Allowable deductions under Section 68 of the Bangladesh Income Tax Act 2023 for computing income from other sources

 

Allowable deductions in computing income from other sources under Section 68 | Bangladesh Income Tax Act -2023:

       As per section-68(ITA-2023)

1.     Subject to the provisions of this Act, any expenditure incurred wholly and exclusively for earning income under the head “Income from other sources” shall be allowed as a deduction in the relevant income year, provided that such expenditure is neither capital in nature nor a personal expense of the person.

2.     Except for the deductions permitted under sub-sections (5) and (6) of section 67, no other expenditure shall be allowed in computing income under the remaining provisions of section 67.

3.     While allowing any expenditure under sub-section (1), consideration shall be given to whether the amount of such expenditure is reasonable.

Frequently Asked Question(FAQ):

1. What are allowable deductions under Section 68 of the Bangladesh Income Tax Act 2023?

Allowable deductions under Section 68 include expenses incurred wholly and exclusively for earning income from other sources, such as collection charges, maintenance costs, and interest expenses permitted by law.

2. Which expenses are not deductible under income from other sources in Bangladesh?

Personal expenses, capital expenditures, and expenses unrelated to earning income are generally not deductible under Section 68 of the Bangladesh Income Tax Act 2023.

3. How is income from other sources calculated under Bangladesh tax law?

Income from other sources is calculated by deducting allowable expenses under Section 68 from the gross income earned from miscellaneous or non-business sources.

4. Why is Section 68 important for taxpayers in Bangladesh?

Section 68 helps taxpayers legally reduce taxable income by allowing specific deductions related to earning income from other sources under the Income Tax Act 2023.