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Tax Exemptions Under Section 76 of the Bangladesh Income Tax Act 2023 – A guide to exempt income, eligibility criteria, and tax-saving opportunities. |
Tax exemptions under Section 76 | Bangladesh Income Tax Act -2023
As per section-76(ITA-2023),
Tax Exemptions
(1) The Board may, by notification published in the Official Gazette, grant an exemption from tax to any person or class of persons.
(2) Where a tax exemption is provided to any person under any law other than this Act, or under any instrument having the force of law, such exemption shall not take effect unless the Board grants the exemption by notification under subsection (1), notwithstanding anything contained in such law or instrument.
(3) The Board may withdraw or cancel any tax exemption granted under this section by notification in the Official Gazette.
(4) No tax exemption shall be granted with retrospective effect under this Act.
(5) Notwithstanding anything contained in Part 6 or any other provision of this Act, a person shall not be entitled to any tax exemption for a tax year unless the person complies with all of the following conditions:
(a) files the return within the prescribed tax day;
(b) files returns in accordance with sections 166 and 171;
(c) files all required returns relating to deduction or collection of tax at source, deposits the tax so deducted or collected, and complies with the provisions of Part 7; and
(d) receives all receipts and income from tax-exempt sources through bank transfer.
Provided that clause (d) shall not apply to—
(i) receipts classified as income from agriculture where the total receipts in an income year do not exceed Taka 1 corer; or
(ii) any asset received as a gift under clause (34) of Part 1 of the Sixth Schedule.
(6) Any expenditure disallowed under section 55 in computing the income of a source or person that enjoys tax exemption or is subject to a reduced rate of tax shall be treated as taxable income of that source or person, as the case may be, and shall be taxed at the applicable regular rate.
(7) Notwithstanding anything contained in this Act, a person entitled to a tax exemption may voluntarily surrender the exemption, either wholly or partially, and elect to pay tax at the regular rate.
(8) Where a person has been granted a tax exemption for a specified period under any Act, that person shall not be entitled to any additional tax exemption, whether for the same source of income or for any extended period, except as expressly provided by this Act. Such exemption shall also cease upon reconstitution of the person through amalgamation, demerger, or acquisition.
Provided that this subsection shall not apply where the period of an existing tax exemption is extended under this Act or by notification issued there under.
You may learn more-
Duties and functions, andjurisdiction of income-tax authorities under Section 08
Frequently asked question(FAQ):
1. What are tax exemptions under Section 76 of the Bangladesh Income Tax Act 2023?
Section 76 of the Bangladesh Income Tax Act 2023 provides tax exemptions for specific categories of income that are excluded from taxable income, subject to prescribed conditions and limits.
2. Who is eligible for tax exemptions under Section 76?
Individuals, organizations, and entities meeting the conditions outlined in Section 76 may qualify for tax exemptions. Eligibility depends on the type of income and compliance with applicable tax regulations.
3. Which types of income are exempt from tax under Section 76?
Tax-exempt income under Section 76 may include certain government-approved benefits, allowances, grants, charitable income, and other categories specifically listed in the Bangladesh Income Tax Act 2023.
4. How can taxpayers claim tax exemptions under Section 76?
Taxpayers can claim eligible exemptions by accurately reporting exempt income in their income tax return and maintaining supporting documents as required by the National Board of Revenue (NBR).