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Understanding special cases of income from other sources under Section 67 of the Bangladesh Income Tax Act 2023. |
Special cases of Income from other sources under Section 67 | Bangladesh Income Tax Act -2023
As per section-67(ITA-2023),
Special Cases of Income from Other Sources.-
1. Subject to section 66, the provisions of this Chapter shall apply for computing income under the head “Income from Other Sources” in special circumstances.
2. If any amount is credited in the books of an assesses during an income year and the assesses fails to provide a satisfactory explanation regarding its nature and source, the Deputy Commissioner of Taxes may treat that amount as income of the assesses for that income year under the head “Income from Other Sources.”
3. If, during an income year, the total of—
- increase in net assets (A),
- actual expenditure incurred (B), and
- other expenditures from funds excluding A and B (C),
exceeds the total of—
- assessed total income (D),
- assessed tax-exempt income (E), and
- other acceptable sources of funds excluding D and E (F),
then the excess amount, calculated as (A+B+C) − (D+E+F), shall be deemed to be income under the head “Income from Other Sources.”
4. If an assesses purchases any asset other than stock-in-trade or financial assets at a price below its fair market value, and the Deputy Commissioner of Taxes has reasonable grounds to believe so, the difference between the fair market value and the purchase price shall be treated as income of the assesses under the head “Income from Other Sources” in the relevant income year.
5. Any fee, commission, compensation, goodwill, or similar payment received due to cancellation, termination, alteration, or modification of an agreement shall be treated as income under the head “Income from Other Sources” in the relevant income year.
6. Any lump-sum amount received or receivable as salami or premium in connection with lease or rent shall be treated as income under the head “Income from Other Sources” in that income year.
7. Any payment made for acquiring an asset without deduction or collection of tax at source as required under Part VII of the Act shall be deemed to be income under the head “Income from Other Sources” in that income year.
8. If an assesses receives any benefit or profit from waiver of a loan liability, whether convertible into money or not, the monetary value of that benefit shall be treated as income under the head “Income from Other Sources.”
However, this rule shall not apply to:
- loans or interest waived for an individual by a scheduled bank or registered finance company; or
- benefits up to Taka 10 lakh arising from waiver of margin loans or interest by authorized merchant bankers, portfolio managers, or stock brokers relating to investments in listed securities by an individual.
9. Any winnings from lotteries, crossword puzzles, card games, online games, or similar games shall be included as income under the head “Income from Other Sources.”
10. If an unlisted company receives paid-up capital from shareholders without using a banking channel, the amount received shall be treated as income under the head “Income from Other Sources.”
This provision does not apply where paid-up capital is received in the form of assets or services in accordance with the Companies Act, 1994.
11. If a company receives any loan from another person outside the banking channel, the amount received shall be treated as income under the head “Income from Other Sources” for that income year.
If the loan or part of it is repaid in a later income year, the repaid amount shall be allowed as a deduction in computing income for that year.
12. If a company purchases or hires one or more motor cars or jeeps and the value of those vehicles exceeds 10% of its paid-up capital, reserves, and accumulated profits combined, then 50% of the excess amount shall be deemed to be income under the head “Income from Other Sources.”
13. If an individual receives more than Taka 5 lakh as advance, loan, or deposit from another person without bank transfer, the amount shall be treated as income under the head “Income from Other Sources” in that income year.
This provision does not apply to:
- amounts received from spouse, parents, or children, provided both giver and receiver disclose them in their tax returns; or
- deposits received by banks, finance companies, microcredit organizations, or NGOs registered with the relevant authorities.
14. If a person not engaged in the real estate business purchases construction materials on credit and fails to pay within two years from the end of the income year in which the purchase was made, the unpaid amount shall be treated as income under the head “Income from Other Sources” in the income year immediately following the expiry of those two years.
You may learn more-
Complete Section List of Income TaxACT-2023(ITA) in Bangladesh
Duties and functions, andjurisdiction of income-tax authorities under Section 08
Frequently asked question(FAQ):
1. What is income from other sources under Section 67 in Bangladesh?
Income from other sources under Section 67 includes earnings that do not fall under salary, business, capital gains, or property income categories under Bangladesh Income Tax Act 2023.
2. What are the special cases of income from other sources?
Special cases include dividend income, interest earnings, gifts, compensation receipts, royalties, and other irregular taxable earnings specified under Section 67.
3. Is dividend income taxable under Section 67 of Bangladesh Income Tax Act 2023?
Yes, dividend income can be taxable under Section 67 depending on the source, exemption limits, and applicable tax provisions in Bangladesh.
4. Why is Section 67 important for taxpayers in Bangladesh?
Section 67 helps taxpayers identify non-traditional income sources that are taxable and ensures proper income tax compliance under Bangladesh tax law.