the Commissioner of Taxes from among the
Commissioners of Taxes under his jurisdiction;
(m) Assistant Commissioner of Taxes,
(n) Extra Assistant Commissioner of Taxes; and
(o) Inspector of Taxes.
5. Appointment of Income Tax Authority.-
(1) Income Tax Authority shall be appointed subject to applicable laws and regulations. (2) The Board
may, in the manner prescribed by rules, appoint and posting any person as an Income-Tax
authority.
(3) The Board may, subject to the organizational structure, appoint such number of employees as may
be necessary.
6. Delegation of Power.-
The Board may, by order, delegate the powers of any Income-tax Authority to any other Income-tax
Authority.
7. Subordination and Control of Income Tax Authorities.-
The Board may, by order, make provisions relating to the subordination and control of income-tax
authorities.
8. Functions & Jurisdiction of Income Tax Authorities.—
(1) Subject to the other provisions of this Act, the Member (Taxes) may exercise and perform all the
powers and functions which the Board may exercise and perform under this Act.
(2) The Director General (Inspection) shall perform the following functions, namely:-
(a) inspecting the implementation of proceedings under this Act;
(b) propose tax policy reforms based on the inspection and identify areas for tax
administration improvement;
(c) submit to the Board in the form of a report incorporating opinions and recommendations
in such manner as may be directed by the Board; and
(d) any other function prescribed by the Board.
(3) The Director General (Central Intelligence Cell) shall perform the following functions, namely:-
(a) intelligence work to collect information on taxpayers;
(b) analysis of relevant income tax records with information gathered on the basis of
intelligence activities;
(c) detection of tax evasion, concealed income and irregularities mentioned in Part 13 and
Part 15;
(d) conducting investigations to prove tax evasion or concealment of income or any other
irregularity relating to tax and to collect evidence in favor of tax evasion or recovery of
evaded tax with payment of penalty and, recommending appropriate prosecution
subject to applicability,
(e) any other function authorized by any other law or assigned by the Board;
(4) The Board may, by order, determine the jurisdiction of the Income tax Authority, and may, if
necessary, re-determine the jurisdiction of the Income-tax Authority or change the functions
or transfer the functions and powers of one Income-tax Authority to another Income-tax
Authority.
(5) Such transfer referred to in sub-section (4) shall be made at any stage of normal proceedings and
further proceedings shall be taken from the stage at which the transfer was made.
(6) The Board may, by order, determine the place of taxation of taxpayers.
9. Exercise of Authority by Successor.-
In the case of any proceedings under this Act, if an Income-tax Authority is replaced by another
Income-tax Authority, such Income-tax Authority shall commence from the stage at which any
proceeding was left unfinished by the predecessor.
10. Officers etc. to follow instructions of the Board.-
All officers and other persons concerned in the performance of any function under this Act shall, in
the performance of such function, follow any order, direction or instructions issued by the Board, from
time to time:
Provided that no such order, direction or instructions shall be issued which may interfere with the
discretion of the Joint Additional Tax Commissioner (Appeals) or the Commissioner (Appeals) in
conducting the appellate proceedings.
11. Instructions to Deputy Commissioner of Taxes.-
The authority under which the Commissioner of Taxes is subordinate to the Income Tax Authority or
any other person empowered in this behalf by the Board may assist or give direction or instructions to
the Commissioner of Taxes while conducting any proceedings under this Act.
12. Exercise Power of Inspecting Additional Commissioner of Taxes in assessment Proceeding.
- (1) The Commissioner may, with the prior approval of the Board, by general or special order in
writing, direct any or all proceedings relating to any particular case or class of cases or
particular person or class of persons under his jurisdiction to the effect that the powers of any
authority under this Act, and the action may be exercised by the immediate superior income
tax authority.
(2) Any order issued under sub-section (1 ), any reference to the Income-tax authority under this Act
or any rule made thereunder shall be deemed to have been made to the immediate superior
Income-tax authority.
04 Basic Structure of DCT, Range, Commissioner, Appeal, Tribunal Part 3, Sec 13-17
Part - 3
Taxes Appellate Tribunal
13. Establishment of Taxes Appellate Tribunal.—
(1) For the purpose of performing the functions of the Appellate Tribunal under this Act, the
Government shall, from time to time, constitute a Taxes Appellate Tribunal consisting of a
President and such number of members as may be necessary.
(2) No person shall be appointed as a member of the Appellate Tribunal unless-
(a) he has at any time been a member of the Board or is currently serving as a member of the
Board;
(b) he is or was a District Judge;
(c) he is the Commissioner of Taxation;
(d) he is a tax advocate under section 327 and has at least 10 (ten) years of professional
experience in an Income Tax office; or
(e) he is professionally expert in the drafting of financial and taxation laws and has at least 10
(ten) years of experience;
(3) The Government shall appoint one member from among the members of the Appellate Tribunal,
who was or is a member of the Board, as the President.
14. Exercise of Power of Tribunal by the Benches.—
(1) The powers and functions of the Appellate Tribunal shall be exercisable by the Benches of
the Tribunal, hereinafter referred to as the Benches, unless exceptional decisions are made in
any special case or class of cases constituted by the President.
(2) The Bench constituted under sub-section ( 1) shall consist of at least 2 (two) members.
(3) At least one member of each Bench constituted under sub-section (1) shall be appointed from
among the following persons, namely:-
(a) a member of the National Board of Revenue, or
(b) Commissioner of Taxes.
15. Decision of the Bench.—
(1) Subject to the provisions of sub• sections (2) and (3), a decision shall be taken on the basis of the
opinion of the majority of members in any case or on any particular matter.
(2) If the members of the Bench are equally divided on any matter, it shall be stated in writing and the
same shall be referred by the President to one or more members of the Appellate Tribunal for
hearing, and in such case the matter shall be decided on the basis of the opinion of the majority
of the members of the Appellate Tribunal, including those who heard it for the first time.
(3) If there are only 2 (two) members of the Appellate Tribunal and there is a difference of opinion,
the Government may appoint additional members to the Appellate Tribunal for the purpose of
hearing the said case and the decision of the case shall be taken according to the opinion of the
majority of the members of the Appellate Tribunal composed of the additional members.
16. Exercise of Powers by a Member.-
Notwithstanding anything contained in section 14, the Government may direct the exercise of the
powers and functions of the Appellate Tribunal by any one or more of its members jointly or severally.
17. Control of Proceeding.—
Subject to the provisions of this Act, the Appellate Tribunal may determine the procedure for disposal
of matters arising in other proceedings including the place where its own and Benches shall sit.
--------------------------------------------------------END-----------------------------------------------------------

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Online Training session on Organized by :

Practical Aspects of Income Tax Laws Dhaka Regional Committee

Online Training session on

Rtn. Md. Anwaruzzaman FCA

VAT Agent and VAT Consultant (NBR Licensed)

Partner, Rahman MostafaAlam & Co., Chartered Accountants

Consultant & Trainer, enroute.com.bd

Faculty Teacher and Member, Bangladesh VAT Professional Forum (BVPF)

Faculty Teacher, The Institute of Chartered Accountants of Bangladesh (ICAB)

Past Chairman, Dhaka Regional Committee (DRC)- ICAB

Fellow Member, The Institute of Chartered Accountants of Bangladesh (ICAB)

Fellow Member, The Instituteof Internal Auditors Bangladesh (IIAB)

Member, Bangladesh Accounting Association (BAA)

Member, Dhaka Taxes Bar Association (DTBA)

Member, DU Accounting Alumni (DUAA)

Date : 03 January 2024 (Wednesday)

Contents of this Class :

02 Some important Definitions: Part 1, Sec 2

03 Basic Structure of Tax Authority Part 2, Sec 4-12

02 Some important Definitions: Part 1, Sec 1-2

Income Tax Act, 2023

03 Basic Structure of Tax Authority Part 2, Sec 4-12

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