Taxation in Bangladesh

1. Theory of Taxation:
Taxation–An Introduction: Public Finance and Tax as a Source of Public Revenue, Other Sources of Public
Revenue vs. Taxation, Public Finance vs. Private Finance, Importance of Public Finance, Definition of Tax,
Characteristics of Tax, Objectives of taxation, Principles of taxation, Characteristics of a Good Tax.
Incidence of Taxes: Impact, Incidence and Effect of a Tax–Shifting of Tax Incidence–Demand and Supply
Theory of Tax Shifting–Additional Factors Influencing Tax Shifting – General Effects of Taxation.
Classification and Choice of Taxes: Classification Taxes (on the basis of: Number of taxes, Impact and
incidence of taxes, Structure of tax-rates, Subject-matter of taxes, Elasticity of taxes, Classification of tax-
bases, Increase or decrease in public revenue, Single-point vs. Multiple-point taxes, and Collector of taxes);
Choice of Taxes between Proportional and Progressive taxes, Choice of Taxes between Direct and Indirect
taxes; Tax Structure in Bangladesh
2. Business Taxation–An Introduction: Business Enterprises as a Taxpayer (Sole-proprietorship, Partnership,
and Company), Pass-Through vs. Non-Pass-Through Entities, Legal Taxpayer vs. Real Taxpayer.
3. Income Tax:
Introduction to Income Tax: Income Tax–Meaning, Nature, Importance in respect of Contribution to Internal
Resource Mobilization–Historical Perspective of the Income Tax Ordinance, 1984 – Statutory Definitions of
Important Terms.
Income Tax Authorities: Administrative and Judicial Authorities–appointment, organization structure, power
and functions–Taxes Appellate Tribunal–Registered Income Tax practitioner.
Charge of Income Tax: Basic Principles, Systems (Conventional Exemption Limit versus Filing Threshold)–
Sources of Income Tax Laws.
Computation of Total Income: Types of Assessees–Scope of Total Income on the basis of Assessee’s
Residential Status–Income deemed to accrue or arise in Bangladesh–Deemed Income (unexplained investment
etc.)–Non-Assessable Income–Income under Specific Heads (Salaries, Interest on Securities, Income from
House Property, Agricultural Income, Income from Business or Profession, Share of Income from Firms,
Income of Spouse or Minor Child, Capital Gains, Income form Other Sources, and Foreign Income)–Set-off
and carry-forward of losses.
Procedure of Assessment: Filing of return of income and Supporting Statements and Documents. Assessment
of Tax: Provisional Assessment, Assessment on correct return, Universal Self-Assessment, Spot Assessment,
Assessment after hearing, Assessment on the basis of a Chartered Accountant’s Report, Best-judgment
Assessment, Presumptive Assessment–Other issues in assessment: Assessment in cases of discontinuation of
or succession to business, Assessment for outgoing persons and deceased persons, Assessment of escaped
income, Limitations for assessment–Tax audit.
Rates of Taxes: Tax Rate on Capital gains and Income form winnings–Tax rate on other income of individuals,
firms and companies–Tax Rate on non-resident’s income, Imposition of Surcharge.
Investment Tax Credit, Tax Rebate and Tax Relief: Rate of investment tax credit, Investment allowance
items and maximum limit–Tax credit on Small or Cottage Industries–Tax-free income and tax credit–Tax
relief for avoiding double taxation.
Payment, Refund and Recovery: Four ways of Tax payment: Tax deducted at source (TDS), Advance
payment, Payment on the basis of return and payment on notice of demand, Tax Recovery–TDS as the Final
discharge of tax liability (sec. 82C).
Individual Assessment: Assessment covering all heads of income excluding share of firm’s income–Clubbing
of Income.
Taxation of Partnership Firms: Set-off and carry-forward of losses by firm–Assessment of firms–Allocation
firm's income among partners–Partners’ total income including share of firm’s income–Assessment in case of
change in firm’s constitution and in case of constitution of new successor firm.
Corporate Taxation: Definitions of Company and related terms–Determination of Total Income–Tax Rates
and Tax Rebates.
Provident, Superannuation, Pension and Gratuity Funds: Kinds of Provident Fund (PF): General,
Contributory and Recognized–Privilege of Recognized PF–Approved Superannuation, Pension and Gratuity
Funds.
Liabilities in Special Cases: Liabilities of representatives, agents, firms, association of persons, partners,
directors, liquidators, etc.
Appeals And References: Appeal to Appellate Joint Commissioner of Taxes or Commissioner of Taxes
(Appeals), Appeal to Taxes Appellate Tribunal, Reference to High Court Division and Appellate Division–
Alternative Dispute Resolution (ADR).
Miscellaneous Issues: Default and Penalty–Offence and Prosecution–Methods of Accounting–Filing of
Return of Withholding Tax–Filing of Annual Information Return–Tax Avoidance–Bond Washing
Transactions. Tax-holiday Scheme: Industrial undertakings, Physical infrastructural facility and Cooperative
society.
4. Other Taxes in Bangladesh:
Value-Added-Tax (VAT): Important terms–Exempted Goods and Services–Output tax–Input Tax–Tax
period–Taxable Goods–Invoice–Manufacturers–VAT Authorities. Imposition of VAT–Determination of Value
for VAT–Methods and Time of VAT payment–Supplementary Duty–Turnover Tax–Tax Rebate–Registration
of manufacturers Delegated powers–Appointment VAT officials-offence and penalties– Confiscation–Appeal-
Revisions–Recovery of claims–Alternative Dispute Resolution.
Customs Duty: Nature–Scope and importance–Goods Dutiable–Goods Prohibited–Various Duties under the
Customs Act–Rates of Duties–Tax Points and Valuation Bases for Customs Duty–Duty-Drawback and
Exemptions–Pre-Shipment Inspection Authority –Assessment–Penalties and Offences–Customs Authority–
Appeals and References–Alternative Dispute Resolution.
Excise Duty: Nature–Scope–Services Dutiable–Rates of Duties–Assessment.
Gift Tax: Charge of Gift Tax–Definition and Characteristics of Gift–Gifts to include certain transfer–
Exemptions from Gift-tax–Determination of the value of Gifts–Return of Gifts–Rates of Gift-tax–Penalty and
Prosecution–Assessment procedures–Gift-tax Authorities.
Other Taxes and Duties: Narcotics and Liquor Duty–Non-Judicial Stamp–Land Revenue.
Books Recommended :
1. Bala, S.K. and Others, Tax Laws with Professional Practice.
2. H.L. Bhatia: Public Finance, Vikas Publsihing House Pvt. Ltd.
3. GOB (Government of Bangladesh): Income Tax Manual, Part I–Income Tax Ordinance, 1984 and
Income Tax Manual, Part II–Income Tax Rules, 1984.
4. GOB: Value Added Tax Act 1991 and Value Added Tax Rules 1991
5. GOB: Gift Tax Act 1990
6. GOB: Customs Act 1969
7. GOB: Excise and Salt Act 1944
8. GOB: Finance Acts/ Ordinances.
9. MCCI (Metropolitan Chamber of Commerce and Industry): Summary of Bangladesh Taxation Rules.