It is a progressive tax system. Income tax is imposed on the basis of ability to pay. The more a taxpayer earns the more he should pay”- is the basic principle of charging income tax. It aims at ensuring equity and social Justice. The income tax of Bangladesh is administrated Income Tax Ordinance, 1984 and the Income tax Rules, 1984 as well as notification made under the Ordinance. The charge of tax of a person depends on its resident ship. Total world Income of a resident is charged to tax in Bangladesh.
Where as a non-resident’s Bangladesh income is only enrage to tax In Bangles .I nerve are seven nanas AT Income. I nerve are salary, interest on security, house property, agriculture, business and profession, capital gain and other sources. The Submission of income tax returns is generally due by 30th September in case of non-companies and by 31st December in case of companies. Assessment is made in several procedures.
They are self assessment, presumptive assessment, spot assessment, pre-audit based assessment. Certain percent of self assessment cases are selected for audit. The assesses can prefer appeal if aggrieved by his assessment.There are three primary forums for appeal. They are to the Appellate Commissioner/Additional Commissioner/Joint Commissioner or to the Commission for reviews. The decisions of Appellate Commissioner/Additional Commissioner/Joint Commissioner can be challenged to the next Appellate Court named as Appellate Tribunal.
Withholding tax is livable on a number of items including contractors, imports, transfer of urban land/building, bank deposits etc. Bangladesh has Agreement on Avoidance of Double Taxation with 20 countries. Negotiation with some other countries are on way. Income Tax Authorities:Under the income tax ordinance 1984 the following authorities are responsible for collecting the income taxes and exercise the power of authority: National Board of Revenue, Director General of Inspection (Tax), Commissioner of Taxes (Appeals), Commissioner of Taxes (Large Taxpayer Unit) Director General (Training), Director General Central Intelligence Cell (SIC), Commissioner of Taxes, Additional Commissioner of Taxes (Appeal/lingering), Joint Commissioner of Taxes(Appeal/Inspecting ), Deputy Commissioner of Taxes, Assistant Commissioner of Taxes, Extra Assistant Commissioner of Taxes,