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    Income Tax at a Glance

    Among direct taxes, income tax is the main sources of revenue. It is a progressive tax system. Income tax is

    imposed on the basis of ability to pay. "The more a taxpayer earns the more he should pay''- is the basic

    principle of charging income tax. It aims at ensuring equity and social ustice.

    IncomeTax Authorities:

    !ational oard of #evenue, $hief

    $ommissioner of taxes, %irector

    &eneral of Inspection Tax(,

    $ommissioner of Taxes Appeals(,$ommissioner of Taxes )T*(%irector &eneral Training(,

    %irector &eneral $entral Intelligence $ell $I$(,

    $ommissioner of Taxes,Additional $ommissioner of Taxes Appeal+Inspecting(,

    oint $ommissioner of TaxesAppeal+Inspecting (,%eputy $ommissioner of Taxes,

    Tax recovery officer,Assistant $ommissioner of Taxes,

    xtra Assistant $ommissioner of Taxes,

    Inspectors of Taxes.

    Sources of Income:or the purpose of computation of total income and charging tax thereon, sources of income can be

    classified into / categories, 0hich are as follo0s 1

    2alaries

    Interest on securitiesIncome from house propertyIncome from agricultureIncome from business or profession

    $apital gainsIncome from other sources.

    Tax Rate (Assessment Year- 2014-15:

    ! t h e r t h a n " o m # a n$ :

    or individuals other than female taxpayers, senior taxpayers of 34 years and above, retarded taxpayers

    and ga5etted 0ar-0ounded freedom fighter, income tax payable for the

    irst 6,67,777+- !il

    !ext 8,77,777+- 97:

    !ext ;,77,777+- 94:

    !ext 4,77,777+- 67:

    !ext 87,77,777+- 64:

    #est Amount 87:

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    or female taxpayers, senior taxpayers of age 34 years and above, income tax payable for the

    irst 6,/4,777+- !il

    !ext 8,77,777+- 97:

    !ext ;,77,777+- 94:

    !ext 4,77,777+- 67:

    !ext 87,77,777+- 64:#est Amount 87:

    or retarded taxpayers, tax free income threshold limit is Tinimum tax for any individual assessee living in $ity $orporation area is T=. 8,777>inimum tax for any individual assessee living in %istrict headquater is T=. 6,777

    >inimum tax for any individual assessee living in any other area is T=. 9,777

    !on-resident Individual 87:

    other than non-resident angladeshi(

    % or "o m#a ni es

    ?ublicly Traded $ompany 6/.4:

    !on-publicly Traded $ompany 84:

    an=, Insurance @ inancial $ompany xcept merchant ban=( ;6.4:

    >erchant ban= 8/.4:

    $igarette manufacturing company ;4:

    ?ublicly traded cigarette company ;7:

    >obile ?hone perator $ompany ;4:

    ?ublicly traded mobile company ;7:If any publicly traded company declares more than 87: cash dividend, tax rate 0ould be 6;./4: and if

    declares less than 97: dividend, tax rate 0ould be 84:.

    If any non publicly traded company transfers minimum of 67: shares of its paid-up capital through

    I?Initial ?ublic ffering( it 0ould get 97: rebate on total tax in the year of transfer.

    T ax R e & a te f or i n ' e s t m e nt :

    Rate of Re&ate:Amount of allo0able investment is - actual investment or 87: of total income or T=.

    947,77,777+- 0hichever is less. Tax rebate amounts to 94: of allo0able investment.

    T$#es of in'estment ualifie) for the tax re&ate are :-

    )ife insurance premium up to 97: of the face value.

    $ontribution to ?rovident und to 0hich ?rovident und Act, 9B64 applies.

    2elf contribution and employer's contribution to #ecogni5ed ?rovident

    und.

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    $ontribution to 2upper Annuation und.

    $ontribution up to T< 37,777 to deposit pension scheme sponsored by any scheduled ban= or

    a financial institution.Investment in approved debenture or debenture stoc=, 2toc=s or 2hares$ontribution to enevolent und and &roup Insurance premium

    $ontribution to Ca=at und

    %onation to charitable hospital approved by !ational oard of #evenue%onation to philanthropic or educational institution approved by the &overnment

    %onation to socioeconomic or cultural development institution established in angladesh by Agairpur, 2hishu Dospital, essore

    and Dospital for 2ic= $hildren, 2ath=hira run by shishu s0asthya oundation, %ha=a. 6( %iganta

    >emorial cancer Dospital, %ha=a, 8( The !T and Dead-!ec= cancer oundation of

    angladesh, %ha=a and ;( atiya ?rtibandhi *nnayan oundation, >irpur, %ha=aE

    %onation to %ha=a Ahsania >ission $ancer DospitalE

    %onation to 2ylhet %iabetic 2amity, Islamia ye Dospital and >A Ispahani Institute of

    pthalmology, u=tiudha adughar

    %onation to !ational level institution set up in memory of liberation 0arE%onation to !ational level institution set up in memory of ather of the !ationAny investment by an individual in angladesh &overnment Treasury ondEInvestment in purchase of one computer or one laptop by an individualassessee.

    *ho s ho u l ) s u & m i t I n c o m e Tax R etur n +

    If total income of any individual other than female taxpayers, senior male taxpayers of 34 yearsand above, retarded taxpayers and 0ar 0ounded ga5etted freedom fighter during the income yearexceeds T= 6,67,777+-.

    If total income of any female taxpayer, senior male taxpayer of 34 years and above duringthe income year exceeds T= 6,/4,777+-.

    If total income of any retarded taxpayer during the income year exceeds Tanagement Accountant, ngineer, Architect and 2urveyor etc.

    >ember of a $hamber of $ommerce and Industries or a trade

    Association. Any person 0ho participates in a tender.

    $andidate for ?aurashava, $ity $orporation or ?arliament elections.

    Any company registered under the $ompany Act, 9B98 or 9BB;.Any !on-government organi5ation !&( registered 0ith !& Affairs urea

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    Ti me to Su&mi t Inco me Tax Return:

    % or "o m#a n$ Tax #a$ers

    y fifteenth day of uly next follo0ing the income year or, 0here the fifteenth day of uly falls before

    the expiry of six months from the end of the income year, before the expiry of such six months.

    % or !ther Tax#a$ers

    *nless the date is extended, by the Thirtieth day of 2eptember next follo0ing the income year.

    Time to su&mit return of ,ithhol)in tax94

    thday of ctober, anuary, April and uly

    r extended date up to 94 days by %$T

    2tatement of T%2, $opy of Treasury challan +pay-orders should be submitted 0ith the return

    "onseuences of .on-Su&mission of Return an) Return of ,ithhol)in tax/

    imposition of penalty amounting to 97: of tax on last assessed income subect to a minimum of

    T=. 9,777+-

    In case of a continuing default a further penalty of T=. 47+- for every day of delay.

    "onseuences of usin tae TI.

    %$T can impose a penalty not exceeding T

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    A ## e a l a a i n s t t h e o r ) er o f " T :

    A taxpayer can file an appeal against %$T's order to the $ommissioner Appeals(+Additional or

    oint$ommissioner of Taxes Appeals( and to the Taxes Appellate Tribunal against an Appeal order.

    T ax , it h h o l ) i n f un c t i o n s :

    In angladesh 0ithholding taxes are usually termed as Tax deduction and collected at source. *nder thissystem both private and public limited companies or any other organi5ation specified by la0 are legally

    authori5ed and bound to 0ithhold taxes at some point of ma=ing payment and deposit the same to the

    &overnment xchequer. The taxpayer receives a certificate from the 0ithholding authority and gets credits

    of tax against assessed tax on the basis of such certificate.

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    .o/ 3ea)s *ith hol)in authorit$ Rate "halan inthe name

    1 Salaries S-50S-506:7em&er of

    #erliament

    An$ #erson res#onsi&le for

    main such #a$ment/

    )e)uction at a'erae rate Res#ecti'e

    8one

    2 iscount on the real 'alue of

    6anla)esh 6an 6ills S-50 A

    An$ #erson res#onsi&le

    for main such #a$ment/maximum rate

    9T

    ; Interest on securities 51 An$ #erson res#onsi&le

    for issuin an$ securit$5 e)uction from #a$ment of

    fees= re'enue sharin etc/ &$

    cellular mo&ile #hone o#erator

    See-52O

    The #rinci#al officer of a

    cellular mo&ile #hone

    o#erator

    com#an$ res#onsi&le for

    main such a ment

    10< 9T

    2B Im#ort section 5; The "ommissioner of "ustoms/ (1 500 #er suare meter for

    resi)ential &uil)in or a#artment

    an) TH/1=>00 #er s/ meter for

    haa )ist-8one-5=

    haa "TG)ist-

    8one-4=

    "hittaon!ther

    )istrict-

    Res#ecti'eone

    4; Insurance commission

    section 5;GAn$ #erson res#onsi&le for

    #a$in such commission to

    a resi)ent/

    5< 9T

    44 %ees of sur'e$ors of

    eneral insurance com#an$section 5;GG

    An$ #erson res#onsi&le for

    #a$in such fees to

    resi)ent

    15< 9T

    12

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    4> "ollection of Tax from lease

    of #ro#ert$ Sec- 5;33

    An$ reisterin officerres#onsi&le for reisterin

    an$ )ocument in relation toan$ lease rante) &$ RaCu=

    "A= RA= HA D .3A

    4< haa )ist-"entral

    Sur'e$ 8one=haa "TG

    )ist-

    8one-4="hittaon

    !ther)istrict-

    Res#ecti'e

    one

    4B Interest on )e#osit of #ost officeD sa'in &an account

    section 5;I

    An$ #erson res#onsi&le

    for main such #a$ment/10< haa )ist-

    8one-E= haa

    "TG )ist-

    8one-4=

    "hittaon

    !ther )istrict-

    Res#ecti'e

    one4@ Rental 'alue of 'acant lan)

    or #lant or machiner$section 5;

    The Go'ernment or an$authorit$= cor#oration or &o)$inclu)in its units= the

    acti'ities or an$ .G!= an$uni'ersit$ or me)ical collee=

    )ental collee= enineerincollee res#onsi&le for main

    such #a$ment/

    5< of the rent haa )ist-8one-15=

    haa "TG

    )ist- 8one-4="hittaon

    !ther )istrict-Res#ecti'e

    one

    4E A)'ertisement of ne,s#a#er

    or maaine or #ri'ate

    tele'ision channel or #ri'ate

    ra)io station

    or an$ ,e& site on account of

    a)'ertisement of #urchasin

    airtime of #ri'ate tele'isionchannel or ra)io station or

    such ,e&site/

    section 5;H

    The Go'ernment or an$ other

    authorit$= cor#oration or &o)$

    or an$ com#an$ or an$

    &anin

    com#an$ or an$ insurance

    com#an$ or an$ coo#erati'e

    &an or an$ .G! or an$uni'ersit$ or me)ical collee

    or )ental collee orenineerin collee res#onsi&le

    ;

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    5; i'i)en)ssection 54

    The #rinci#al officer of

    a com#an$/

    Resi)entF non-resi)ent

    6anla)eshi com#an$

    ---------------------------204F2014

    #TA #to 1500 "" "arFee# 15=000F-#to 2000 "" "arFee# ;0=000F-

    #to 2500 "" "arFee# 50=000F-

    #to ;000 "" "arFee# B5=000F-

    #to ;500 "" "arFee# 100=000F-

    7ore than ;500 "" "arFee# 125=000F-

    An$ 7icro&us 20=000F-

    A))itional 50< of the a&o'e rate has to&e #ai) for an$ a))itional car of ee#

    "entral Sur'e$

    8one

    5B 7otor 'ehicle #resum#ti'e tax=

    SR!:1>0F2014

    #TA Rate s#ecifie) in SR! .o/1>0F2014 "entral Sur'e$

    8one

    5@ "aroF 9aunch #resum#ti'e tax=

    SR!:1>2F2014

    #TA Rate s#ecifie) in SR! .o/1>2F2014 haa )ist-8one-5= haa

    "TG )ist-8one-;=

    "hittaon

    !ther )istrict-Res#ecti'e

    one

    15

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    Su&mission of ,ithhol)in tax return1 ?erson 0ho ma=es any T%2 Tax %educted at 2ource(

    on payment, must file a separate return of 0ithholding tax.

    To be submitted at-94

    thday of ctober, anuary, April, ulyE or

    - extended date up to 94 days by %$T. ollo0ing

    document should be annexed 0ith return1

    - 2tatement of T%2- $opy of Treasury $hallans +?ay-rders

    - ?enalty for non-submissionJ 97: onlast assessed tax 0ith minimum T=. 9,777 and T=. 47 per

    day for continuing u+s 96;

    7 aC o r a r e as f or f i n a l s e t t le m e n t o f t ax li a & il i t$ :Tax deducted at source for the follo0ing cases is treated as final discharge of tax liabilities. !o additional tax

    is charged or refund is allo0ed in the follo0ing cases1-

    2upply or contract 0or= 2ec-46(E

    #oyalty, fees for technical services 2ec 46A6(E

    $ommission from clearing @ for0arding $ @ ( agency 2ec 46AAA(E and rolls of handmade cigarettes 2ec-46(E

    $ompensation against acquisition of properties 2ec 46$(E

    The amount received as interest from the amount received as interest from pensioners' savings

    certificate or 0age earners development bond for 0hich tax has been deducted under section46%E

    #ental po0er companies 46!(

    2alaries of foreign technician of %iamond cutting industry 2ec 46(

    International gate0ay service I&K( and Interconnection xchange I$L( in respect

    of international ?hone calls 46#(

    Import of goods, not being goods imported by an industrial underta=ing as ra0 materials for

    its o0n consumption 2ec 48(E 2hipping business of a resident 2ec 48AA(E

    xport of manpo0er 2ec 48(

    xport of certain items such as =nit @ 0oven garments etc( Msec 48N

    Transaction by a member of a 2toc= xchange 2ec 48(E

    Auction purchase 2ec 48$(E

    $ourier business of non-resident 48$$( $ash subsidy 46%%%(E

    #eal estate or land development business 2ec 48(E

    Insurance agent commission 2ec 48&(.

    ?ayment on account of survey by surveyor of a general insurance company 2ec 48&&(E

    Transfer of property 2ec 48 D(

    Income from transfer of securities or mutual fund units by a sponsor share holder 2ec 48>( Income derived from transfer of share of 2toc= xchange on 0hich tax is deducted under

    section 48!E

    Income derived from transfer of share or securities traded in the stoc= exchange for 0hich

    tax is deducted under section 48E

    Kinning of lotteries H2ec 9B98( or 2ec 44.

    mailto:@10%25mailto:@10%25mailto:@10%25
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    T ax R e c o ' e r $ S $s t e m :In case of non-payment of income tax demand the follo0ing measures can be ta=en against a

    taxpayer for reali5ation of tax1-

    Imposition of penalty

    Attachment of ban= accounts, salary or any other payment. iling of $ertificate case to the

    2pecial >agistrate.

    A ) ' a n ce a$ m e n t o f T a x :very taxpayer is required to pay advance tax in four equal installments falling on 94th 2eptemberE 94th

    %ecemberE 94th >arch and 94th une of each year if the latest assessed income exceeds Ta=a four

    la=h. ?enalty is imposed for default in payment of any installment of advance tax.

    Tax i n cent i' es :

    %ollo,in are fiscal incenti'es a'aila&le to a tax#a$er:-I T ax h ol i) a$ : Tax holiday is allo0ed for industrial underta=ing and physical infrastructure facility

    established bet0een 9st uly 6799 to 87th une 679B in fulfillment of certain conditions.

    In)ustrial n)ertain lii&le for Tax holi)a$ :

    a( active pharmaceuticals ingredient industry and radio pharmaceuticals industryE

    b( barrier contraceptive and rubber latexE

    c( basic chemicals or dyes and chemicalsE

    d( basic ingredients of electronic industry e.g resistance, capacitor, transistor,

    integrator circuit(Ee( bio-fertili5erE 0ill get tax holiday even it is set up in distict of %ha=a,

    !arayangan, &a5ipur, $hittagong, introduced in A 6796(

    f( biotechnologyEg( boilersE

    gg( bric= made of made of automatic hybrid Doffmann =iln technologyEh( compressorsEi( computer hard0areE

    ( energy efficient appliancesE=( insecticide or pesticideE

    l( petro-chemicalsE

    m( pharmaceuticalsE

    n( processing of locally produced fruits and vegetablesE

    o( radio-active diffusion( application industry e.g. developing quality or decaying

    polymer or preservation of food or disinfecting medicinal equipment(E

    p( textile machineryE

    q( tissue graftingE or

    r( any other category of industrial underta=ing as the &overnment may, by notificationin the official &a5ette, specify.

    h$sical Infrastructure lii&le for Tax holi)a$:

    a( deep sea portEb( elevated express0ayE

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    1

    c( export processing 5oneE

    d( flyoverEe( gas pipe line,

    f( Di-tech par=Eg( Information and $ommunication Technology I$T( village or soft0are technology

    5oneE

    h( Information Technology IT( par=Ei( large 0ater treatment plant and supply through pipe lineE

    ( )iquefied !atural &as )!&( terminal and transmission lineE

    =( mono-railE

    l( rapid transitEm( rene0able energy e.g energy saving bulb, solar energy plant,

    0indmill(E n( sea or river portE

    o( toll road or bridgeEp( underground railEq( 0aste treatment plantE or

    r( any other category of physical infrastructure facility as the &overnment may, by

    notification in the official &a5ette, specify.

    II !ther xem#tions:

    a( Any service charge derived from operation of micro credit by a non-government organisation registered

    0ith !& Affairs ureau.b( Any voluntary contributions received by a religious or charitable institution and applicable solely to

    religious and charitable purposesEc( Any income accruing to, or derived by, a provident fund to 0hich the ?rovident und Act, 9B64 LIL

    of 9B64(, appliesEd( Any income received by the trustees on behalf of a recognised provident fund, an approved

    superannuation fund or pension fund and an approved gratuity fundE

    e( Income received as pension and gratuityEf( Income from dividend amounting to T=. 67,777E

    g( Income from dividend of a mutual fund or a unit fund up to ta=a 64777Eh( An amount equal to 47: of the income derived from export business is exempted from taxE

    i( Any income, not exceeding t0o la=h ta=a chargeable under the head "agricultural income" of an

    assessee, being an individual, 0hose only source of income is agricultureE

    ( Income from Information Technology nabled 2ervices IT2( or !ation0ide TelecommunicationTransmission !et0or= !TT!( business is exempted up to 87th une, 679BE

    =( Income derived from export of handicrafts is exempted from tax up to 87th une, 6794E

    l( Income of any private Agricultural $ollege or private Agricultural *niversity derived

    from agricultural educational activitiesE

    m( Income derived from any 2mall and >edium nterprise 2>( engaged in production of any

    goods and having an annual turnover of not more than ta=a thirty la=h is exempt from taxE

    n( Income from poultry is exempt from tax up to 87th une, 6794, subect to investing at least 97: ofthe exempted income in the purchase of bond or securities if such income exceeds T=. 9,47,777+-E

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    o( Any profits and gains under the head "$apital &ains" arising from the transfer of stoc=s or 2hares of a

    public company as defined in Oinistry of ducation of the governmentE

    s( Income of an assessee donated in an income year by a crossed cheque to any Technical and GocationalTraining Institute approved by the >inistry of ducation of the governmentE

    t( Income of an assessee donated in an income year by a crossed cheque to any national level institution

    engaged in the #esearch @ %evelopment #@%( of agriculture, science, techonology and industrialdevelopmentE

    (I II xem#tio ns A'a ila&l e fo r o, er Secto r

    ollo0ing income from ?o0er 2ector is fully+substantially exempted from tax1

    i( $oal based private po0er generation companies 0ill enoy full tax exemption for fifteen

    years, if the company sign a contract 0ith the &overnment in accordance 0ith private sector

    po0er generation policy of angladesh 0ithin 87 une, 6767 and started commercial

    production 0ithin 87 une 6798E

    ii( ?rivate po0er generation company 0ill enoy full tax exemption for fifteen years beginning0ith the month of commencement of commercial production if the company starts itscommercial production 0ithin 87 une, 6793E

    iii( ?rivate po0er generation company that starts its commercial production after 87 une, 6793

    0ill enoy the follo0ing tax exemption1

    erio) of Tax exem#tion Rate of Tax

    exem#tionive years beginning fromcommencement of commercial production

    977:

    !ext three years 47:

    !ext t0o years 64:

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    (I O Tax Re&a te fo r 7a nufa cturi n "om#a ni es :

    To ensure sustainable industriali5ation 0ithout disturbing the civic amenitiesE the follo0ing tax rebate

    facilities for the manufacturing industries set up in places other than city corporation areas is given through

    2.#. !o. 9S4-)a0+Income Tax+679;, %ate1 79 uly, 679; as follo0s1

    In)ustries ro#ose)

    Tax

    Re&ate

    erio) of ro#ose) Tax

    Re&ate

    Tax rebate for the manufacturing industries

    commencing commercial operation

    bet0een 9 uly, 679; and 87 une, 679Blocated outside any city corporation area

    67: *p to 97 years next from the

    date of commencing commercial

    operation

    Tax rebate for the manufacturing industries

    shifted+relocated to areas located outside

    any city corporation area and commencingcommercial operation bet0een 9 uly,

    679; and 87 une, 679B

    67: *p to 97 years next from the

    date of commencing commercial

    operation after shifting

    Tax rebate for the manufacturing industries

    already started commercial productionlocated outside any city corporation area

    97: *p to 87 une, 679B

    (O Ta x 3oli )a$ for i n)us trial un)erta i n esta &l is he) in 8:

    According to 2.#. !o. 69B-la0+Income Tax+6796, %ate1 6/ une, 6796, any industrial underta=ings

    set up in ?C on or after 9 anuary, 6796, the follo0ing Tax benefit 0ill be provided1

    a( Industry set up 0ithin %ha=a and $hittagong %ivision except andarban, #angamati and

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    2

    uration of Tax Re&ate Rate of Tax re&ate

    irst three years first, second and third year( 977:

    !ext three years fourth, fifth and sixth year( 47:

    !ext one year seventh year( 64:

    A' oi )ance of o u&le Taxa tio n Areement

    There are agreements on avoidance of double taxation bet0een angladesh and 88 countries 0hich are1-

    9( *nited auritius 87( *nited Arab mirates 89( >yanmar 86( elarus 88(

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    9ist of the "ommissionerQsFGQs (Income Tax *in:

    2l.!o

    !ame of the office !ame of the officer ?hone !o. -mail

    9( 6( 8( ;( 3(

    9 $ommissioner

    Taxes Cone-9,%ha=a

    Cia *ddin >ahmud S836B;;

    S888S44 ?A(

    6 $ommissioner

    Taxes Cone-6,

    %ha=a

    >ir >ushtaque Ali S896;93 m m a li 9 43 J y ahoo.com

    8 $ommissioner

    Taxes Cone-8,

    %ha=a

    >d. )iaquat Ali d. #ustom Ali >ollah B883/SS rustom9B/9Jy ahoo.com

    4 $ommissioner

    Taxes Cone-4,%ha=a

    Dabibur #ahman A=hand B8;383;

    3 $ommissioner

    Taxes Cone-3,

    %ha=a

    >d. >eftah *ddin ohd. Abu Taher

    cho0dhury

    B8;77/4 a b ta h er 6 79 7 Jg m a il .c om

    B $ommissioner

    Taxes Cone-B,

    %ha=a

    >d. Alamgir Dossain /B98//9 alamgir.hossain.36 Jg m a il .com

    97 $ommissioner

    Taxes Cone-97,

    %ha=a

    >d. 2ultan >ahmud B889S69

    99 $ommissioner

    Taxes Cone-99,

    %ha=a

    #o=eya =hatun B43S7S/

    96 $ommissioner Taxes Cone-96,

    >d. !urul Alam B4393BS m na l a m 6/ J ho t m a il .com

    98 $ommissioner

    Taxes Cone-98,%ha=a

    2haheen A=hter S89BB97 s ha h ee n r a n g o n J y ahoo.com

    9; $ommissioner

    Taxes Cone-9;,

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