Income Tax Law & Regulations in Bangladesh

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INCOME TAX
IN
BANGLADESH

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PREPARED BY:
KAZI M. MIRAJ HOSSAIN
ID# 032 408 030
ENG-105, Sec-2
PREPARED FOR :
ABDUS SELIM

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WHAT IS INCOME TAX?
It’s the tax that the citizens have
to pay against their annual
income. If any one earns more
than Tk.1,20,000/- annually.

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IMPORTANCE
Helps the Gov’t to enrich the gov’t
revenue.
For a Civilized society.
For Repaying the foreign loan.

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THE AREAS
What are the Related Laws?
What are the Current Rates?
Why People Do not want to pay tax?
What are the Effects?

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What are the Related Laws?
Income Tax Act, 1860
Income Tax Act, 1922
Income Tax Ordinance, 1984
All the Amendments of Every Year
Finance Act, 2006

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What are the Current Rates?
Amount (of yearly income) Rate
On the first Tk.1,20,000/- Nil
On the next Tk.2,50,000/- 10%
On the next Tk.3,00,000/- 15%
On the next Tk.3,50,000/- 20%
On the balance of total income 25%

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Why People Do Not Want to Pay Tax?
High Rate of Income Tax
Bribe Culture is Well Practiced!
Lack of Tax Education

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What are the effects?
Bad Effects on Whole Economy
Less Facilities for the Citizens
Slow Down the Whole Developmental
Process of the Country

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Hypothesis :
Business sector of the
economy is swindling income
tax greatly than the service
holders’ group.

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Survey Results: In graphs
4. Do you pay your income tax?
a) Yes, regularly
b) Yes, but not regularly
c) Sometimes I missed my payment
d) No, I don’t
Business People
Service Holders
a b c d
12
60%
5
25%
2
10%
1
5%
a b c d
3
15%
3
15%
8
40%
6
30%
a
b
c
d
a
b
c
d

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Survey Results: In graphs
6. While having yearly audit, do you show the exact
figures?
a) Yes, sincerely
b) No, I only show my salary amount
c) No, I manipulate the amount
d) Not at all
Business People
Service Holders
a B c d
11
55%
7
35%
2
10%
0
a
b
c
d
a B c d
3
15%
12
60%
5
25%
0
a
b
c
d

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Suggestions :
 Government should -
 Make advertise on this social issue
 Give people the tax education
 Public should be -
 Aware of the proper responsibility
 To be Honest to the country

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Conclusion :
From my research I can conclude that,
People are not aware of Income Tax
Service Holders pay more tax than the
Business People.
Business people are swindling income
tax

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Thank You For Your Time

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Any Question ?