Changes between Income Tax Bill & Income Tax Act, 2023 are:
1. Savings instruments and debentures issued by the govt included in the definition of government securities, which was missing in the income tax bill. This makes individuals eligible for investment tax rebates, subject to a maximum investment amount of BDT 5,00,000.
2. The inclusion of incentive bonuses in the definition of perquisite. These bonuses will now be considered when calculating the admissible limit of perquisite BDT 10,00,000. Previously, they were excluded from the definition of perquisites in the Income Tax Bill of 2023 and the Income Tax Ordinance of 1984.
3. Partnership firms with a yearly turnover of BDT 3 Core are now obligated to submit audited financial statements. This requirement has been raised from the previous threshold of BDT 2 Core stated in the Bill. Under the Income Tax Ordinance of 1984 submission of audited financial statements for partnership firms was not mandatory.
4. A correction has been made to the wording concerning capital gains from the sale of shares. The updated provision clarifies that a 15% tax should be paid on the difference between the acquisition cost and the fair market value of shares both for private and public non-listed companies.
5. The obligation to submit a statement of assets and liabilities, proposed in the income tax bill as compulsory for individuals personally traveling abroad, has been removed from the Act.
6. The National Board of Revenue (NBR) has been granted the authority to amend schedules of the act, with the condition that such amendments cannot result in an increase in taxes. This condition was not mentioned in the bill.
7. The option to invest undisclosed money in the land has been excluded in the Income Tax Act of 2023, despite being improposed in the Income Tax Bill of 2023. The act permits undisclosed money investments in buildings and apartments only, subject to paying taxes at a specified rate. Also, the rates of taxes have been increased compared to the original bill.
8. The exemption of perquisites in the hands of employees has been revised. Now, either 1/3 of the salary income or BDT 4,50,000, whichever is lower, will be excluded from the calculation of taxable income from salary. This represents a change from the previous provision in the bill, which allowed for an exemption of 2/3 of salary income. Notably, the Income Tax Ordinance of 1984 had separate limits for the exemption of house rent allowance, medical allowance, and conveyance allowance.
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