Consolidation of Income under Section 31 of the Bangladesh Income Tax Act 2023 – A practical guide for taxpayers and tax professionals.

Consolidation of income under Section 31 | Bangladesh Income Tax Act -2023

As per section-31(ITA-2023),

 Consolidation of Income

(1) Save as otherwise provided in this Act, the following income shall be included in the total income of a person, namely:—

(a) where such person is a partner of a firm or a member of an association of persons, his or her share of the income of such firm or association of persons;

(b) the income of the spouse or minor child of such person, if—

(i) the spouse or minor child is dependent upon such person;

(ii) such person exercises reasonable control over such income; or

(iii) such person consents to the consolidation of such income.

Provided that the provisions of this clause shall not apply where the income of the spouse or minor child has been assessed separately for tax purposes.

You may learn More-

Complete Section List of Income Tax ACT-2023(ITA) in Bangladesh

Exercise of the power of the Tribunal under Section 14 | Bangladesh Income Tax Act -2023

Duties and functions, and jurisdiction of income-tax authorities under Section 08

Special agricultural income under Section 41 | Bangladesh Income Tax Act -2023

 

Frequently Asked Question (FAQ):

FAQ 1: What is Consolidation of Income under Section 31 of the Bangladesh Income Tax Act 2023?

Consolidation of Income under Section 31 refers to the process of combining income from different sources as prescribed by the Bangladesh Income Tax Act 2023 to determine a taxpayer’s total taxable income for a tax year.

FAQ 2: Why is income consolidated under Section 31?

Income is consolidated to calculate the total taxable income accurately. It ensures that earnings from various heads of income are combined before applying tax rates, deductions, exemptions, and rebates.

FAQ 3: Which types of income are included in the consolidation process?

Income from employment, business, capital gains, financial assets, house property, agricultural activities, and other taxable sources may be included in the consolidation process under Section 31, subject to applicable provisions of the Income Tax Act 2023.

FAQ 4: How does Section 31 affect a taxpayer's tax liability?

Section 31 affects tax liability by determining the taxpayer's total income after combining all eligible income sources. The consolidated amount serves as the basis for calculating the final income tax payable.