Summary of Tax Change (Budget 13-14)

7/28/2019 Summary of Tax Change (Budget 13-14)

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Summary of Changes

Budget 2013-14

Content

Particular Page No.A Changes in Tax Slab 2

B Changes in Allowable Expenditure 2

C Changes in Investment Tax Rebate 2

D Changes in Income Tax Ordinance 3

E Salient features 7


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2 A. Changes in Tax Slab:

For Individual (MAN)

Present Slab on Taxable Income Proposed Slab on Taxable Income Tax Rate

1st 2,00,000/= Taka 1st 2,20,000/= Taka 0%

Next 3,00,000/= Taka Next 3,00,000/= Taka 10%

Next 4,00,000/= Taka Next 4,00,000/= Taka 15%Next 3,00,000/= Taka Next 3,00,000/= Taka 20%

Remaining Balance Remaining Balance 25%

Change in First Slab for

Female, 65+ and Handicapped

individuals

Present Proposed

For Female 2,25,000/= Taka 2,50,000/= Taka

For Individual above 65 years 2,25,000/= Taka 2,50,000/= Taka

For Handicapped Individual 2,75,000/= Taka 3,00,000/= Taka

B. Changes in Allowable Expenditure:

Allowabe Expenditure Present Proposed

House Rent Expense 1,80,000/= Taka Annual 2,40,000/= Taka Annual

Conveyance Allowance 24,000/= Taka Annual 30,000/= Taka Annual

C. Changes in Investment Tax Rebate:

Sl.

No.

Particular Present Proposed

A Maximum Investment Allowable 1 Crore Taka 1.5 Crore Taka

B % of Total income allowable as investment 20% 30%

C % Tax Rebate allowable 10% 15%

*** Note That: Rebate is one which ever is lower among B and A,

Tax Rebate = (Lower one among B and A)*C


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3 D. Changes in Income Tax Ordinance:

Section REM COR INS Topic Summary of Change

16CCC Charge of minimum tax Related to company andfirms: Firms have beeninserted in the clause.

16E Charge of tax on sale ofshare in a premium overface value

Companies raising shares

19BBBBB Special tax treatment inrespect of investment in

residential building andapartment

Whitening black money

19BBBBBB Special tax treatment inrespect of investment inland property

Whitening black money

29 (viiia) Deduction from incomefrom business or

profession

amortization of license fee

44(2)(b) Tax rebate onAllowable investment

Changed to 15% from 10%

44(3) Allowable investmentceiling

Changed One crore andfifty lakh from ten million.

46B Exemption from tax ofnewly establishedindustrial undertaking

set up between theperiod of July, 2011 and

June, 2015

Period has been extendedfrom June, 2013 to June,2015

46C Exemption from tax ofnewly established

physical infrastructure

facility set up betweenthe period of July, 2011and June, 2015, etc. in

certain cases


49(1)(zu) On account of issue ofshare at a premium

TDS of 3% will be omittedon issue of share at a

premium

49(1)(zu) Collection of tax frommanufacturer of soft

drink

Banderol introduced


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4 50(2A) Deduction at source

from salaries

The payment under sub-

section (1) shall be made bysuch person with or without

deduction of tax inaccordance with acertificate, issued by the

Deputy Commissioner ofTaxes after being satisfiedon an application made bythe payee in this behalf

52A(3) Deduction at sourcefrom fees for

professional and

technical services

10% will be charged whereTIN has been furnishedotherwise 15% as TDS

52AA(prov) Deduction from thepayment of certainservices

Provision has been added

52B Collection of tax fromCigarette manufacturers

Changed to 10% instead of6% on the value of

banderols

52S Collection of tax frommanufacturer of softdrink

SPCL while deliveringbanderol will charge 3% onthe value of such soft drink

53BBB Collection of tax fromMember of Stock

Exchange

Bonds has been omittedfrom Member's portfolio

53E(2) Deduction or collection

at source fromcommission, discount orfees

Oil company will deduct

10% of selling price todistributor and retail pricefixed while selling to

distributors

53FF Collection of tax frompersons engaged in realestate or land

development business

Transferor will pay reducedamount on per square meteras TDS (for residential

purpose Tk 1,600 per sq. mat Gulshan, Banani.,

Tk 1,500 per sq. m atDhanmondi, lalmatia., Tk

600 in other area instead ofTk 2,000, Tk 1,800 and Tk800 respectively) (Forcommercial purpose rateschanged)

53L Collection of tax fromsale of share at a

premium over face

value.

3% TDS (liability ofcompany) has beenremoved


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5 75(2)(d)(i)(prov) Return of income:

Accompanied byparticular of lifestyle

Provision added: Individual

not being a shareholderdirector of a company,

having income from salaryor income not exceeding 3lakh from business or

profession may opt not tosubmit such statement.

82(C )(2)(r ) Tax on income ofcertain persons:-the

premium received from

raising of share at apremium over face

value under section 53L

As 53L removed it is alsoremoved

116(1) Additional powers ofenquiry and production

of documents

Now DGI, C, DG, CIC, IJCcan ask for documents

including electronic copyalong with authority to ask

them to appear beforeauthority for providinginformation

116A Power of giving order

for not removingproperty

Now DGI, C, DG, CIC, IJC

can order not to removeproperty where necessary

124(2)(b)(prov) Penalty for failure to filereturn

Instead of Deputy DirectorGeneral, Director Generaland DCT can impose a

penalty160(1)(prov) Reference to the High

Court DivisionFor consideration of HighCourt Division, paymenthas been decreased from25% to 15% (tax demand

below 1 million) and 50%

to 25% on

the difn betn tax determined

by tax appellate tribunaland tax payable undersection 74

164(ee) Punishment of non-

compliance of certainobligations

fails to comply with the

requirement under sub-section (1) of section 116

164(eee) Punishment of non-compliance of certainobligations

fails to comply with theorder made under sub-section (1) of section 116A


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6 184A Requirement of

certificate oracknowledgement

receipt of return ofincome in certain cases

Along with certificate,

acknowledgement slipCOMPUTER

GENERATED certificatehas been introduced

3rd Schedule Computation ofDepreciation Allowanceand Amortization

Amortization has beenadded

3rd Schedule (Para

10A)

Computation ofDepreciation Allowance

and Amortization

amortization of license fee

6th Schedule, Part A,

(Para 11A)

Exclusion from Total

Income: Income fromDividend

Amount has been increased

from Tk 5000 to Tk 10000


(Para 35)

Exclusion from TotalIncome: Income fromexport of handicraft



(Para 39)

Exclusion from TotalIncome: Income from

SME

Amount has been increasedfrom Tk 24 lakh to Tk 30

lakh


(Para 42)

Exclusion from TotalIncome: Income from

poultry


6th Schedule, Part B,

(Para 10)(1)(b)

Exemptions andallowances for assessees

Sum invested in thepurchase of unit certificates

and mutual fund certificates

issued by any financialinstitutions or theInvestment corporation ofBangladesh and itssubsidiaries.


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T h e E n d

Documents

Summary of Tax Change (Budget 13-14)