𧎠Bangladesh Income Tax Act 2023 (Short Question & Answer - Part 1)
1. Question: Why was the Income Tax Ordinance of 1984 repealed?
Answer: The Income Tax Ordinance of 1984 was repealed due to the Fifteenth Amendment of the Constitution and Supreme Court ruling declaring martial law unconstitutional.
2. Question: What was the effect of the Fifteenth Amendment to the Constitution?
Answer: The Fifteenth Amendment invalidates ordinances issued under military orders, making military ordinances unconstitutional.
3. Question: What was the main reason for enacting the new Income Tax Act?
Ans: Modernization of tax system, fiscal discipline and new laws are enacted to require new taxation.
4. Question: What was the judgment of the Supreme Court in Civil Appeal No. 48/2011?
Answer: The judgment declared martial law unconstitutional and repealed the Seventh Amendment to the Constitution.
5. Question: Why is stakeholder opinion important in formulating new income tax laws?
Ans: Legislation becomes more acceptable and effective when the views of stakeholders are taken into account.
6. Question: What was the purpose of Act No. 7 of 2013?
Answer: Act No. 7 of 2013 enacted and enforced certain military ordinances, which were necessary.
7. Question: Why is it important to make new laws in Bengali language?
Answer: Legislation in Bengali language is important to make the law easy to understand for the general public and to bring transparency in administrative proceedings.
1. Question: What is the short name of this Act?
Answer: This Act shall be known as the "Income Tax Act, 2023".
2. Question: What is the time frame for this law to come into effect?
Answer: This Act will come into effect immediately.
3. Q: How is “unrealized value” defined?
Answer: “Unrealized value” is defined in Part 1 of the Third Schedule.
4. Q: Who is meant by “Additional Commissioner of Taxes (Appeals)”?
Answer: Additional Commissioner of Taxes (Appeals) and Joint Commissioner of Taxes (Appeals) mentioned in section 4.
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5. Question: Who is called “non-resident”?
Answer: “Non-resident” means a person who is not a resident.
6. Q: What is Allowable Gratuity Fund?
Ans: Provident Fund authorized by the Commissioner of Taxation under the provisions of Part II of the Second Schedule.
7. Q: Who are the partners?
Answer: Partners include partners and minor partners as defined under the Partnership Act, 1932.
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8. Q: What is meant by “income”?
Answer: Income means money, profits, receipts, or gains arising from any taxable source.
9. Q: What is meant by “Income Tax”?
Answer: Income tax means any tax or surcharge under this Act. 10. Q: What is meant by “legal representative”?
Answer: The person defined in clause (11) of section 2 of the Code of Civil Procedure, 1908 is called a legal representative.
11. Question: Who is meant by “relatives”?
Answer: Relative means a person's husband or wife, son, daughter, brother, sister or lineal predecessor or successor.
12. Q: What is Appellate Tribunal?
Answer: Appellate Tribunal means the Tax Appellate Tribunal established under section 13.
13. Q: What will “income” include?
Answer: This Act shall include income, profits, gains, losses, and proceeds from the business of mutual insurance arising from any source.
14. Q: What is meant by acquisition of a non-natural resource?
Answer: Non-natural resources refer to resources that are not naturally acquired, i.e. not created, not acquired against liabilities or mortgages, or not inherited.
15. Q: What is Income Tax?
Answer: Income tax means any tax or surcharge leviable or payable under this Act.
1. Q: What is meant by “Income Tax”?
Answer: Income tax means any tax or surcharge leviable or payable under this Act.
2. Q: What is “income year”?
Answer: Income year refers to the financial year preceding the tax year, which begins and ends on certain terms, such as the period from the date of first commencement of business to June 30.
3. Q: What is “tax payable on income”?
Answer: Tax payable on income means the amount leviable or payable on the basis of income under this Act.
4. Q: Who is meant by “Benefits Commissioner”?
Answer: Commissioner of Excise means the person appointed under section 4, which includes Transfer Pricing Officer, Assistant Commissioner of Taxes, Additional Assistant Commissioner of Taxes and Tax Recovery Officer.
5. Q: What is meant by “merger”?
Answer: Merger means merger as defined in the Eighth Schedule.
6. Question: Who is meant by “Commissioner”?
Answer: Commissioner means the Commissioner of Taxes referred to in Section 4 or the Commissioner of Taxes of a large tax-paying unit.
7. Q: Who is “Commissioner (Appeals)”?
Answer: Commissioner (Appeals) means the Commissioner of Taxes (Appeals) mentioned under section 4.
8. Question: What is meant by “Tax”?
Answer: Tax means tax payable on income and includes additional taxes, penalties, interest, fees or other levies.
1. Q: What is meant by “Taxpayer”?
Answer: “Taxpayer” means any person earning taxable income and those persons who are liable to pay tax or any other sum under this Act.
2. Question: Who will be considered as taxpayer?
Answer: A taxpayer shall be deemed to be a person who is liable to pay tax or other sum under this Act, who has filed an income-tax return, or on whose income proceedings have been taken.
3. Question: Will a person liable to pay minimum tax be treated as a taxpayer?
Answer: Yes, a person who is liable to pay the minimum tax will be considered as a taxpayer.
4. Question: Will the person liable to file the return or document be treated as taxpayer?
Answer: Yes, the person liable to file the return, document or statement or furnish the information shall be treated as taxpayer.
5. Question: Who is called a defaulting taxpayer?
Answer: A person who is treated as a taxpayer or a defaulting taxpayer under this Act is called a defaulting taxpayer.
6. Question: Whether the person intending to assess tax is a taxpayer or not?
Answer: Yes, the person who is willing to assess the tax and has filed the return, will be treated as taxpayer.
7. Question: Will the person against whom proceedings are taken be treated as taxpayer?
Answer: Yes, those against whom proceedings are taken under this Act, will be treated as taxpayers.
āĻŦিāĻ্āĻাāĻĒāĻ¨1. Q: What is meant by "tax day"?
Answer: "Tax day" means the last date for submission of income tax return prescribed for the taxpayer. It may vary depending on the type of company or individual.
2. Q: What is tax day for individual taxpayers?
Answer: Tax day for individual taxpayers is 30th November following the end of the income year.
3. Q: When is tax day for companies?
Answer: In case of company the tax day is the 15th day of the seventh month following the end of the income year, or if it falls before 15th September, then the 15th day of September.
4. Q: If the last date for filing returns is a public holiday, what will be the tax day?
Answer: If the last day of filing return falls on a public holiday, then the next working day will be treated as a tax day.
5. Q: What is meant by "tax year"?
Answer: "Tax year" means the period of 12 months commencing on the first day of July every year.
6. Question: Who shall be treated as an employee?
Answer: An employee is a person who is a director of the company, associated with the management, or receives salary from the employer and works under the direction of the employer.
7. Question: Will tea garden workers be treated as employees?
Answer: No, tea plantation workers and day laborers will not be treated as employees.
8. Question: What will be the tax day of a resident abroad?
Answer: The tax day of a person staying abroad will be the 90th day from the day of his return to Bangladesh.
1. Q: What is meant by "Tax Exemption"?
Ans: "Tax exemption" refers to the partial or total exemption of a person from taxation, such as concession, holiday, exemption or exclusion of any income from computation of income.
2. Q: What is meant by "Commissioner of Taxes"?
Answer: "Commissioner of Taxes" means the Commissioner of Taxes, Director General (Central Intelligence Cell) and Director General (Inspection) appointed under section 4 and section 5.
3. Q: What is meant by "Taxation"?
Ans: "Assessment of tax" refers to assessment of the amount of tax payable by a person, which includes assessment of re-taxation, assessment of additional tax etc.
4. Q: What is "Tax Free Limit"?
Answer: "Tax-free limit" is the limit of total income above which no tax is levied.
5. Q: What is "Technical Service Fee"?
Answer: "Technical service fee" means remuneration received for rendering management, technical or consulting services. However, it does not include income from construction work, machinery assembly work, mining work and employment.
6. Q: What is meant by "Company"?
Answer: "Company" means an organization registered under the Companies Act, 1994. This includes liaison offices of foreign organizations, NGOs, banks, insurance, and other institutions.
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7. Question: Who is called "Resident Taxpayer"?
Answer: "Defendant Taxpayer" means a person who has failed to pay the tax prescribed under this Act. Below are the related questions and answers:
1. Q: What is meant by "Research and Development"?
Answer: "Research and development" refers to systematic, exploratory and experimental studies involving novel or technical risks, based on science or technology and conducted with the aim of acquiring new knowledge.
2. Q: What are examples of not being included as research or development?
Answer: Examples of research not included are: quality control or routine testing, arts and humanities research, market research, routine data collection, minor changes, and trademark development.
3. Question: What is meant by "public servant"?
Answer: "Public servant" means a public servant as defined in section 21 of the Penal Code, 1860.
4. Q: What is meant by "Job"?
Answer: "Employment" means any position in which the person employed is entitled to receive fixed remuneration, or holding a position of directorship or holding a position in a public office.
5. Q: What is "Chartered Accountant" called?
Answer: "Chartered Accountant" means any Chartered Accountant as defined in the Bangladesh Chartered Accountants Order, 1973.
6. Question: What is “Trading Account” or “Profit and Loss Account”?
Answer: "Trading Account" or "Profit and Loss Account" is the Income Statement and other similar statements prepared as per International Financial Reporting Standards (IFRS).
7. Question: What is "Trust"?
Answer: "Trust" means a trust constituted under the Trust Act, 1882 and a trust as defined in the Specific Relief Act, 1877. However, if the company or fund is formed for the purpose of management, it will be treated as a taxable entity.
1. Q: What is meant by "Tax Recovery Officer"?
Answer: "Tax Recovery Officer" means any person appointed as Tax Recovery Officer under section 4.
2. Q: What is "demerger"?
Answer: "Demerger" means demerger as defined in the Eighth Schedule, which refers to the process of dividing an entity into parts.
3. Q: What is meant by "Scheduled Bank"?
Answer: "Scheduled Bank" means a Scheduled Bank as defined in article 2(j) of the Bangladesh Bank Order, 1972.
4. Q: What is "charitable purpose"?
Answer: "Charitable purpose" means relief, education and medical relief for the poor, but it will be a charitable purpose only when it is approved by the Commissioner of Taxes and does not involve business activities.
5. Q: What is included in "borrowed money"?
Answer: "Money borrowed" also includes money received by way of deposit in the case of banking companies.
6. Question: Who shall be considered as "Resident"?
Answer: "Resident" shall be those who have stayed in Bangladesh for 183 days or more than 90 days in the income year, or Hindu undivided families, firms, companies and trusts having control in Bangladesh.
7. Question: What is "fair market value"?
Answer: "Fair market value" is the value determined by the Board.
8. Q: What is meant by "Product"?
Answer: "Commodity" refers to all types of tangible movable property other than securities and money.
9. Q: What is "Product Delivery"?
Answer: "Supply of goods" means sale, exchange or transfer of rights to goods, or grant of right to use goods by way of lease, hire, installments etc.
1. Q: What is meant by "Delivery of Goods"?
Ans: "Supply of goods" means sale, exchange or transfer of rights in goods and grant of right of use in goods by way of lease, rent, installments etc.
2. Q: What does "Inspecting Additional Commissioner of Taxes" mean?
Answer: "Inspecting Additional Commissioner of Taxes" means the Inspecting Additional Commissioner of Taxes and the Inspecting Joint Commissioner of Taxes referred to in section 4.
3. Question: Who is meant by "inspector"?
Answer: "Inspector" means the Tax Inspector referred to in section 4.
4. Question: Who is called "Director" or "Manager"?
Answer: "Director" or "Manager" means a director or manager as defined in the Companies Act, 1994.
5. Question: Who is called "Chief Officer"?
Answer: "Principal Officer" refers to the Managing Director, Chief Executive Officer, Chief Financial Officer, and other designated officers, who are responsible for the management or accounting of the affairs of the company or organization.
6. Q: What is "perquisite"?
Answer: "Perquisite" means perquisite as defined in section 32.
7. Question: Who is meant by "Person with Disability"?
Answer: "Person with Disability" means a person with a disability registered under the Rights and Protection of Persons with Disabilities Act, 2013.
8. Question: What is "Speculation Trading"?
Answer: "Speculation business" is a business in which contracts are entered into for the purchase or sale of goods, which may be settled without delivery of the goods at specified intervals, but does not involve the production of raw materials.
9. Question: What is "market value"?
Answer: "Market price" means the average price of agricultural produce when sold in the general market in its raw state and when not sold in its raw state, the sum of cost of production, land development tax and reasonable profit.
10. Q: What is meant by "Finance Company"?
Answer: "Finance Company" means a finance company as defined under the Finance Companies Act, 2023.
11. Q: What is meant by "firm"?
Answer: "Firm" means a firm as defined under the Partnership Act, 1932.
12. Question: What is meant by "Year"?
Answer: "Year" means fiscal year.
13. Question: Who is meant by "Resident"?
Answer: "Resident" means a person who has stayed in Bangladesh for a specified period of time.
14. Q: What is meant by "Tax Recovery Officer"?
Answer: "Tax Recovery Officer" means any person appointed as a Tax Recovery Officer referred to in section 4.
15. Q: What is "demerger"?
Answer: "Demerger" means demerger as defined in the Eighth Schedule, which means division of a corporate structure or establishment.
16. Question: What is "Scheduled Bank"?
Answer: "Scheduled Bank" means a Scheduled Bank as defined in the Bangladesh Bank Order, 1972.
17. Q: What is meant by "Fund"?
Answer: "Fund" means any fund created or recognized under any law or rule for the time being in force.
18. Q: What is meant by "charitable purpose"?
Answer: "Charitable purpose" means relief for the poor, educational relief, medical relief and improvement or promotion of general public utility purposes, subject to special conditions.
19. Q: What is meant by "borrowed money"?
Answer: "Borrowed money" means money received by way of deposit in the case of banking companies.
20. Q: What is meant by "fair market value"?
Answer: "Fair market value" is the price determined by the Board, which is determined according to market conditions and conditions.
21. Q: What is meant by "Bangladeshi Company"?
Answer: "Bangladeshi Company" means any company formed and registered under the Companies Act, 1994.
22. Question: What is "annual value"?
Ans: "Annual value" means the reasonable rent of a property or the rent of that property if higher.
23. Q: What is meant by "saleable money"?
Answer: "Sales value" means the sale price or fair market value of the asset if it is sold or exchanged.
24. Question: What is "foreign company"?
Answer: "Foreign Company" means a company which is not a Bangladeshi company.
25. Q: What is meant by "Rule"?
Answer: "Rules" means the rules made under this Act.
26. Q: What is meant by “scientific research”?
Answer: "Scientific research" refers to any activity carried out in natural or applied sciences with the aim of developing knowledge.
27. Question: What is “scientific research expenditure”?
Answer: "Scientific Research Expenses" means donations made to universities, colleges or technical schools approved by the Board, but shall not include certain expenses.
28. Q: What is meant by "Board"?
Answer: "Board" means the National Board of Revenue established under the National Board of Revenue Order, 1972.
29. Question: Who is meant by "person"?
Answer: "Person" includes natural persons, firms, partnerships, Hindu Undivided Families, trusts, funds and companies.
30. Q: What is meant by "business"?
Answer: "Business" includes trade, commerce or production of goods, risk-taking or undertaking, exchange of goods or services of profit or non-profit entity, and any profession or profession.
31. Q: What is "Bank Company"?
Answer: "Bank Company" means any banking company as defined under the Banking Companies Act, 1991, which carries on banking business in Bangladesh.
32. Question: What is "Bank Transfer"?
Answer: "Bank transfer" means transfer of money from one bank account to another, money transfer through mobile financial services, and payment of fees or duties prescribed by the government.
33. Q: What is meant by "stock"?
Answer: "Inventory" means anything produced or manufactured, anything extracted or purchased for sale, and all materials or supplies used in production or manufacture, but does not include shares or stock.
34. Question: Who is meant by "Director General (Central Intelligence Cell)"?
Answer: "Director General (Central Intelligence Cell)" means the Director General mentioned under section 4.
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35. Q: Who is “Director General (Inspection)”?
Answer: "Director General (Inspection)" means the Director General referred to in section 4.
36. Q: What is meant by "Director General (Training)"?
Answer: "Director General (Training)" means the Director General mentioned under section 4.
37. Q: What is meant by “capital asset”?
Answer: "Capital asset" means property of any nature or kind held by the taxpayer, business or undertaking as a whole, and any shares or stocks. But it does not include stocks, consumables, raw materials and personal consumables.
38. Q: What is “gross income”?
Answer: "Gross income" means the total income calculated in the manner prescribed in that Act, which may be added to the total income of the taxpayer referred to in section 26 and according to law.
39. Question: How can "royalties" be earned?
Ans: "Royalties" may be acquired through the transfer of rights, including the authorized license of patents, industrial designs or trademarks, the supply of information, the use of property, the supply of technical or scientific know-how, the licensing of cinematograph films, or services related to the aforementioned activities.
40. Q: What is “Capital Income”?
Ans: "Capital income" means remuneration treated as income of the recipient in respect of royalty, including lump sum remuneration.
41. Q: What kind of property does "property of any nature or kind held by a taxpayer" mean?
Answer: It includes capital assets, which are used for business, such as machinery, buildings, vehicles etc.
42. Question: What does "business" include?
Answer: Business includes trade, commerce or production of goods, taking risks, exchange of goods or services of profit or non-profit entity and any profession or profession.
43. Q: What is meant by "Banking Company"?
Answer: "Bank Company" means a bank company as defined under the Banking Companies Act, 1991, which carries on banking business in Bangladesh.
44. Q: What does "Bank Transfer" include?
Answer: Bank transfers include transferring money from one bank to another bank account, transferring money through mobile financial services and paying government fees or duties.
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45. Question: What does "stock" mean?
Answer: "Inventory" means anything produced or manufactured in the ordinary course of business, extracted or purchased for manufacture or sale, or materials or supplies used in manufacture or manufacture, but does not include shares or stock.
46. Q: Who does "Director General (Central Intelligence Cell)" refer to?
Answer: "Director General (Central Intelligence Cell)" means the Director General referred to in section 4, who heads the Central Intelligence Cell.
47. Question: What is "Director General (Inspection)" and "Director General (Training)"?
Answer: "Director General (Inspection)" and "Director General (Training)" refer to the Director General conducting inspection and training activities respectively.
48. Q: What is meant by "Export"?
Answer: "Export" means the supply of goods or services outside the geographical limits of Bangladesh and the supply and export of locally produced raw materials and other materials to export-oriented industries under domestic back-to-back LCs.
49. Q: What is included in “dividend”?
Answer: Dividend includes distribution of accumulated profits to the shareholders of the company, distribution by way of debentures or certificates of deposit, distribution of accumulated profits before retirement and distribution for reduction of capital.
50. Q: What is meant by "Retained Profit"?
Answer: "Accumulated Profit" includes any allowances, deductions or exemptions allowable by the Company in whole or in part as reserves, and all profits of the Company.
51. Question: What is meant by "shareholder"?
Answer: "Shareholder" means the shareholder of the company, including the preference shareholder.
52. Question: What is excluded in distribution of "dividend"?
Ans: Dividend distribution does not include non-entitlement of the shareholder during the winding-up of the company, advances or loans made in the ordinary course of business, amounts adjusted against dividends paid, and bonus shares.
53. Question: How is the retained profit of the company determined at the time of distribution of "dividend"?
Answer: In determining retained earnings, all profits up to the date of distribution of the company and all profits up to the date of disposal are taken into consideration.
54. Q: Who is called "Member (Tax)"?
Answer: "Member (Tax)" means a person appointed as Member (Tax) of the National Board of Revenue.
55. Q: What does "child" include?
Answer: "Child" includes step children and foster children of a natural person.
56. Question: What is "co-operative society"?
Answer: "Co-operative Society" means a Co-operative Society registered under the Co-operative Societies Act, 2001.
57. Q: Who is "Assistant Tax Commissioner"?
Answer: "Assistant Commissioner of Taxes" means any person appointed as Assistant Commissioner of Taxes under section 4.
58. Q: What is included in “securities”?
Answer: "Securities" includes treasury bills, bonds, debentures, shares of companies, debentures, derivatives and units of mutual investment schemes issued by the government. But does not include any currency or notes and money due from trade debtors.
59. Question: What does "interest" mean?
Answer: "Interest" means interest paid against any kind of financial assistance, such as loan, borrowing, advance, or security or guarantee.
60. Q: What is meant by "Service"?
Answer: "Service" means any service, but does not include goods, immovable property and money.
61. Question: What is included in "permanent establishment"?
Answer: "Permanent establishments" include management premises, branches, offices, warehouses, factories, construction sites, farms, and consultancy services.
62. Q: What is the meaning of "transfer"?
Answer: "Transfer" includes sale, exchange or relinquishment of capital asset. But does not include donation, distribution on winding up of the company, and distribution on dissolution.
63. Question: What is said about the supremacy of law?
Answer: Notwithstanding anything contained in any other law for the time being in force, the provisions of this Act shall prevail. If any other law is inconsistent with the provisions of this law, that law shall be void.
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