 |
|
General Tax Rebate in Respect of Certain Investments and Expenditure under Section 78 of the Bangladesh Income Tax Act, 2023 |
General tax rebate in respect of certain investments and expenditure under Section 78 | Bangladesh Income Tax Act -2023
As per section-78(ITA-2023),
General Tax Rebate for Certain Investments and Expenditures
Subject to the provisions of this Act and the limits, conditions, and qualifications specified in Part 3 of the Sixth Schedule, an individual who is either a resident of Bangladesh or a Bangladeshi non-resident is entitled to claim a tax rebate against the tax payable on total income for an assessment year.
The amount of tax rebate shall be the lowest of the following:
1. 3% of “A” [0.03 × A];
2. 15% of “B” [0.15 × B]; or
3. Tk. 10,00,000 (Ten Lakh Taka).
Where:
- “A” means the total income calculated after excluding:
- tax-exempt income;
- income subject to a reduced tax rate; and
- income subject to minimum tax.
- “B” means the total amount of eligible investments and expenditures made by the assesses during the income year in accordance with Part 3 of the Sixth Schedule.
Accordingly, the allowable tax rebate will be limited to the lowest amount determined under the above three calculations.
You may learn more-
Duties and functions, and jurisdiction of income-tax authorities under Section 08.
Frequently Asked Question (FAQ):
1. What is the General Tax Rebate under Section 78 of the Bangladesh Income Tax Act 2023?
Section 78 allows eligible resident individuals and Bangladeshi non-residents to claim a tax rebate on specified investments and expenditures, subject to the limits, conditions, and qualifications prescribed in the Sixth Schedule of the Act.
2. Who can claim a tax rebate under Section 78?
Any resident individual taxpayer or Bangladeshi non-resident meeting the eligibility criteria and making qualifying investments or expenditures can claim the tax rebate under Section 78.
3. What types of investments qualify for the tax rebate under Section 78?
Qualifying investments and expenditures are listed in Part 3 of the Sixth Schedule of the Bangladesh Income Tax Act, 2023, and may include approved savings schemes, insurance premiums, and other eligible investments.
4. How is the tax rebate calculated under Section 78?
The tax rebate is calculated based on the formula and limits specified in Section 78 and Part 3 of the Sixth Schedule, subject to the taxpayer's eligible investment amount and applicable tax liability.