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| Charge of income-tax under Section 18(ITA-2023) |
Charge of income-tax under Section 18 | Bangladesh Income Tax Act -2023:
As per Section-18 (ITA-2023),
1. Income tax shall be imposed, assessed, and collected based on the total income of a person for each income year.
2. Subject to the provisions of this Act, income tax shall be charged at the prescribed rates for each assessment year, as determined by an Act of Parliament. However, tax may also be applied at prescribed rates on income earned during any period other than the standard income year.
3.The
following types of taxes shall be imposed and collected in accordance with this
Act:
(a) Tax deducted or collected at source;
(b) Advance income tax;
(c) Minimum tax; and
(d) Any other applicable tax.
4.In addition to income tax, any surcharge or other charges shall be imposed and collected at rates and in a manner prescribed by an Act of Parliament, subject to this Act.
5.Notwithstanding
anything stated above, tax shall be imposed at the rates specified in Part 7 and the Seventh Schedule in the
following cases:
(a) Income arising from capital gains;
(b) Income received as dividends;
and
(c) Income received from winnings such as lotteries, crossword puzzles, card
games, online games, or similar activities.
FAQs on Charge of Income Tax (Section 18)
1.What is the basis of charging
income tax?
Income tax is charged on the total income of a person for an
income year.
2.Who determines the tax rates?
The rates of income tax are prescribed by Parliament through
annual finance laws.
3.Is tax only charged on income
earned within the income year?
No, tax may also be charged on income earned in any other specified
period, as allowed by law.
4.What are the main types of taxes
under this section?
The Act includes:
- Tax at source
- Advance income tax
- Minimum tax
- Other applicable taxes
5.What is “tax at source”?
It is tax deducted or collected at the time income is paid,
such as salary or contract payments.
6.What is advance income tax?
It is tax paid in advance during the year, before final
assessment.
7.What is the minimum tax?
Minimum tax ensures a taxpayer pays at least a certain amount of tax,
even if regular tax liability is low.
8. What is a surcharge?
A surcharge is an additional charge on income tax, imposed at
prescribed rates under the law.
9. Are all types of income taxed at
the same rate?
No. Some incomes are taxed at special rates, different from
normal rates.
10. Which types of income are subject
to special tax rates?
Special rates apply to:
- Capital gains
- Dividends
- Lottery, games, and similar winnings