B Mirror Desk: During Eid, you receive a bonus in addition to your salary and allowances, providing you with extra funds. This may have led you to indulge in shopping for your wife, children, and relatives, resulting in a successful Eid shopping experience. Additionally, you may have distributed cash to several individuals.
It’s important to note that expenses incurred during Eid need to be documented in your income tax filings. These costs should be included in the festival expenses section of your tax documents.
As an individual taxpayer, you are required to submit a statement of living expenses when filing your annual tax return. This statement must detail all festival-related expenses, including those for Eid. When completing your income tax return, you will need to report your living expenses using the IT-10B form, specifically detailing your Eid expenditures in the festival and other special expenses section found in table number 7.
The price of Punjabi has increased by about four lakh taka in shopping malls in elite areas including Gulshan-Banani this Eid. Sarees and jamas worth 40-50 thousand taka are being sold all the time. Punjabis, shirts, and T-shirts worth 10-12 thousand taka are now being bought by many people. Tax officials want to know whether the expenses of these purchases are shown in the income tax documents or not. They also check whether the expenses are in line with their income or not.
Recently, traveling with family or friends in groups during the Eid holidays has become quite popular. If you travel around the country or abroad during the Eid holidays; go on vacation, then you will have to show it in the income tax documents. The expenses of travel and vacation, etc. at your own expense, both domestically and abroad, have to be reported in Table 6 of the IT-10B form.
If you have taxable income, that is, if you earn more than 3.5 lakh taka, it is mandatory to submit a separate form of living expenses statement along with the return you file every year. However, if you are a director of a company, regardless of your income, you will have to submit an expense statement. It is mandatory for company directors to file returns.
Although there are various conditions for mandatory filing of asset declaration, there is no condition for showing living expenses. If you have taxable income of more than 3.5 lakh taka, you have to inform the National Board of Revenue (NBR) about where and how much you spent. Eid expenses are not left out here.
There is a reason behind why you have to show living expenses. The National Board of Revenue (NBR) wants to see how rich you are, how much you earn, how much you spend, what is your social status. Tax officials want to see whether your lifestyle matches your legal income.
In the life history form, in table number 1, you have to provide your personal information and family maintenance expenses. You also have to provide how much your family expenses are. In table number 2, you have to provide accommodation-related information. Even if you get quarters from your own house or your parents’ house or office, you have to write it. If you live in a rented house, you have to write that. You have to calculate and report how much you pay in rent per year. Even maintenance costs (municipal tax, service charges, etc.) should be mentioned.
In table number 3, information on vehicle-related expenses should be given. There, the salary of the driver, monthly fuel and maintenance costs should be given.
In table number 4, all the information on services should be given. The NBR also wants to know how much you paid for the salary and allowance of the domestic worker. Go. Everyone, regardless of landlord or tenant, has to pay electricity, gas, and water bills. All information on garbage removal bills, internet, and dish bills should be given. Even how much you spent on mobile phone recharge should be reported through this table.
In table number 5, how much you spend on your children’s education throughout the year should be reported. Many people work in small jobs, but send their children to fake schools with bribes and corruption money. If they do not show it in their tax documents, tax officials can find them by looking at the names and identities of the school students.
In addition to this, the statement of living expenses must include details regarding tax deductions at source and loans taken at various points during the year.
There is no requirement to report living expenses in the income tax return unless the taxpayer’s annual taxable income exceeds 3.5 lakhs. However, it is necessary to submit an asset statement when filing the return, which comes with specific conditions. If your assets exceed 50 lakhs taka, or if you possess a motor vehicle, own real estate such as an apartment or house, hold shares in a publicly traded company, or are employed by the government, you are obligated to provide an asset statement.
