Assignment on Factor affecting avoidance of Income Tax in Bangladesh Tax experience in practical life How pay tax Recent Tax payment system Problem Face in paying Tax Recommendation

1. Taxation
Tropic: Assignment on Factor affecting avoidance of Income
Tax in Bangladesh
Supervised By
Md Masud Rana
Assistant Professor
Departmentof Business Administration
Submitted To:
Departmentof Business Administration
Northern University Bangladesh
Submitted By:
Section- A
Submission Date: 18-04-2016
Sl No Name ID
01 S.M. Al-Shahriar BBA 120304790

2. Tax experience in practical life
Assesse Mrs Farhana Rob Sampa, who is above 40 years old. She have completed her
graduation. She have income from 2 sources, from where she earned above Tk 300000 in a year.
She have proper knowledge about taxation of Bangladesh. She never avoid income tax.
How she pay tax
She pay her income tax by flowing the steps:
Compute income for each Source of Income
Aggregate the income from various sources under the respective Heads of Income
Arrive at the Gross Total Income
Claim the Deductions available
Arrive at the Total Income
Compute the Tax payable on the Total Income
Reduce the Rebates, if any from the tax payable
Add Surcharge as applicable to the tax
Arrive at the Gross Tax Liability
From the Gross Tax payable, reduce the Tax Deducted at Source
Arrive at the Net Tax Payable or the Refund due
From the net tax payable, reduce the Advance Tax
Add the Interest to the balance amount to arrive at the Self-Assessment Tax Payable / Net
Refund Due
Pay the Self-Assessment Tax
File the Return physically or upload the return electronically.
Recent Tax payment system
Sources ofincome can be classifiedinto 7 categories, whichare:
Salaries.

3. Tax Rate (AssessmentYear2015-16)(As per Finance Act, 2015):
For individuals other than female taxpayers, senior taxpayers of 65 years and above, retarded
taxpayers and gazetted war-wounded freedom fighter, income tax is payable for the
On first upto Tk. 2,50,000/- Nil
On next upto Tk. 4, 00,000/- 10%
On next upto Tk. 5, 00,000/- 15%
On next upto Tk. 6, 00,000/- 20%
On next upto Tk. 30, 00,000/- 25%
On balance amount 30%
For female taxpayers, senior taxpayers of age 65 years and above, income tax is payable for the
On first upto Tk. 3, 00,000/- Nil
On next upto Tk. 4, 00,000/- 10%
On next upto Tk. 5, 00,000/- 15%
On next upto Tk. 6, 00,000/- 20%
On next upto Tk. 30, 00,000/- 25%
On balance amount 30%
Tax Rebate for investment: [Section44(2)/only allowable for Resident/Non
ResidentBangladeshi]
Rate of Rebate: Amount of allowable investment is - actual investment or 30% of total (taxable)
income or Tk. 1, 50, 00,000/- whichever is less. Tax rebate amounts to 15% of allowable
investment.
Who should submit Income Tax Return?
If total income of any individual other than female taxpayers, senior male taxpayers of 65 years
and above, retarded taxpayers and war wounded gazetted freedom fighter during the income year
exceeds Tk 2,50,000/-. If total income of any female taxpayer, senior male taxpayer of 65
years and above during the income year exceeds Tk 3,00,000/-.
Time to submit Income Tax Return: [Section75(2)of the Ordinance]
(a) For Company Taxpayers:
By fifteenth day of July next following the income year or, where the fifteenth day of July falls
before the expiry of six months from the end of the income year, before the expiry of such six
months.

4. (b) For Other Taxpayers:
Unless the date is extended, by the Thirtieth day of September next following the income year.
Problem Face in paying Tax
There are some Problems faced by Tax payer in Bangladeshare as follows
Return Errors
Lack of proper Tax Audit
Inefficient Tax Collection
Inefficient Taxation System
Manual taxation system
Corrupted Tax officer
Recommendation
Tax evasion is the illegal evasion of taxes by individuals, corporations, and trusts. Tax evasion
often entails taxpayers deliberately misrepresenting the true state of their affairs to the tax
authorities to reduce their tax liability and includes dishonest tax reporting, such as declaring less
income, profits or gains than the amounts actually earned, or overstating deductions.
To increase tax collection the authority should take some steps
1. Solve the problems faced by tax payer
2. Educate the people properly about Income tax
3. Stop corruptive practice of Tax government and administration
4. Who evade tax repeatedly should receive a jail sentence.
5. Increase transparency in tax collection system.
6. Tax collection system should be modernized.