Computation of Taxable income from salary u/s-21

 

Computation of Taxable income from salary u/s-21 at a glance:

Description	Amount that will be added with salary
1.       Basic Salary	Full
2.       Dearness Allowance	Full
3.       Bonus	Full
4.       Commission and Fees	Full
5.       Advance salary	Full
6.       Arrear salary	Full , provided that it was not taxed in earlier years
7.       Leave Encashment	Full
8.       Approved Pension	Nothing, since fully tax free
9.       Approved Gratuity	Amount exceeding Tk. 2.5 Crore
10.    Annuity	Full
11.    Profit in lieu of salary	Full
12.    Profit in addition to salary	Full
13.    Education allowance for children	Full
14.    Employer’s Contribution to RPF	Full
15.    Employer’s Contribution to Employee’s life insurance policy	Employer’s Contribution to RPF
16.    Entertainment Allowance	Full
17.    Medical Allowance	10% of basic or Tk. 120,000 whichever is lower is exempted. The rest amount will be added with income. However , the limit for disabled employee is Tk. 10,00, 000 with some conditions
18.    Travelling Allowance	Unspent Amount
19.    Special Allowance	Nothing, if given and spent for official purpose
20.    House Rent Allowance	Actual allowance less exemptions of Tk. 25,000 p.m (Annually Tk. 300,000) or 50% of basic salary whichever is less
21.    Rent free Accommodation	Rental Value or 25% of basic whichever is less
22.    Accommodation at concessional rate	Rental value or 25% of basic whichever is less, minus deducted rent.
23.    Conveyance Allowance	Actual amount less exemption of Tk. 30,000 on an annual basis.
24.    Transport/Conveyance Facility	5% of Basic salary or Tk. 60,000 whichever is higher if full time car facility is given. Nothing will be added if it is given only for official purpose.
25.    Interest on RPF	Actual Interest less exempted to the extent of 1/3rd of salary.(here salary means basic and dearness allowance) or @14.5% whichever is less.
26.    Free tea coffee, or light beverage in official premises	Nothing
27.    Free dress, telephone, power, gas, water in office etc.	Full
28.    Servant Allowance	Full
29.    Compensation	Full
30.    Allowance received as head of the department/charge allowance	Fully tax free if it spent for official purpose.[6th Schedule (Part-A) Para-5]
31.    Overtime	Full
32.    Residence telephone bills/utility bills/club bills reimbursed	Full

Return of withholding tax

 

Return of withholding tax

Period of deduction or collection at source	Withholding tax return	Last date of filing
1 July to 31 December	First return	31 January of the relevant financial year
01 January to 30 June	Second return	31 July of the next financial year

 

Time limit for payment of tax deducted at source [Rule – 13]

 

Time limit for payment of tax deducted at source [Rule – 13] Rule – 13 has been replaced amending the time limit for payment of tax deducted or collected at source to the credit of the Government. The amended timeline is stated below –

Time of deduction or collection	Date of payment to the credit of the Government
July to May	Within 2 weeks of the following month
1 June to 20 June	Within next 7 days
21 June to 28 June	Next day
29 June and 30 June	Same Day