Scope or Source of Income Tax Law

In order to determine income tax on the income of an assessee in Bangladesh,
certain provisions, rules, and regulations are necessary. They are as follows:
9.8.1 The Income Tax Ordinance, 1984: The Income Tax Ordinance, 1984
came into force on 1st July, 1984 as Income Tax Manual, Part-I. It has 23
Chapters, 187 sections, numerous sub-sections, and seven schedules containing
provisions regarding assessment, penalty, appeal, etc. It also lays down the
powers and duties of various income tax authorities.
9.8.2 Income Tax Rules, 1984: Every Act/Ordinance normally gives power
to an authority, responsible for the implementation of the Act/Ordinance to make
rules for carrying out the purpose of the Act/Ordinance. Section 185 of the Income
Tax Ordinance, 1984 has given the power to the National Board of Revenue to
make such rules named Income Tax Rules, 1984
9.8.3 Finance Act: To give effect to the various proposals in the annual
budget covering the areas of direct and indirect taxes, Finance Act is issued. It
contains various applicable tax rates and other amendments of the Income Tax
Ordinance and Rules, 1984.
9.8.4 SRO (Statutory Regulatory Orders): According to the Section 185 of
the Income Tax Ordinance1984, the National Board of Revenue can issues
certain/circulars as and when necessary. The provisions of these SROs are also
to be considered at the time of computing income tax like the provisions of
income Tax Ordinance and Rules.
9.8.5 Judicial Decisions: In the course of assessment proceedings, there may
sometimes arise a dispute between the National Board of Revenue and the
assessed the interpretation of some of the provisions of the Ordinance and
Rules. The assessed can go the court objecting the National Board of Revenue’s
interpretation and the judgments given by the courts act as guidance to the
assessing officers and the assessment in similar circumstances in the future.