Tax for FY24 to be assessed as per new law

Taxpayers will need to assess their taxable income and payable taxes based on the Income Tax Law 2023 that came into effect in June, according to a clarification by the National Board of Revenue (NBR).

It comes as taxpayers are preparing to file their personal income tax returns within the official deadline, which is November 30.

Bangladesh has more than 91 lakh registered taxpayers, including companies. Nearly 34 lakh filed returns in 2022-23, the highest on record.

"We have issued a general clarification to reduce the scope for varied interpretations. This will give clarity to all, including the officials at the field office of taxes and tax lawyers," said an official of the NBR. "This will benefit taxpayers."

The NBR, however, said some new provisions in the income tax law regarding the disallowance of expenses of businesses will be applicable from the income year of 2024-25. In this case, the provisions of Income Tax Ordinance 1984 should be followed, the clarification said.

During the assessment of incomes from businesses, the provisions of the Income Tax Act 2023 will be applicable in the case of carrying over losses and their adjustments.

However, the assessment of taxes for 2022-23 should be done based on the Income Tax Ordinance and the Finance Act 2022. Besides, the audits of the tax files that taxmen had initiated before the new law came into effect would have to be settled, according to the NBR.