What is the Bangladesh standard on Audit(BSA-300) ? Describes in details

Corporate Accounting Treatment:

IT-10B-2016-STATEMENT OF ASSETS, LIABILITIES AND EXPENSES-(SECTION-80(1)-ITO-1984 :

In Bangladesh, the IT-10B-2016 form is used as part of the Statement of Assets, Liabilities, and Expenses, which is required to be filed by certain taxpayers under the Income Tax Ordinance, 1984. The reference to Section 80(1) in your query relates to the requirement for individuals, particularly high-income earners and business entities, to provide detailed financial disclosures, including assets, liabilities, and expenses. Key Aspects of the IT-10B Form in Bangladesh 1.IT-10B Form: This form is used to provide a comprehensive statement of the taxpayer’s assets, liabilities, and expenses. It is a mandatory requirement for taxpayers who fall under certain criteria, such as individuals with high income, professionals, business owners, or any person whose income is subject to tax. 2.Section 80(1) of the Income Tax Ordinance, 1984: Under Section 80(1) of the Income Tax Ordinance, 1984, taxpayers are required to maintain proper records of their assets and liabilities. This section outlines the provision that taxpayers must file a statement detailing their income, assets, liabilities, and expenses if requested by the tax authorities. The requirement for filing this statement is often triggered when an individual or entity reports income that falls within a certain threshold or when the tax authorities require additional verification of a taxpayer's financial position. 3.Statement of Assets, Liabilities, and Expenses: Assets:  This includes all tangible and intangible assets owned by the taxpayer, such as real estate, vehicles, financial investments, bank deposits, cash holdings, shares, and any other property of value. Liabilities:  This includes all the debts, loans, mortgages, or financial obligations owed by the taxpayer. This could cover outstanding bank loans, credit card debts, business loans, etc. Expenses:  The expenses reported are generally those incurred during the year in the course of earning income, such as operational costs, administrative expenses, business expenses, etc. This is especially important for business owners or individuals with multiple sources of income. 4.Importance of Filing IT-10B: Compliance:  Filing the IT-10B ensures that taxpayers comply with the legal obligations under the Income Tax Ordinance. Non-compliance could result in penalties or legal consequences. Verification:  The detailed statement helps the National Board of Revenue (NBR) verify the taxpayer’s financial position and assess the appropriateness of the income and tax deductions claimed. Tax Assessment:  The NBR may use this information to determine the correct amount of tax due, particularly for taxpayers with complex financial holdings. 5.Filing Deadline: The IT-10B form typically needs to be filed along with the annual tax return (Income Tax Return). The deadline for filing tax returns in Bangladesh is generally 30th November of the assessment year. However, the specific due date can vary, so it's always important to check for updates from the National Board of Revenue (NBR). 6.Who Needs to File the IT-10B Form?: Individuals or entities with an annual income exceeding a certain threshold (as specified by the NBR) must file the IT-10B form. Professionals such as doctors, engineers, accountants, lawyers, etc., as well as business owners and those in other high-income categories, are often required to file this form. Detailed Breakdown of the Form The IT-10B form is structured to collect information in the following sections: 1.Personal Information: Full name, National ID or Taxpayer Identification Number (TIN), address, occupation, and contact details. 2.Assets: A list of all assets owned, including real estate, bank balances, investments, vehicles, and other movable or immovable property. 3.Liabilities: A breakdown of all debts and financial obligations, including loans, mortgages, and other forms of liabilities. 4.Expenses: The expenses incurred during the year related to business operations, personal expenditures, or income generation activities. 5.Net Worth Calculation: A calculation of the taxpayer's net worth, which is essentially the difference between their total assets and total liabilities. 6.Tax Computation: The final section would likely include a detailed calculation of taxes due based on the financial information provided in the form. Filing Process: To file the IT-10B form in Bangladesh, follow these steps: 1.Prepare Your Documents: Collect all relevant financial records such as bank statements, property deeds, loan documents, investment details, and receipts for expenses. 2.Fill Out the Form: The form can typically be accessed online through the National Board of Revenue (NBR) website or in physical format from local tax offices. 3.Submit the Form: Submit the completed IT-10B form along with your annual tax return before the due date. It can be submitted either online through the NBR portal or physically at the local tax office. 4.Verify and Respond to Queries: The tax authorities may request additional information or clarification, so be prepared to respond and provide any additional documents if needed. Penalties for Non-Compliance Failure to submit the IT-10B form or provide accurate financial information can lead to: Penalties: These may include fines or additional tax assessments. Audits: If the NBR suspects any discrepancies or finds inconsistencies in the taxpayer’s filings, they may initiate an audit. Legal Action: In cases of deliberate misreporting or tax evasion, legal action may be taken. Here is the IT-10B-2016-STATEMENT OF ASSETS, LIABILITIES AND EXPENSES-(SECTION-80(1)-ITO-1984

National Board of Revenue                                                                                                       IT-10B2016

www.nbr.gov.bd

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STATEMENT OF ASSETS, LIABILITIES AND EXPENSES

under section 80(1) of the Income Tax Ordinance, 1984 (XXXVI of 1984)

 

1.      Mention the amount of assets and liabilities that you have at the last date of the income year. All items shall be at cost value include legal, registration and all other related costs; 2.      If your spouse or  minor children and dependent(s) are not assessee, you have to include their assets and liabilities in your statement;  3.      Schedule 25 is the integral part of this Statement if you have business capital or agriculture or non-agricultural property. Provide additional papers if necessary.

 

01	Assessment Year 20-00 - 00	03	Statement as on (DD-MM-YYYY)   12-12-2024
02	Name of the Assessee	04	TIN

Particulars					Amount ৳
05	Business capital (05A+05B)
	05A	Business capital other than 05B
	05B	Director’s shareholdings in limited companies (as in Schedule 25)
06	06A	Non-agricultural property (as in Schedule 25)
	06B	Advance made for non-agricultural property (as in Schedule25)
07	Agricultural property (as in Schedule25)
08	Financial assets value (08A+08B+08C+08D+08E)
	08A	Share, debentures etc.
	08B	Savings certificate, bonds and other government securities
	08C	Fixed deposit, Term deposits and DPS
	08D	Loans given to others (mention name and TIN)
	08E	Other financial assets (give details)
09	Motor car (s) (use additional papers if more than two cars)
	Sl.	Brand name	Engine (CC)	Registration No.
	1
	2
10	Gold, diamond, gems and other items (mention quantity)
11	Furniture, equipment and electronic items
12	Other assets of significant value
13	Cash and fund outside business (13A+13B+13C+13D)
	13A	Notes and currencies
	13B	Banks, cards and other electronic cash
	13C	Provident fund and other fund
	13D	Other deposits, balance and advance (other than 08)
14	Gross wealth (aggregate of 05 to 13)
15	Liabilities outside business (15A+15B+15C)
	15A	Borrowings from banks and other financial institutions
	15B	Unsecured loan (mention name and TIN)
	15C	Other loans or overdrafts
16	Net wealth (14-15)
17	Net wealth at the last date of the previous income year
18	Change in net wealth (16-17)
19	Other fund outflow during the income year (19A+19B+19C)
	19A	Annual living expenditure and tax payments (as IT-10BB2016)
	19B	Loss, deductions, expenses, etc. not mentioned in IT-10BB2016
	19C	Gift, donation and contribution (mention name of recipient)
20	Total fund outflow in the income year (18+19)
21	Sources of fund (21A+21B+21C)
	21A	Income shown in the return
	21B	Tax exempted income and allowance
	21C	Other receipts and sources
22	Shortage of fund, if any (21-20)

 

 

Verification and signature

23	Verification I solemnly declare that to the best of my knowledge and belief the information given in this statement and the schedule annexed herewith are correct and complete.
	Name	Signature & date

 

SCHEDULE 25

to be annexed to the Statement of Assets, Liabilities and Expenses (IT-10B2016)

 

 

01

Assessment Year

02

TIN

 

03	Shareholdings in limited companies as director		No. of shares	Value ৳
	1
	2
	3
	4

 

04	Non-agricultural property at cost value  or any advance made for such property (description, location and size)		Value at the start of income year৳	increased/ decreased during the income year ৳	Value at the last date of income year ৳
	1
	2
	3
	4

 

05	Agricultural property at cost value  (description, location and size)		Value at the start of income year৳	increased/ decreased during the income year ৳	Value at the last date of income year ৳
	1
	2
	3
	4

(Provide additional paper if necessary)

 

Name	Signature & date

 

Conclusion:

The IT-10B-2016 Statement of Assets, Liabilities, and Expenses in Bangladesh is an essential document for taxpayers required to disclose their financial position under Section 80(1) of the Income Tax Ordinance, 1984. This form helps ensure transparency and proper tax assessment, which is crucial for the effective functioning of the country's tax system.

If you're filling out this form, ensure that all the information is accurate and up-to-date to avoid any issues with the tax authorities. If you need further assistance or a more specific breakdown of how to fill out the form, it may be advisable to consult with a tax professional or accountant familiar with Bangladesh's tax regulations.