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“Income Tax’’

DefinitionWhat is Income….??? Income Defined: -Salary -Interest on Securities - Agricultural Income -Income from

Business/Profession -Capital Gain - Income from Other Sources

What is ‘‘Income Tax’’

Simple answer “Tax on Income”

Background

General Clause Act 1897 and Income Tax Act 1922 was promulgated by then British Govt.

Thereafter it had been adopted by the Government of Pakistan at 1947 and Government of Republic of

Bangladesh in 1971.During the period of 1897 to 1984 there were lots of changes,

alteration, addition, deletion and amendment.That is how Income Tax Ordinance-1984 has come into

existence.

Charges of Income Tax: Income tax chargeable for each assessment year at any rate or rates as

provided by an Act of Parliament. Tax to be deducted at source, paid or collected in advance in accordance

with the provisions under the ITO- 1984. The rates specified in the 2nd Schedule in respect of:

•A non-resident person, not being a Company •Any income classifiable under the head

“Capital Gain” •Any income by way of “Winning” referred to section 19 (13)

Rates of Income Tax:Total annual income Income tax rateFirst Tk 250,000 Nil

Next Tk 400,000 10%Next Tk 500,000 15%Next Tk 600,000 20%Next Tk 3,000,000 25%Balance amount 30%

Initial exemption limit for women and senior citizens aged 65 years or over is Tk 300,000. For physically challenged persons is Tk 375,000 and for gazetted war-wounded freedom fighters is Tk 425,000.

Income Tax collection as revenue

2009-10 2010-11 2011-12 2012-13 2013-140

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Thanks to all.