Income Tax

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

For female taxpayers, senior taxpayers of age 65 years and above, tax payable for the First Next Next Next Rest Amount 1,80,000/2,75,000/3,25,000/3,75,000/Nil 10% 15% 20% 25%

For retarded taxpayers, tax payable for the First Next Next Next Rest Amount 2,00,000/2,75,000/3,25,000/3,75,000/Nil 10% 15% 20% 25%

Minimum tax for any individual assessee is Tk. 2,000 Non-resident Individual 25% (other than non-resident Bangladeshi)

On Dividend... [continues]

Read full essay