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Understanding Exclusion from Total Income under Section 77 of the Bangladesh Income Tax Act, 2023. |
Exclusion from total income under Section 77 | Bangladesh Income Tax Act -2023
As per section-71(ITA),
Exclusion from Total Income
(1) Any income earned by a person that is listed in Part 1 of the Sixth Schedule shall be excluded when calculating that person's total income for the relevant income year. However, the income must still be considered when determining the person's source of funds for that year. This exclusion is allowed only if:
- The exempt income is properly disclosed in the appropriate section of the income tax return; and
- Details of the source and amount of the income are submitted along with the return.
(2) Any donation made by a person under Part 2 of the Sixth Schedule may be deducted from total income when calculating tax liability, provided that:
- The donation is disclosed in the income tax return or in supporting documents attached to the return;
- The total amount claimed as a donation does not exceed 10% of the total income calculated before deducting the donation; and
- Details of the source and amount of income are submitted with the return
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
Frequently Asked Question (FAQ):
1. What is Exclusion from Total Income under Section 77 of the Bangladesh Income Tax Act, 2023?
Section 77 allows specific categories of income listed in the Sixth Schedule to be excluded from a taxpayer's total taxable income, subject to prescribed conditions.
2. Which incomes qualify for exclusion from total income under Section 77?
Income sources specified in Part 1 of the Sixth Schedule qualify for exclusion, provided they are properly disclosed in the income tax return and comply with legal requirements.
3. Is excluded income required to be shown in the income tax return?
Yes. Excluded income must be reported in the appropriate section of the income tax return even though it is not included in the calculation of total taxable income.
4. Does excluded income affect the source of funds calculation?
Yes. While excluded income is not included in total income, it is considered when calculating the taxpayer's source of funds for the relevant income year.