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| Calculation of profit of certain businesses under Section 47(ITA-2023), |
Calculation of profit of certain businesses under Section 47 | Bangladesh Income Tax Act -2023:
As per section-47(ITA-2023),
Calculation of profit of certain businesses.—The profit of the business mentioned in column (2) of the table below shall be computed in accordance with the provisions of the Schedule mentioned in column (3) of the table, namely:—
Table for Calculation of profit of certain businesses
|
Serial No. |
Business |
Schedule |
|
(1) |
(2) |
(3) |
|
1. |
Insurance business |
Fourth Schedule |
|
2. |
Extraction and exploration of natural gas, Petroleum, or other minerals |
Fifth Schedule |
Frequently Asked Questions (FAQs):
1. What is Section 47 of the Bangladesh Income Tax Act 2023?
Section 47 defines the rules for calculating the profit of certain businesses using prescribed methods instead of standard accounting principles.
2. How is profit calculated under Section 47 in Bangladesh?
Profit is calculated based on specific rates, turnover, or other criteria set by tax authorities for selected business categories.
3. Which businesses fall under Section 47 profit calculation rules?
Certain sectors like small traders, transport businesses, and presumptive tax-based entities are typically covered under Section 47.
4. Is maintaining accounts required under Section 47?
In many cases, full accounting records are not required, as profit is determined using fixed or estimated methods.
5. What are the benefits of Section 47 for taxpayers?
It simplifies tax compliance, reduces record-keeping burden, and provides predictable tax calculations for eligible businesses.
6. Can a business opt out of Section 47 profit calculation?
Yes, eligible businesses may choose to maintain proper accounts and calculate profit under general tax provisions if allowed.