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Here’s a short summary note based on the contents of the ITP – Liton Publication 2024 PDF to help you prepare effectively for the upcoming Income Tax Practitioner (ITP) exam:
📘 Part 1: Income Tax Basics
- Tax Year (AY vs. Income Year): Assessment Year is the year following the income year.
- Resident Status: Individual is considered resident if present ≥ 182 days in a year or 90 days + 365 days in 4 previous years.
- Total Income Components: Salary, House Property, Business/Profession, Capital Gains, Other Sources.
- Income Exemptions: Agriculture income, dividend from listed co. (conditions apply), gratuity (limited), etc.
- Minimum Tax: BDT 5,000 to 5,000,000 depending on area and entity type.
- TIN Requirement: Mandatory for trade license, car ownership, land registration, etc.
💼 Part 3: Income from Business/Profession
- Allowable Expenses: Salaries, rent, utility bills, depreciation, R&D, bad debts (if proven), etc.
- Disallowable Expenses: Personal expenses, excessive salary to relatives, cash expenses > BDT 250,000 without valid reason.
- Depreciation Rules: Applicable on fixed assets; follow specified rates.
- Loss Carry Forward: Business loss can be carried forward for 6 years (conditions apply).
- Turnover Tax vs. VAT: For small businesses under threshold, turnover tax applicable (3%-4%).
🧾 Part 4: Return Filing & Assessment
- Return Filing Deadline: Usually 30 November of each year (can be extended).
- Documents Required: Income statement, bank statements, TIN, investment proofs.
- Rebate on Investment: 15% rebate on eligible investments (e.g., DPS, Life Insurance, Govt. Bonds).
- Assessment Types:
- Self-assessment (82BB): For simple taxpayers.
- Universal Self-assessment (82BB(1A)): For businesspersons under audit.
- Spot Assessment: On-the-spot assessment for temporary business.
- Penalty for Non-Compliance: Minimum BDT 5,000 or higher depending on nature.
🏢 Part 5: Company Taxation
- Corporate Tax Rates (AY 2023-24):
- Publicly listed: 20%-22.5%
- Non-listed: 27.5%
- Cigarette/Bank/Insurance: Higher slabs
- Deducted at Source (TDS): Salary, rent, contractor payments, etc. have specific TDS rates.
- Advance Tax: Must be paid quarterly if taxable income > BDT 6 lakh.
🌐 Part 6: VAT & Customs Overview
- VAT Registration Threshold: BDT 3 crore annually.
- VAT Rates: Standard 15%, reduced rates (5%, 7.5%) for specific sectors.
- Turnover Tax: 4% for entities under BDT 3 crore turnover.
- Customs Valuation: Based on transaction value; customs duty + VAT + SD applicable.
ITP Cheat Sheet – Printable Format (One Page)
📌 General Info
- Assessment Year (AY) = Income earned in previous year.
- Resident: ≥182 days OR ≥90 days this year + ≥365 in 4 years.
- TIN Needed: For land purchase, bank account, trade license, etc.
📊 Income Heads
- Salary
- House Property
- Business/Profession
- Capital Gains
- Other Sources
💰 Allowable Business Expenses
- Salaries, rent, depreciation
- Utilities, research & development
- Bad debts (must be proven)
🚫 Disallowed Expenses
- Personal expenses
- Unjustified family salaries
- Cash expense > BDT 250,000 without proper reason
🧮 Tax Rates (Individual)
| Income Slab (BDT) | Rate |
|---|---|
| 0 – 3,50,000 | 0% |
| 3,50,001 – 7,50,000 | 10% |
| 7,50,001 – 12,00,000 | 15% |
| 12,00,001 – 30,00,000 | 20% |
| 30,00,001 – 75,00,000 | 25% |
| 75,00,001 – above | 30% |
🏢 Corporate Tax Rates
| Entity Type | Rate |
|---|---|
| Listed Co. (with compliance) | 20% |
| Non-listed Co. | 27.5% |
| Bank/Insurance | 40%-45% |
📆 Return Filing
- Deadline: Nov 30 each year
- Fine for Non-filing: Min BDT 5,000
- Rebate: 15% of eligible investments (max limit applies)
📉 Loss Carry Forward
- Up to 6 years (except capital loss – 1 year)
📥 TDS & Advance Tax
- Salary, rent, contractor payments require TDS
- Advance tax for income > BDT 6 lakh
💼 VAT & Turnover
- VAT Threshold: 3 crore/year
- Standard VAT: 15%
- Turnover tax: 4% for small traders
I’ll now Share the MCQ PDF.
A PDF file with 50+ MCQs across all major ITP topics, with answers.
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