Income tax practitioner Examination is the most powerful exam with every student, the exam is help to other return submission to achieving the ITP certificate. Here are the some question paper with draft answers for preparation.
Part A: Income Tax Ordinance and Rules [40 Marks]
1. Definitions: (2×5=10)
a. Income: As per Section 2(34) of the ITO, 1984, includes salary, interest on securities, house property income, business/profession income, capital gains, and other sources.
b. Assessee: Any person by whom any tax or any other sum of money is payable under the ordinance.
c. Resident: An individual who stays in Bangladesh for ≥182 days in a year or ≥90 days in a year + 365 days in previous 4 years.
d. Total Income: Aggregated income from all heads after allowing permissible deductions and exemptions.
e. TIN: A unique identification number issued by NBR to a taxpayer.
2. Filing Income Tax Return – Process & Timeline (10)
- Individuals must file returns by 30th November each year.
- Companies must file within 6 months of the end of the income year.
- Submission includes return form (IT-11GA), supporting documents, and audit report (for companies).
- Universal Self-Assessment allowed unless selected for audit.
3. Allowable vs. Inadmissible Expenses: (10)
Allowable:
- Salary, rent, utility, business expenses, depreciation, etc.
Inadmissible: - Personal expenses, capital expenditures, fines/penalties, donations to unapproved funds, etc.
4. Assessment Procedures (Universal Self-Assessment): (10)
- Filed returns treated as self-assessed.
- Selected cases are audited by NBR.
- Amendments can be made under Section 93.
- DCT may call for clarification.
- Assessment must be completed within 4 years.
Part B: VAT Act and Rules [30 Marks]
5. Turnover Tax vs. VAT: (6)
| Feature | VAT | Turnover Tax |
|---|---|---|
| Rate | Standard 15% | 4% or as notified |
| Applicability | Above Tk. 3 crore turnover | Below Tk. 3 crore turnover |
| Input Credit | Allowed | Not Allowed |
6. Tax Invoice: (6)
- Must include seller’s name, BIN, address, date, description, quantity, unit price, and VAT amount.
- Issued electronically under VAT Management System (VMS).
- Recorded both by supplier and buyer.
7. Short Notes: (4×3=12)
a. Input Tax Credit: VAT paid on purchases can be deducted from VAT payable on sales.
b. VAT Deducted at Source (VDS): Government or large organizations deduct VAT from payments and deposit to NBR.
c. VAT Online Return: Monthly VAT returns are filed using Mushak-9.1 online.
d. VAT Rebate: Reclaimable VAT on purchases used for taxable supplies.
8. VAT Registration: (6)
- Mandatory if turnover > Tk. 3 crore/year.
- Apply online with business license, TIN, NID, etc.
- Voluntary registration allowed for input credit.
Part C: Other Relevant Laws & Practical Aspects [30 Marks]
9. Appeal Against DCT’s Order: (6)
- Appeal to Appeal Commissioner within 45 days of order.
- Must file Form IT-30 with fees.
- Further appeal lies with Taxes Appellate Tribunal and High Court Division (on law point).
10. Penalties for Non-Filing/False Return: (6)
- Non-filing: Minimum Tk. 5,000 for individual; Tk. 10,000 for company.
- Incorrect info: Penalty of up to 50% of tax evaded.
- Imprisonment up to 5 years in severe cases.
11. Computation of Total Income & Tax Liability (Model): (12)
Example for Mr. Karim:
- Salary Income: Tk. 6,00,000
- Business Profit: Tk. 4,50,000
- Bank Interest: Tk. 50,000
Total Income: Tk. 11,00,000
Tax Calculation: - First Tk. 3,50,000: Nil
- Next Tk. 1,00,000: 5% → Tk. 5,000
- Next Tk. 3,00,000: 10% → Tk. 30,000
- Remaining Tk. 3,50,000: 15% → Tk. 52,500
Total Tax: Tk. 87,500 (rebates/advance tax adjustments as applicable)
12. Documents Required with Return: (6)
For Individuals:
- IT Return Form (IT-11GA), TIN certificate, bank statement (if applicable), proof of investments, etc.
For Companies: - IT Return, audited accounts, depreciation schedule, supporting schedules, declaration of TDS, etc.
✅ Part A: 50 MCQs (1 Mark Each)
Instructions: Choose the correct answer. (Correct answer marked with bold)
1. Which section defines “Income” in the Income Tax Ordinance, 1984?
a) Section 2(11)
b) Section 2(34)
c) Section 4
d) Section 20
2. The tax-free income limit for male individuals for FY 2023-24 is:
a) Tk. 2,50,000
b) Tk. 3,00,000
c) Tk. 3,50,000
d) Tk. 4,50,000
3. Universal Self-Assessment falls under which section?
a) 80
b) 82BB
c) 83
d) 84
4. Turnover tax applies if annual turnover is below:
a) Tk. 2 crore
b) Tk. 3 crore
c) Tk. 5 crore
d) Tk. 10 crore
5. Which of the following is not a head of income under Section 20?
a) Salary
b) Dividend distribution tax
c) House property
d) Capital gains
6. TIN stands for:
a) Taxable Income Notification
b) Taxpayer’s Identification Number
c) Tax Indemnity Notice
d) Taxation ID Number
7. VAT Act 2012 became fully effective from:
a) 2015
b) 1 July 2019
c) 1 July 2012
d) 1 July 2020
8. Which Mushak form is used for monthly VAT return?
a) Mushak-6.1
b) Mushak-6.2
c) Mushak-9.1
d) Mushak-4.3
9. Advance Income Tax (AIT) on import is treated as:
a) Expense
b) Fine
c) Adjustable Tax
d) VAT
10. Input tax credit is allowed under VAT for:
a) Raw material purchase
b) Staff salary
c) Bank interest
d) Entertainment expenses
11. The person responsible for deducting tax at source is called:
a) Taxpayer
b) Withholding agent
c) Commissioner
d) Assessee
12. Surcharge applies when net wealth exceeds:
a) Tk. 2 crore
b) Tk. 3 crore
c) Tk. 1 crore
d) Tk. 5 crore
13. Minimum tax applies under which section?
a) 74
b) 82C
c) 83
d) 93
14. VAT is applicable on:
a) Only imported goods
b) Value addition at every stage
c) Only retail sales
d) Export of services
15. Which is not admissible under income tax law?
a) Depreciation
b) Business utility bill
c) Personal household expense
d) Factory rent
16. The depreciation schedule is prescribed in:
a) Section 22
b) Section 27
c) Third Schedule
d) Mushak-9.1
17. Which organization manages the income tax law in Bangladesh?
a) Bangladesh Bank
b) National Board of Revenue (NBR)
c) Finance Ministry
d) Bangladesh Securities Exchange Commission
18. For audit exemption, a company must have turnover less than:
a) Tk. 1 crore
b) Tk. 3 crore
c) Tk. 5 crore
d) Tk. 7 crore
19. Mushak-6.3 is used for:
a) Input tax report
b) Export declaration
c) VAT credit against purchase
d) Monthly return
20. Maximum penalty for not maintaining proper accounts under VAT is:
a) Tk. 5,000
b) Tk. 10,000
c) Tk. 50,000
d) Tk. 1,00,000
21. Section 82BB relates to:
a) Tax holiday
b) Wealth surcharge
c) Universal Self-Assessment
d) Refund of tax
22. A person must file return if total income exceeds:
a) Tk. 2,00,000
b) Tk. 3,00,000
c) Tk. 3,50,000
d) Tk. 5,00,000
23. Tax deducted at source from salary is under which section?
a) Section 50
b) Section 52
c) Section 74
d) Section 82
24. Section 52 covers TDS on:
a) Salaries
b) Import
c) Contractor payments
d) Interest
25. Refund of excess VAT is addressed in:
a) Section 46
b) Section 67
c) Section 78
d) Section 80
26. Tax Day in Bangladesh is observed on:
a) June 30
b) November 30
c) April 15
d) July 1
27. Mushak-4.3 is related to:
a) VAT payment
b) Deduction of VAT at source
c) Sale declaration
d) Registration
28. Input VAT adjustment must be done within:
a) 6 months
b) 4 months
c) 3 months
d) 1 year
29. The final appeal lies with:
a) DCT
b) Appellate Tribunal
c) High Court Division
d) Appellate Commissioner
30. Individual return must be submitted by:
a) 30 November
b) 31 December
c) 30 June
d) 15 July
31. Section 19 refers to:
a) Exemptions
b) Salaries
c) Return filing
d) Appeals
32. Audit selection is conducted under:
a) Section 93
b) Section 82
c) Section 84
d) Section 98
33. Mushak-6.2 is for:
a) Sale Invoice
b) Purchase declaration
c) Tax Refund
d) VAT Return
34. Deducted VAT must be deposited within:
a) 15 days of the following month
b) 7 days
c) Same day
d) 10 days
35. VAT on imported goods is assessed based on:
a) Assessable Value
b) Retail Price
c) Wholesale Price
d) Invoice Value only
36. Turnover tax is filed using:
a) Mushak-9.1
b) Mushak-9.2
c) Mushak-9.3
d) Mushak-4.1
37. Advance Tax payment is allowed under section:
a) 53
b) 74
c) 64
d) 82
38. Late filing penalty for companies is:
a) Tk. 2,000
b) Tk. 10,000
c) Tk. 15,000
d) Tk. 5,000
39. Total number of income heads under ITO 1984:
a) 5
b) 7
c) 6
d) 4
40. Minimum turnover to become VAT registered:
a) Tk. 1 crore
b) Tk. 3 crore
c) Tk. 5 crore
d) Tk. 2 crore
41. For VAT purposes, tax invoice is:
a) Mushak-6.3
b) Mushak-9.1
c) Mushak-4.3
d) Mushak-6.2
42. Section 55 of ITO 1984 deals with:
a) Loss carryforward
b) Tax refund
c) Tax on dividend
d) Minimum tax
43. Online VAT return is submitted through:
a) VDS Portal
b) NBR Core Banking
c) VAT Online System (VOS)
d) BB e-portal
44. Supplementary Duty is imposed on:
a) All goods
b) Specified luxury items
c) Imports only
d) Services only
45. EFDs are:
a) Electronic Fiscal Devices
b) Electronic Filing Documents
c) Economic Financial Disclosure
d) Estimation for Duty
46. SD rates are notified under:
a) First Schedule
b) Third Schedule
c) Section 46
d) Mushak 6.1
47. Late filing penalty for individuals:
a) Tk. 10,000
b) Tk. 5,000
c) Tk. 2,000
d) Tk. 1,000
48. Section 45 covers:
a) Loss
b) TDS
c) Capital Gains
d) Surcharge
49. Mushak-6.1 is used for:
a) VAT invoice
b) Return
c) Credit Note
d) Monthly Sales Record
50. SD is calculated on:
a) Assessable Value + CD
b) VAT
c) Import Duty
d) Final Price
🧮 Part B: Practical & Computational Questions (5 × 10 = 50 Marks)
Q1. VAT Calculation from Inclusive Price
A retailer sold products worth Tk. 11,500 (inclusive of 15% VAT).
- Calculate the base value and output VAT.
- Mention the VAT Section and Mushak form used.
Answer:
- Base value = 11,500 / 1.15 = Tk. 10,000
- Output VAT = 11,500 – 10,000 = Tk. 1,500
- Section: VAT and SD Act 2012, Section 49
- Mushak Form: Mushak-6.3 (Credit Purchase), Mushak-9.1 (Return)
Q2. Input-Output VAT Adjustment
A company purchased inputs worth Tk. 5,00,000 plus 15% VAT and sold finished goods worth Tk. 8,00,000 plus 15% VAT.
- Calculate:
a) Input VAT
b) Output VAT
c) Net VAT Payable
Answer:
- Input VAT = 15% of 5,00,000 = Tk. 75,000
- Output VAT = 15% of 8,00,000 = Tk. 1,20,000
- Net VAT Payable = 1,20,000 – 75,000 = Tk. 45,000
- Mushak Form: Mushak-6.3 & 9.1
- Relevant Sections: VAT & SD Act 2012, Section 46, 49
Q3. VAT and Duties on Import
An importer brings in goods with:
- CIF Value = Tk. 2,00,000
- Customs Duty (CD) = 25%
- Supplementary Duty (SD) = 20%
- VAT = 15%
- AIT = 5%
Calculate:
a) Total Duty Paid
b) VAT Calculation Base
c) VAT Amount
Answer:
- CD = 25% of 2,00,000 = Tk. 50,000
- SD = 20% of (CIF + CD) = 20% of 2,50,000 = Tk. 50,000
- VAT Base = 2,00,000 + 50,000 + 50,000 = Tk. 3,00,000
- VAT = 15% of 3,00,000 = Tk. 45,000
- AIT = 5% of 2,00,000 = Tk. 10,000
- Total Tax/Duty Paid = 50,000 + 50,000 + 45,000 + 10,000 = Tk. 1,55,000
Q4. VAT on Services with Input Credit
A consultancy firm charges Tk. 3,45,000 (inclusive of 15% VAT) to a client. It has eligible input VAT of Tk. 25,000.
- Calculate base service value, output VAT, and net VAT payable.
Answer:
- Base value = 3,45,000 / 1.15 = Tk. 3,00,000
- Output VAT = 45,000
- Net VAT Payable = 45,000 – 25,000 = Tk. 20,000
- Mushak Forms: 6.3 (credit note), 9.1 (monthly return)
- VAT Section: 46, 49, 67
Q5. Individual Income Tax Return Exercise
Mr. Rafiq, a resident individual, reports the following for FY 2023–24:
- Salary: Tk. 6,00,000
- House rent allowance: Tk. 1,20,000
- Interest from bank: Tk. 60,000 (10% TDS deducted)
- Investment in DPS: Tk. 1,50,000
- He pays house rent: Tk. 10,000/month
- No other income
Prepare his total income, investment rebate, and tax liability.
Answer:
- Gross Income
- Salary: Tk. 6,00,000
- House Rent Allowance (HRA): Tk. 1,20,000
- Exempt HRA = lower of:
- 50% of Basic (3,00,000),
- Actual = 1,20,000,
- Rent paid – 10% of salary = (1,20,000 – 60,000) = Tk. 60,000
- Exempt = Tk. 60,000
- Taxable HRA = 1,20,000 – 60,000 = 60,000
- Exempt HRA = lower of:
- Interest = Tk. 60,000
Total Income = 6,00,000 + 60,000 + 60,000 = Tk. 7,20,000
- Investment Rebate
- Eligible investment = Tk. 1,50,000
- Max allowable: 20% of TI = 1,44,000 → actual is less
- Rebate = 15% of 1,50,000 = Tk. 22,500
- Tax Calculation
- First 3,50,000 → Nil
- Next 1,00,000 → 5% = 5,000
- Next 2,00,000 → 10% = 20,000
- Next 70,000 → 15% = 10,500
- Total = 5,000 + 20,000 + 10,500 = 35,500
- Less Rebate = 22,500
- Net Tax Payable = 13,000
- Less TDS (bank) = 6,000
- Final Payable = Tk. 7,000