The Income Tax Act 2023 Explained: How the Act Is Built, the Sections You Will Meet, What Changed in 2026, and Where Every Guide Fits
The Income Tax Act 2023 (Act 12 of 2023) replaced the Income-tax Ordinance 1984 on 22 June 2023 and is, for the first time, in Bangla. It is long and it is amended every June. This page is the map: how the Act is arranged, the sections a taxpayer actually meets, the rules and forms that hang off it, the official places to read it, and links to our detailed guide on each subject. Bookmark it; we update it with each Finance Act.
- The Act runs to some 345 sections in 25 parts with schedules covering rates, source tax, depreciation and exemptions (we are confirming the exact count after 2026 amendments); the text in force is on bdlaws.minlaw.gov.bd (Act 1429), and the NBR publishes the Bangla text and each year's paripatra.
- Sections to know: 2 (definitions, including resident and করদিবস), 27–30 (scope and heads), 32–66 (computation by head), 76–78 (rebate), 86–140 (tax at source), 163 (final tax, narrowed in 2026), 166–175 (returns), 182–184 (audit and assessment), 264 (the 40-item PSR list), 285–290 (appeals).
- The Finance Act 2026 raised the tax-free limit to Tk 4 lakh, abolished the 5% slab, redefined the tax day, introduced staggered filing rebates and penalties, and ended final tax on land, dividends and certificates.
- Forms: IT-11GA (individual return), IT-11GHA (company), IT-10B (wealth statement), IT-10BB (lifestyle), e-TIN, A-challan; all now filed through etaxnbr.gov.bd.
In this guide: How the Act is organised · What the Finance Act 2026 changed · Rules, SROs and paripatras · Forms you will meet · Official sources · Every tax guide on this site
The short answer
The 2023 Act was drafted to be read by taxpayers, not only by practitioners: it uses Bangla, groups the subject matter logically and attaches the detail — rates, source-tax tables, depreciation, exemptions — to schedules that the annual Finance Act rewrites. The consequence is that a section number is stable but the figure inside it is not; anything on this site that quotes a number says which Finance Act it comes from. Below, the architecture of the Act, then the sections by life-event, then the rules and forms, then the official sources. Each topic links to the guide where we go into it properly.
How the Act is organised
| Part | Covers | Where it bites |
|---|---|---|
| Parts 1–2 (ss.1–31) | Short title, definitions (s.2), charge of tax, scope of total income, residence, heads of income | Residency (s.2(45)); the tax day (s.2(22ক)); what is income |
| Part 5 (ss.32–66) | Computation under each head: employment, rent, agriculture, business, capital gains, financial assets, other sources; deductions and disallowances | Salary exemption, 25% rent allowance, capital-gains rules, disallowed expenses for companies |
| Part 6–7 (ss.67–85) | Set-off and carry-forward of losses; exemptions and tax rebate (s.78) | Investment rebate, loss carry-forward for six years |
| Part 8 (ss.86–144) | Tax deducted and collected at source: salary (86), contractors (89), rent (109), interest (102), dividends (117), non-residents (119), land registration (125), and the collection machinery | Every payer’s monthly obligation; most of the withholding table |
| Part 9–10 (ss.145–165) | Advance tax (s.154), minimum tax (s.163 and the Second Schedule), final tax | Quarterly advance tax; the 2026 narrowing of final tax |
| Part 11–12 (ss.166–181) | Who files, when, what accompanies the return (wealth and lifestyle statements), amended and revised returns | The s.166 list of mandatory filers; ss.167–168 statements; s.171 deadline |
| Part 13–14 (ss.182–220) | Audit selection and processing, assessment, best-judgment assessment, time limits | Audit clock; s.212 notices |
| Parts 15–22 (ss.221–284) | Penalties, interest and prosecution; recovery; refunds; TIN and PSR (ss.261–264); records; transfer pricing (ss.233–246) | Late-filing penalty (s.266); interest (s.174); the PSR list (s.264) |
| Parts 23–25 (ss.285–345) | Appeals (Commissioner (Appeals), Taxes Appellate Tribunal, High Court reference), ADR, miscellaneous, repeal and savings | 45/60/90-day windows and pre-deposits |
Schedules: First (approved funds and schemes), Second (rates and minimum tax), Third (depreciation and amortisation), Fourth (insurance), Fifth (oil, gas and mineral exploration), Sixth (exemptions and exclusions — the most consulted), Seventh and Eighth; the names and numbering have shifted with amendments and we quote them by content rather than number where there is doubt.
What the Finance Act 2026 changed
- Rates and limit: tax-free limit Tk 4 lakh; the 5% slab removed; slabs now 10%, 15%, 20%, 25%, 30%; minimum tax Tk 5,000 (Tk 1,000 for first-time filers). Our rates guide.
- Filing calendar: করদিবস redefined; a 5% rebate (max Tk 25,000) for returns filed by 30 September, neutral to 31 December, then staged penalties through June. Our filing guide.
- Final tax ended for everything except ss.138 and 139 (s.163): land registration, dividends and savings-certificate collections are now credits. Our specific incomes guide.
- Rebate: s.78 stands at 3% of income or 10% of eligible investment, capped at Tk 7.5 lakh of investment. Our rebate guide.
- Compliance: BIN now required for trade-licence renewal (VAT Act s.4(3)); PSR list under s.264 at 40 items. Our PSR guide.
The Finance (2025-26) Act 2026 (Act 89) separately ratified the Finance Ordinance 2025 that governed 2025-26, so two Acts dated 2026 exist; cite them by number.
Rules, SROs and paripatras
Beneath the Act sit the Income Tax Rules 2023 (procedure, forms, record-keeping), the Tax Deducted at Source Rules 2026, which replaced the 2024 Rules as the current withholding instrument (the withholding tables and the s.125 area schedule), and the NBR’s annual paripatra, the explanatory circular that officers follow and that is the best plain-language account of each year’s changes. SROs grant exemptions (ITES and freelancing, economic zones, power projects) and set rates for particular sectors. When a figure on a law firm’s site differs from the Act, the difference is usually an SRO. We keep our research notes by section and will say on each guide which instrument a number comes from.
Forms you will meet
| Form | Who | What |
|---|---|---|
| IT-11GA (e-Return) | Individuals | Annual return; now completed online with schedules for each head |
| IT-11GHA | Companies | Company return with audited accounts and computation |
| IT-10B | Individuals over the thresholds in s.167 | Statement of assets, liabilities and expenses (wealth statement) |
| IT-10BB | Individuals over the threshold in s.168 | Lifestyle (expenditure) statement |
| e-TIN certificate | Everyone | Registration under s.261; obtained online; since 2026 the TIN also serves as the Withholder Identification Number (WIN) |
| A-challan | Payers | Payment of tax into the government account, now generated online |
| Withholding statements | Deducting authorities | Monthly and half-yearly returns of tax deducted (ss.177–178) |
Guides: IT-10B, TIN, A-challan, company return.
Official sources
- Text of the Act: bdlaws.minlaw.gov.bd, Act 1429 (Bangla, sections individually addressable).
- NBR: nbr.gov.bd — Acts, rules, SROs, paripatras and the Finance Act each year; budget pages carry the tariff schedule.
- e-Return and e-TIN: etaxnbr.gov.bd.
- Finance Acts: the Bangladesh Gazette (dpp.gov.bd) and the Finance Division’s budget site.
We do not link to unofficial consolidations. Where the bdlaws text lags a Finance Act — it sometimes does for several months — we say so on the affected guide.
Every tax guide on this site
The Income Tax Act is one of three statutes a Bangladeshi business lives under, with the VAT and Supplementary Duty Act 2012 and the Customs Act 2023. Our guides, by subject:
- Income tax return filing 2026-27
- Zero return: who must file
- TIN certificate: get, check, cancel
- Income tax rates and tax-free limit
- Withholding tax (TDS) rates
- Tax rebate on investment
- Wealth statement (IT-10B)
- A-challan: paying tax online
- VAT registration (BIN)
- Monthly VAT return (Mushak 9.1)
- Mushak 6.3 invoice and VAT books
- VAT rates by sector and VDS
- Company tax return and rates
- Tax notice, audit and appeal
- Customs duty on imports
- IRC and ERC registration
- Trade licence fees and renewal
- Income tax for NRBs and expatriates
- Tax on salary, rent, FDR and land sale
Section opinion
A written opinion on how a section applies to your facts, with the SRO and paripatra position.
Annual update
After each Finance Act, a note for retained clients on what changed for them.
Representation
Before the circle, Commissioner (Appeals), Tribunal and the High Court Division on points of construction.
Training
Half-day sessions for finance teams on withholding, returns and the year's changes.
Common questions
When did the Income Tax Act 2023 come into force?
On 22 June 2023, as Act 12 of 2023, replacing the Income-tax Ordinance 1984.
Is the Income Tax Act 2023 available in English?
The authoritative text is Bangla. The NBR has published an English translation for reference; in a dispute the Bangla text governs.
Where can I read the current Act?
On bdlaws.minlaw.gov.bd (Act 1429) and on the NBR website, together with the Finance Act for the year and the paripatra.
What did the Finance Act 2026 change in income tax?
The tax-free limit rose to Tk 4 lakh, the 5% slab was abolished, the tax day was redefined with staged rebates and penalties, final tax was confined to ss.138 and 139, and the PSR list reached 40 items.
Which sections cover tax deducted at source?
Part 8, ss.86–144: salary (86), contractors and suppliers (89), interest (102), rent (109), dividends (117), non-residents (119), land registration (125), with the rates in the Tax at Source Rules 2024.
What is the paripatra?
The NBR's annual explanatory circular on the Finance Act, which officers follow; it is the clearest account of each year's changes.
What forms does an individual file?
The IT-11GA return (now the e-Return), with the IT-10B wealth statement and IT-10BB lifestyle statement where the s.167 and s.168 thresholds are crossed.
How many sections does the Act have?
Around 345 sections in 25 parts with schedules; we are confirming the exact count after the 2026 amendments.
More in Tax, VAT & Customs
Income tax returns, TIN, VAT and BIN, Mushak forms, customs duty and what to do when NBR sends a notice.
A section you need read against your facts?
We give written opinions on the Act, with the SRO and paripatra position, at a fixed fee. A written assessment costs nothing.
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