Income Tax Practitioner Examination – 2025 (Draft Model Question & Answer)

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Income tax practitioner Examination is the most powerful exam with every student, the exam is help to other return submission to achieving the ITP certificate. Here are the some question paper with draft answers for preparation.

Part A: Income Tax Ordinance and Rules [40 Marks]

1. Definitions: (2×5=10)
a. Income: As per Section 2(34) of the ITO, 1984, includes salary, interest on securities, house property income, business/profession income, capital gains, and other sources.
b. Assessee: Any person by whom any tax or any other sum of money is payable under the ordinance.
c. Resident: An individual who stays in Bangladesh for ≥182 days in a year or ≥90 days in a year + 365 days in previous 4 years.
d. Total Income: Aggregated income from all heads after allowing permissible deductions and exemptions.
e. TIN: A unique identification number issued by NBR to a taxpayer.

2. Filing Income Tax Return – Process & Timeline (10)

Individuals must file returns by 30th November each year.
Companies must file within 6 months of the end of the income year.
Submission includes return form (IT-11GA), supporting documents, and audit report (for companies).
Universal Self-Assessment allowed unless selected for audit.

3. Allowable vs. Inadmissible Expenses: (10)
Allowable:

Salary, rent, utility, business expenses, depreciation, etc.
Inadmissible:
Personal expenses, capital expenditures, fines/penalties, donations to unapproved funds, etc.

4. Assessment Procedures (Universal Self-Assessment): (10)

Filed returns treated as self-assessed.
Selected cases are audited by NBR.
Amendments can be made under Section 93.
DCT may call for clarification.
Assessment must be completed within 4 years.

Part B: VAT Act and Rules [30 Marks]

5. Turnover Tax vs. VAT: (6)

Feature	VAT	Turnover Tax
Rate	Standard 15%	4% or as notified
Applicability	Above Tk. 3 crore turnover	Below Tk. 3 crore turnover
Input Credit	Allowed	Not Allowed

6. Tax Invoice: (6)

Must include seller’s name, BIN, address, date, description, quantity, unit price, and VAT amount.
Issued electronically under VAT Management System (VMS).
Recorded both by supplier and buyer.

7. Short Notes: (4×3=12)
a. Input Tax Credit: VAT paid on purchases can be deducted from VAT payable on sales.
b. VAT Deducted at Source (VDS): Government or large organizations deduct VAT from payments and deposit to NBR.
c. VAT Online Return: Monthly VAT returns are filed using Mushak-9.1 online.
d. VAT Rebate: Reclaimable VAT on purchases used for taxable supplies.

8. VAT Registration: (6)

Mandatory if turnover > Tk. 3 crore/year.
Apply online with business license, TIN, NID, etc.
Voluntary registration allowed for input credit.

Part C: Other Relevant Laws & Practical Aspects [30 Marks]

9. Appeal Against DCT’s Order: (6)

Appeal to Appeal Commissioner within 45 days of order.
Must file Form IT-30 with fees.
Further appeal lies with Taxes Appellate Tribunal and High Court Division (on law point).

10. Penalties for Non-Filing/False Return: (6)

Non-filing: Minimum Tk. 5,000 for individual; Tk. 10,000 for company.
Incorrect info: Penalty of up to 50% of tax evaded.
Imprisonment up to 5 years in severe cases.

11. Computation of Total Income & Tax Liability (Model): (12)
Example for Mr. Karim:

Salary Income: Tk. 6,00,000
Business Profit: Tk. 4,50,000
Bank Interest: Tk. 50,000
Total Income: Tk. 11,00,000
Tax Calculation:
First Tk. 3,50,000: Nil
Next Tk. 1,00,000: 5% → Tk. 5,000
Next Tk. 3,00,000: 10% → Tk. 30,000
Remaining Tk. 3,50,000: 15% → Tk. 52,500
Total Tax: Tk. 87,500 (rebates/advance tax adjustments as applicable)

12. Documents Required with Return: (6)
For Individuals:

IT Return Form (IT-11GA), TIN certificate, bank statement (if applicable), proof of investments, etc.
For Companies:
IT Return, audited accounts, depreciation schedule, supporting schedules, declaration of TDS, etc.

✅ Part A: 50 MCQs (1 Mark Each)

Instructions: Choose the correct answer. (Correct answer marked with bold)

1. Which section defines “Income” in the Income Tax Ordinance, 1984?
a) Section 2(11)
b) Section 2(34)
c) Section 4
d) Section 20

2. The tax-free income limit for male individuals for FY 2023-24 is:
a) Tk. 2,50,000
b) Tk. 3,00,000
c) Tk. 3,50,000
d) Tk. 4,50,000

3. Universal Self-Assessment falls under which section?
a) 80
b) 82BB
c) 83
d) 84

4. Turnover tax applies if annual turnover is below:
a) Tk. 2 crore
b) Tk. 3 crore
c) Tk. 5 crore
d) Tk. 10 crore

5. Which of the following is not a head of income under Section 20?
a) Salary
b) Dividend distribution tax
c) House property
d) Capital gains

6. TIN stands for:
a) Taxable Income Notification
b) Taxpayer’s Identification Number
c) Tax Indemnity Notice
d) Taxation ID Number

7. VAT Act 2012 became fully effective from:
a) 2015
b) 1 July 2019
c) 1 July 2012
d) 1 July 2020

8. Which Mushak form is used for monthly VAT return?
a) Mushak-6.1
b) Mushak-6.2
c) Mushak-9.1
d) Mushak-4.3

9. Advance Income Tax (AIT) on import is treated as:
a) Expense
b) Fine
c) Adjustable Tax
d) VAT

10. Input tax credit is allowed under VAT for:
a) Raw material purchase
b) Staff salary
c) Bank interest
d) Entertainment expenses

11. The person responsible for deducting tax at source is called:
a) Taxpayer
b) Withholding agent
c) Commissioner
d) Assessee

12. Surcharge applies when net wealth exceeds:
a) Tk. 2 crore
b) Tk. 3 crore
c) Tk. 1 crore
d) Tk. 5 crore

13. Minimum tax applies under which section?
a) 74
b) 82C
c) 83
d) 93

14. VAT is applicable on:
a) Only imported goods
b) Value addition at every stage
c) Only retail sales
d) Export of services

15. Which is not admissible under income tax law?
a) Depreciation
b) Business utility bill
c) Personal household expense
d) Factory rent

16. The depreciation schedule is prescribed in:
a) Section 22
b) Section 27
c) Third Schedule
d) Mushak-9.1

17. Which organization manages the income tax law in Bangladesh?
a) Bangladesh Bank
b) National Board of Revenue (NBR)
c) Finance Ministry
d) Bangladesh Securities Exchange Commission

18. For audit exemption, a company must have turnover less than:
a) Tk. 1 crore
b) Tk. 3 crore
c) Tk. 5 crore
d) Tk. 7 crore

19. Mushak-6.3 is used for:
a) Input tax report
b) Export declaration
c) VAT credit against purchase
d) Monthly return

20. Maximum penalty for not maintaining proper accounts under VAT is:
a) Tk. 5,000
b) Tk. 10,000
c) Tk. 50,000
d) Tk. 1,00,000

21. Section 82BB relates to:
a) Tax holiday
b) Wealth surcharge
c) Universal Self-Assessment
d) Refund of tax

22. A person must file return if total income exceeds:
a) Tk. 2,00,000
b) Tk. 3,00,000
c) Tk. 3,50,000
d) Tk. 5,00,000

23. Tax deducted at source from salary is under which section?
a) Section 50
b) Section 52
c) Section 74
d) Section 82

24. Section 52 covers TDS on:
a) Salaries
b) Import
c) Contractor payments
d) Interest

25. Refund of excess VAT is addressed in:
a) Section 46
b) Section 67
c) Section 78
d) Section 80

26. Tax Day in Bangladesh is observed on:
a) June 30
b) November 30
c) April 15
d) July 1

27. Mushak-4.3 is related to:
a) VAT payment
b) Deduction of VAT at source
c) Sale declaration
d) Registration

28. Input VAT adjustment must be done within:
a) 6 months
b) 4 months
c) 3 months
d) 1 year

29. The final appeal lies with:
a) DCT
b) Appellate Tribunal
c) High Court Division
d) Appellate Commissioner

30. Individual return must be submitted by:
a) 30 November
b) 31 December
c) 30 June
d) 15 July

31. Section 19 refers to:
a) Exemptions
b) Salaries
c) Return filing
d) Appeals

32. Audit selection is conducted under:
a) Section 93
b) Section 82
c) Section 84
d) Section 98

33. Mushak-6.2 is for:
a) Sale Invoice
b) Purchase declaration
c) Tax Refund
d) VAT Return

34. Deducted VAT must be deposited within:
a) 15 days of the following month
b) 7 days
c) Same day
d) 10 days

35. VAT on imported goods is assessed based on:
a) Assessable Value
b) Retail Price
c) Wholesale Price
d) Invoice Value only

36. Turnover tax is filed using:
a) Mushak-9.1
b) Mushak-9.2
c) Mushak-9.3
d) Mushak-4.1

37. Advance Tax payment is allowed under section:
a) 53
b) 74
c) 64
d) 82

38. Late filing penalty for companies is:
a) Tk. 2,000
b) Tk. 10,000
c) Tk. 15,000
d) Tk. 5,000

39. Total number of income heads under ITO 1984:
a) 5
b) 7
c) 6
d) 4

40. Minimum turnover to become VAT registered:
a) Tk. 1 crore
b) Tk. 3 crore
c) Tk. 5 crore
d) Tk. 2 crore

41. For VAT purposes, tax invoice is:
a) Mushak-6.3
b) Mushak-9.1
c) Mushak-4.3
d) Mushak-6.2

42. Section 55 of ITO 1984 deals with:
a) Loss carryforward
b) Tax refund
c) Tax on dividend
d) Minimum tax

43. Online VAT return is submitted through:
a) VDS Portal
b) NBR Core Banking
c) VAT Online System (VOS)
d) BB e-portal

44. Supplementary Duty is imposed on:
a) All goods
b) Specified luxury items
c) Imports only
d) Services only

45. EFDs are:
a) Electronic Fiscal Devices
b) Electronic Filing Documents
c) Economic Financial Disclosure
d) Estimation for Duty

46. SD rates are notified under:
a) First Schedule
b) Third Schedule
c) Section 46
d) Mushak 6.1

47. Late filing penalty for individuals:
a) Tk. 10,000
b) Tk. 5,000
c) Tk. 2,000
d) Tk. 1,000

48. Section 45 covers:
a) Loss
b) TDS
c) Capital Gains
d) Surcharge

49. Mushak-6.1 is used for:
a) VAT invoice
b) Return
c) Credit Note
d) Monthly Sales Record

50. SD is calculated on:
a) Assessable Value + CD
b) VAT
c) Import Duty
d) Final Price

🧮 Part B: Practical & Computational Questions (5 × 10 = 50 Marks)

Q1. VAT Calculation from Inclusive Price

A retailer sold products worth Tk. 11,500 (inclusive of 15% VAT).

Calculate the base value and output VAT.
Mention the VAT Section and Mushak form used.

Answer:

Base value = 11,500 / 1.15 = Tk. 10,000
Output VAT = 11,500 – 10,000 = Tk. 1,500
Section: VAT and SD Act 2012, Section 49
Mushak Form: Mushak-6.3 (Credit Purchase), Mushak-9.1 (Return)

Q2. Input-Output VAT Adjustment

A company purchased inputs worth Tk. 5,00,000 plus 15% VAT and sold finished goods worth Tk. 8,00,000 plus 15% VAT.

Calculate:
a) Input VAT
b) Output VAT
c) Net VAT Payable

Answer:

Input VAT = 15% of 5,00,000 = Tk. 75,000
Output VAT = 15% of 8,00,000 = Tk. 1,20,000
Net VAT Payable = 1,20,000 – 75,000 = Tk. 45,000
Mushak Form: Mushak-6.3 & 9.1
Relevant Sections: VAT & SD Act 2012, Section 46, 49

Q3. VAT and Duties on Import

An importer brings in goods with:

CIF Value = Tk. 2,00,000
Customs Duty (CD) = 25%
Supplementary Duty (SD) = 20%
VAT = 15%
AIT = 5%

Calculate:
a) Total Duty Paid
b) VAT Calculation Base
c) VAT Amount

Answer:

CD = 25% of 2,00,000 = Tk. 50,000
SD = 20% of (CIF + CD) = 20% of 2,50,000 = Tk. 50,000
VAT Base = 2,00,000 + 50,000 + 50,000 = Tk. 3,00,000
VAT = 15% of 3,00,000 = Tk. 45,000
AIT = 5% of 2,00,000 = Tk. 10,000
Total Tax/Duty Paid = 50,000 + 50,000 + 45,000 + 10,000 = Tk. 1,55,000

Q4. VAT on Services with Input Credit

A consultancy firm charges Tk. 3,45,000 (inclusive of 15% VAT) to a client. It has eligible input VAT of Tk. 25,000.

Calculate base service value, output VAT, and net VAT payable.

Answer:

Base value = 3,45,000 / 1.15 = Tk. 3,00,000
Output VAT = 45,000
Net VAT Payable = 45,000 – 25,000 = Tk. 20,000
Mushak Forms: 6.3 (credit note), 9.1 (monthly return)
VAT Section: 46, 49, 67

Q5. Individual Income Tax Return Exercise

Mr. Rafiq, a resident individual, reports the following for FY 2023–24:

Salary: Tk. 6,00,000
House rent allowance: Tk. 1,20,000
Interest from bank: Tk. 60,000 (10% TDS deducted)
Investment in DPS: Tk. 1,50,000
He pays house rent: Tk. 10,000/month
No other income

Prepare his total income, investment rebate, and tax liability.

Answer:

Gross Income

Salary: Tk. 6,00,000
House Rent Allowance (HRA): Tk. 1,20,000
- Exempt HRA = lower of:
  - 50% of Basic (3,00,000),
  - Actual = 1,20,000,
  - Rent paid – 10% of salary = (1,20,000 – 60,000) = Tk. 60,000
- Exempt = Tk. 60,000
- Taxable HRA = 1,20,000 – 60,000 = 60,000
Interest = Tk. 60,000

Total Income = 6,00,000 + 60,000 + 60,000 = Tk. 7,20,000

Investment Rebate

Eligible investment = Tk. 1,50,000
Max allowable: 20% of TI = 1,44,000 → actual is less
Rebate = 15% of 1,50,000 = Tk. 22,500

Tax Calculation

First 3,50,000 → Nil
Next 1,00,000 → 5% = 5,000
Next 2,00,000 → 10% = 20,000
Next 70,000 → 15% = 10,500
Total = 5,000 + 20,000 + 10,500 = 35,500
Less Rebate = 22,500
Net Tax Payable = 13,000
Less TDS (bank) = 6,000
Final Payable = Tk. 7,000

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Income Tax Practitioner Examination – 2025 (Draft Model Question & Answer)

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