THE INCOME-TAX ORDINANCE, 1984

Tax Law & Regulatory Insight

The Income-tax Ordinance, 1984

The Income-tax Ordinance, 1984 was the principal legislation governing the assessment, collection, and administration of income tax in Bangladesh. It served as the country's primary income tax framework for nearly four decades before being replaced by the Income Tax Act, 2023.

Objectives

Establish a comprehensive legal framework for the assessment and collection of income tax.
Generate revenue to support government expenditures and national development initiatives.
Define taxable income, tax liabilities, exemptions, and allowable deductions.
Ensure effective tax administration and promote compliance among taxpayers.
Prevent tax evasion through enforcement and regulatory measures.

Key Features

Classification of taxpayers into individuals, firms, companies, and other taxable entities.
Identification of different heads of income, including salary, business or profession, capital gains, house property, agricultural income (where applicable), and income from other sources.
Comprehensive provisions for tax assessment, filing of returns, payment of taxes, exemptions, rebates, and deductions.
Penalties, interest, and prosecution for non-compliance, tax evasion, and fraudulent practices.
Authority granted to tax officials to conduct investigations, audits, and enforcement actions to ensure compliance with tax laws.

Note: The Income-tax Ordinance, 1984 has since been repealed and replaced by the Income Tax Act, 2023, which now governs income tax matters in Bangladesh.