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Summary of Changes Budget 2013-14

Content
Particular A Changes in Tax Slab B Changes in Allowable Expenditure C Changes in Investment Tax Rebate D Changes in Income Tax Ordinance E Salient features Page No. 2 2 2 3 7

2 A. Changes in Tax Slab: For Individual (MAN) Present Slab on Taxable Income 1st 2,00,000/= Taka Next 3,00,000/= Taka Next 4,00,000/= Taka Next 3,00,000/= Taka Remaining Balance

Proposed Slab on Taxable Income 1st 2,20,000/= Taka Next 3,00,000/= Taka Next 4,00,000/= Taka Next 3,00,000/= Taka Remaining Balance

Tax Rate 0% 10% 15% 20% 25%

Change in First Slab for Female, 65+ and Handicapped individuals For Female For Individual above 65 years For Handicapped Individual

Present

Proposed

2,25,000/= Taka 2,25,000/= Taka 2,75,000/= Taka

2,50,000/= Taka 2,50,000/= Taka 3,00,000/= Taka

B. Changes in Allowable Expenditure: Allowabe Expenditure House Rent Expense Conveyance Allowance Present 1,80,000/= Taka Annual 24,000/= Taka Annual Proposed 2,40,000/= Taka Annual 30,000/= Taka Annual

C. Changes in Investment Tax Rebate: Sl. No. A B C Particular Maximum Investment Allowable % of Total income allowable as investment % Tax Rebate allowable Present Proposed

1 Crore Taka 1.5 Crore Taka 20% 30% 10% 15%

*** Note That: Rebate is one which ever is lower among B and A, Tax Rebate = (Lower one among B and A)*C

3 D. Changes in Income Tax Ordinance:

Section 16CCC

REM COR INS Topic Charge of minimum tax

Summary of Change Related to company and firms: Firms have been inserted in the clause. Companies raising shares

16E

Charge of tax on sale of share in a premium over face value Special tax treatment in respect of investment in residential building and apartment Special tax treatment in respect of investment in land property Deduction from income from business or profession Tax rebate on Allowable investment Allowable investment ceiling Exemption from tax of newly established industrial undertaking set up between the period of July, 2011 and June, 2015 Exemption from tax of newly established physical infrastructure facility set up between the period of July, 2011 and June, 2015, etc. in certain cases On account of issue of share at a premium Collection of tax from manufacturer of soft drink

19BBBBB

Whitening black money

19BBBBBB

Whitening black money

29 (viiia)

amortization of license fee

44(2)(b) 44(3) 46B

Changed to 15% from 10% Changed One crore and fifty lakh from ten million. Period has been extended from June, 2013 to June, 2015

46C

Period has been extended from June, 2013 to June, 2015

49(1)(zu)

TDS of 3% will be omitted on issue of share at a premium Banderol introduced

49(1)(zu)

4 50(2A) Deduction at source from salaries The payment under subsection (1) shall be made by such person with or without deduction of tax in accordance with a certificate, issued by the Deputy Commissioner of Taxes after being satisfied on an application made by the payee in this behalf 10% will be charged where TIN has been furnished otherwise 15% as TDS Provision has been added

52A(3)

52AA(prov)

Deduction at source from fees for professional and technical services Deduction from the payment of certain services Collection of tax from Cigarette manufacturers

52B

52S

Collection of tax from manufacturer of soft drink Collection of tax from Member of Stock Exchange

Changed to 10% instead of 6% on the value of banderols SPCL while delivering banderol will charge 3% on the value of such soft drink Bonds has been omitted from Member's portfolio Oil company will deduct 10% of selling price to distributor and retail price fixed while selling to distributors Transferor will pay reduced amount on per square meter as TDS (for residential purpose Tk 1,600 per sq. m at Gulshan, Banani., Tk 1,500 per sq. m at Dhanmondi, lalmatia., Tk 600 in other area instead of Tk 2,000, Tk 1,800 and Tk 800 respectively) (For commercial purpose rates changed)

53BBB

53E(2)

Deduction or collection at source from commission, discount or fees Collection of tax from persons engaged in real estate or land development business

53FF

53L

Collection of tax from sale of share at a premium over face value.

3% TDS (liability of company) has been removed

5 75(2)(d)(i)(prov) Return of income: Accompanied by particular of lifestyle Provision added: Individual not being a shareholder director of a company, having income from salary or income not exceeding 3 lakh from business or profession may opt not to submit such statement. As 53L removed it is also removed

82(C )(2)(r )

Tax on income of certain persons:-the premium received from raising of share at a premium over face value under section 53L Additional powers of enquiry and production of documents

116(1)

116A

Power of giving order for not removing property

Now DGI, C, DG, CIC, IJC can ask for documents including electronic copy along with authority to ask them to appear before authority for providing information Now DGI, C, DG, CIC, IJC can order not to remove property where necessary

124(2)(b)(prov)

160(1)(prov)

164(ee)

Penalty for failure to file Instead of Deputy Director return General, Director General and DCT can impose a penalty Reference to the High For consideration of High Court Division Court Division, payment has been decreased from 25% to 15% (tax demand below 1 million) and 50% to 25% on the difn betn tax determined by tax appellate tribunal and tax payable under section 74 Punishment of nonfails to comply with the compliance of certain requirement under subobligations section (1) of section 116 Punishment of noncompliance of certain obligations fails to comply with the order made under subsection (1) of section 116A

164(eee)

6 184A Requirement of certificate or acknowledgement receipt of return of income in certain cases Computation of Depreciation Allowance and Amortization Computation of Depreciation Allowance and Amortization Exclusion from Total Income: Income from Dividend Exclusion from Total Income: Income from export of handicraft Exclusion from Total Income: Income from SME Exclusion from Total Income: Income from poultry Exemptions and allowances for assessees Along with certificate, acknowledgement slip COMPUTER GENERATED certificate has been introduced Amortization has been added amortization of license fee

3rd Schedule

3rd Schedule (Para 10A) 6th Schedule, Part A, (Para 11A) 6th Schedule, Part A, (Para 35) 6th Schedule, Part A, (Para 39) 6th Schedule, Part A, (Para 42) 6th Schedule, Part B, (Para 10)(1)(b)

Amount has been increased from Tk 5000 to Tk 10000 Period has been extended from June, 2013 to June, 2015 Amount has been increased from Tk 24 lakh to Tk 30 lakh Period has been extended from June, 2013 to June, 2015 Sum invested in the purchase of unit certificates and mutual fund certificates issued by any financial institutions or the Investment corporation of Bangladesh and its subsidiaries.

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Th e En d