SESSION: 2

PERSONAL INCOME TAX

CORPORATE INCOME TAX

Disclaimer:

IT IS NOT GURANTEED DESPITE BEST EFFORT HAS BEEN MADE TO ENSURE THE ACCURACY OF THE INFORMATION CONTAINED IN THIS PRESENTATION AND NEITHER
THE PRESENTER NOR ANY RELATED ENTITY SHALL HAVE ANY LIABILITY TO ANY PERSON OR ENTITY THAT RELIES ON THE INFORMATION CONTAINED IN THIS 08/12/2020
PRESENTATION. ANY SUCH RELIANCE IS SOLELY AT THE USERS’ RISK.
 HEADS OF INCOME
Heads of Income Tax Rate Finance Bill 20

Slab Changed
Income from Salary Slab Rate
Minimum tax
Key points
Interest on Securities No upfront TDS
TDS 5%
No exemption ZCB Taxable Income: Need to
calculate separately for all
heads of income
Income from House Property Allowable deduction No Changed
Review carefully:
admissible/inadmissible
No separate tax No Changed
Agriculture Income rather in Slab
expenses

Important Change: Keep

Individual-Slab Few allowable expenses update on Finance Bill & ACT
Income From business Company Tax Rate cap changed and Paripatra

Capital Gain Generally 15% No Changed

Individual-Slab
Income from other sources company tax rate
No changed

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EXEMPTED TAXABLE/NON TAXABLE SALARY INCOME
 PrivateExpatriate
=

sector power generation:

Up to 3 years from the date of
arrival (SRO);
 As per bilateral agreement for any
foreign aided development
project (SRO)
 Ambassador/High commission
remuna….
Govt employee, MP,
Judges
 All allowances and benefits
includes pension fund, Gratuity
(except basic & festival bonus)
Other

 Special allowances, benefits or

perquisites grated for official
duties;
 No tax on tax -SRO
 Approved pension fund –FB 2020
 Approved Gratuity up to 2 Crore
50 lacs-FB 2020 08/12/2020 3
RETURN OF INCOME

Salary BDT 16K

Yearly income exceeds Salary BDT
Own Motor
OwnCar
Motor Car per16K
month Professionals Own Business
BDT 300K per month

Hypothetical Computation

Microsoft Excel
Worksheet

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SALARY TAX REPORTING

08/12/2020 5
CORPORATE TAX (TAX DAY)

Key points
Income Year Ended Assessment Year Car
Own Motor Tax Day
Salary BDT 16K
Tax day:
per month
30 November 2016 July 17 -June 18 15 Sept 17 15th day of 7 month after the
year end or 15 September
whichever is later
31 December 2016 July 17 -June 18 15 Sept 17
Balance tax must deposit
within tax day to avoid delay
31 March 2017 July 17 -June 18 15 Oct 17 interest 2%.

Taxable Income: Need to

30 April 2017 July 17 -June 18 15 Nov 17 calculate separately for all
heads of income

30 June 2017 July 17 -June 18 15 Jan 18

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CORPORATE TAX (METHOD OF CALCULATION)
 Its not that simple = Accounting
Where to
profit/loss
start
tax rate but If taxable loss occur ?
Hypothetical Computation
starting from Profit before
tax/loss Own Motor Car Salary BDT 16K
 Deduction from income & per month
business-section 29
 Inadmissible expenses –Section
30
 Tax depreciation –Reducing
balance Method (Third Schedule)

 Initial depreciation is available

for both plant & machinery,
Factory building
 Leased assets-consider lease Tax if taxable loss (higher of below)
charge and payment instead
depreciation-legal vs substance  Regular tax liability –NIL (since taxable loss)
 Deemed Income-section 19  Withholding tax deducted/collected

 Income from business –section  Minimum tax –generally 0.60% on gross

28; receipts
 Method of accounting-section 35
 Tax exempted/reduce rate
08/12/2020 7
company should pay tax regular
rate –on disallowances of