Income tax bill passed

The Income Tax Bill 2023 was passed in parliament yesterday, replacing The Income-tax Ordinance 1984. 

Finance Minister AHM Mustafa Kamal placed the bill which was passed by voice votes.

While the previous one was in English, provisions in the new law have been converted into simple Bangla and made more contemporary aligned with international best practices, applicable from the upcoming fiscal year.

Currently, the government is collecting direct tax under the ordinance. There was a full-fledged income tax act in 1922.

There are 348 sections in the new law, following which businesspersons can easily submit their income tax returns.

A mathematical formula has been introduced in the law to help taxpayers determine their tax. The law also helps taxpayers submit their income tax returns online.

As per the law, no tax deducted in advance from interest earned from securities would be considered for refund or to be carried forward.

Tax will be imposed on the interest amount disbursed by mobile financial services.

Audited financial statements have to be submitted by firms, associations of persons and funds having an annual turnover of over Tk 3 crore.

Taxpayer identification numbers can be de-registered for citizens who have no taxable income, left the country or passed away.

Except life insurance, premium income of other insurances, up to 10 per cent, is currently considered "allowable expenses".

Submission of tax return under universal self-assessment method has been made mandatory for all taxpayers.

The types of documents required for the submission of a company's tax return has been reduced to 12 from 29 at present.

Bank depositors having only fixed deposits of more than Tk 10 lakh will need to submit tax returns.

Opposition lawmakers Fakhrul Imam, Shamim Haider Patwary, Raushan Ara Mannan, Kazi Feroz Rashid and Pir Fazlur Rahman also discussed on the merits and demerits of the bill.