Contents

Income Tax at a Glance 

Among direct taxes, income tax is one of the main sources of revenue. 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. 

Income Tax Authorities: 

Income Tax Authorities are :- 

• National Board of Revenue, 

• Director-General of Inspection (Tax), 

• Commissioner of Taxes (Appeals), 

• Commissioner of Taxes, Large Taxpayers' Unit (LTU), 

• Director General (Training), 

• Director General, Central Intelligence Cell (CIC), 

• Commissioner of Taxes, 

• Additional Commissioner of Taxes (Appeal/Inspecting), 

• Joint Commissioner of Taxes(Appeal/Inspecting ), 

• Deputy Commissioner of Taxes, 

• Tax Recovery Officers, 

• Assistant Commissioner of Taxes, 

• Extra Assistant Commissioner of Taxes, 

• Inspectors of Taxes. 

Sources of Income: 

For the purpose of computation of total income and charging tax thereon, sources of income can be classified into 7 categories, which are as follows : 

• Salaries 

• Interest on securities 

• Income from house property 

• Income from agriculture 

• Income from business or profession 

• Capital gains 

• Income from other sources. 

Tax Rate (Assessment Year- 2010-2011) : 

Other than Company : 

For individuals (other than female taxpayers, senior taxpayers of 65 years and above and retarded taxpayers), tax payable for the 

First 1,65,000/- Nil 
Next 2,75,000/- 10% 
Next 3,25,000/- 15% 
Next 3,75,000/- 20% 
Rest Amount 25% 

For female taxpayers, senior taxpayers of age 65 years and above, tax payable for the: 

First 1,80,000/- Nil 
Next 2,75,000/- 10% 
Next 3,25,000/- 15% 
Next 3,75,000/- 20% 
Rest Amount 25% 

For retarded taxpayers, tax payable for the: 

First 2,00,000/- Nil 
Next 2,75,000/- 10% 
Next 3,25,000/- 15% 
Next 3,75,000/- 20% 
Rest Amount 25% 

Minimum tax for any individual assessee is Tk. 2,000 

Non-resident Individual 25% (other than non-resident Bangladeshi) 

On Dividend income 20% 

For Companies 
Publicly Traded Company 27.5% 
Non-publicly Traded Company 37.5% 
Bank, Insurance & Financial Company 42.5% 
Mobile Phone Operator Company 45% 
Publicly Traded Mobile Operator Company 35% 

If any publicly traded company (excluding Mobile Operator Company) declares more than 20% dividend, 10% rebate on total tax allowed.