TAXATION & AUDITING
HRM-303
Chapter: 03
Basic of Income Tax
Sajun Saha
Lecturer, dept of HRM.
JKKNIU, Trishal, Mymensingh.
BASIC OF INCOME TAX- CHAPTER OUTLINE
8. Effect of Residential Status in Determining Tax
1. Definition of income year Liabilities.
2. Importance of income year? 9. Rules for determining Residential Status of an
3. Define assessment year. assessee.
4. Importance of assessment year? 10. Effect of Residential Status in Assessing income.
5. Definition of Assessee? 11. Incidence of tax on No-resident.
6. Classification of Assessee? 12. Tax Rates.
7. Residential Status of Assessee? 13. Tax payers identification number (TIN)
“Income year” Section 2(35) of the IT0,1984; Indicate income year as
the financial year immediately preceding the assessment year or any
other accounting period ( Not exceeding twelve month) as adopted by
the assesse and ending within the said financial year. Thus , if the
assessment year is 2014-15, financial year 2013-14 is the income year.
1) Computing of total income
2) Investment Allowance
3) Residential Status
4) Submission of Accounts.
According to section 2(9) of the ITO, 1984; the term “Assessment year” means the period of
twelve month commencing on the first day of July every year. Thus, the assessment year always
begins on 1st July and end 30th June every year.
Income year Assessment year
01.01.15- to- 31-12-15 2016-17
01-07-16 to 30-06-17 2017-18
04. IMPORTANCE OF ASSESSMENT YEAR?
a) Computation of Tax liability
b) Tax exemption and Tax credit facilities.
“Assessee is a person who is liable to pay any sum under the income tax ordinance,1984.”
06. Classification of Assessee?
According to section 2(46) of the ITO, 1984, Assessee can be classified into two broad categories:
1. On the basis of person, and
2. On the basis of Residential status.
1. Classification of Assessee - On the basis of person
i. Individual v. Local Authority
ii. Firm vi. Company
iii. Association of peson (AOP) vii. Artificial judicial person
iv. Hindu Undivided famil (HUF)
2. Classification of Assessee on the basis of Residential status
i. Resident
ii. Non resident
1. Residential status is determined for each category of person separately
2. Residential status is determined separately for the each income year.
3. Residential status is always determined for the income year
4. A person may be a resident of more than one country for any income year.
5. Residential status will not depend on the citizenship of the assesse.
6. Burden of providing the residential status lies with the assesse.
1. To determine the amount of total income
2. To determine minimum limit of taxable income
3. Tax rate
4. Income tax rebate
5. Tax liability
a) Residential status of an individual
b) Residential status of HUF and AOP
c) Residential status of company.
1. Income received or deemed to be received in Bangladesh
2. Income earned or deemed to be earned in Bangladesh
3. For resident of Bangladesh all global income (Local/foreign).
4. For non-resident , an income is taxable if it is either earned/received in Bangladesh.
1. Liable to tax on the incomes, profits and gains which received and gain in Banladesh
2. Not entitled any shorts of allowance and relief tax rebate
3. Liable to pay tax on his total income @ 30%
4. A Bangladeshi non-residential is subject to pay tax at normal rate .
12. Tax rates
**** This question is study from new edition books ****
“Every assesse or any person applies manually or electronically for TIN will be issued a
certificate containing 12 digits TIN. The application may be submitted electronically through the
website hosted by NRB or manually in prescribed form to the DCT.”
Thanks to all.
