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Limitation on Deduction Admissibility under Section 60 requires tax deduction or collection at source before related expenses can be claimed as allowable deductions. |
Limitation on deduction admissibility under Section 60 | Bangladesh Income Tax Act -2023
As per section-60(ITA-2023),
Limitation on Deduction Admissibility:
Where tax is required to be deducted or collected at source on any expenditure, that expenditure shall not be allowed as a deduction under this Chapter unless the applicable tax has been duly deducted or collected and paid in accordance with the provisions of this Act.
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 Limitation on deduction admissibility under Section 60 of the Bangladesh Income Tax Act 2023?
Section 60 provides that any expenditure subject to tax deduction or collection at source will not be allowed as a tax deduction unless the required tax has been deducted or collected and paid in accordance with the Income Tax Act 2023.
2. When can an expense be disallowed under Section 60?
An expense may be disallowed when tax was required to be deducted or collected at source but the taxpayer failed to deduct, collect, or deposit the tax as prescribed by law.
3. Why is tax deduction at source important for claiming business expenses?
Tax deduction at source ensures tax compliance. If the required tax is not deducted and deposited, the related expenditure may not qualify as an allowable deduction for income tax purposes.
4. How can taxpayers ensure compliance with Section 60?
Taxpayers should identify payments subject to withholding tax, deduct or collect the required tax, deposit it within the prescribed time, and maintain proper documentation to support their deductions.