Direct tax Vs.

Indirect tax
Particulars Direct tax Indirect tax
Meaning Direct taxes are the taxes in Indirect taxes are such type of
which the incidence and impact taxes where incidence and
falls on the same impact fallon two different
personlassessee. persons.
Nature of tax Direct tax is progressive in Indirect taxes are regressive in
nature. nature.
Taxable Atthe time of earning income.
event
Purchase/sales/manufacture of
goods and/or rendering services
Levy Direct tax is levied and collected Indirect tax is levied and
from the assessee collected from the consumer but
paid/ deposited to the national
exchequer by the
assessee/dealer.
Shifting of Tax burden is directly borne by Tax burden is shifted to the
burden the assessee. Accordingly the
burden cannot be shifted.
subsequent/ultimate user
Tax Tax is usually collected after the At the time of sale or purchase or
collection income, for a year, is earned. rendering of services

LEGACY OF INCOME TAX LAW

Income Tax
Act, 2023
Income Tax
Ordinance,1984
Income Tax Act 1922

Income Tax Act of 1918

Income Tax (Amendment) Act, 1916
Income Tax Act, 1886
License Tax Act, 1877
Certificate Act, 1868
License Tax Act, 1867
Income Tax Act, 1860
 Bangladesh Tax Structure:
The tax structure of Bangladesh consists of both direct tax
(income tax, gift tax, travel tax, land development tax, non
judicial stamp, registration, immovable property tax, motor
vehicle tax etc.) and indirect tax (customs duty, excise duty,
narcotics and liquorduty, VAT, Turnover tax, SD, etc.).

Analysis of revenue collection activities in Bangladesh reveals

that tax revenue accounts for roughly 90% of total government
revenue.

AS per the National Budget 2023, NBR tax revenue target for
the fiscal year 2023-24 has been set by the government to Tk.
4,30,000 crore

Tax collection target of NBR for the fiscal year

2023-24

1. DirectTax [Income tax, Gift tax and Travel tax Tk. 1,53,260 (35.6%)
2. VAT Tk. 1,63,837 (38.1%)
3. Import and other Duty Tk. 52,200 (12.01%)
4. SD Tk. 60,703 (14.1%)

Total Tk. 4,30,000crore

10
 New taX rate for the assessment year: 2023-24
Income slab Rate Minimum tax

On the 1 Tk. 3,50,000/- of total income NiI After rebate, minimum tax for individual taxpayers are:
[For woman &senior citizen Tk.4,00,0000
On the next Tk. 1,00,000/- of total income 5% 1) Tk.5,000/ in case of Dhaka & Chittagong City
Corporation area.
On the next Tk. 3,00,000/- of total income 10%
2) Tk. 4,000/ for other city corporation area.
On the next Tk. 4,00,000/- of total income 15%
On the next Tk. 5,00,000/- of total income 20% 3) Tk.3,000/ for other areas if total income exceeds the
minimum taxable ceiling.
On the balance of total income 25%

(1]For third gender tax payers &physically handicapped persons threshold limit is Tk. 4,75,000/
2]For gazetted war-wounded freedom fighter threshold limit is Tk.5,00,000.
(3]Threshold limit in case of parents or legal guardian of any physically challenged child or
dependent willbe 50,000 taka more for each child/ dependent. If both father and mother are
assessee then any one can avail this benefit.

Finance Act,2023] 11

Rate of wealth surcharge for the assessment year 2023-24

Net wealth up to Taka 4 crore Nil

Net wealth exceeding Taka 4 crore but not exXceeding Taka 10 crore;

Ownership of more than 1 motor car

10% of tax
Ownership of House Property total 8,000 sft. in anywhere in Bangladesh
Net wealth exceeding Taka 10 crore but not exceeding Taka 20 crore 20% of tax
Net wealth exceeding Taka 20 crore but not exceeding Taka 50 crore 30% of tax

Net wealth exceeding Taka 50 crore 35% of tax

[Finance Act,2023]
 COMPANY TAX RATE JASSESSMENT YEAR:2023-24]
Classes of Taxpayers Tax rate

|Listed companies 20% or 22.5% or 25%

Non listed companics. Artificial Juridical Person & AOP 27.5% or 30%

One Person Company [OPC] 22.5% or 25%

Listed Bank, insurance & NBFI 37.5%

Non-listed Bank, insurance & NBFI 40%

Merchant Bankjirrespective of listed or non-listedJ 37,5%

40% if listed
Mobile phone Company > 45% if not listed
45%
Tobacco manufacturing company/firm/individual +

2.5% income surcharge on

same income

13

Tax Reforms:
Some recent taX reforms are mentioned below:
(a) Introduction of e-TIN:
Formerly each tax payer had a local registration number called GIR (General Index
Register) number. In 1994 nationwide unique 10digit TIN(Tax payers ldentification
number) has been introduced. Presently electronic 12 digit TIN has been introduced
by the NBR replacing the old 10 digit TIN.
(b) Expansion of withholding tax:
Provisionally withholding tax was levied on salary and contractors/suppliers. To
increase the tax network it was gradually expanded. Now withholding tax is imposed
on 52 items. Major items include, contractors/supplies, importer, salary, bank deposit
etc.
(c) Simplification of tax assessment:
Self assessment system has been widened and expanded. At present all categories
of assessees are entitled to submit return under self assessment
system. In this
system the declared income of assessee is accepted. However there is a system of
post audit.
(d) Online return filing:
The system of online return filing has been introduced on 1st November,2016 and by
so doing all categories of assessee now can easily submit their tax
online. return through
14
END OF PRESENTATION!!

Thankyo

15
 DISPUTE RESOLUTION PROCEDURE

Paper presented by:

Ranjan Kumar Bhowmik FcMA

Former Member
National Board of Revenue

D
DISTUIE KESOLUIION TROSS

PCtsassesstnent
order

an Appeal Option

AJCT (Non AACT Non

company cases) Company cases CT (Appeals)
Review (For comnpany and its
application dipectors
to CT Taxes Appellate Tribunal
{Both assessee and income tax
departnent can go)
END
Reference application to Honorable
High Court (Oniy at question of law)
Alternative
Dispute
Resolution
(ADR) Honorable Appellate
Divisíon (if certified as fit
for appeal)
END

END
 APPEAL

If retum submitted and assessee not

satistied with the DCT'S order If return not submited:
Filing of appeal wthin 45 days;
Tax as per retun must be paid before 10% of tax demanded fo be
submission of appeal pald belore fling appeal

Order within 150 days;

It may conflrm, reduce
enhance, set aslde or Section-286
annul the assessment;
No order to enhancement
without giving opportunity
of hearing to the assessee

Taxes Appellate Tribunal

Submitted by Conditlons:
assessee:
Tax to be paid @10% on the Taxes Appellate Tribunal
withín 60 days diference between tax as is the final fact finding
with grounds of
appeal.
per retun and tax os per authority
appeal order
Tribunal

DCT to file second

If department aggrieved; appeal after getting
within 60 days with approval from the
grounds of appeal,
concerned
Commissioner of Taxes. Section
291+292
 REFERENCE TO HONOURABLE HIGH COURT DIVISION
5
Conditlons:
If assessee Tax to be pald@ 15% on the
Reference
to
Honorable aggrieved dlfference between tax
payable as per return and tax
against Tribunal
order:
Jpayable as per Tribunal order if
the tax demand is below 10
High
Court Reference within lakh;
90 days with Tax @25% on such difference if
question of law. tax demand is more than 10
lakh.

Department
aggrieved against
Tribunal order:
Reference to be
NBR approval required.
made within90
days with question
oflaw
Section=293+294

REVIEW TO COMMISSIONER OF TAXES

No order
prejudicial to
assessee.
" No review if
Review appeal
against pending before
DCT's any appeal
assessment authority or not
withdrawn or Review order
within 60 right to appeal within 60 days
days. is not waived.

Section-285
 ALTERNATIVEDISPUTE RESOLUTION (ADR)

CONFLKC
RESOLUTION

Appeal
pending ADR
Assessment before any resolution
appellate by neutral
by DCT authority, Facilitator
Tribunal or
COurt

MEDEATON

1tcd:stmis spr9cess tlat, tngether

with a rumder ofother pnccseK, i
cuilwively khosn S Blemativc
dispute resolutikn"

Section-302+304

ALTERNATIVE DISPUTE RESOLUTION (ADR)

" Assessment of income above shown income

Dispute " Any order by appeal authority.

" Application against DCT'S assessment and any appeal pending before
any appeal authority or court;
" Application for ADR within 30 days from getting permission;
ADR " Application to appeal authority or court and obtaining permission from
cOurt.
application
"To be appointed by NBR;
" Neutral person with knowledge of tax law to be appointed as Facltator:
" Hearing both assessee or assessee's representative and CT's
representative;
" Make decision acceptable to both. Binding for all. If not agreed,
disputed portion to be tried in the appropriate court.;
FacilitatorDecision within 3 months from the end of the month of filing ADR

ENDOF THE PRESENTATION