Income Tax Ordinance (ITO) 1984

Income from Other Sources

Mofijul Hoq Masum

Agenda
1. Scope of “Income from Other Sources”
2. Dividend Income
3. Interest income other than interest on securities
4. Unexplained Investments as per the sec 19
5. Income not classified under any head as per sec.
33
1. Scope of “Income from Other Sources”
As per section no. 33 of the ITO 1984, the following incomes should be
reported under the head income from other sources:
(a) Dividend and Interest
(b) Royalties and fees for technical services
(c) Income from letting of machinery, plants, building or furniture
belonging to the assessee
(d) Any income to which section 19 applies
(e) Any other income of any kind or from any source that can not be
assigned under any of the heads of the section no 20 of the ITO
1984.
2. Dividend income
•Tax exemption on dividend
 Up to Tk. 50,000 for income received from dividend from the listed
company
Up to Tk. 25,000 for income received from dividend from the mutual
fund
•TDS on dividend
For non-resident foreigner (for company 20% and for other than
company 30%)
For resident or a non-resident Bangladeshi (for company 20% and for
other than company 10% if having TIN otherwise 15%)
•Grossing up of dividend income
3. Interest income
•Tax exemption on interest
Interest on DPS from any govt. approved bank
Interest up to Tk. 25,000 from interest on Bangladesh
Industrial Development Bond
•TDS on Interest
Rate of TDS will be 10% if having TIN otherwise 15
•Grossing up of interest income
4. Unexplained investments
• Unexplained credits as per section 19(1)
• Unexplained investment as per section 19(2)
• Unexplained expenditure as per section 19(3)
• Unrecorded Investment as per section 19(4)
• Unrecorded money, jewellery et.. as per section 19(5)
• Goodwill money and compensation as per section 19(10)
• Unpaid loan as per section 19(21)
• Etc.
 Demonstration Problem
From the following particulars of MR. Muaj determine the taxable income
from other sources as per the ITO 1984 for the income year 2019-2020:
• Interest income from fixed deposit account by Tk. 9500.
• Profit from Islami bank by Tk. 1800.
• Dividend from ICB Mutual Fund by Tk. 31,500.
• Dividend from a listed company share by Tk. 28,000.
• Sale of forest timber by Tk. 10,000.
• Income from interest on DPS Tk. 1200
 Self concept check
From the following particulars of Mr. Muaj determine the taxable
income from other sources as per the ITO 1984 for the income year
2019-2020:
• Interest income from savings certificate by Tk. 38,000.
• Profit from Islami bank by Tk. 1800.
• Dividend from ICB Mutual Fund by Tk. 31,500.
• Sale of forest timber by Tk. 10,000.
• Interest Income lottery by Tk. 32,000.
Thank you