Scope of the total income under Section 26(ITA-2023)

 

Scope of the total income under Section 26 | Bangladesh Income Tax Act -2023 

As per section-26(ITA-2023),

Scope of Total Income (Section 26)

1.     Subject to the provisions of this Act, the total income of a person for any income year includes:

(a) For a Resident Person:

All income from any source, whether earned in Bangladesh or abroad, including income that—

• accrues or arises (or is deemed to accrue or arise) in Bangladesh;
• accrues or arises outside Bangladesh;
• is received or deemed to be received in Bangladesh; or
• is received or deemed to be received outside Bangladesh.

In short, Residents are taxed on global income.

(b) For a Non-Resident Person:

Only income from any source that—

• accrues or arises (or is deemed to accrue or arise) in Bangladesh; or
• is received or deemed to be received in Bangladesh.

 In short, Non-residents are taxed only on Bangladesh-source income.

FAQs on Section 26

1. What does “total income” include under this section?
It includes all income from any source, whether earned inside or outside Bangladesh, depending on the residential status of the person.

2. How is a resident taxed under this section?
A resident is taxed on global income, meaning income earned both within and outside Bangladesh.

3. How is a non-resident taxed?
A non-resident is taxed only on income that is earned in Bangladesh or received in Bangladesh.

4. What is meant by “accrues or arises” and “received”?

• Accrues or arises: Income that is earned or becomes due
• Received: Income that is actually received or deemed to be received

5. Does this section include deemed income?
Yes, it includes income that is deemed to accrue, arise, or be received, even if not actually received.